Conference Call with Indian Hotels Company Management and Analysts on Q1FY25 Performance and Outlook. Listen to the full earnings transcript.
Indian Hotels Company announced Q1FY25 results: Financial Highlights: Revenue: Rs 1,596 crore, up by 5% YoY EBITDA: Rs 496 crore, up by 8% YoY EBITDA%: 31.0%, up by 0.7 percentage points PAT: 248 crore, up by 12% Performance highlights: Outperformed the industry on domestic same store RevPAR with a premium of 60% vs competition. New Businesses vertical comprising of Ginger, Qmin, and amã Stays & Trails reported a revenue of Rs 162 crore, a growth of 37% over the previous year. The Reimagined Businesses of TajSATS and The Chambers (membership fee) reported a revenue of Rs 274 crore, a growth of 17% over the previous year. Management Fee income stood at Rs 114 crore, 17% over the previous year, in line with capital light growth strategy IHCL continues to demonstrate industry leading growth with 16 hotels signed and 6 hotels opened. The recent signings are well represented across all brands with 6 Taj, 2 each of SeleQtions, Tree of Life and Ginger, 1 Vivanta and 3 under the reimagined Gateway brand. In Q1, IHCL opened 6 hotels with a SeleQtions hotel in Mahabaleshwar, Vivanta in Jamshedpur, a Ginger in Nagpur and Jamshedpur and Tree of Life resorts in Gangtok and Srinagar Commenting on the quarter’s performance, Puneet Chhatwal, Managing Director & CEO, IHCL, said, “IHCL consolidated reported a strong financial performance for the first quarter with an all -time high revenue of Rs 1,596 crore and a healthy EBITDA margin of 31%. Our performance was enabled by a diversified top line, with new businesses growing at 37% over the previous year and incremental revenues from the not like for like growth. Continuing the growth momentum our portfolio is now over 325 hotels with 16 signings and 6 openings in the quarter.” He added, “With demand continuing to outpace supply and favourable structural tailwinds, the sector is set to clock strong revenue growth in the quarters ahead.” Ankur Dalwani, Executive Vice President and Chief Financial Officer, IHCL said, “IHCL Consolidated grew operating revenue by 6% and RevPAR outperformed the industry with 60% premium on a same store basis for domestic hotels. On the back of strong cost focus, IHCL’s operating EBITDA margins expanded by 210 and 100 basis points on Standalone and Consolidated basis respectively leading to a Consolidated PAT growth of 12%. IHCL’s healthy operating cash flows, resulted in a gross consolidated cash balance of Rs 2,091 crore as on 30th June 2024 with free cash flows generated in the quarter at 3x of Q1FY24.” He added, “In line with our strategy of simplification, IHCL has secured approval to execute an amendment to its Shareholder Agreement with our partner, SATS Singapore, enabling a consolidation of Taj SATS results on a line-by-line basis as a subsidiary as opposed to equity accounting consolidation.” Result PDF