Indian Hotels Q2 Review - V-Shaped Demand Recovery Drives Growth: Nirmal Bang

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.The Q2 FY22 results of Indian Hotels Company Ltd. clearly supported our views of V-shaped recovery in the hospitality sector. The strong demand continues to be driven by staycations, vacations, weddings etc.IHCL Q2 FY22 revenues increased by ~111% QoQ and ~184% YoY. The QoQ increase was mainly due to 1. Improvement in occupancy in leisure segment from 20% in Q1 FY22 to 51% in Q2 FY22 and non-leisure segment from 30% in Q1 FY22 to 57% in Q2 FY22 2. Average Room Rate for leisure/non-leisure segment increased from Rs 9,098/4,530 in Q1 FY22 to Rs 10,305/Rs 5,697 in Q2 FY22 as lockdown restrictions were eased.Ebitda margins were 10% in Q2 FY22 compared to (43%) in Q1 FY22 and (59%) in Q2 FY21. The margin expansion was driven by recovery in sales and continued optimisation of costs.The company reported an adjusted net loss of Rs 1,206 million in Q2 FY22 compared to an adjusted net loss of Rs 2,773 million in Q1 FY22. Adjusted net loss stood at Rs 2,300 million in Q2 FY21.The management stated over the conference call that they intend to raise Rs 40,000 million funds from the market through rights issues (Rs 20,000 million) and QIP (Rs 20,000 million). The said proceeds will be utilised towards repayment of debt and also towards funding the acquisition of hotels..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Indian Hotels Q2 Review - V-Shaped Demand Recovery Drives Growth: Nirmal Bang

Indian Hotels Q2 Review - V-Shaped Demand Recovery Drives Growth: Nirmal Bang

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