EIH's Q2 Profits Skyrocket to Rs 94 Crore, Led by Oberoi Hotels

EIH Limited, the flagship company of the Oberoi Group, has reported impressive financial results for the second quarter of FY24. In this quarter, they achieved a profit of Rs 94 crore, which represents a remarkable YoY increase of over 300 percent from the Rs 22.35 crore recorded in Q2 FY23. Additionally, the company recorded a consolidated revenue of Rs 552.5 crore and an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Rs 164.9 crore in the same quarter.

Arjun Oberoi, Executive Chairman of EIH Ltd, expressed their commitment to providing exceptional hospitality and expanding their presence in key markets. In the previous fiscal year (FY23), the company experienced its highest-ever revenue income, primarily due to the surge in travel demand post-Covid.

ICRA, a brokerage firm, anticipates that the Indian hotel industry will witness double-digit revenue growth in FY24. This is attributed to sustained demand for domestic leisure travel, as well as demand from meetings, incentives, conferences, and exhibitions (MICE), and business travel. Furthermore, an increase in foreign tourist arrivals (FTAs) is expected to contribute to this growth.

ICRA's analysis projects that premium hotel occupancy across India will be in the range of 70-72 percent in FY24, following a recovery to 68-70 percent in FY23. They also expect the average room rates (ARRs) for premium hotels in India to be around Rs 6,000-6,200 in FY24.

The demand for hotel services is expected to remain strong in FY24, driven by healthy consumer sentiments and stable corporate performance. The specific demand for hotels may vary based on location, competition, and other property-related factors. Domestic tourism is expected to be a primary driver, although FTAs are anticipated to increase in the second half of FY24. Cities like Mumbai and Delhi, serving as gateway cities, are expected to see occupancy rates above 75 percent in FY24, benefiting from transient passengers, business travelers, and MICE events.

This positive outlook is further influenced by events like the G20 summit and the ongoing ICC World Cup in 2023, which have benefitted the industry.