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Hotels Fight Lower Revenue With Efficiency Gains
9 Feb
Summary
- EIH Associated Hotels saw Q3 profit rise 2% to ₹54.6 crore.
- Revenue declined 2.6% to ₹129.5 crore in the same period.
- EBITDA margin expanded to 44.4% due to operating efficiencies.
EIH Associated Hotels reported a marginal profit increase of 2% for the third quarter, reaching ₹54.6 crore compared to ₹53.5 crore in the previous year. Revenue saw a slight decrease of 2.6%, falling to ₹129.5 crore from ₹133 crore.
Despite the revenue dip, operating efficiency improved significantly. EBITDA grew by 7% to ₹57.5 crore, and the EBITDA margin expanded from 40.4% to 44.4%. This performance indicates strong operational leverage and effective cost management.
In contrast, the parent company, EIH Ltd, experienced a 12.4% decline in net profit for the September quarter, totaling ₹113.7 crore. Revenue from operations saw a modest 1.5% rise to ₹597.9 crore.
EIH Ltd's operating performance weakened, with EBITDA decreasing by 11.8% and the operating margin contracting to 25.8% from 29.6%. This suggests ongoing margin pressure due to rising expenses, even with steady revenue growth.
