IHCL posts Q3 PAT at RS 203 crore up 26% Y-O-Y, delivers its strongest financial performance
The Indian Hotels Company Limited (IHCL), South Asia’s largest hospitality company reported its consolidated and standalone financials for the third quarter and nine months ending December 31st, 2019.
Financials reported for 2019/20 are in line with the new accounting lease standards (Ind AS 116), effective April 1st, 2019.
Commenting on the performance, Puneet Chhatwal, Managing Director and Chief Executive Officer, IHCL said, “IHCL delivered a PAT of Rs. 203 Crore and EBITDA margins of 32.78% in the third quarter of this fiscal, representing our best performance in over a decade. In line with Aspiration 2022, the company reported seven consecutive quarters of consistent and sustained growth. The re-imagined brandscape enabled us to add a record 24 hotels to the development pipeline. IHCL kept its promise of opening one hotel a month. It began 2020 with the opening of another magnificent palace – Taj Fateh Prakash Palace in Udaipur.”
The company managed to reduce its debt levels further and reported a net debt to EBITDA ratio of 1.76, down from 2.11 (as of FY18/19).
Giridhar Sanjeevi, Executive Vice President and Chief Financial Officer, IHCL said, “This has been a good quarter on all parameters including debt reduction, asset management initiatives on sale of non-core assets, as well as higher cash flows.”
The key highlights were:
• EBITDA for Q3 at Rs. 462 crores up 32% - highest in last 10 years
• EBITDA margins for Q3 at 32.78%- highest in the last 10 years
• Consistent margin expansion achieved for the seventh consecutive quarter
• Signs a record 24 hotels with an inventory of over 2800 rooms for the current financial year
• Opens nine hotels in nine months at the rate of one hotel a month
• Opens two hotels in early 2020- Taj Fateh Prakash Palace, adding to its unmatched palace collection and Devi Ratn, Jaipur, an uber chic design hotel – a part of SeleQtions portfolio
• The company reached a milestone with the opening of the 50th Ginger in Surat taking the total Ginger inventory to over 4400 rooms across 35 locations