Standalone Financial Results for the Quarter and Year ended 31st March, 2025

Record High Performance; Highest Ever Revenue And Profits

·       Stellar performance in Q4 FY25: Revenue at ₹ 1017 cr. up 17% ; EBITDA margin expands to 40% up 350 bps and PAT at ₹ 264 cr. up 44%

·       Full Year: Revenue at ₹ 3333 cr. and PAT at ₹ 698 cr.

·       54 signings and 30 Hotel openings in last 24 months; robust pipeline across brands

Demerger of Hotel business from ITC Ltd.: The Hotels business of ITC Ltd. was demerged into ITC Hotels Ltd. with effect from 1st January 2025. The Equity Shares of the Company successfully listed on the National Stock Exchange (NSE) of India Limited and BSE Limited on 29th January, 2025.

The figures for the comparative period ended 31st March, 2024, have been restated as if the Scheme of Arrangement [1] had occurred from the date of incorporation of the Company i.e., 28th July, 2023, in accordance with the accounting treatment specified in the Scheme. Accordingly, the figures for the period ended 31st March, 2024 and year ended 31st March, 2025 include the results of the Company and the Demerged Undertaking transferred under the Scheme.

TRAILBLAZER IN RESPONSIBLE LUXURY

·       1^st Indian hotel chain to receive the prestigious USGBC Leadership Award for Organizational Excellence 2024.

·       ‘ITC Hotels’ - a global exemplar in sustainability takes immense pride with largest number of LEED Platinum certifications in the world wherein 23 of its hotels have this highest recognition; 12 hotels being LEED® Zero Carbon certified (first 12 in the world) and 8 hotels being LEED® Zero Water certified hotels (first 8 in the world).

• ITC Hotels has surpassed the ‘2030 sectoral emission targets’ consecutively for four years and has also sustained 2050 emission level targets in line with COP 21 for 12 of its hotels.

MACRO ECONOMIC CONTEXT

The Indian economy remains a bright spot amidst a global slowdown and is expected to sustain its position as the fastest growing large economy. As per the second advance estimates released by MOSPI[2], India’s real GDP is projected to have grown by 6.5% in FY25 and is expected to grow at a similar pace in FY26.

The fundamentals of the Indian economy continue to remain healthy across sectors. The positive outlook is anchored on rising urbanisation, favourable demographics and sustained growth of the services sector, which are expected to continue driving expansion. As per the IMF, over the next 5 years, India’s per capita GDP (Nominal) is expected to grow at a CAGR of 9.2%. A favorable demographic profile, steady domestic demand and rising consumption levels augur well for the hospitality industry in India.

Aggregate room demand in India is expected to grow ahead of supply. Further, potential for growth in foreign tourist arrivals (which still trail pre-pandemic levels by 12%) and Government’s thrust on enhancing infrastructure and connectivity, boosting employment and promoting the tourism sector are expected to fuel growth in the Indian Hospitality industry.

PERFORMANCE HIGHLIGHTS

The Company is amongst the fastest growing hospitality chains in the country with 140+ properties and over 13,300 rooms under six distinctive brands – ‘ITC Hotels’ in the Luxury segment, ‘Mementos’ in the Luxury Lifestyle segment, ‘Welcomhotel’ in the Upper Upscale & Upscale segment, ‘Storii’ in the Boutique Premium segment, ‘Fortune’ in the Mid-market to Upscale segment and ‘WelcomHeritage’ in the Leisure & Heritage segment.

The Company delivered a robust performance during the financial year 2024-25, anchored on its commitment to operational excellence and customer satisfaction.

·     Room Revenues sustained its strong growth trajectory driven by broad based performance across segments including Retail, Contracted, Weddings and Crew

-          The ADRs at appx. ₹ 12500 and Occupancy at 73% saw robust year-on-year growth, supported by sustained demand across key markets and smart revenue management.

·     Food & Beverages (F&B) Revenue also recorded strong growth driven by innovative culinary offerings and strategic refresh of certain key F&B outlets

-          Stellar performance in Banqueting and event catering, especially in wedding and institutional segments, reinforced F&B as a key pillar of the Company’s business.

·     EBITDA margin expanded to 36% in FY25, driven by higher RevPARs, growth in F&B revenue, higher management fees, structural cost interventions and operating leverage.

·     In line with the Company’s ‘asset-right’ strategy, a substantial part of the recent room additions have accrued through management and franchising contracts.

-          The strategy envisages driving growth while reducing capital intensity of operations by focusing on strong partnerships with asset owners, leveraging brand credentials and providing operational expertise. The Company’s presence has expanded to Tier 2 and 3 cities, where demand for premium hospitality is rapidly increasing. 

-          The Business continues to witness growing interest amongst property owners to partner with its iconic brands resulting in healthy generation of leads and pipeline of management contracts. The Company has a robust pipeline of 50 Hotels with over 4500 keys with high salience of brownfield assets and targets a portfolio of 220 operational hotels with over 20,000 keys by 2030.

-          The Company is also progressing investments towards scaling up its portfolio of owned hotel rooms.  Construction of a greenfield project at Puri and a new block at the existing Welcomhotel in Bhubaneshwar are underway. The Company’s strategic land bank at Visakhapatnam is also being leveraged to develop a greenfield project to enhance its portfolio of owned hotels. 

·         The Company’s first international property ITC Ratnadipa[3], opened in April 2024 at Colombo, Sri Lanka. A jewel in the Colombo skyline that promises to enrich the tourism and hospitality landscape of Sri Lanka, the luxury property is poised to create the ultimate luxury hospitality experience for discerning business and leisure travellers. The property turned EBITDA positive from the quarter ended December 2024.

·         Digital investments continue to be leveraged towards enhancing guest experience, facilitating guest acquisition, augmenting revenue generation and driving operational efficiency. During the year, the Business continued to leverage its full stack ITC Hotels App for Food Delivery, Room & Table Reservations, Room automation and entertainment control, Loyalty Benefits, Exclusive Offers and more. 

The Company recorded its best ever quarterly performance in Q4 FY25

·         Revenue from Operations grew by 13%.

• Room Revenues increased 16% on the back of strong ADRs at appx. ₹ 15000 (14% growth) and buoyant occupancy levels at 79%; RevPAR grew by 17%.
• F&B Revenues grew 12% on the back of event catering and strong growth across outlets.

·         EBITDA Margins at 40% expanded by 350 bps over LY  

The Board of Directors, at its meeting on 15^th May 2025, approved the financial results for the year ended 31^st March 2025.