Q2 2025 Indian Hotels Company Ltd Earnings Call Transcript
Key Points
- Indian Hotels Co Ltd (BOM:500850) reported a record performance for the 10th consecutive quarter, with a 28% revenue growth and a 270 basis points margin expansion year-over-year.
- The company achieved double-digit RevPAR growth across all its brands, with the iconic Taj brand delivering a 13% increase.
- The company is on track for another record year of portfolio growth, having signed 42 hotels and opened 14 hotels between April and October 2024.
- Management fees reached INR100 crores for the first time, indicating a 15% increase over the same period last year, driven by an 11% net unit growth of managed hotel rooms.
- New business verticals, including Ginger, Qmin, and ama Stays & Trails, delivered a 47% growth in consolidated revenue for Q2.
- The reported profit after tax was bolstered by an exceptional accounting gain, which may not be sustainable in the future.
- There is a concern about the impact of high base effects from events like the World Cup and G20 on future performance comparisons.
- The company faces challenges in maintaining high growth rates in management fees due to the initial start-up phase of many new hotels.
- Operational efficiencies may have reached an optimal level, limiting further significant improvements in this area.
- The Tree of Life brand, recently acquired, reported losses in a strong year, indicating potential management or operational challenges.
Ladies and gentlemen, good day, and welcome to the Indian Hotels Company Limited earnings conference call for the quarter ended September 30, 2024.
On the call, we have with us Mr. Puneet Chhatwal, Managing Director and CEO, IHCL; and Mr. Ankur Dalwani, EVP and CFO, IHCL. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Puneet Chhatwal. Thank you, and over to you, Mr. Chhatwal.
Good evening, everyone, and thank you for joining our global conference call for Q2 '24, '25. We are pleased to inform you that we continued our record performance for the 10th consecutive quarter, on the back of continued growth momentum and key strategic initiatives, which have been yielding results. I'll now outline the 10 key highlights of the quarter.
Number one, hospitality sector continues to be in an upside. Driven by strong domestic demand, limited supply addition and favorable demographics
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