IHCL Q2 & H1: Reports record Q2 performance and expands portfolio

The Indian Hotels Company Limited (IHCL), India’s largest hospitality company, has announced its financial results for the second quarter (Q2) and first half (H1) for the fiscal year 2024-25, marking ten consecutive quarters of record performance.

Financial: IHCL reported a significant year-on-year (YoY) growth in Q2 with consolidated revenue increasing by 28 per cent to Rs 1,890 crore. The company’s EBITDA surged by 40 per cent, reaching Rs 565 crore, and the EBITDA margin improved by 2.7 percentage points to 29.9 per cent. Profit after tax (PAT) saw an impressive rise of 232 per cent to Rs 555 crore, including a one-time exceptional gain from the TajSATS consolidation. For the first half of FY 2024-25, IHCL’s revenue grew by 16 per cent to Rs3,486 crore, with EBITDA up by 23 per cent to Rs1,061 crore and PAT doubling to Rs803 crore.

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.”

Ankur Dalwani, Executive Vice President and Chief Financial Officer, IHCL said, “In Q2, IHCL Consolidated for the hotel segment reported a strong EBITDA margin of 30.5 per cent a 330-basis points expansion, led by double-digit revenue growth and sustained operational leverage. IHCL Standalone reported an all-time high Revenue of Rs 1,125 crores, a year on year growth of 19 per cent and an EBITDA margin of 38.6 per cent, an expansion of 390 basis points. Reflective of a strong balance sheet, the gross cash position for IHCL Consolidated as on 30th September 2024 stood at INR 2,460 crores.

Business: The Air & Institutional Catering segment, led by TajSATS, reported a 19 per cent revenue growth to Rs 254 crore. New Businesses vertical comprising Ginger, Qmin and amã Stays & Trails reported an Enterprise revenue of Rs 173 crores, a growth of 42 per cent and Consolidated revenue of Rs 143 crores, a growth of 47 per cent. Qmin has grown to 52 outlets and amã Stays & Trails has reached a portfolio of 227 bungalows with 116 in operations.

“For FY2025, we continue to maintain a 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,” CEO added.

Operational: IHCL expanded its portfolio to 350 hotels, signing 42 new properties, including the landmark Claridges Hotel in New Delhi. The company also onboarded the ‘Tree of Life’ brand, enhancing its boutique leisure offerings. IHCL opened 14 new hotels s with a Taj in Patna, a Gateway in Bekal and a Vivanta in Jamshedpur including SeleQtions in Thimpu and Mahabaleshwar and 3 Tree of Life resorts and 6 Ginger hotels, bringing the total number of operational hotels to 232 across various brands.

Chhatwal added, “IHCL has achieved a record signing of 42 hotels resulting in an industry leading portfolio of 350 hotels and met its market guidance of opening two hotels a month with 14 new hotel openings till date. 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 shareholding in Tree of Life brand holding company, expanding its brandscape with a boutique leisure offering.”