FY23 revenue at Rs 5,949 crore, up 85% yoy; FY23 EBITDA margin at 32.7%, up 1523 bps yoy and FY23 pat at Rs 1,003 crore, offsets Covid19 losses
In what was termed as a record setting year with a number of significant accomplishments, the country’s largest hospitality company, Indian Hotels Company Limited, registered the highest ever full year consolidated revenue, an all-time high and industry leading EBITDA margin and PAT of over Rs 1,000 crore as it reported its consolidated financials for the fourth quarter and full year ending March 31, 2023.
“This performance was enabled by consecutive four quarters of sustained high demand, additionally bolstered by IHCL demonstrating RevPAR leadership across its brandscape in all its key markets. IHCL crossed 260-plus hotels in its portfolio including 36 signings at a rate of three hotels a month and 16 openings or a new hotel every three weeks in the year. IHCL’s vast footprint now covers 31 states and Union Territories in India. We were also able to achieve an optimal 50:50 mix between our owned/ leased and managed hotels,” said Puneet Chhatwal, Managing Director & CEO, IHCL.
He added that IHCL’s performance reflects the affection and loyalty of its guests, the continuous guidance and support from its Board and the remarkable passion and commitment of the 28,000-strong IHCL team. “The management’s focus remains on value creation for all stakeholders, offering customers a unique hospitality ecosystem across segments, leading the way in engaging local communities in our value chain, pioneering new destinations in the country and delivering continued superior performance,” Chhatwal shared.
In the previous financial year (FY22), the company had recorded a loss of Rs 265 crore. IHCL’s revenue from operations stood at Rs 5810 crore in FY23, up 90 per cent from FY22. The Tata Group backed company registered a profit of Rs 339 crore, up from Rs 72 crore in the fourth quarter of FY22 and a revenue from operations of Rs 1625.4 crore during the same period, up 86 per cent from the previous year.
Giridhar Sanjeevi, Executive Vice President and Chief Financial Officer, IHCL, said, “Robust demand across markets and segments has led to all group companies reporting a full year positive PAT in domestic operations. Growth in same store performance supported by margin enhancing new businesses and asset light growth has led to a record EBITDA margin of 32.7 per cent, an 8.7 percentage points expansion over FY 2019-20. This has been made possible by maximising operating leverage of our owned/ leased hotels and margin enhancing fee-based business. IHCL continues to report a healthy consolidated free cash flow of Rs 1,017 crore in FY22-23 and remains net cash positive.”
The iconic brand Taj reached a portfolio of 100 hotels recently and has more than doubled its room inventory over the past five years. In line with its initiative to restructure its portfolio under Ahvaan 2025, IHCL has attained a balanced portfolio mix between its owned/ leased and managed hotels.