Indian Hotels Company Ltd (IHCL) has announced robust financial results for the second quarter ended September 30, 2023. Let’s delve into the key highlights of IHCL’s performance and strategic developments.
Financial Performance
IHCL reported a consolidated profit after tax (PAT) of ₹167 crore for the second quarter, marking a significant 37% increase from ₹121.56 crore in the corresponding period last year. The total income from operations also witnessed a notable rise to ₹1,480.87 crore, up from ₹1,257.57 crore in the same quarter of the previous fiscal year.
The company’s total expense increased to ₹1,248.68 crore compared to ₹1,101.20 crore in the year-ago period.
Business Expansion and Growth Prospects
Puneet Chhatwal, MD & CEO of IHCL, highlighted the company’s robust expansion strategy, with the opening of 8 hotels and the signing of 17 more in the first half of the fiscal year. This effort has resulted in maintaining an industry-leading pipeline of 82 hotels. Chhatwal expressed optimism about India’s economic momentum and increased consumer spending, which bodes well for the hospitality industry. The strong business on the books indicates a promising outlook, especially as IHCL gears up for the traditionally stronger second half of the financial year.
Strategic Acquisitions and Shareholder Approvals
IHCL also disclosed strategic acquisitions involving its subsidiary Piem Hotels. The company acquired 2,59,000 equity shares of Piem Hotels from New Vernon Private Equity Limited, representing 6.80% of the paid-up equity share capital of Piem Hotels. Additionally, IHCL acquired 10,718 shares of Piem Hotels from Tata Investment Corporation Ltd (TICL) through a share swap arrangement.
IHCL is seeking shareholder approval for the issuance of equity shares on a preferential basis through a postal ballot, signaling its commitment to strategic growth initiatives.
Global Presence and Market Position
IHCL boasts a portfolio of 274 hotels worldwide, including 82 under development across 4 continents, 11 countries, and over 100 locations. With its extensive footprint and market capitalization, IHCL maintains its position as India’s largest hospitality company, poised for continued success and expansion in the global hospitality sector.
Ben Müller
