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You'd expect a splashy quarter from a newly listed company trying to prove its mettle. ITC Hotels didn't disappoint - at least when it comes to profitability. The hospitality chain, now trading as a standalone entity after its demerger from ITC , posted a Rs 257 crore net profit for Q4 FY25, up nearly 20 per cent year-on-year.
But scratch the surface, and the numbers aren't exactly setting the street on fire.
What the company does
ITC Hotels runs a mix of premium and mid-market properties across India, with brands like ITC Hotels, Fortune and Welcomhotel. It currently has over 140 hotels and 13,000+ rooms across 90+ cities.
Here's how the company's fundamentals look like:
- ROE 1.3%
- ROCE 1.8%
ITC Hotels Q4 FY25 results snapshot
| Metric | Q4 FY25 | Q4 FY24 | Change |
|---|---|---|---|
| Revenue | Rs 1,061 cr | Rs 1,015 cr | 4.4% |
| Net profit | Rs 257 cr | Rs 215 cr | 19.5% |
| EBITDA | Rs 413 cr | Rs 381 cr | 8.4% |
| EBITDA margin | 38.9% | 37.5% | 1.4 ppt |
There's a clear uptick in profitability, helped by higher operating efficiency and cost control. But the revenue bump was underwhelming, especially for a sector that's seeing tailwinds from booming travel demand.
What's cooking next?
The company announced a Rs 328 crore capex plan to build a new property in Visakhapatnam, expected to be ready by 2029. While that's part of a long-term expansion play, it won't move the needle any time soon.
A capital-light strategy may protect margins, but it also means slower scale-up compared to peers who are investing aggressively in new inventory.
What it means for investors
ITC Hotels is playing it safe and smart. The Q4 numbers show a steady hand, but not an aggressive leap. For now, the stock may appeal more to investors looking for consistency than to those chasing big upside.
Thus, investors hoping for a post-listing boom may need to temper expectations. This is more of a slow roast than a sizzle.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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