EIH Q2 Results: Profit surges 34% YoY to ₹114 crore; company unveils expansion plans

EIH Ltd, the hospitality arm of Oberoi Group, reported a 34 per cent year-on-year (YoY) jump in its standalone profit after tax (PAT) to ₹114 crore for the quarter ended September 2024 (Q2). The company had reported a PAT of ₹85 crore in the same quarter last fiscal year.

Meanwhile, its revenue from operations came in at ₹558 crore, up over 14 per cent YoY, and EBITDA stood at ₹189 crore, up more than 27 per cent YoY. The company released its September quarter results post-market hours on Tuesday.

Vikram Oberoi, CEO & MD of EIH in the release on Wednesday, November 13, said, “Our record-breaking second-quarter results highlight strong demand, with standalone and consolidated Profit Before Tax rising by 34 per cent and 41 per cent YoY. This strong financial momentum reflects the unwavering trust our guests place in our brand and the relentless commitment of our teams to deliver outstanding service.”

Strategic Expansion, Growth Plans

The company also announced its expansion plan envisioning a pipeline of 20 properties to be completed by 2029. This will comprise 17 hotels, two luxury boats, and a Nile Cruiser, the statement added.

The expansion seeks to have nine hotels to be owned, invested in and operated directly or through a joint venture by EIH Limited.

Further, 11 properties (including the two luxury boats and a Nile cruiser) are to be managed by The Oberoi Group. 

The hotels will be located in India and nine international destinations such as Bhutan, Egypt, London, Nepal, and Saudi Arabia.

After completion, 16 hotels (including two boats and a Nile Cruiser) will operate under the Oberoi brand and four hotels under the Trident brand.

The mixed-use development at Bengaluru and Pune will include commercial, retail and F&B space of approximately 11.71 lakhs square feet.

Arjun Oberoi, Executive Chairman of EIH in a statement said, “With a confirmed expansion plan of 20 new properties … we are strategically growing our portfolio across key domestic and international markets. This growth trajectory reinforces our commitment to delivering exceptional experiences and underscores our ongoing focus on Environmental, Social, and Governance (ESG) principles as we build a sustainable future for luxury hospitality synonymous with our brands.”

Despite a strong financial performance, shares of EIH Ltd declined over 3 per cent to hit the day's low of ₹353.10 on the NSE today.

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