The Indian Hotels Company Limited (IHCL) reported its consolidated financials for the second quarter ending September 30th, 2024.
Key consolidated financial results for Q2 and H1 FY 2024-25
| Q2 YoY Performance (Post Tajsats Consolidation) | |||
| Revenue ↑ 28% | EBITDA ↑ 40% | EBITDA % ↑ 2.7pp | PAT ↑ 232% |
| ₹ 1,890 Cr | ₹ 565 Cr | 29.9 % | ₹ 555 Cr** |
| Q2 YoY Performance (Pre Tajsats-consolidation as a subsidiary) | |||
| Revenue ↑ 16% EBITDA ↑ 30% EBITDA % ↑ 3.3pp PAT ↑ 48% ₹ 1,722 Cr ₹ 524 Cr 30.5 % ₹ 247 Cr | |||
| H1 YoY Performance* | |||
| Revenue ↑ 16% | EBITDA ↑23% | EBITDA % ↑ 1.7 pp | PAT ↑ 106% |
| ₹ 3,486 Cr | ₹ 1,061 Cr | 30.4% | ₹ 803 Cr** |
*Post TajSATS consolidation; **Including one-time exceptional gain of INR 307 Cr on account of TajSATS consolidation
Puneet Chhatwal, Managing Director and CEO of IHCL, said, “The second quarter witnessed a strong revival of demand resulting in overall revenue growth of 28% and 16% growth for the hotel segment, marking the best ever Q2 Consolidated EBITDA margin at 29.9%.
“For FY2025, we continue to maintain guidance of double-digit revenue growth led by the sustained growth in new businesses, not like-for-like growth and healthy same-store performance. This is reflected in a strong 16.5% growth in consolidated hotel segment revenue in October which is set to accelerate in the remaining months of Q3.”
He added, “IHCL has achieved a record signing of 42 hotels resulting in an industry-leading portfolio of 350 hotels and met its market guidance of opening two hotels a month with 14 new hotel openings to date. IHCL will manage the landmark hotel The Claridges, New Delhi, in April 2025 under a hotel operating agreement. In addition, IHCL has entered into definitive agreements to acquire a majority shareholding in Tree of Life brand holding company, expanding its brandscape with a boutique leisure offering.”
| Delivers record Q2 financial performance |
| -Double-digit RevPAR performance across all brands with domestic same-store hotels delivering a 12% growth in Consolidated RevPAR with a premium of 66% vs competition across the enterprise. -International consolidated portfolio reported an occupancy of 75% (up 600 basis points), resulting in a RevPAR growth of 10%. -Management Fee income grew by 15% to INR 100 crores on the back of not like-for-like growth. |
| Expansion momentum continues till date |
| -IHCL signed 42 hotels which included 12 Taj hotels, three of which are in international markets of Bahrain and Thimpu, Three each in SeleQtions and Vivanta, Five under Tree of Life, Nine under the newly reimagined Gateway and 10 under Ginger. -Further to receiving key approvals, IHCL’s greenfield projects – Aguada Plateau, Goa and Shiroda, Maharashtra are set for a timebound development of these marquee hospitality assets. -IHCL opened 14 new hotels taking the total operating hotels to 232 across brands with a Taj in Patna, a Gateway in Bekal and a Vivanta in Jamshedpur including SeleQtions in Thimpu and Mahabaleshwar and three Tree of Life resorts and six Ginger hotels. |
| New businesses and reimagined businesses – Q2 performance |
| -The Air & Institutional Catering business segment (TajSATS) clocked a revenue of INR 254 crore, 19% growth over the previous year and a sustained EBITDA margin at 24%. -New Businesses vertical comprising Ginger, Qmin, and amã Stays & Trails reported an enterprise revenue of INR 173 crores, a growth of 42% and consolidated revenue of INR 143 crores, a growth of 47%. -Enterprise Revenue of Ginger exceeded INR 150 crore with a strong EBITDAR margin of 42% and a portfolio of 100 hotels with 70 in operations. -Qmin has grown to 52 outlets and amã Stays & Trails has reached a portfolio of 227 bungalows with 116 in operations. |
| ESG+ framework of Paathya |
| -IHCL now uses 38% of energy from renewable sources and has installed 336 EV charging stations. -Continuing its journey of eliminating single-use plastic, IHCL installed 55 bottling plants and achieved 45% + recycling of water used. -Bridging the employability gap in the industry, IHCL has partnered with 37 skill centres across 15 states in India. |
Ankur Dalwani, Executive Vice President and Chief Financial Officer of IHCL, said, “In Q2, IHCL Consolidated for the hotel segment reported a strong EBITDA margin of 30.5%, a 330-basis point expansion, led by double-digit revenue growth and sustained operational leverage. IHCL Standalone reported an all-time high revenue of INR 1,125 crores, a year-on-year growth of 19% and an EBITDA margin of 38.6%, an expansion of 390 basis points. Reflective of a strong balance sheet, the gross cash position for IHCL Consolidated as of 30th September 2024 stood at INR 2,460 crores.
He added, “In line with our strategy of simplifying the holding structure, TajSATS is fully consolidated in IHCL for 2 months in Q2. IHCL Consolidated PAT grew 48% on a year-on-year basis to INR 247 crores, excluding an exceptional item of INR 307 crores on account of this consolidation.”
