Business segment recovery to drive growth for Indian Hotels Company

While growth metrics should improve as the leisure segment and business travel picks up, the company's March quarter performance was weaker than expected

The stock of the largest listed hospitality chain Indian Hotels Company was up 4.6 per cent in trade on Thursday, even as it posted a weaker-than-expected March quarter results Wednesday evening. The stock gained another 6 per cent over the next two sessions, taking the post-results gain to over 10 per cent. These gains are on hopes of strong growth in room revenues and occupancies as recovery takes hold in FY23.

Cost rationalisation efforts coupled with improved volumes are expected to result in higher profitability. In addition to improved operational performance, equity infusion and divestment of non-core assets would help