Shares of EIH, which owns and manages premium luxury hotels and cruises, sank 6% in Friday’s trade to ₹307 apiece, a day after the company reported its financial performance for the June-ending quarter.
The company, post-market hours on Thursday, announced its Q1 numbers, reporting a mixed performance, with strong year-over-year (YoY) growth but a weak sequential performance, which appeared to disappoint investors.
Its consolidated net profit jumped more than threefold to ₹120.3 crore from ₹36.9 crore in the corresponding quarter last year, aided by a favourable base, but declined 52% quarter-on-quarter (QoQ) from ₹249.1 crore.
Revenue from operations rose 14.5% YoY to ₹657 crore, compared with ₹574 crore a year ago, but fell 26.6% QoQ from ₹895 crore as seasonal softness weighed on performance.
At the operating level, EBITDA increased 6% YoY to ₹167 crore from ₹160 crore but declined 24% sequentially from ₹334 crore.
EBITDA margin contracted to 25.4% from 28.4% a year ago and 37.4% in the March quarter, reflecting a decline of 300 basis points YoY and 1,200 basis points QoQ.
Commenting on the results, Arjun Oberoi, executive chairman, EIH Limited, said, “India is emerging as one of the world’s most dynamic travel and tourism markets, presenting a transformational opportunity for our industry.”
“Despite an uncertain global environment, the resilience of domestic demand and the strength of India’s long-term fundamentals give us confidence to invest in growth. We are undertaking one of the most ambitious development programmes in EIH’s history while remaining firmly committed to excellence, sustainability, and value creation,” he further added.
Six new hotels added to pipeline
The company said it strengthened its development pipeline by signing management agreements for six new luxury hotels. These include The Oberoi, Kabini, a 60-key luxury wildlife resort adjoining Nagarhole National Park; The Oberoi, Hampi, a 60-key luxury resort near the UNESCO World Heritage Site of Hampi; and The Oberoi, Coorg, a 100-key luxury resort in one of South India’s leading leisure destinations.
The expansion pipeline also includes The Oberoi Cairo, a 147-key luxury hotel that will further strengthen the group’s international presence in Egypt, along with Trident, Amritsar, a 150-key hotel in one of India’s key spiritual and tourism destinations; and Trident, Pavana, a 150-key leisure hotel near Mumbai.
The company said these additions support its ambition to significantly expand its portfolio by 2030 while strengthening its ability to capitalise on long-term growth opportunities across both domestic and international markets.
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