Indian Hotels Q4 FY24 Result: Profit Rises 25% YoY, Declares ₹2.25/Share Dividend

Indian Hotels Company Ltd (IHCL), the hospitality arm of the Tata Group, reported a strong set of numbers for the fourth quarter of FY24, driven by robust travel demand and efficient cost management. Company’s consolidated net profit jumps to 25% year-on-year at ₹522.3 crore, compared to ₹417.8 crore in Q4 FY23. Revenue for the quarter increased by 27.3% to ₹2,425 crore from ₹1,905.3 crore a year ago, reflecting solid occupancy and average room rate growth across its luxury and business hotel segments.

Operational performance was equally impressive. EBITDA rose nearly 30% year-on-year to ₹856.6 crore, compared to ₹659.7 crore in the corresponding quarter last year. The EBITDA margin improved to 35.3%, up from 34.6%, indicating continued operating leverage and strong management execution. The company also declared a final dividend of ₹2.25 per share for FY24.

Over the last three years, Indian Hotels has delivered a stellar profit CAGR of 98% and sales CAGR of 39.7%, positioning it as one of the fastest-growing players in the Indian hospitality sector. Its return on equity (ROE) for FY24 stood at 16.4%, while return on capital employed (ROCE) was 17.5%. The company generated free cash flow of ₹1,133 crore during the year, with a 3-year cumulative FCF of ₹3,626 crore.

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At the current market price of ₹771, the stock trades at a P/E ratio of 64.9, significantly above the industry average of 34.3, highlighting the market’s premium valuation for consistent earnings growth and brand strength. The price-to-book value stands at 9.87, backed by a book value of ₹78.4 per share. With a low debt-to-equity ratio of 0.28 and zero pledged shares, Indian Hotels continues to maintain a strong balance sheet.

The shareholding pattern shows stable promoter interest at 38.12%, while FIIs have steadily increased their stake to 26.96%, up from 18.24% a year ago. DII holdings declined to 19.05%, while public shareholding stands at 15.74%.

Analyst views remain cautiously optimistic. Out of 22 analysts covering the stock, 41% rate it as a ‘Buy’, 14% suggest ‘Outperform’, and 32% maintain a ‘Hold’. About 14% of analysts are cautious, with 9% rating it ‘Underperform’ and 5% suggesting a ‘Sell’.

With improving margins, a strong travel rebound, and an expanding institutional investor base, Indian Hotels remains a compelling long-term story in India’s premium hospitality space.

Disclaimer

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Aditya Gaur

Aditya Gaur is the founder of FinanceXaditya and a seasoned stock market investor with over 7 years of experience. Known for building India’s first public dividend growth portfolio showcase, he shares time-tested strategies and real insights that help everyday investors create wealth. With 50,000+ followers across social media, Aditya has become a trusted voice in personal finance and long-term investing.