IHCL Q4 earnings: Indian Hotels Company Limited (IHCL) announced its financial results for the fourth quarter of fiscal year 2024, showcasing robust performance driven by key operational factors. IHCL recorded consolidated revenue growth of 17 per cent year-on-year (YoY) in Q4 FY24, primarily fuelled by increase in standalone business revenue.

The standalone business of IHCL witnessed revenue surge of approximately 19 per cent YoY, attributed to improved occupancy rates, which soared by 440 basis points YoY, and an increase in Average Room Rate (ARR) by 4 per cent YoY. Excluding Ginger Santacruz, ARR witnessed a notable growth of 8 per cent YoY. Furthermore, standalone management contract revenue saw a substantial rise of 32 per cent YoY to Rs 150 crore, brokerage firm Motilal Oswal said.

In terms of overall performance, IHCL's consolidated revenue stood at Rs 191 crore, marking a 17 per cent YoY growth, while EBITDA grew by 23 per cent YoY. Although there was a marginal decline of 3 per cent quarter-on-quarter (QoQ) in revenue, EBITDA saw a 10 per cent QoQ reduction to Rs 660 crore. Adjusted Profit After Tax (PAT) reported a 27 per cent YoY increase but saw an 8 per cent sequential decline to Rs 420 crore.

The new and reimagined business verticals of IHCL, including Ginger, Qmin, amã Stays & Trails, The Chambers, and TajSATs, delivered strong growth, posting revenue of Rs 159 crore in FY24, reflecting a 35 per cent increase and approximately double the growth compared to core enterprise revenue.

IHCL expects sustaining double-digit revenue growth in FY25, with new businesses expected to grow by 30 per cent. Moreover, the company aims to maintain margins and plans to open approximately 25 hotels during the fiscal year. IHCL also unveiled its plan to introduce the reimagined brand 'Gateway' in FY25, with the brand rollout commencing in 1QFY25.

Motilal Oswal expects IHCL's strong momentum to persist in FY25, driven by factors such as increased ARR, sustained high occupancy levels, a robust pipeline for room additions, higher income from management contracts, and the scaling up of reimagined and new brands. Maintaining their bullish stance, Motilal Oswal reiterates a BUY recommendation on IHCL, with a SoTP-based target price of Rs 680.