Conference Call with Indian Hotels Company Management and Analysts on Q3FY24 Performance and Outlook. Listen to the full earnings transcript.
Indian Hotels Company announced Q3FY24 & 9MFY24 results: Consolidated Q3FY24: Revenue: Rs 2,004 crore, a 15% increase year-over-year (YoY). EBITDA: Rs 772 crore, up by 18% YoY; boasting an EBITDA margin of 38.5%. Profit After Tax (PAT): Rs 452 crore, marking an 18% growth YoY. Consolidated 9MFY24: Revenue: Rs 5,000 crore, displaying a 16% rise YoY. EBITDA Margin Increase: Improved by 1.0 percentage point (pp) to 32.7%. Profit After Tax: Achieved Rs 841 crore, witnessing a 25% augmentation YoY. Operational Highlights: Room Revenue Growth: 21% increase, propelled by heightened Room Revenue. RevPAR Dominance: Secured a 70% RevPAR premium versus competition. Occupancy Rate: International portfolio occupancy stood at 70%, leading to a 9% RevPAR increase YoY. Expansion and Growth: New Hotels Signed: 28 hotels added to the signing docket. Hotel Openings: Successfully opened 16 hotels during the fiscal year. Milestone Achievement: Celebrated the operation of IHCL's 200th hotel. New and Existing Markets: Forayed into new regions and strengthened presence in existing ones, expanding to over 130 locations. New Business Verticals and Management Fees: Revenue Generation: New Business vertical brought in Rs 420 crore in revenue. Growth Metrics: Observed a 33% revenue growth, which is double compared to IHCL's overall growth of 17%. Contribution to Enterprise Revenue: New Business now constitutes 11.1% of IHCL's total revenue, up by 130 basis points. Management Fee Income: Grew by 13% year-over-year, reaching Rs 134 crore. Awards and Recognitions: World's Finest Luxury Grand Palaces: Taj won at '101 Executive Summit', Germany. Golden Peacock Awards: Received the HR Excellence Award for 2023 and the Award for Risk Management 2023. TripAdvisor Travelers' Choice: Rambagh Palace, Jaipur, ranked as the World's No. 1 Hotel. Commenting on the Q3FY24 performance, Puneet Chhatwal, Managing Director & CEO, IHCL, said, “IHCL reported an all-time high consolidated Q3 EBITDA margin of 38.5% and PAT margin of 22.6%, marking seven consecutive quarters of record financial performance. This robust performance was enabled by same-store hotels clocking RevPAR premium across markets and segments, the strong performance of not like-for-like growth, and the scaling of new businesses.” He added, “IHCL continues to demonstrate industry-leading growth with 28 hotels signed and 16 hotels opened this fiscal with a portfolio of 285 hotels including a pipeline of 85 hotels. This year marks the momentous occasion of reaching the 200th operating hotel milestone and the successful launch of 371 keys flagship Ginger at Mumbai Airport, presenting a vast potential to scale the Ginger brand. IHCL with its well-established brands, vast footprint across 130+ locations, and a healthy balance sheet, is well placed to leverage this sustained demand upcycle the sector is witnessing.” Giridhar Sanjeevi, Executive Vice President and Chief Financial Officer, IHCL said, “Q3 saw a stellar performance led by the domestic market as seen in IHCL’s standalone revenue of Rs 1,323 crore, a growth of 22% over the previous year and EBITDA margin of 45.4% which is a 290-basis points expansion. IHCL’s consolidated results also demonstrated a strong performance with an Operating EBITDA margin of 37.3%, an expansion of 190 basis points, reflective of high revenue flow through.” He added, “On a year to date basis IHCL consolidated reported an all-time high revenue of Rs 5,000 crore, an EBITDA margin of 32.7% in line with the guidance of Ahvaan 2025, and maintained healthy cash and cash equivalents of Rs 1,810 crore as on 31st December 2023.” Result PDF