175% Dividend: TATA Group Stock Declares Q4 Results; Buy The Rekha Jhunjhunwala Portfolio Stock?

The largest hospitality firm in India, Indian Hotels Company Limited (IHCL), released its consolidated financial reports for the fourth quarter and full year that ended on March 31, 2024. Eight straight quarters of record financial performance, powered by double-digit sales growth, were recorded in Q4 FY24. Additionally, a 175% dividend has been recommended by the Tata Group firm. The shares of Indian Hotels Company closed 5.10% down at Rs 577.25 each after the aforementioned statement.

Indian Hotels Company Dividend

The Board of Directors "Recommended a dividend of Rs 1.75/- per Equity Share of Rs 1/- each fully paid up of the Company @ 175 % (previous year Rs 1/- per Equity Share of Rs 1/- each fully paid up @ 100%), subject to the approval of the Members at the forthcoming Annual General Meeting. Accordingly, the dividend payable on one Equity Share of Rs 1/- each fully paid up will amount to Rs 1.75/- (One rupee Seventy Five paise only) and the dividend payable on Hundred Equity Shares of Rs 1/- each fully paid up will amount to Rs 175/- (One Hundred and Seventy Five rupees only)," said Indian Hotels Company in a statement on Wednesday.

Indian Hotels Company Q4 Results

The company reported a consolidated revenue of Rs 1,951 Cr in the quarter ended March 31st, 2024 which is a growth of 18% YoY whereas EBITDA stood at Rs 706 Cr representing a growth of 25% YoY. During Q4FY24, the company recorded a net profit of Rs 418 Cr, up 27% YoY from Q4FY23.

For the full year ended March 31st, 2024, the company's revenue jumped 17% to Rs 6,952 Cr, EBITDA climbed 20% to Rs 2,340 Cr whereas net profit surged 26% to Rs 1,259 Cr.

Mr. Puneet Chhatwal, Managing Director & CEO, IHCL, said, "IHCL achieves its key goals under Ahvaan 2025 well ahead of time with a full year consolidated EBITDA margin of 33.7%, a portfolio of 300+ hotels and a cash position of INR 2,206 crores. Q4 FY24 marked eight consecutive quarters of record financial performance driven by double-digit revenue growth in same store hotels, incremental revenue from not like for like hotels and scaling of new businesses. With 53 signings in FY2024 IHCL achieved a portfolio of 310 hotels, enabled by attaining scale in each of our brands and forming strategic alliances in new market segments."

He added, "Looking ahead at FY2025, IHCL will continue to deliver double digit revenue growth with new businesses at 30%, and opening of 25 hotels. IHCL will also introduce the re-imagined Gateway, a full-service hotel offering in the upscale segment, an ideal fit to capture growth opportunities in emerging micro markets in metros and Tier II and Tier III cities. The brand roll-out starting with 15 hotels will commence with launches in Bekal and Nashik this quarter followed by destinations like Bengaluru, Thane and Jaipur. The brand will scale to a 100 hotels portfolio by 2030."

"Investing in our competitive advantage of optimising the balance between operating leverage and fee-based business, IHCL has commenced a five-year capital deployment plan from FY2023 to FY2027 totalling INR 3,500 crores towards key asset upgradation, building capabilities and select new projects. This includes strengthening of our digital capabilities with new brand website launches starting May 2024, implementation of a new ERP system and Data Lake for advanced analytics with AI/ML capabilities," Puneet Chhatwal further commented.

Giridhar Sanjeevi, Executive Vice President and Chief Financial Officer, IHCL said, "The resilience of our business model over eight consecutive quarters is reflective of robust fundamentals of a diversified topline, a balanced portfolio, prudent capital allocation and a sharp focus on driving operating flow thorough. This sustained performance has led to an all-time high IHCL Consolidated turnover of INR 6,952 crores, a 17% growth YoY and a 100-basis point expansion in EBITDA margin at 33.7%. The buoyancy of domestic demand drove a 20% growth in IHCL's standalone revenue at INR 4,590 crores, EBITDA margin of 41.3% an expansion of 200 basis points leading to a record PAT of INR 1,095 crores."

Indian Hotels Company Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, "INDHOTEL is currently positioned at 580 levels, having witnessed profit-taking from its recent peak at 620, an all-time high. The stock finds robust support near 570 levels, aligned with its 50-day Exponential Moving Average (EMA). Investors who entered at lower levels are advised to secure profits. Considering fresh investments or trades should be contingent upon a breakout above the 620 level, indicating renewed bullish momentum. This approach ensures prudent risk management and aligns with market dynamics. Monitoring price action around these critical levels is essential to gauge the stock's future trajectory accurately. Potential upside movement beyond 620 could signify a resumption of the uptrend, potentially offering lucrative opportunities for investors. Until such a breakout occurs, adopting a watchful stance ensures informed decision-making and maximizes the probability of capturing favourable market movements."

Rekha Jhunjhunwala's Stake In Indian Hotels Company

As per the shareholding pattern of Indian Hotels Company available on BSE for the quarter ended 31st March 2024 or Q4FY24, Rekha Jhunjhunwala wife of the late big bull of the Indian stock market Rakesh Jhunjhunwala held 2,98,41,965 shares of Indian Hotels Company in her portfolio which is 2.09% of the total paid-up share capital of the company.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.