November 11, 2022

IHCL, with record Q2 profits, charts consistent growth

  • Consolidated EBITDA of Rs319 crore
  • Expands portfolio with 16 signings and 9 hotel openings in this fiscal

Mumbai, November 10, 2022: The Indian Hotels Company (IHCL), India’s largest hospitality company, reported its consolidated and standalone financials for the second quarter ending September 30, 2022.

Profitable growth

IHCL consolidated results

  • Revenue of Rs1,258 crores in Q2 FY 2022-23, a 67 percent growth YoY
  • EBITDA of Rs319 crores in Q2 FY 2022-23, a 230 percent growth YoY
  • PAT of Rs122 crores in Q2 FY 2022-23 compared to a loss of Rs(121) crores in the previous year
  • The domestic market for IHCL clocked a 20%+ growth over pre-COVID levels in key cities. IHCL’s hotels in the US, UK, Dubai and Maldives too displayed a strong recovery

Portfolio expansion

  • IHCL strengthened its portfolio with nine new hotels till date in FY 2022-23 including the recently opened Sawai Man Mahal, Jaipur; Taj Wayanad Resort and Spa, Kerala; Vivanta Meghalaya, Shillong; Vivanta Ahmedabad; Ginger Goregaon, Mumbai and Ginger Ahmedabad
  • Signed seven new hotels in Q2 FY 2022-23, with one hotel each under the Taj, Vivanta and Ginger brands and four hotels under the SeleQtions brand, and signed 16 new hotels across brands in H1

New business and F&B

  • Ginger, in H1 FY 2022-23, achieved an EBITDA margin of 39 percent driven by a revenue of Rs143 crore – a growth of 42 percent over pre-COVID
  • IHCL’s branded homestay portfolio, amã Stays and Trails, reached milestone of 100 bungalows
  • Qmin scaled to 25 retail outlets and its app-based delivery services are available in 21 cities
  • Launched new Indian-concept F&B brand, Loya, at Taj Palace, New Delhi. Loya will expand to Mumbai, Bengaluru and other cities in India and overseas
  • Introduced Milan-based Italian restaurant, Paper Moon, to India at the iconic beach resort, Taj Fort Aguada Resort and Spa in Goa

Sustainable practices

  • Paathya, IHCL’s ESG+ framework, focuses on the pillars of environmental stewardship, social responsibility, excellence in governance, preserving heritage, value chain transformation, and sustainable growth. Q2 highlights:
    • Established 13 skilling centres across five states in collaboration with partners, including a 10-year MoU with the Assam government for a hospitality-focused skills training centre in the north east
    • Installed 220 EV charging points at over 90 hotels in India
  • Taj Safaris signed MOU with WWF – India, to support conservation efforts towards India’s biodiversity

Key consolidated financial results for Q2 and H1 FY 2022-23

*Percentage figure not given due to loss in corresponding period of the previous year

Commenting on the performance, Puneet Chhatwal, MD and CEO, IHCL, said, “Business recovery remains robust and demand for travel continued to strengthen with India and other key markets like the US and UK growing double-digits year-on-year; driving a 67 percent  growth in revenue and a return to strong profitability in the traditionally weakest quarter for the industry.”

He added, “With our growing network and a robust pipeline of new properties across brands as well as the growth of our new businesses, IHCL is well positioned to meet market demand and capture opportunities.”

As a recognition of IHCL’s focus on service excellence, customer-centricity and sustainability, the company has received multiple global and national honours.

Giridhar Sanjeevi, executive vice president and chief financial officer, IHCL said, “Despite inflationary pressures, rate premiums enabled by the strength of our brands has resulted in an EBITDA margin of 25.4 percent  and 30.6 percent for IHCL Consolidated and Standalone for the second quarter, respectively, which is an expansion of over 7 percentage points as compared to pre-covid. IHCL continues to report a healthy consolidated free cash flow of Rs181 crores and remains net cash positive.”

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