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Indian Hotels Q4 PAT climbs 27% YoY to Rs 418 cr

25-Apr-24 12:00 Hrs IST

Revenue from operations increased 17.22% YoY to Rs 1,905.34 crore in Q4 FY24 as compared with Rs 1,625.43 crore in Q4 FY23. The said growth was led by a 19% growth in Room Revenue and 12% in Food & Beverage.

Profit before tax jumped 33.67% YoY to Rs 534.69 crore in Q4 FY24.

EBITDA stood at Rs 706 crore in Q4 FY24, registering the growth of 25% as compared with Rs 565 crore in Q4 FY23. EBITDA margin 36.2% in Q4 FY24 as against 34.1% in Q4 FY23.

Enterprise revenue for the year stood at Rs 13,090 crore, a 19% growth over the previous year with a 80% share from the domestic business.

Management fee income grew by 18% over the previous year at Rs 470 crore reflective of IHCL?s assetlight strategy.

On FY24 basis, the company?s net profit jumped 25.58% to Rs 1,259.07 crore on 16.5% increase in revenue from operations Rs 6,768.75 crore in FY24 over FY23.

Meanwhile, the company?s board has declared a dividend of Rs 1.75 per share.

Puneet Chhatwal, managing director & CEO, IHCL, said, ?IHCL achieves its key goals under Ahvaan 2025 well ahead of time with a full year consolidated EBITDA margin of 33.7%, a portfolio of 300+ hotels and a cash position of INR 2,206 crores. Q4 FY24 marked eight consecutive quarters of record financial performance driven by double-digit revenue growth in same store hotels, incremental revenue from not like for like hotels and scaling of new businesses. With 53 signings in FY2024 IHCL achieved a portfolio of 310 hotels, enabled by attaining scale in each of our brands and forming strategic alliances in new market segments.

Investing in our competitive advantage of optimising the balance between operating leverage and fee-based business, IHCL has commenced a five-year capital deployment plan from FY2023 to FY2027 totalling INR 3,500 crores towards key asset upgradation, building capabilities and select new projects. This includes strengthening of our digital capabilities with new brand website launches starting May 2024, implementation of a new ERP system and Data Lake for advanced analytics with AI/ML capabilities.

Looking ahead at FY2025, IHCL will continue to deliver double digit revenue growth with new businesses at 30%, and opening of 25 hotels. IHCL will also introduce the re-imagined Gateway, a full-service hotel offering in the upscale segment, an ideal fit to capture growth opportunities in emerging micro markets in metros and Tier II and Tier III cities. The brand roll-out starting with 15 hotels will commence with launches in Bekal and Nashik this quarter followed by destinations like Bengaluru, Thane and Jaipur. The brand will scale to a 100 hotels portfolio by 2030.?

Giridhar Sanjeevi, executive vice president and chief financial officer, IHCL said, ?The resilience of our business model over eight consecutive quarters is reflective of robust fundamentals of a diversified topline, a balanced portfolio, prudent capital allocation and a sharp focus on driving operating flow thorough.

The buoyancy of domestic demand drove a 20% growth in IHCL?s standalone revenue at Rs 4,590 crore, EBITDA margin of 41.3% an expansion of 200 basis points leading to a record PAT of Rs 1,095 crore.?

Indian Hotels Company Limited (IHCL) and its subsidiaries bring together a group of brands and businesses that offer a fusion of warm Indian hospitality and world-class service.

The scrip fell 4.71% to Rs 579.60 on the BSE.