Indian Hotels Company Ltd (IHCL), which runs Taj chain of luxury hotels, on Tuesday posted a 50.9% jump, year on year, in its net profit to ₹170.03 crore in the quarter ended December 31, helped by healthy revenue growth.
In a filing with the BSE, the Tata group firm recorded a net profit of ₹112.61 crore in the third quarter of 2017-2018. During the reporting quarter, IHCL posted revenue of ₹1,323.45 crore, up 10.53% from the year-ago period.
“The company delivered a strong performance in the third quarter of this current fiscal. We saw double digit growth in revenues, robust increase in EBITDA margins of 150 basis points and profit after tax (PAT) growth of 50%," said Puneet Chhatwal, managing director and chief executive officer, IHCL, in a statement.
The company said 2018 has been a significant year for IHCL. Last year, the company retained its marquee Taj Mahal hotel in New Delhi after a prolonged legal fight with New Delhi Municipal Council (NDMC). It also renewed a long-term agreement for Taj Lake Palace in Udaipur apart from winning the bid for The Connaught in Lutyens’ Delhi.
During the current financial year, IHCL also signed 20 hotels totalling over 2,500 rooms in key cities such as London, Dubai, Makkah, New Delhi and Kathmandu.
“This is the third consecutive quarter of strong results in the current financial year, which is an outcome of increase in revenues and leveraging operational efficiencies; while maintaining a healthy growth in ARR over the market, " said Giridhar Sanjeevi, executive vice-president and chief financial officer, IHCL.