The stock of Indian Hotels Company Ltd (IHCL) jumped nearly 6 percent in morning trade on Thursday after the company reported a consolidated net profit of Rs 71.57 crore for the fourth quarter ended March 31, 2022.
Shares of the company rallied 5.82 percent to Rs 249.60 at the BSE.
On the NSE, it went higher by 5.83 percent to Rs 249.50 apiece.
The company had posted a consolidated net loss of Rs 97.72 crore in the same period of FY21, IIHCL said in a regulatory filing on Wednesday.
Consolidated revenue from operations during the quarter under review stood at Rs 872.08 crore, as against Rs 615.02 crore in the year-ago period.
Total expenses during the fourth quarter stood at Rs 894.16 crore, as compared to Rs 754.15 crore in the same period a year ago, the company said.
For the fiscal ended March 21, 2022, IHCL said its consolidated net loss narrowed to Rs 264.97 crore. The consolidated net loss was at Rs 795.63 crore in FY21.
Expert view
Santosh Meena, Head of Research, Swastika Investmart Ltd. said, IHCL’s Q4 FY22 results were significantly below Street expectations. The hotel industry is one of the best ways to play the post covid trade opening up the theme, demand is expected to exceed supply due to good recovery in both leisure and business travel. However, inflationary headwinds and the normalization of fixed costs will put pressure on the margins of the industry. Being the industry leader and tailwinds for the overall industry, the street is extremely optimistic about the company. The long-term outlook is bullish for the hotel industry and Indian hotels will remain our preferred bet despite short-term challenges.
(With inputs from PTI)
