Shares of Indian Hotels Company (IHCL) moved higher by 4 per cent to Rs 232.85 on the BSE in Monday’s intra-day trade after the India’s largest hospitality company unveiled its route map for profitable growth.
In the past three months, IHCL has outperformed the market by surging 15 per cent, as compared to 5 per cent decline in the S&P BSE Sensex. It had hit a record high of Rs 269 on May 4, 2022.
Under ‘Ahvaan 2025’ plan, IHCL will re-engineer its margins, re-imagine its brandscape, and restructure its portfolio. The company aims to build a portfolio of 300 hotels, clock 33 per cent earnings before interest, taxes, depreciation, and amortization (Ebitda) margin with 35 per cent EBITDA share contribution from new businesses and management fees by FY25-26, Tata Group company said in press release.
“Continuing its growth momentum, IHCL signed over 100 hotels and opened over 40 hotels in the past five years, making it the fastest growing hospitality company in India. Ahvaan 2025 will further accelerate IHCL’s profitable growth by scaling its diversified brand portfolio across its traditional and new businesses,” said Puneet Chhatwal, Managing Director and Chief Executive Officer, IHCL.
For January-March quarter (Q4FY22), the company had reported a consolidated net profit of Rs 71.57 crore as against a consolidated net loss of Rs 97.72 crore in the same period of the previous fiscal. It posted consolidated revenue of Rs 872.08 crore during the quarter as against Rs 615.02 crore in the year-ago period. Its annual losses crimped to Rs 265 crore from Rs 796 crore in fiscal 2020-21.
Despite the third wave’s impact in January 2022, the company posted its highest ever Ebitda margin of 25.3 per cent. Higher demand in the Leisure segment as well as a recovery in business travel has driven overall growth on a YoY basis.
“Business outlook is positive with April and May trending ahead of 2019. Our industry leading pipeline along with scaling up of high margin new business like Ginger, amã Stays & Trails and Qmin will provide further impetus,” said Chhatwal had said in a statement.