EIH stock tanks: Luxury hospitality company EIH stock price nosedived 10.19 per cent in intraday deals to hit a low of Rs 256.70 per share on Wednesday, August 7, 2024.
The sharp fall in the stock price came after the company reported a weak set of numbers in the June quarter (Q1FY25).
The company’s profit dropped 11.2 per cent year-on-year (Y-o-Y) to Rs 92.2 crore in the June quarter of FY25, from Rs 103.8 crore in the June quarter of FY24.
Its revenue from operations or topline, rose nearly 6 per cent to Rs 526.5 crore in the June quarter of financial year 2025, from Rs 481.1 crore in the June quarter of financial year 2024 (Q1FY24).
At the operating front, earnings before interest, tax, depreciation and amortisation, also known as operating profit, fell 13.3 per cent on a Y-o-Y basis to Rs 134.9 crore in Q1FY25, from Rs 155.5 crore in Q1FY24.
Consequently, Ebitda margin squeezed 560 basis points (bps) to 25.6 per cent in the June quarter of FY25, from 31.2 per cent in the June quarter of FY24.
EIH Ltd, a flagship company of the Oberoi Group, focuses on owning and managing premium luxury hotels and cruisers under the prestigious Oberoi, Trident, and Maidens brands.
Founded by the late Rai Bahadur MS Oberoi, the Oberoi Group boasts over six decades of excellence in luxury hospitality. Its portfolio includes international destinations such as Indonesia, Mauritius, Egypt, and the UAE.
As of Q3FY24, EIH Ltd managed a total of 4,269 keys across various locations, including 497 international keys.
In addition to its core hospitality business, EIH Ltd is involved in flight catering, airport restaurants, project management, and corporate air charters. The company also operates a car rental business through a joint venture with Avis Europe, known as AVIS India Mobility Solutions Pvt. Ltd.
The market capitalisation of the company is Rs 22,6382 crore, according to Bombay Stock Exchange (BSE).
First Published: Aug 07 2024 | 10:26 AM IST
