Indian Hotels Company Q4 Results Preview: Profit likely to jump by one-third, margin may improve by 260 bps

Indian Hotels Company Q4 FY24 Results Preview, Tata group Q4 earnings: Indian Hotels Company (IHC), a Tata group hospitality company whose popular brands include Taj, Vivanta and Ginger, is all set to report its financial results for the quarter and the year ended March 31, 2024, on Wednesday, April 24. Analysts expect the hotels giant to stage a strong financial performance for the three-month period on the back of steadily growing demand in the space. 

According to Zee Business research, Indian Hotels Company is likely to register a consolidated net profit of Rs 430 crore for the January-March period, which translates into a jump of 31.1 per cent compared with the corresponding quarter a year ago. The analysts estimate its fourth-quarter revenue at Rs 1,900 crore, up 16.9 per cent on a year-on-year basis. 

The Tata group hospitality major is also expected to perform strongly on the operational front. 

The hospitality company is estimated to clock March-quarter earnings before interest, taxes, depreciation and amortisation (EBITDA) at Rs 675 crore as against Rs 535 crore a year ago, according to the research.

Zee Business analysts peg the Tata group firm's margin, a key measure of profitability, at 35.5 per cent for the quarter ended March 31, as against 32.9 per cent a year ago. They estimate Indian Hotels Company's average room rate (ARR), a measure of the tariff a hotel charges per night from its customers, to increase by 14 per cent.

The ARR is a key metric that provides insights into the pricing strategy effectiveness, demand fluctuations, and revenue potential of a hotel business.

Indian Hotels Company shares: Past performance

As of April 22, Indian Hotels shares have rewarded investors with a return of 73 per cent in the past year, sharply outperforming a rally of almost 26 per cent in the headline Nifty50 index. 

IHC shares finished the March quarter 34.9 per cent stronger, again outshining a 2.7 per cent rise in the blue-chip index. 

Catch the latest stock market updates here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.