Taj to have a hotel in Frankfurt; profit & revenue zoom in Q1

NEW DELHI: Thanks to a bumper summer travel season, Taj parent Indian Hotels Company Ltd (IHCL) has seen its revenue rise to Rs 1,516 crore in the quarter ended June 30, 2023, up 17% from Rs 1,293 crore in same period last year. The profit for this period rose to Rs 222 crore, up 31% from Rs 170 crore in Q1 last fiscal. IHCL shares closed 1.3% down at Rs 385 BSE Thursday when the broader market was down 0.66%.

Expanding its wings abroad, IHCL is entering into a lease agreement to operate a hotel in Frankfurt for 30 years — 20 years with right of two renewals of five years each. The Tata group company proposes to spend Euro 5 million on renovating this property.
Additionally, IHCL will purchase 100% equity of Pamodzi Hotels PLC (a listed company in Zambia) from Tata International Singapore PTE Ltd. Pamodzi Hotels has long term lease hold rights for Taj Pamodzi, Zambia – a luxury hotel in Lusaka city. At present, 90% equity of Pamodzi Hotels PLC is owned by Tata International Singapore PTE Ltd. The transaction is subject to Tata International Singapore PTE Ltd acquiring the balance 10% equity in Pamodzi hotels PLC through a delisting process in Zambia.

Regarding the result, IHCL MD & CEO Puneet Chhatwal said: “IHCL ended the first quarter with a strong performance led by a double-digit revenue growth. Turnover crossed the Rs 1,500-crore mark, making it a historical Q1. Maintaining our industry leading portfolio, IHCL signed 11 and opened five new hotels across all its brands. With our footprint across 125 plus locations, we will leverage the buoyancy in India’s travel and tourism sector. The outlook for the upcoming quarters remains strong with pace of demand driven by domestic consumption momentum, global events, and revival of international arrivals.”
IHCL EVP & CFO Giridhar Sanjeevi said: “A strong focus on profitability and cash flow resulted in IHCL Consolidated reporting a steady EBITDA margin of 30.3% and net cash of INR 889 crores as on 30th June 2023. In Q1, we have commenced capital investments towards renovation and upgradation of select hotels in our portfolio.”