EIH (EIHOTEL) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw revenue growth year-over-year on both standalone and consolidated bases, despite challenges from elections and high temperatures impacting demand in key leisure markets.

• The company maintained premium positioning and received global accolades, including Oberoi Rajvilas being named Best Hotel in the World.

• Strong performance in flight catering and airport lounge business, with expanded margins and EBITDA growth.

• Major new projects include the Hebbal, Bangalore mixed-use development and full renovation of the Oberoi Grand.

• Unaudited financial results for the quarter ended 30th June 2024 were approved by the Board, with no material misstatements found by auditors.

Financial highlights

• Standalone revenue from operations was ₹455.94 crore, up from ₹426.84 crore year-over-year; consolidated revenue increased to ₹526.54 crore from ₹498.10 crore.

• Standalone PAT declined to ₹85.35 crore from ₹90.04 crore year-over-year; consolidated PAT dropped to ₹94.04 crore from ₹103.76 crore.

• Standalone EBITDA was ₹150.8 crore (down 2% year-over-year); consolidated EBITDA was ₹168.2 crore (down 7%).

• Consolidated funds position stands at INR 818 crore, with INR 650 crore net cash available for deployment.

• Dividend of ₹1.20 per share for FY 2023-24 proposed, subject to AGM approval.

Outlook and guidance

• Management remains optimistic for Q3 and Q4, expecting strong demand and rate increases, especially in winter.

• The Indian hotel sector is expected to expand, driven by domestic tourism, MICE, weddings, and luxury wellness trends.

• Market size projected to grow from $24.6B in 2023 to $31B by 2028.

• July and August have shown a pickup in reservations, with business on books indicating positive momentum.

• First quarter results are not indicative of full-year performance due to seasonality in the Indian hotel industry.