Indian Hotels share price rises 6% to 1-year high post Q2 results; market cap crosses ₹1 lakh crore

Stock Market Today: Indian Hotels Company Ltd share price gained more than 6% in intra-day trade on Friday to scale a one-year high following strong September quarter (Q2) results. 

The Tata Group company reported Q2 results post market hours on Thursday. Analysts said the Q2 performance was much better than expectations.

Indian Hotels share price opened at ₹709.95 on the BSE on Friday, more than 3% higher than the previous close of ₹683.60. The stock gained further to an intraday high of ₹736, which also happens to be its one-year high level. The market capitalisation of Indian Hotels also crossed the ₹1 lakh crore mark.

Indian Hotels share price has risen 65% year-to-date on improved earnings outlook. The rising occupancy, firm per room revenues and expansions have driven the rally in stock price.  

Q2 Results

During the quarter ended September 2024, Indian Hotels consolidated net sales grew 27% year-on-year (YoY) to ₹1,826.4 crore post consolidation of TajSATS subsidiary. Adjusted for TajSATS revenue booked in 2Q, Indian Hotels' consolidated revenue grew 16% YoY. 

Analysts at Jefferies India Pvt Ltd said that consolidated revenues were 2% ahead of the estimates while standalone revenues were in line with estimates.

Indian Hotels' consolidated net profit of ₹555 crore included a one-time exceptional gain of ₹307 crore on account of TajSATS consolidation. The standalone net profit came in at ₹247 crore, up 48% YoY. This was slightly ahead of Jefferies' estimates of ₹240 crore.

Highlights of Q2 performance

Indian Hotels reported a double-digit RevPAR (revenue per available room) performance across all brands with domestic same-store hotels delivering a 12% growth in consolidated RevPAR with a premium of 66% vs competition across the enterprise.

The international consolidated portfolio reported an occupancy of 75% (up 600 basis points), resulting in a RevPAR growth of 10%.

Management fee income grew by 15% to ₹100 crore on the back of not like for like growth.

Expansions continue

Indian Hotels signed 42 hotels, including 12 Taj hotels, three of which are in international markets of Bahrain and Thimpu, three each in SeleQtions and Vivanta, five under Tree of Life, nine under the newly-reimagined Gateway and 10 under Ginger.

Further to receiving key approvals, Indian Hotels greenfield projects - Aguada Plateau, Goa and Shiroda, Maharashtra are set for a timebound development of these marquee hospitality assets.

Indian Hotels opened 14 new hotels, taking the total operating hotels to 232 across brands with a Taj in Patna, a Gateway in Bekal and a Vivanta in Jamshedpur including SeleQtionsin Thimpu and Mahabaleshwar and three Tree of Life resorts and six Ginger hotels.

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