Indian Hotels Company Ltd (IHCL) on Thursday posted a 232% jump in net profit for the second quarter of the financial year, owing to a large one-off item that padded its bottom line.

What Happened: The operator of the Taj and other hotels and resorts said its net profit climbed to ₹554.58 crore crore in the quarter ended September, compared with the ₹166.92 crore it had earned in the same quarter a year ago. The figure handily beat Sharekhan’s estimates of ₹258.7 crore.

The company booked a ₹307.36 crore gain from the consolidation of TajSATS. Excluding this one-time gain, the company’s net profit grew 48% year on year to ₹247 crore, which would have fallen short of profit estimates.

The Tata Group firm’s quarterly revenue from operations came in at ₹1,826.12 crore, up 27.4% from the ₹1,433.20 crore it clocked a year ago. The figure came ahead of estimates of around ₹1,734.2 crore.

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The company’s numbers during the quarter were likely boosted by a strong wedding season and pent-up demand due to elections and a heatwave during the first quarter, pushing several events into the second quarter.

The company reported an EBITDA of ₹565 crore, up 40% from a year ago and an EBITDA margin of 29.9%, gaining 270 basis points.

“For FY2025, we continue to maintain a guidance of double-digit revenue growth led by the sustained growth in New Businesses, not like for like growth and healthy same store performance,” said Puneet Chhatwal, MD and CEO of IHCL. “This is reflected in a strong 16.5% growth in consolidated hotel segment revenue in October which is set to accelerate in the remaining months of Q3."

IHCL’s like-for-like occupancy rates went up to 78% versus 76.5% in the same quarter last year. Its average room rate climbed to ₹14,321 from ₹12,968. Meanwhile, revenue per available room ticked up to ₹11,163 from ₹9,920 a year ago.

The company also said it had signed 42 hotels, which included 12 Taj hotels, and opened 14 new hotels to date, meeting its guidance of opening two hotels every month. The firm’s management has previously said it plans to open 25-30 new hotels in FY2025.

TajGVK Hotels and Resorts, a joint venture between IHCL and Secundarabad-based GVK Group, posted a 70% jump in second-quarter net profit to ₹24.23 crore this week.

The hospitality firm recently acquired a majority stake in Tree of Life's operating company in a bid to bolster IHCL's presence in the experiential leisure segment.

Price Action: Ahead of results, IHCL’s share price ended 0.53% higher at ₹688.30 on Thursday. The company’s stock has gone up nearly 58% so far this year.

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