Indian Hotels Company Ltd Reports Strong Financial Performance in June 2024 Quarter

Indian Hotels Company Ltd achieved a 10.25% growth in net profit, reaching Rs 260.19 crore in Q1 2024, thanks to increased operational income. Total income rose to Rs 1,596.27 crore, despite higher expenses. The company also announced the consolidation of its restaurant business for improved operational efficiency.

Indian Hotels Company Ltd on Friday reported a 10.25 per cent growth in consolidated net profit to Rs 260.19 crore in the June 2024 quarter, driven by higher revenue from operations.

Indian Hotels Company Limited (IHCL), the country's largest hospitality company and owner of the 'Taj' brand, had recorded a profit of Rs 236.01 crore in the same quarter last year, according to a regulatory filing.

The company's total income for the April-June quarter increased to Rs 1,596.27 crore from Rs 1,515.70 crore in the corresponding period of the previous financial year. However, total expenses also rose, reaching Rs 1,267.78 crore compared to Rs 1,221.76 crore a year ago.

In separate news, IHCL confirmed the transfer of the restaurant business of its wholly-owned subsidiary -- Taj International Hotels Ltd -- to St James Court Hotels Ltd, another company subsidiary. This move aims to simplify the operational and holding structure through a share swap and simultaneous business transfer agreement. IHCL's investment in both entities is overseen by its wholly-owned subsidiary, IHOCO BV, Netherlands.

This restructuring is intended to simplify the operational, legal, and tax structure, with no significant accounting implications for IHCL.

In the first quarter, IHCL reported all-time high revenue of Rs 1,596 crore and an EBITDA margin of 31 per cent. Managing Director and CEO Puneet Chhatwal attributed the strong performance to a diversified top line and growth in new business ventures, adding that the company signed 16 new deals and opened 6 new hotels in the quarter. He expressed optimism for continued revenue growth in the coming quarters.

(With inputs from agencies.)