Indian Hotels Company Q4 Results: Revenue at ₹1,951 Cr, up 18% YoY

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Synopsis:

Indian Hotels Company Q4 results were released on 24 April 2024 displaying a very optimistic picture of Q4 and the fiscal FY2023-24. The hotel giant and one of the prime companies of the Tata Group declared its best-ever Q4 and FY performance with Revenue, EBITDA, and PAT all growing by 17%, 20%, and 26%, respectively, Read more... for the fiscal year. For Q4, Revenue was up 18% and PAT was up 27%, with EBITDA up 25%. Along with these three important metrics rising for the quarter and the fiscal year, the EBITDA Margin stood at 33.7% for FY2023-24. Continuing its positive result journey, the Company has shown robust Return Ratios since 2018 till date, with RoCE up 3x, RoE up 7x, and EPS up 11x. Commanding a healthy market leadership Industry Premium of 65%, the Company is strategically poised in the hospitality sector as it has achieved its Ahvaan 2025 targets well in advance. Read less

Introduction

One of the most popular hotel chains in the world, Indian Hotels Company was always set to go places from its inception, and with this Q4 FY2023-24 and FY2023-24 result it has gone way ahead of the competition. The Company has reported a 65% market share with manifold Return Ratios taking its operating performance and financial proficiency to new levels. The Company, in Q4, boasts a portfolio of more than 300 hotels and a Cash Position of ₹2,206 Crore. On key financial fronts, for Q4, Indian Hotels Company posted Revenue at ₹1,951 Crore, up by 18% YoY, Profit After Tax at ₹418 Crore, up by 27% YoY, and EBITDA at ₹706 Crore, a rise of 25% YoY. The Full-year Consolidated Revenue grew by 17%, driven by a surge in Room Revenue and Food & Beverage Revenue. 

5 Key Financial Highlights

Indian Hotels Company Q4 FY2023-24 results are of great interest as the hotel conglomerate has aced the last quarter of the previous fiscal year while maintaining a unique blend of Capital Heavy and Capital Light to take advantage of optimal operational efficiency while maintaining the Company’s health. Here are the key 5 financial highlights of Indian Hotels Company results for Q4:

Explore: The Indian Hotels Co. Ltd Share Price

  • The Company’s Revenues from Operations stood at ₹1,905 Crore, a rise of 17% YoY

  • The Company’s Total Revenue was at ₹1,951, an increase of 18%

  • EBITDA Margin was at 36.2%, while Operating EBITDA Margin was at 34.6%

  • The Profit Before Tax (PBT) was at ₹535 Crore, a rise of 34% YoY

  • The Profit After Tax (PAT) was at ₹393 Crore, a decrease of 30% YoY. 

Additional Read: 129 Indian Companies to Release Q4 Results

Industry Outperformance

IHCL Q4 results have been nothing but phenomenal for the hotel conglomerate that is known for its finesse on every level of service standards and operations. The Company’s Consolidated Revenue saw a growth spurt of 17% and this was largely propelled by Room Revenue Growth of 19% and Food & Beverage business Growth at 12%. Additionally, leading the Company further in its growth trajectory, the Enterprise Revenue for the Full year was at ₹13,090 Crore, a 19% increase compared to the previous fiscal year. 80% of this share of growth was generated by the Company’s domestic business. 

With success upon success marking the IHCL results, the Company has outperformed the industry (at a domestic level) at same store RevPAR exhibiting a premium of 65% relative to the competition in the sector. Furthermore, the buoyancy of demand in the Company’s international portfolio resulted in an occupancy rate of 67%, marking an expansion of 700 basis points and leading to a RevPAR growth of 9% over the previous fiscal year. 


Additional Read: Quarterly Results

IHCL Q4 Results - Industry-Leading Growth

The Company is consistent in its growth path, leading the industry with 53 hotels signed on and 34 new ones commencing. Under the IHCL helm, strategic alliances (14 resorts under the Tree of Life umbrella), and acquisitions continue to boost Revenue while the Company demonstrates strong operational performance across all its businesses from luxury hotels to budget offerings. In Q4 FY2023-24, IHCL opened 6 hotels with 3 Hotels under the SeleQtions brand in Jaisalmer, Tirupati and Munnar, 2 Ginger Hotels in Durgapur and Ahmedabad and a Vivanta Hotel in Bharatpur, Nepal.  

Major Financial Metrics - Consolidated Q4 (FY2023-24) Financial Results of IHCL (in ₹ Crore)

Metrics

Q4 FY24

Variance %

Q4 FY23

Revenue from Operations

1,905

17%

1,625

Non-Operating Revenue

46

58%

29

Total Revenue

1,951

17%

1,655

Total Expenditure

1,246

14%

1,090

EBITDA

706

25%

565

EBITDA Margin

36.2%

+2.0pp

34.1%

Operating EBITDA Margin

34.6%

+1.7pp

32.9%

Depreciation and Amortisation Expense

120

11%

108

Finance Costs

52

-10%

57

Profit Before Tax

535

34%

400

Profit After Tax

393

30%

302

Profit / (Loss) after Non contr. Int., share of Assoc. & JV

418

27%

328

PAT Margin

21.4%

+1.6pp

19.8%

What Comes Next

After Indian Hotels Company’s Q4 results and its solid year performance during FY2023-24, the Company is set to go forward into its next fiscal era with all the enthusiasm and spirit that signifies this Company. With a target to open 25 new properties in FY2025, the Company is armed with strategic inorganic and organic investments to support its business operations ahead. Holding a distinctive presence across four continents, with 92 properties under development, the Company sees expected growth in FTAs and US hotels performance. These potential upsides are accompanied by the Company’s robust Balance Sheet which is supported by flexibility in investment and safeguards for unforeseen risk. Going forward into the next fiscal year, the Company aims to continue its sustained performance which has presently resulted in a once-in-a-way high Consolidated IHCL turnover of ₹6,952 Crore and a 17% YoY growth. 

Additional Read: Annual Results

Conclusion

Following from Q4, and going ahead into the first quarter of FY2025, IHCL is positioned to expand and grow, in terms of its property development on the domestic and global front. Making a mark for itself in the Indian domestic market, its Q4 result success is in a large part, due to buoyancy in demand. With the Company offering accommodation options to diverse strata of the Indian and global demographic, it holds itself in good stead going forward with healthy cash flows and greater profitability potential than in the previous fiscal year. 

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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