Shares of ITC Hotels Ltd. rose as high as 6.14% in trade on Tuesday in the aftermath of the company posting a robust second quarter growth the previous day.
The shares pared some gains to trade 4.5% higher at Rs 171.79, after touching an intraday high of 174.40 apiece on the NSE. This compared to a 0.15% decline in the Nifty index.
ITC Hotels Q2 FY27 Snapshot
ITC Hotels posted a strong September quarter, on the back of sharp gains in its core hotels business, a jump in revenue from the branded residences segment, and recent acquisitions that expanded its portfolio. The company's profit grew at a stronger pace than the revenue, signalling robus conversion of sales into earnings.
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The consolidated bottomline rose 51.4% year-on-year to Rs 201 crore from Rs 133 crore, on a 25.6% increase in revenue to Rs 1,054 crore, as per the financial statements approved by the board on Monday.
The earnings before interest, taxes, depreciation and amortisation grew 37.3% to Rs 337 crore, which widened the margin by about 270 basis points to 32% from 29.3%. Hotel segment profit rose 46.4% on a 17.4% increase in revenue.
Sequentially, revenue rose 12.6%, Ebitda grew 15.4% and net profit rose 11.5% from the April–June quarter.
Hotel segment revenue came in at Rs 966 crore, up from Rs 823 crore a year earlier, while segment profit rose to Rs 206 crore from Rs 141 crore. The branded residences business, which did not contribute in the same quarter last year, added Rs 71 crore in revenue and Rs 23 crore in segment profit.
Acquisitions also lifted the consolidated numbers. ITC Hotels bought Kerala Luxury Resorts Pvt., formerly Zuri Hotels and Resorts, on May 19, and GHK Hospitality & Infrastructures Ltd. on September 1. The company said the quarter's results include both businesses from those dates and are not directly comparable with previous periods. On a standalone basis, which excludes these subsidiaries, revenue grew 16.3% to Rs 885 crore and net profit rose 36.8% to Rs 207 crore.
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