Indian Hotels Co Reports Positive Q2 FY25 Results, Strong Cash Flow and Dividend Payout

Indian Hotels Co, a leading player in the hotel, resort, and restaurant industry, has recently announced its financial results for the quarter ending September 2024. The company has shown a positive performance in this quarter, with its score improving from 6 to 10 in the last 3 months.

One of the key factors contributing to this positive performance is the company’s strong operating cash flow, which has been consistently growing over the last three years. This has been reflected in the company’s highest annual operating cash flow of Rs 1,935.14 crore. Additionally, Indian Hotels Co has also shown an increase in its earnings per share (EPS) in the last five quarters, indicating a rise in profitability and higher returns for shareholders.

The company’s short-term liquidity has also improved, with its cash and cash equivalents reaching a record high of Rs 1,729.60 crore in the last six half-yearly periods. Furthermore, Indian Hotels Co has a good track record of distributing profits to its shareholders, with a dividend payout ratio (DPR) of 19.78% in the last five years.

However, there are some areas that need improvement for Indian Hotels Co. The company’s profit before tax (PBT) has fallen by -14.7% in the last quarter compared to the average PBT of the previous four quarters. Similarly, the profit after tax (PAT) has also decreased by -6.2% in the same period. Additionally, the company’s debtors turnover ratio has slowed down, indicating a delay in settling its debtors.

Another concern is the company’s non-operating income, which has shown a significant increase in the last five quarters. While this may seem positive, it is important to note that this income is from non-business activities and may not be sustainable in the long run.

Overall, Indian Hotels Co has shown a positive financial performance in the quarter ending September 2024. However, there are some areas that need improvement, and investors are advised to hold their stock for now, according to MarketsMOJO.