ITC Hotels Q1 Results: Profit, margins rise from last year

ITC Hotels Ltd., the demerged entity of the cigarettes-to-hotels conglomerate ITC Ltd. reported its quarterly results for the April-June period on Wednesday, July 16. This is the third earnings report of the company since the demerger of its parent company.Net profit for the period increased by 54% from last year to ₹133 crore.

Revenue for the quarter stood at ₹815 crore, which is a growth of 15% from the ₹705 crore it had reported during the year-ago quarter.Earnings Before Interest, Time, Depreciation and Amortisation (EBITDA) for the quarter increased by 19% year-on-year to ₹246 crore, while margins expanded by 87 basis points to 29.9% from 29.03% last year.

Currently, ITC Hotels operates 140 Hotels with 13,000 keys with 45% owned. They have a stated target of over 200 hotels with over 18,000 keys by 2030 with 65% salience of Managed Portfolio. ITC Hotels financials reflect the underlying improvement in the Hotel Industry in India. Over the last three years post pandemic, there has been secular growth in the revenue and operating performance of ITC’s hotel business.

Shares of ITC Hotels are trading 3.16% higher on Wednesday at ₹235.50. The stock has risen 10% in the last one month.