ITC Backed Hotel Company Reports Q3FY25 Earnings, Posts 21.26 Per Cent YoY Profit Growth
The company's net profit surged to Rs 278.83 crore, compared to Rs 229.94 crore in the same period last year. An uptick in revenue from operations primarily drove this growth
EIH Ltd, the hospitality firm operating luxury hotels under the Oberoi and Trident brands, reported a robust 21.26 per cent year-on-year rise in its consolidated net profit for the third quarter of FY25. The company's net profit surged to Rs 278.83 crore, compared to Rs 229.94 crore in the same period last year. This growth was primarily driven by an uptick in revenue from operations, which grew 7.95 per cent year-on-year to Rs 800.17 crore, up from Rs 741.26 crore in Q3FY24, as per the company’s stock exchange filing.
In a separate filing, EIH Ltd announced its decision to forgo the proposed investment in Pune-based Muttha Towers II Pvt. Ltd. The company, after evaluating its strategic priorities, determined that it would be beneficial for all parties not to proceed with the Rs 254 crore investment in acquiring a 51 per cent stake in the project. Initially approved in September 2023, the investment aimed to develop a mixed-use project featuring a Trident Hotel, office spaces, and food and beverage-focused retail outlets. The 1.70-acre land parcel owned by Muttha Towers II Pvt. Ltd will remain under its existing ownership.
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EIH Ltd, a key player in the hospitality sector, is part of The Oberoi Group and operates a network of luxury and five-star hotels across five countries. In addition to hotels, the company offers hospitality services such as flight catering, car rentals, and corporate air charters. Oberoi Hotels & Resorts is globally recognized for its premium hospitality and exceptional service, while Trident Hotels provide quality and value to business and leisure travelers.
EIH Ltd shares experienced a 3.35 per cent intraday decline on February 12, closing at Rs 342. The stock has witnessed a 12.43 per cent decline over the past year. As per the shareholding pattern as of December 31, 2024, ITC Ltd holds a 16.13 per cent stake in the hospitality company.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.