The Indian Hotels Company (INDHOTEL) Q1 24/25 earnings summary

Executive summary

• Achieved record Q1 performance for the third consecutive year, with strong brand equity and industry leadership, including Taj being named World's Strongest Hotel Brand and India's Strongest Brand.

• Maintained a portfolio of 325+ hotels and 100+ in the pipeline, with commanding RevPAR premium and market leadership in hotel openings and signings.

• Outperformed industry despite temporary headwinds such as elections, heatwave, and fewer wedding dates, supported by diversified portfolio.

• Standalone and consolidated revenues and profits grew year-on-year in Q1 FY25, with no exceptional items impacting the quarter.

• Structural tailwinds remain intact, with demand outpacing supply and long-term growth drivers such as rising middle-income households and robust tourism trends.

Financial highlights

• Q1FY25 consolidated revenue was ₹1,596 crore (+5% YoY), standalone revenue ₹972 crore (+4% YoY), and enterprise revenue crossed ₹3,000 crore (+7% YoY).

• EBITDA increased 8% YoY to ₹496 crore, with margin expansion of 70 bps to 31%; PAT grew 12% YoY to ₹248 crore.

• Standalone PAT margin at 21.5%; standalone EPS for Q1 FY25 was ₹1.47, consolidated EPS was ₹1.75.

• Free cash flows tripled to ₹146 crore in Q1; gross cash reserves at ₹2,100 crore as of June 2024.

• Management fees grew 17% YoY to ₹114 crore; new business revenue up 37% YoY.

Outlook and guidance

• Double-digit revenue growth expected for FY25, with July bookings indicating 20%+ YoY growth.

• 25 hotel openings targeted for FY25, with 7 already opened and 18 more to go.

• New businesses expected to grow at over 30% annually.

• The company will assess the impact of the Code on Social Security, 2020, once notified by the government.