Earnings | EIH Ltd (NSE:EIHOTEL): Q3FY23 Results Out; Total Income rise 59% YoY

EIH Ltd (NSE:EIHOTEL) is the flagship company of the Oberoi group, a leading hospitality company that manages 33 hotels, with approximately 4,247 rooms, across India, Egypt, Indonesia, Mauritius, and Saudi Arabia. The hotels are operated under the brands Oberoi (super luxury), Trident (five-star), and Maidens (heritage), catering to both leisure and business travelers. Additionally, EIH provides catering and kitchen services to airlines, operates restaurants and lounges at airports, and offers air charter and car hire services.

In Q3FY23, EIH Ltd reported a strong operational performance, with revenue and EBITDA growth of 21% and 52%, respectively, from pre-Covid levels. Revenues were up 62.9% YoY and 44% QoQ to Rs. 512.2 crore, which exceeded the estimated revenue of Rs. 412.4 crore. The company’s EBITDA margin came in at 35.2%, better than the estimated 26.5% and higher than the EBITDA margin of 28.2% during Q3FY20. Despite reporting exceptional expenses of Rs. 21 crore, mainly on account of impairment in the value of subsidiary investments, net profit was up 39% from pre-Covid levels to Rs. 103.9 crore, exceeding the expected net profit of Rs. 63.6 crore.

The rebound in foreign tourist arrivals is expected to provide further fillip to leisure and business hotel room demand, going forward. The company’s recent venture into the premium café business is also expected to lead to potential value unlocking of the F&B segment in the long run. EIH has a strong balance sheet to support growth, and looking at the strong performance in 9MFY23E, FY24 is looking more promising due to many mega international events lined up (G20, CWC, etc.).

In conclusion, EIH Ltd has reported strong Q3FY23 results, with revenue and EBITDA growth exceeding expectations, despite reporting exceptional expenses. The company is well-positioned to benefit from the rebound in foreign tourist arrivals and has a promising outlook for FY24, given the many mega international events lined up.