ITDC reports 11.3 pc rise in Q2 net profit despite revenue decline

The travels and tours segment reported a loss of INR 0.7 million during the quarter (Photo: India & You/Varsha Singh)

India Tourism Development Corporation (ITDC), a public sector undertaking under the Ministry of Tourism, has reported an 11.3 pc year-on-year (YoY) rise in consolidated net profit to INR 182 million in the second quarter, despite an 8.5 pc decline in revenue, with its Hotel Division recording growth during the period.

India Tourism Development Corporation (ITDC) has reported a consolidated net profit of INR 182 million for the quarter, compared with INR 163.5 million in the corresponding quarter last year. However, the company’s revenue declined to INR 1.08 billion from INR 1.18 billion year-on-year.

In its financial results, ITDC reported earnings before interest, taxes, depreciation and amortisation (EBITDA) of INR 155.2 million, down 18.7 pc from INR 191 million in the year-ago quarter. Its EBITDA margin also contracted by 177 basis points to 14.35 pc from 16.12 pc.

The Hotel Division recorded an increase in revenue to INR 909 million from INR 847 million in the corresponding period last year. Meanwhile, the Event Management and Tourism Institute segment registered a decline in revenue to INR 198 million from INR 311 million.

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The travels and tours segment reported a loss of INR 0.7 million during the quarter, compared with a loss of INR 3.5 million in the corresponding quarter last year, indicating a reduction in losses.

ITDC’s consolidated profit before tax stood at INR 239 million during the quarter, reflecting higher net profitability despite a decline in overall revenue and operating earnings.

Mugdha Sinha

“Our Q2 performance reflects the Corporation’s continued focus on operational efficiency, financial discipline and business development across its verticals. During the quarter, we continued to respond to evolving requirements in the area of Human resource development, organised relevant Capacity building programs and also strengthened the Employees’ welfare with several initiatives. Our focus also remains on strengthening business partnerships, optimising resources ESG and leveraging technology to improve efficiency. These priorities will continue to guide ITDC’s growth strategy while creating long-term value for stakeholders,” says Mugdha Sinha, Managing Director, ITDC.

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