Indian Hotels Company Q1 net profit grows 10.25% to Rs 260 cr

New Delhi: 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, on higher revenue from operations.

Indian Hotels Company Limited (IHCL), the country's largest hospitality company, which owns the 'Taj' brand of luxury hotels, had a profit of Rs 236.01 crore in the year-ago period, according to a regulatory filing.

Its total income during the April-June quarter under review rose to Rs 1,596.27 crore, from Rs 1,515.70 crore in the corresponding period of the last financial year.

However, the company's total expenses also increased to Rs 1,267.78 crore against Rs 1,221.76 crore a year ago, the filing showed.

In a separate filing, IHCL informed regarding the transfer of the restaurant business of its wholly owned overseas subsidiary -- Taj International Hotels Ltd -- to St James Court Hotels Ltd, another subsidiary of the company.

"In order to simplify operating model/ the holding structure and to achieve business consolidation, it is proposed to combine the business of Taj International Hotels Limited to St James Court Hotels Ltd, through a share swap and simultaneous business transfer agreement. IHCL's investment in Taj International Hotels Limited and St James Court Hotels Ltd is held through IHOCO BV, Netherlands, a wholly owned subsidiary of IHCL," the company stated.

It further shared that the proposed restructuring will simplify the operational/ legal/ tax structure, adding that as this is a common control transaction, this will not have any accounting implications in IHCL.

"IHCL...reported a strong financial performance for the first quarter with an all-time high revenue of Rs 1,596 crore and a healthy EBITDA margin of 31 per cent.

"Our performance was enabled by a diversified top line, with new businesses growing at 37 per cent over the previous year and incremental revenues from not like-for-like growth. Continuing the growth momentum our portfolio is now over 325 hotels with 16 signings and 6 openings in the quarter," its Managing Director and Chief Executive Officer Puneet Chhatwal said.

He stated that with demand continuing to outpace supply and favourable structural tailwinds, the sector is set to clock strong revenue growth in the quarters ahead.