EIH (EIHOTEL) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw revenue growth of 10% year-over-year, with strong operational performance and premium positioning reinforced by global awards, despite challenges from elections and high temperatures impacting demand in leisure destinations.

• The company maintains a strong cash position, with INR 650 crore net cash and INR 818 crore consolidated funds, supporting upcoming projects and future expansion.

• Expansion plans include new projects in Bangalore (Hebbal), a major renovation at Oberoi Grand Kolkata, and two new hotels (Rajgarh and Bandhavgarh) opening this year.

• The Oberoi Rajvilas was ranked the best hotel in the world, with multiple Oberoi hotels receiving top global hospitality awards.

• Unaudited standalone and consolidated financial results for the quarter ended 30th June 2024 were approved by the Board on 6th August 2024, with no material misstatements found by statutory auditors.

Financial highlights

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

• Standalone PAT was ₹85.35 crore, down from ₹90.04 crore year-over-year; consolidated PAT was ₹94.04 crore, down from ₹103.76 crore year-over-year.

• Standalone EBITDA was ₹150.8 crore, a 2% decrease year-over-year; consolidated EBITDA was ₹168.2 crore, down 7% year-over-year.

• Flight catering and airport lounge business showed robust growth and margin expansion, with EBITDA margin at 36%.

• RevPAR index leadership maintained at 197% over competition; overall RevPAR up 2.5% year-over-year.

Outlook and guidance

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

• July and August have shown a pickup in reservations, with expectations of a strong recovery and positive momentum in Q2.

• The Indian hotel sector is poised for significant expansion, driven by domestic tourism, corporate travel, and emerging segments like MICE and sports tourism.

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