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What is the story about?
ITC Hotels Ltd., the demerged entity of cigarettes-to-FMCG conglomerate ITC Ltd
. reported its December quarter results on Tuesday, January 20, that were higher on a year-on-year basis, across parameters.
The company's net profit increased by 77% from last year to ₹235 crore from ₹133 crore earlier.
This growth in ITC Hotels' profitability is despite accounting for multiple one-offs during the quarter. First is a one-time estimated impact of ₹55.42 crore due to the new labour codes. "The group continues to monitor the finalization of rules by the government and other related aspects of the new labour codes and will appropriately account for such changes, if needed," the company wrote in its note to accounts.
The other exceptional item is a net loss of ₹28.58 crore caused due to inventory damage on account of Cyclone Ditwah in Sri Lanka, for which the insurance survey is under process.
Revenue for the quarter grew to ₹1,231 crore, a growth of 47% from last year's figure of ₹839.5 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter nearly doubled from last year, growing 90% to ₹467 crore from ₹245.5 crore.
EBITDA margin for the quarter expanded by nearly nine percentage points to 38% from 29.2% in the year-ago period.
Shares of ITC Hotels are currently trading 1.5% lower on Tuesday after the results announcements at ₹182.47. The stock is down 28% in the last six months.
The company's net profit increased by 77% from last year to ₹235 crore from ₹133 crore earlier.
This growth in ITC Hotels' profitability is despite accounting for multiple one-offs during the quarter. First is a one-time estimated impact of ₹55.42 crore due to the new labour codes. "The group continues to monitor the finalization of rules by the government and other related aspects of the new labour codes and will appropriately account for such changes, if needed," the company wrote in its note to accounts.
The other exceptional item is a net loss of ₹28.58 crore caused due to inventory damage on account of Cyclone Ditwah in Sri Lanka, for which the insurance survey is under process.
Revenue for the quarter grew to ₹1,231 crore, a growth of 47% from last year's figure of ₹839.5 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter nearly doubled from last year, growing 90% to ₹467 crore from ₹245.5 crore.
EBITDA margin for the quarter expanded by nearly nine percentage points to 38% from 29.2% in the year-ago period.
Shares of ITC Hotels are currently trading 1.5% lower on Tuesday after the results announcements at ₹182.47. The stock is down 28% in the last six months.
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