07 Feb , 2024 By : Debdeep Gupta
EIH jumps 20% on record Q3 earnings, stock up 150% in a year, EIH Ltd stock has gained more than 150 percent in the last year compared to a 24 percent rise in the benchmark Nifty 50
Shares of hospitality chain EIH Limited zoomed 20 percent to a new high of Rs 426.50 on February 7 morning, a day after the company which operates the Oberoi chain of hotels reported record earnings for the December quarter.
The company's profit jumped 52 percent on-year to Rs 229.94 crore and total income increased to Rs 769.87 crore.
Implementation of cost-saving measures played a crucial role in enhancing profitability, the company said in a statement.
EIH Ltd leveraged the resurgence in luxury travel, positioning itself as a preferred choice for travelers and contributing significantly to the revenue surge.
The company said it was agile in adjusting room rates in response to escalating demand, a key factor contributing to overall revenue growth.
EIH recorded earnings before interest, tax, depreciation, and amortization (EBITDA) at Rs 324 crore for the third quarter, a 55 percent on-year growth. Its margin improved to 43.7 percent from 35.6 percent a year ago.
EIH owns and manages 30 hotels and resorts across 14 destinations in six countries. Its portfolio includes Oberoi Hotels and Resorts, Trident, Maidens, and other businesses, including flight kitchens and lounges in India.
At 11:09 am, EIH was trading at Rs 418.05 on the National Stock Exchange, 17 percent higher from the previous close. The stock has gained more than 150 percent in the last year compared to a 24 percent rise in the benchmark Nifty 50.
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