EIH (EIHOTEL) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw revenue growth of up to 10% year-over-year, with strong operational performance and premium positioning reinforced by multiple international awards, including Oberoi Rajvilas being ranked the best hotel in the world.

• Unaudited standalone and consolidated financial results for the quarter ended 30th June 2024 were approved by the Board on 6th August 2024, with no material misstatements found by statutory auditors.

• Major new projects include the Hebbal, Bangalore mixed-use development, full renovation of the Oberoi Grand, and launch of 20 new residential suites at The Oberoi, Mumbai.

• Strong performance in flight catering and airport lounge business, with expanded margins and EBITDA growth.

• Multiple Oberoi hotels received top global hospitality awards.

Financial highlights

• Standalone revenue from operations rose to ₹455.94 crore, up from ₹426.84 crore year-over-year; consolidated revenue increased to ₹526.54 crore from ₹498.10 crore.

• Standalone PAT was ₹85.35 crore, down from ₹90.04 crore year-over-year; consolidated PAT was ₹94.04 crore, down from ₹103.76 crore.

• Standalone EBITDA was ₹150.8 crore, a 2% decrease year-over-year; consolidated EBITDA was ₹168.2 crore, down 7%.

• Consolidated funds position stands at INR 818 crore, with INR 650 crore net cash available for deployment.

• Other income increased on both standalone and consolidated bases.

Outlook and guidance

• Management remains optimistic for Q3 and Q4, expecting strong demand and rate increases, especially in winter.

• The Indian hotel sector is poised for significant expansion, driven by domestic tourism, corporate travel, and emerging segments like MICE and sports tourism.

• July and August have shown a pickup in reservations, with business on books indicating positive momentum.

• Expansion focus remains on India, with both owned and managed properties, and a pipeline of seven projects.

• First quarter results are not indicative of full-year performance due to seasonality in the Indian hotel industry.