The stock price has increased by 79.25% in last one year, while the benchmark index S&P BSE Sensex has increased by 44.66%.
The stock has been rallying since the company said that a special committee of the board approved raising up to Rs 250 crore on a private placement basis through non-convertible debentures (NCDs).
Indian Hotels Company, which is South Asia’s largest hospitality company, reported a positive EBITDA of Rs 83 crore in the March ended quarter (Q4FY21), an increase of 118% from the December quarter (Q3FY21).
The management informed that, while domestic operations had gained traction, the recovery in international business was commendable. Furthermore, despite subdued net sales in the near future, the company’s focus on cost-cutting will aid in Ebitda margin expansion. The company expects demand to recover in the United States and the United Kingdom over the next three to four months, with the situation gradually improving.
“With international arrivals dropping at an alarming rate as a result of travel restrictions and advisories from time to time, the demand for hospitality is expected to come primarily from the domestic sector.” Within this industry, business travel has remained subdued, with only necessary trips or trips back to hometowns being made. As travel restrictions were relaxed, the industry saw pent-up demand emerge from a sudden desire to travel to leisure destinations, mostly resorts, wellness centres, eco-tourism destinations, and homestays within drivable distances,” Indian Hotels stated in its annual report for fiscal year 2020-21 (FY21).
According to the company, Two things are certain. First, guests’ preferences for lodging and dining would gravitate toward well-known brands that incorporate hygiene and safety into their products and services. Second, the hospitality sector, with its resilience, will survive and adapt to changing hospitality demands in the coming years.
The Indian Hotels Company Limited (IHCL) and its subsidiaries bring together a collection of brands and businesses that combine warm Indian hospitality with world-class service. Taj, the epitome of iconic hospitality, SeleQtions, a named collection of hotels, Vivanta, sophisticated upscale hotels, and Ginger, which is revolutionizing the lean luxe segment, are among them. Incorporated in 1903 by Jamsetji Tata, the founder of the Tata Group, the company opened its first hotel, The Taj Mahal Palace, in Bombay. IHCL has a diverse portfolio of hotels, many of which are under development across continents, countries, and locations around the world.
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