IHCL's operational performance for Q4FY22 remained below estimates, impacted by the omicron wave.
- Consolidated revenues fell 21.5% QoQ to Rs. 872.1 crore (vs. I-direct estimate: Rs. 1050 crore). EBITDA margins also came down 1072 bps QoQ to 18.2%
- However, net profit was down only 2.4% QoQ due to higher other income and exceptional gains
- With equity fund raise of Rs. 4000 crore, the company has now become a debt free company
Key triggers for future price performance
- Opening doors fully for foreign tourists (FTAs) from March 2022 to provide further fillip to leisure and business hotel room demand from FY23 onwards
- Expect revenue CAGR of 32.2% during FY22-24E. Business to recover fully at pre-Covid levels while EBITDA to surpass pre-Covid levels in FY23E; margins seen at over 24% in FY24E, which has potential to further expand by ~100 bps thereafter
- Improved cash flows, equity infusion and divestment of non-core assets to make the company net debt free in FY23E
For details, click on the link below: Link to the report
Shares of The Indian Hotels Company Limited was last trading in BSE at Rs. 246.65 as compared to the previous close of Rs. 235.85. The total number of shares traded during the day was 913308 in over 15755 trades.
The stock hit an intraday high of Rs. 249.75 and intraday low of 236.25. The net turnover during the day was Rs. 224381202.00.