Indian Hotels Company (IHCL) surged 4.51% to Rs 314.10 after the company's consolidated net profit surged 403.5% to Rs 382.71 crore in Q3 FY23 compared with Rs 76.01 crore in Q3 FY22.
Net sales jumped 51.7% to Rs 1,685.80 crore during the quarter as against Rs 1,111 in corresponding quarter last year. Profit before exceptional items and tax soared 313.48% to Rs 494.89 crore in Q3 FY23 as against Rs 119.69 crore in corresponding quarter last year. Exceptional items includes sale of hotel property, exchange gains on long term borrowing for the quarter was Rs 0.10 crore.EBITDA jumped 90% to Rs 655 crore in Q3 FY23 as against Rs 344 crore in Q3 FY22. EBITDA margin stood at 37.6% in Q3 FY23, up 719 bps YoY.
The company said that buoyed by a strong demand in third quarter, both leisure and business hotels in key domestic markets reported occupancy of over 70% and a rate growth of 27% as compared to pre-COVID levels. The company said it maintains leadership position across key markets with revenue per available room (RevPar) penetration index in excess of 130%.
The company said it reached a milestone of 250+ hotels in its portfolio by signing a total of 30 hotels in FY 2022-23. It strengthened its portfolio with opening of 14 new hotels in FY 2022-23 with four hotels each under Taj and SeleQtions brand, and three each under Vivanta and Ginger. Introduced over 15 new destinations including Manali, Dharamshala, Raipur, Vrindavan and Jammu in 2022.
Puneet Chhatwal, managing director & CEO, IHCL, said, "IHCL continued to report strong operational and financial performances across its businesses in Q3 resulting in an all-time high PAT of INR 383 crores, which exceeds any previous full year PAT. IHCL reached a milestone of 250+ hotels and is in line with its vision of being a 300-hotel portfolio by 2025. In this financial year alone 30 plus hotels have been added to the pipeline and 14 hotels have opened, besides strong growth in amStays & Trails with 108 homestays and Qmin with over 25 outlets."
He added, "The demand outlook for the sector in 2023 remains robust on the back of sporting events such as world cup hockey and cricket, global events like the ongoing G20 and recovery of inbound and corporate travel."
Giridhar Sanjeevi, executive vice president and chief financial officer, IHCL, said, "Robust demand across markets and segments including our airline catering has led to all group companies reporting a positive PAT in Q3 across domestic and international operations. IHCL continues to report a healthy consolidated free cash flow of Rs 766 crore till date in FY 2022- 23 and remains net cash positive."
The company said it achieved free cash flow of Rs 766 crore for nine months ended 31 December 2022.
Indian Hotels Company is primarily engaged in the business of owning, operating & managing hotels, palaces and resorts.
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