Taj Hotels-parent IHCL’s consolidated net profit jumps 30% in April-June
- IHCL's outlook for the upcoming quarters remains strong with the pace of demand driven by domestic consumption momentum, global events, and revival of international arrivals
New Delhi: The Indian Hotels Company Ltd (IHCL), the company that owns Taj Hotels and other businesses like Taj SATS and Ama Stays, on Thursday reported a 30% jump in its consolidated net profit to ₹236 crore in the April-June quarter.
The company reported revenue from operations for the quarter ended June at ₹1,466.37 crore, up 15% over the same period in FY22. IHCL includes its international hotel portfolio in its consolidated filings.
On a standalone basis, the business has grown 16% with revenue from operations for the quarter at ₹890 crore. The company reported a standalone profit of ₹188.21 crore versus ₹147.44 crore in the same quarter last fiscal.
“IHCL ended the first quarter with a strong performance led by a double-digit revenue growth. We signed 11 and opened five new hotels across brands. With our footprint across 125 locations, we will leverage the buoyancy in India’s travel and tourism sector. The outlook for the upcoming quarters remains strong with pace of demand driven by domestic consumption momentum, global events, and revival of international arrivals,” Puneet Chhatwal, managing director and CEO of the company said in a statement.
The company added that it had a focus on profitability and cash flows which resulted in its consolidated business reporting a steady Ebitda (earnings before interest, taxes, depreciation, and amortization) margin of 30%. It said it had net cash of ₹889 crores as on June 30. In Q1, it commenced capital investments for renovation and upgrading select hotels in its portfolio.
Last week, Mint reported the developer of Manohar International Airport at Mopa in North Goa and IHCL had signed an agreement to build a Ginger Hotel at a plot earmarked for the purpose. GMR Goa International Airport Ltd (GGIAL) has tied up with Indian Hotels Co. Ltd (IHCL) subsidiary Roots Corp. which owns and operates the budget brand Ginger hotels for the first hotel.
Meanwhile, Indian Hotels said that one of its subsidiaries will purchase 100% equity of Pamodzi Hotels PLC -- presently a listed company in Zambia -- from Tata International Singapore PTE Ltd for ₹122.8 crore.
Currently, 90% equity of Pamodzi Hotels PLC is owned by Tata International Singapore PTE Ltd. According to the details, the purchase consideration is to be paid to Tata International in 3 tranches -- 15% upon execution of sale purchase agreement, 40% after 12 months and balance 45% after 24 months.
"Pamodzi Hotels PLC has long term lease hold rights for Taj Pamodzi, Zambia - a luxury hotel in Lusaka city, Zambia. The Company presently operates this hotel under a Hotel Operating Agreement entered between the Company and Pamodzi Hotels Pie," Indian Hotels said in an exchange filing.
The term sheet will have validity of 18 months, and upon Tata International achieving delisting during this period, both IHCL and Tata International will engage to finalise the share purchase agreement for transaction closure within 90 days from the date of delisting.
Indian Hotels shares ended at ₹385 on the BSE on Thursday, down 1.4% from the previous close.
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Business NewsCompaniesCompany ResultsTaj Hotels-parent IHCL’s consolidated net profit jumps 30% in April-June
First Published:27 Jul 2023, 06:23 PM IST
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