Shares of Tata group’s hospitality firm Indian Hotels Company Ltd settled over eight per cent higher on Wednesday after the company’s consolidated net profit registered over four-fold rise in the December quarter on the back of robust demand.
The counter of Indian Hotels Company surged as much as 8.15 per cent to settle at `325.05 on the BSE. The stock had opened on a positive note and gained around 10 per cent to hit an intra-day trade high of `330.34.
Similar movements were witnessed on the National Stock Exchange (NSE), where the stocks closed 7.97 per cent higher at `325. The stock had hit an intra-day high of `330.45 and alow of `310.20 during the session.
On Tuesday, the company reported an over four-fold rise in consolidated net profit at `403.56 crore in the third quarter ended December 2022 from `95.96 crore in the year-ago period, Indian Hotels Company Ltd (IHCL) said in a regulatory filing.
Consolidated revenue from operations during the quarter under review stood at `1,685.8 crore as against `1,111.22 crore in the corresponding period of the previous fiscal.
Buoyed by a strong demand in the third quarter, both leisure and business hotels in key domestic markets reported occupancy of over 70 per cent and a growth rate of 27 per cent as compared to pre-Covid levels, the company said.
The demand outlook for the sector in 2023 remains robust on the back of sporting events such as world cup hockey and cricket, global events like the ongoing G20 and recovery of inbound and corporate travel, the company added.