IHCL PAT up 184% at Rs 287 cr
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The Indian Hotels Company Limited (IHCL) has registered a Profit After Tax (PAT) at Rs. 287 crore, highest in 11 years, for year ending March 31st 2019
The Board of Directors have recommended an equity dividend of 50 per cent amounting to Rs. 0.50 per share. This is an increase over the previous dividend pay-outs of 40 per cent and 35 per cent in 2017/18 and 2016/17 respectively.
Commenting on the fiscal performance, Puneet Chhatwal, MD and CEO, IHCL said: “IHCL is on track in the execution of its strategy, Aspiration 2022. Our reimagined brandscape gave us the opportunity to sign 22 hotels with an inventory of over 3200 rooms across brands in India and key international markets like London, Makkah, Kathmandu and Dubai. We opened five hotels in this fiscal and are well poised to open one hotel per month in light of a healthy pipeline and confirmed momentum of signing new contracts.”
Strong fundamentals helped drive higher returns through strategic initiatives for margin expansion and asset management. The company is committed to achieving its long term goals as outlined in Aspiration 2022, whilst delivering world class experiences to its guests.
“Our customer-centric approach combined with an eye on profitability resulted in the EBITDA margins growing by 229 bps for the year. We continued to enhance our value proposition through the renewed brands, customer experiences and offerings, whilst deleveraging our balance sheet,” Giridhar Sanjeevi, EVP & CFO, IHCL stated.
Highlights of 2018-19
During the year, IHCL won the bid for the iconic Taj Mahal, New Delhi which has been an important part of the cultural and historic fabric of the National Capital. The company has signed a 33-year license contract for the hotel with NDMC on April 1, 2019. The company also announced the launch of a new hotel brand - “SeleQtions”, which is a collection of named and distinctive properties. SeleQtions was launched with 12 hotels across the country.
The landmark, Taj Connemara, Chennai dating back to 1854 reopened after undergoing a two year- extensive renovation and redesign. Also, IHCL opened its second hotel in Udaipur – Taj Aravali Resort & Spa.
IHCL signed a management contract for two hotels in Goa adding 506 rooms to its pipeline. The company took over the management of the legendary 207 key Cidade de Goa which is a part of the SeleQtions portfolio. An additional 299 rooms which are under construction will be added to the same complex under the Taj brand scheduled to open by the end of this year.
IHCL opened its first mountain resort - Taj Theog Resort & Spa, Shimla in Himanchal Pradesh. Nestled amidst thick Cedar forests and spread over five acres, offering mesmerising views of the mighty Himalayas.
• The company introduced the iconic Taj brand in Rishikesh with the opening of Taj Rishikesh Resort & Spa, Uttarakhand.
• The company renovated and upgraded several hotels to stay relevant for the ever-evolving global traveller. 19 hotels were upgraded to the Taj brand. Taj MG Road, Bengaluru unveiled its all-new look recently after a major renovation. Some of the other renovated hotels in key cities include: Taj Palace, New Delhi; Taj Exotica Resort & Spa, Goa; Taj Fort Aguada Resort & Spa, Goa; Taj Bengal, Kolkata; Taj Fisherman’s Cove Resort & Spa, Chennai; Taj Krishna, Hyderabad; Taj Ganges, Varanasi; Taj Mahal, Lucknow and St. James’ Court, A Taj Hotel, London.