The Indian Hotels Company Limited (IHCL) reported its consolidated financials for the second quarter ending September 30th, 2021.
- Revenues up by 132 % to Rs.752 crore in Q2 FY 2021 – 22 vs Q2 FY 2020 - 21.
- EBITDA improves by Rs. 180 crore to Rs. 97 crore in Q2 FY 2021 – 22 vs Q2 FY 2020 - 21.
- The board of directors of IHCL announced the approval of Rs. 4000 crore of fund raising: Rs.2000 crore will be raised by way of rights issue and additional Rs.2000 crore through QIP, subject to receipt of requisite approvals.
- The board also announced the approval of purchase of balance shares from the existing shareholders of Roots Corporation Limited which operates the Ginger brand.
- Signs five new hotels across brands including three SeleQtions hotels in Kolkata, Bhubaneswar and Nainital respectively; Vivanta in Ahmedabad, and Ginger in Udaipur.
- Opened four new hotels across brands including:
- -Taj Lakefront, Bhopal at a landmark location in the heart of the city
- -Pilibhit House, an IHCL SeleQtions hotel, on the banks of the Ganges in Haridwar
- -Strengthened presence in East India with the launch of Vivanta Bhubaneswar
- -Expanded presence in Goa with the launch of Vivanta Miramar
- The Chambers launched its new outpost in London. Taj The Chambers, located at the iconic Taj 51 Buckingham Gate Suites and Residences.
- The amã Stays & Trails homestay portfolio reached a portfolio of 59 bungalows across unique and off-beat destinations in the country.
- IHCL received the Amrop - ET India’s Best Boards Award under the Mid-cap category.
- IHCL received the Outstanding Community Partner Award by Virtuoso for its COVID response– #MealsToSmiles initiative.
Mr. Puneet Chhatwal, Managing Director and Chief Executive Officer, IHCL, said, “Overall recovery has been stronger and quicker after the second wave. IHCL has seen significant improvement in performance quarter on quarter and the revenues grew by 132% over Q2 last year. The company has delivered a positive EBITDA of Rs. 97 crore in this quarter. In line with IHCL’s objective of driving growth and market leadership, the board approval of raising equity of Rs.4000 crore will enable us to be a zero-debt company in the future and help fund the company’s expansion, as well as its capital expenditure plans.”
Confident about the potential of the reimagined Ginger brand, the board also approved the purchase of balance shares of Roots Corporation Limited (RCL) from existing shareholders, aggregating to 39.84% of equity share capital, at an equity valuation of Rs.1225 crore. Post acquisition, RCL will be a wholly owned subsidiary of IHCL.
Mr. Giridhar Sanjeevi, Executive Vice President and Chief Financial Officer, IHCL, said, “We remain confident in the continued momentum of growth with very encouraging market indicators. The sustained cost optimization measures have helped the company improve cash flows and liquidity. The acquisition of the balance shares of Roots Corporation Limited is also in accordance with the company’s strategic objective of consolidating and simplifying its holding structure.”
About The Indian Hotels Company Limited
Incorporated by the founder of the Tata Group, Jamsetji Tata, the Company opened its first hotel - The Taj Mahal Palace, in Bombay in 1903. IHCL has a portfolio of 225 hotels including 55 under development globally across 4 continents, 12 countries and in over 100 locations. It is India’s largest hospitality company by market capitalization. It is primarily listed on the BSE and NSE.