Mumbai: Q4 profit of Indian Hotels Co. Ltd, which runs the Taj group of hotels, surged 70.4% jump to Rs79.3 crore on the back of improved sales growth during the period, the Tata group firm said in a stock exchange filing on Friday.
Indian Hotels’ total income increased by 8.9% to Rs1,164.02 crore as against the same period last year. The strong profit growth has also been helped by a robust performance by its associates and joint ventures.
According to its filing with the BSE, share of profit of Indian Hotels’ associates and joint ventures rose 53% to Rs22.37 in the March quarter from Rs14.58 crore recorded in the year-ago period.
For the financial year 31 March (FY18), the company’s net profit stood at Rs103.52 crore while it had a loss of Rs45.60 crore in the previous fiscal. During the reporting year, Indian Hotels posted a 2% increase in its total income to Rs4,165.28 crore.
“We delivered a stellar performance on improved profitability and growth in FY18. With a sharpened brandscape and continuous focus on growth, we are confident of consolidating our position of being the most iconic and profitable hospitality company in South Asia," Puneet Chhatwal, managing director and chief executive at Indian Hotels, said in a statement.
In February 2018, Chhatwal, who took over as Indian Hotels CEO in November 2017, launched a comprehensive five-year business strategy, “Aspiration 2022".
“The strategy aims to strengthen market leadership and achieve transformative growth leading to greater profitability. Key tenets of the plan include unlocking value from efficiencies in scale and simplifying the holding structure for greater profitability," the company said.
In an interview with Mint Lounge Chhatwal said Indian Hotels aims to achieve a revenue of $100 million (around Rs677 crore) in the next two years driven by its “mid-market and upscale properties" and not by its luxury hotels. He plans to scale up its budget hotel Ginger brand from 40 hotels to “200, 300 or 400 hotels".
On Friday, shares of Indian Hotels remained unchanged at Rs137.10 on the BSE, while Sensex was up 0.76% at 34,924.87 points from the previous close.