Indian Hotels Co. Ltd, the company that runs Taj and SeleQtions hotels and catering business TajSATS, has grown considerably in its business in the fiscal year.
The company, in a filing on BSE, said that at a consolidated level, it had reported ₹6,768.75 of gross revenue from operations, growing over FY23’s ₹5,809.91 crore by 16.5%. It said it also had a net profit of ₹1,259 crore in FY24, growing 25.5% over last year’s ₹1,002.59 crore.
The company said it has a portfolio of 220 hotels and another 90 under development. This also includes hotels outside India.
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It is important to note that the company’s new business vertical—which comprises Ginger, Qmin, amã Stays & Trails, The Chambers (membership club) and its catering business TajSATS—reported a revenue of ₹1,588 crore which is included in its consolidated revenues. Of this, TajSATS clocked a revenue of ₹900 crore, showing a 40% growth over the previous year with an Ebitda margin of 25.5%.
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Additionally, its homestay management arm, amã Stays & Trails clocked a revenue of ₹35 crore, growing 42% over the previous year, with more properties this year—with 100 bungalows in operation. It has signed on another 100 to manage. Its food business in restaurants Qmin reported a revenue of ₹101 crore, a 73% growth over the previous year basis the inclusion of 35 Qmin outlets in its budget brand Ginger hotels.
Recent signings include alliance for 14 resorts
Its recent management contract signings include an alliance for 14 resorts under the ‘Tree of Life’ brand which Kolkata-based Ambuja Neotia group bought. It also signed a 300 key Ginger hotel at the Mopa airport in Goa; a Taj branded hotel in Alibaug, Kollam, Indore and Pushkar, and SeleQtions branded hotels. In Q4 it said it opened six hotels with three hotels under SeleQtions in Jaisalmer, Tirupati and Munnar. It also opened Ginger hotels in Durgapur and Ahmedabad and a Vivanta in Bharatpur, Nepal. Based on this and other developments, it said its management fee for the year grew by 18% over the previous year at ₹470 crore.
Read also: Indian hotels added record number of rooms in 2023
However, in its balance sheet it observed that one of its subsidiaries (it did not state which one) made losses of ₹50.73 crore in FY24 (and ₹16.41 crore in FY23). Its other subsidiary also made losses of ₹81.89 crore in FY24 and ₹21.68 crore in FY23.
It also observed that in October 2023 its board approved that it could sell some of its shares in Piem Hotels, the subsidiary, to IHCL for ₹121.29 crore in new shares and ₹120 crore in cash. Similar to New Vernon, Tata Investment Corp. Ltd (TICL) also sold some of its shares in Piem Hotels to IHCL. In doing this, IHCL increased its ownership to 58.6%, from 51.5%, in Piem Hotels Ltd by buying back shares from New Vernon and TICL.
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Published: 24 Apr 2024, 08:47 PM IST