Benares Hotels Limited posts resilient Q2 FY 2024-25 performance despite revenue dip

Benares Hotels Limited (BHL), a subsidiary of The Indian Hotels Company Limited (IHCL), has released its financial results for the second quarter (Q2) and half-year (H1) ending September 30, 2024. Despite a slight contraction in revenue, the company managed to maintain a robust EBITDA margin of 44%, expanding by 400 basis points compared to the same period last year.

The company recorded a Q2 revenue of INR 25.8 crore, down from INR 26.6 crore in the same quarter of the previous fiscal year (FY 23-24). However, BHL’s profit after tax rose marginally to INR 7.2 crore from INR 6.9 crore. For the half-year period, the revenue stood at INR 50.2 crore, down from INR 52.7 crore, while profit after tax grew to INR 13.6 crore, compared to INR 13.2 crore in H1 FY 23-24.

H2 Outlook: Robust Demand Forecast

Dr. Anant Narain Singh, Chairman of Benares Hotels Limited, expressed optimism for the upcoming quarters. He highlighted that despite the revenue dip, the company remains well-positioned due to a robust demand outlook driven by the wedding and transient leisure segments. He underscored the company’s focus on maintaining high operational efficiency to sustain profitability in the coming quarters.

Recognitions and Green Initiatives

Benares Hotels Limited also celebrated several achievements during the period. The Taj Nadesar Palace, Varanasi, earned a spot in TripAdvisor’s ‘Best of the Best’ awards, cementing its place among India’s top hotels. Moreover, the Taj Ganges, Varanasi, received a certificate of appreciation from the World Tourism Organization for its commendable green initiatives.

Additionally, the Taj brand was named India’s Strongest Brand across all sectors in Brand Finance’s Brand Value Report India 2024. These accolades are part of the company’s ongoing efforts to offer world-class services while prioritizing sustainability.

Expert Insight: Maintaining Margins in a Competitive Market

Industry experts observed that Benares Hotels Limited’s ability to maintain an expanding EBITDA margin despite revenue fluctuations is indicative of a well-managed cost structure and effective strategic planning. Analysts have noted that leveraging the Taj brand’s reputation, alongside growing demand in the wedding and leisure segments, positions BHL favorably for the remainder of FY 24-25.

About Benares Hotels Limited

Founded in 1971, Benares Hotels Limited is a publicly listed entity operating Taj Ganges and Taj Nadesar Palace in Varanasi and Ginger, Gondia in Maharashtra. The company became a subsidiary of The Indian Hotels Company Limited (IHCL) in 2011.