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IHCL’s asset-light strategy has made investors forget covid woes

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₹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.

The Ebitda margin in management fees is around 70-80% and that too without deploying capital, so it is RoCE accretive. Ebitda is short for earnings before interest, taxes, depreciation and amortization.

RoCE is short for return on capital employed. The company’s Ebitda margins are also likely to get a boost from its cost savings initiatives.

In FY21, its operating cost declined by 45% to ₹1,920 crore, driven mainly by a 28% reduction in fixed costs. The management said that a large number of initiatives adopted would maintain a sustained

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