Business & Finance

Indian Hotels remarkable Q4 shows growth signs in business and margins

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The Indian Hotels Company (IHCL), domestic hospitality magnate reported a huge growth rate of 8.7% in the revenue in the last quarter that ended in March. The main contribution to this growth rate is the domestic operations.

The EBITDA of The Tata Group saw a significant improvement of 350 basis points. The average growth rate is 3.2% whereas it was recorded 6% this year. This happened due to the higher revenue generated per room available (RevPAR). This company managed the debt and reduced the borrowing part by 33% in a single year. The net profit took a jump by 70% and amounted to INR 79.3 Crore.

The demand rose

The demand for available rooms rose in FY18 and so did the room prices. The improved rate of room occupancy added to the revenue figures. This year, the companies are expecting to grow their RevPARs.

Strategic steps

IHCL is taking the business to the next level by introducing new revenue strategies such as management contracts and franchising. The fee-based income is set to increase. In this prospect, the company is all set to utilize its brand value by adding ten management contracts this year. It will add 20 more very soon.

The officials are expecting a great improvement in the upcoming years as the RevPARs and room rates will pick up a better shape. The leverage will be reduced along with the improvement in operational efficiency. The stock has increased by 11% within 15 days. The current price of the stock is just 7.5% below the 52-week highest value.

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