ITC Hotels Q4 Results: Profit, margins rise; to build new property in Andhra Pradesh

ITC Hotels Ltd., the demerged entity of the cigarettes-to-hotels conglomerate ITC Ltd. reported its quarterly results for the January-March period on Thursday, May 15. This is the second earnings report of the company since the demerger of its parent company.

Net profit for the period increased by 20.5% from last year to ₹259 crore.

Revenue for the quarter stood at ₹1,061 crore, which is a growth of 4.5% from the ₹1,015 crore it had reported during the year-ago quarter.
Earnings Before Interest, Time, Depreciation and Amortisation (EBITDA) for the quarter increased by 8.4% year-on-year to ₹413 crore, while margins expanded by 140 basis points to 38.9% from 37.5% last year.
Additionally, the company has also approved capital expenditure worth ₹328 crore, for the construction of a hotel in Andhra Pradesh’s Visakhapatnam.

Currently, ITC Hotels manages two hotels in Visakhapatnam, via management contracts. The proposed new hotel, will have nearly 200 keys, ITC Hotels said in an exchange filing, adding that the construction is likely to be completed by 2029.

Capex for the construction of this hotel will be funded via internal accruals.

ITC Hotels currently operates 140 Hotels with ~13000 Keys with 45% owned. They have a stated target of 200+ hotels with 18000+ keys by 2030 with 65% salience of Managed Portfolio.

Shares of ITC Hotels are recovering from the lows of the day, currently trading 1.1% higher at ₹204.26.