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IHCL Reports Consistent Quarter On Quarter Growth In Q2
Posts more than double revenues over Q2 FY 2020-21
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The Indian Hotels Company Limited (IHCL) has reported its consolidated financials for the second quarter ending September 30, 2021. While the revenues are up by 132 per cent to Rs 752 crore in Q2 FY 2021-22 vs Q2 FY 2020-21, EBITDA has improved by Rs 180 crore to Rs 97 crore in Q2 FY 2021-22 vs Q2 FY 2020-21. The Board of Directors of IHCL has announced the approval of Rs 4,000 crore of fund raising: Rs 2,000 crore will be raised by way of rights issue and additional Rs 2,000 crore through QIP, subject to receipt of requisite approvals. The Board has also announced the approval of purchase of balance shares from the existing shareholders of Roots Corporation Limited which operates the Ginger brand.
It also mentions signing five new hotels across brands including three SeleQtions hotels in Kolkata, Bhubaneswar and Nainital respectively; Vivanta in Ahmedabad, and Ginger in Udaipur and opening four new hotels across brands including Taj Lakefront, Bhopal; Pilibhit House, an IHCL SeleQtions hotel; strengthening presence in East India with the launch of Vivanta Bhubaneswar; expanding presence in Goa with Vivanta Miramar and The Chambers launching its new outpost in London.
The IHCL Report also states about the amã Stays & Trails homestay portfolio which reached 59 bungalows across unique and off-beat destinations in the country and IHCL receiving the Amrop-ET, India’s Best Boards Award under the mid-cap category as also the Outstanding Community Partner Award by Virtuoso for its COVID response – #MealsToSmiles initiative.
“Overall recovery has been stronger and quicker after the second wave of Covid-19. IHCL has seen significant improvement in performance quarter on quarter and the revenues grew by 132 per cent 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 4,000 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,” said Puneet Chhatwal, Managing Director and Chief Executive Officer, IHCL.
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 1,225 crore. Post-acquisition, RCL will be a wholly owned subsidiary of IHCL.
“We remain confident in the continued momentum of growth with very encouraging market indicators. The sustained cost optimisation 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,” said Giridhar Sanjeevi, Executive Vice President and Chief Financial Officer, IHCL.