Indian Hotels slips over 5.10% after Tata group firm reports mixed fourth-quarter results

The stock of Indian Hotels, a Tata group company, slipped by over 5.10 per cent on BSE on Thursday (April 25, 2024) a day after the company reported mixed fourth-quarter results.

After closing at Rs 608.25 a day before, the stock of Indian Hotels opened at Rs 600.00 and slipped to the day's low of Rs 577.00, a 5.14 per cent fall from the previous close. 

The stock of the firm was trading lower by 4.82 per cent, or Rs 29.30, at Rs 578.95 at 1:26 pm on Thursday.

Indian Hotels Q4FY24 Conso YoY results

The company's margins were below Zee Business research estimates. Other than that, everything else was in line.

Indian Hotels' profit soared by 27 per cent to Rs 418 crore against Rs 328 crore Year-on-Year (YoY). It was below research estimates of Rs 430 crore.

Revenue from operations was up by 17.20 per cent to Rs 1,905 crore compared to Rs 1,625 crore, slightly above the estimates of Rs 1,900.

Its EBITDA also soared by 23 per cent to Rs 659 crore against Rs 535 crore YoY. It was also below analyst estimates of Rs 675.

The margin was 34.6 per cent compared to 33 per cent, below estimates of 35.5 per cent.

Dividend

The company has also announced a dividend of Rs 1.75 per share.

Result highlights

Double-digit revenue growth in same store hotels

53 Hotel signings in FY24. Total portfolio now stands at 310 hotels.
 

FY25 guidance

There will be double-digit growth in income in FY25.

Expectation of 30 per cent growth in income of new business.

The company will open 25 new hotels in FY25.

IHCL has commenced a five-year capital deployment plan from FY2023 to FY2027 totalling Rs 3,500 crore.

Gateway hotels to launch in FY25.

This hotel will be of sub-scale category in metro, Tier II and Tier III cities.

Will launch in Bekal and Nashik this quarter.

It has a target of 100 gateway hotels by 2030.

Morgan Stanley's target for Indian Hotels

Morgan Stanley has maintained an 'overweight' rating for Indian Hotels with a target price of Rs 529.