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Indian Hotels Company Ltd on Thursday reported a more than three-fold rise in its consolidated net profit to Rs 582.71 crore for the second quarter of 2024-25, helped by strong demand and exceptional gains from the consolidation of its air and institutional catering business segment TajSATS.
The country’s largest hospitality firm had registered a net profit of Rs 178.97 crore in the year-ago period, according to a regulatory filing.
Tata Sons owns the Indian Hotels Company Limited (IHCL).Noel Tata is the chairman of Tata Trusts, the philanthropic arm of the Tata Group, and he is also a member of the board of Tata Sons, the group company that owns Indian Hotels Company.
Its revenue from operations increased to Rs 1,826.12 crore in the June-September quarter from Rs 1,433.20 crore in the corresponding quarter of the last financial year. However, during the period under review, IHCL’s expenses also rose to Rs 1,502.01 crore, as against Rs 1,248.68 crore a year ago.
Puneet Chhatwal, Managing Director & CEO, IHCL, said, “The second quarter witnessed a strong revival of demand resulting in overall revenue growth of 28 per cent and 16 per cent growth for the hotel segment, marking the best ever Q2 Consolidated EBITDA margin at 29.9 per cent.
“For FY2025, we continue to maintain guidance of double-digit revenue growth led by the sustained growth in new businesses, not like for like growth and healthy same-store performance. This is reflected in a strong 16.5 per cent growth in consolidated hotel segment revenue in October which is set to accelerate in the remaining months of Q3”.
He further shared that IHCL will manage the landmark hotel The Claridges, New Delhi in April 2025 under a hotel operating agreement. In addition, IHCL has entered into definitive agreements to acquire majority share-holding in Tree of Life brand holding company, expanding its brandscape with a boutique leisure offering.
Talking with PTI, Chhatwal said IHCL will keep signing and opening new properties and this financial year the company will open 25 hotels. “So the signings will keep happening at a similar pace….We will have 25 openings for the full fiscal year, of which we have already opened 14,” he added.
The second quarter is usually the weakest among all the quarters for the hospitality sector, especially in India, and the third quarter is the strongest, he further stated.
“See Q2 is in our sector, especially in India, is the weakest and Q3 is the strongest. So Q3 is number 1, Q4 is number 2, Q1 is number 3 and Q2 is number 4 in order of contribution from revenue and profitability in the sector. This is one of those historic moments where Q2 has done so well because it is coming after the elections and excessive heat,” he added.
“Our growth is phenomenal. We are opening more than 2 hotels a month. And we believe that we will continue to keep growing in the same manner in the top line and also maintain or even grow further our margins,” he said.
(With inputs from PTI)
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