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IHCL Q2 Results: Tata Group-owned hotel chain's net profit jumps 19% to Rs 379 crore

Indian Hotels moved higher in a quarterly results development.

· Economic Times Markets, ET Stocks

Indian Hotels Company Ltd, under the Tata Group, has announced a remarkable 19.35% rise in consolidated profit for the September quarter, soaring to Rs 379.85 crore from Rs 318.26 crore last year. Revenue from operations also surged to Rs 2,484.32 crore, up from Rs 2,040.89 crore.

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Indian Hotels reported Rs 379 crore, Rs 379.85 crore and Rs 318.26 crore, with movement of 19%, 20% and 19.35% attached to those lines. Those are the figures as filed — what moves the price is how they sit against what the market already expected, not their absolute size.

Against that, the stock is -0.9% on the day at ₹753.00, and has returned +2.9% over three months. It is trading close to its 52-week high, so expectations were already elevated going in. The hotels & restaurants sector has moved -1.4% over the same period, so Indian Hotels is running 4.3 points ahead of its peers.

For Indian Hotels, the question is how much of this is already reflected in the price and how much re-rates the hotels & restaurants peer set alongside it.

  • Earnings versus expectations is what actually re-rates a stock; the surprise matters more than the absolute number.
  • The company directly in focus is INDHOTEL.
  • Sector exposure: Hotels & Restaurants.
  • The immediate tone of coverage reads positive.
INDHOTELHotels & Restaurants