One of the leading hospitality companies’ share price surged 20% to a 52-week high of Rs 968.4 per share from its previous close of Rs 911.65 following the company’s December results and investor presentation.
According to the exchange filing, EIH Limited has announced its quarterly result for December and its investor presentation for the third quarter.
EIH Limited’s net revenue increased by 26% YoY from Rs 586 crore in Q3FY23 to Rs 741 crore in Q3FY24. On a sequential basis, their net revenue increased by 39% from Rs 531 crore in Q2FY24 to current levels.
The company’s net profit increased by 54% YoY from Rs 149 crore in Q3FY23 to Rs 230 crore in Q3FY24, its highest level ever; sequentially, it increased by 144% from Rs 94 crore in Q2FY24 to the current level.
In its investor presentation, EIH Ltd stated that India’s hospitality sector is experiencing strong growth, with high ADRs and increased room demand. Despite challenges such as lower-than-pre-Covid traveler arrivals, GDP growth forecasts remain positive.
ADRs for 2023 are higher than in 2019, with the Luxury Upper Upscale segment leading the way. Major metropolitan areas generate significant room revenue, while new convention centers provide growth opportunities.
They also stated that EIH continues to lead the STR Competition Set in RevPAR (127%), and in Q3 flight catering and airport lounge business, their EBITDA margin increased by 35% year over year. ARR and occupancy trends also increased.
EIH Ltd has a market capitalization of Rs 25,500 crores, and the share price of the company rose by 145% last year, For instance, if an investor invested Rs 1 lakh a year ago the current value of the investment would be Rs 2.45 lakh.
EIH primarily owns and manages premium luxury hotels and cruisers under the Oberoi, Trident, and Maidens brands. The company also works in flight catering, airport restaurants, project management, and corporate air charters.
Written by Sriram KV
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