- ITC Hotels Q1 net profit is expected to grow 22% to Rs 162.6 crore
- Revenue is projected to rise 13.4% to Rs 925 crore in the June quarter
- Ebitda may increase 17.8% with margin remaining steady at 30.2%
ITC Hotels Ltd is expected to report a healthy June quarter with growth in net profit and revenue, primarily driven by steady room demand, higher average room rates and management fee income. However, brokerages expect margin pressure amid softer occupancy.
The hotel operator is expected to report a 22% growth in net profit at Rs 162.6 crore in first quarter of current fiscal against Rs 133.1 crore in the year-ago period, according to Bloomberg estimates. Revenue is expected to surge 13.4% to Rs 925 crore in Q1FY27 from Rs 815.5 crore in corresponding quarter last year. In terms of operations, the Ebitda is likely to jump 17.8% to Rs 279.5 crore, while the margin is estimated to remain flat at 30.2%.
What Brokerages Expect?
Macquarie said the revenue is expected to grow 16% year-on-year to Rs 950 crore, marginally below Bloomberg consensus, while forecasting net profit of Rs 155 crore us around 13% below consensus estimates.
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The brokerage expects hospitality revenue to rise 5% YoY to Rs 860 crore, driven by a 5% increase in average room rates to Rs 11,445. However, occupancy is seen declining 164 basis points to 69%, while revenue per available growth is likely to be at 3%.
Food and beverage revenue is expected to advance 8% to Rs 350 crore, while management fee income is likely to jump 22% on the back of an expanding managed hotel pipeline. Macquarie estimates the margin to contract 80 basis points to 29.2% amid lower occupancy due to the impact of the West Asia conflict on international travel.
According to Axis Capital, ITC Hotels is expected to post a stable operational performance in the first quarter, estimating nearly 8% revenue growth, led by 7% growth in revenue per available room. The margin is expected to remain mostly flat at around 30%, while Ebitda growth is likely to be around 9%.
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Haitong expects a steady quarter with 9% year-on-year revenue growth, supported by 7% revenue per available room growth. The brokerage noted that ITC Hotels' significant exposure to southern India and higher share of foreign guests could moderate revenue-per-available-room growth.
It expects the Ebitda to grow 11%, while fee income is likely to remain in high double digits. Additionally, the brokerage expects around Rs 100 crore of revenue recognition from the Sapphire Residences project in Sri Lanka.
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