In an attempt to beat the impact of the covid-19 pandemic, Indian Hotels Company Ltd (IHCL) has tweaked its re-imagination strategy, which was laid out in 2018. Among the key highlights of its renewed business plan is an increased focus on staying asset-light. Currently, management contracts generate a revenue of ₹220 crore, which the company targets to take up to ₹350 crore. According to analysts, the increased focus on management contracts bodes well for the company’s return ratios and operating margins. However, due to covid, this debt metric increased to 0.73 times in FY21 and net debt increased from ₹1,860 crore in FY20 to ₹3,100 crore in FY21.

Source: Mint July 11, 2021 16:07 UTC