Conference Call with Indian Hotels Company Management and Analysts on Q2FY24 Performance and Outlook. Listen to the full earnings transcript.
Indian Hotels Company announced Q2FY24 results: 1. Revenue Growth: - IHCL reported a revenue of Rs 1,481 crore, marking an 18% YoY growth. - The company generated a system-wide revenue of Rs 2,687 crore, reflecting the successful execution of its strategy. 2. EBITDA Performance: - EBITDA stood at Rs 402 crore, showing a growth of 26% compared to the previous year. - IHCL achieved an EBITDA margin expansion of 180 basis points. 3. Profitability: - Profit after tax (PAT) reached Rs 167 crore, representing a 37% YoY growth. 4. Industry Outlook: - IHCL's performance was driven by India's economic momentum and higher consumer spending. - The company remains well-positioned for a strong second half of the financial year. 5. Expansion and Development: - IHCL opened 8 hotels and signed 17 more in H1FY24, maintaining an industry-leading pipeline of 82 hotels. - The brand portfolio spans across 125+ locations. 6. Recognition and Awards: - IHCL was honored with the 2023 International Centre for Responsible Tourism (ICRT), India Foundation Responsible Tourism Award for "Best for Tackling Plastic Waste." - The company also received the prestigious Golden Peacock Award for Risk Management 2023. Commenting on the Q2FY24 performance, Puneet Chhatwal, Managing Director & CEO, IHCL, said, “Driven by consistent double-digit growth, IHCL generated a system-wide revenue of Rs 2,687 crore – 1.8X of our consolidated revenue. This reflects the successful execution of our strategy to build a balance between owned/leased and managed hotels and leverage the diversified brand portfolio across 125+ locations.” He added, “We opened 8 hotels and signed 17 more in the first half of the fiscal thereby maintaining an industry-leading pipeline of 82 hotels. India’s economic momentum coupled with higher consumer spends augurs well for the industry. Business on the books remains strong and the company is well positioned for the traditionally stronger second half of the financial year.” Giridhar Sanjeevi, Executive Vice President and Chief Financial Officer, IHCL said, “Q2 performance was significantly enabled by the domestic market as seen in IHCL’s standalone revenue of Rs 949 crore, a growth of 23% over the previous year and a healthy EBITDA margin of 34.7%.” He added, “Despite ongoing product upgrades, we expanded margins at the standalone and consolidated levels by 410 and 180 basis points respectively. This was the result of a continuous focus on optimizing cost and revenue flow-throughs. IHCL consolidated recorded healthy cash and cash equivalents of Rs 1,395 crore as of September 30, 2023.” Result PDF