IHCL Mitigates Covid-19 Impact With Its R.E.S.E.T Strategy

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The Indian Hotels Company Limited (IHCL), South Asia’s largest hospitality company, has launched R.E.S.E.T 2020, a comprehensive five-point strategy that lays out a transformative framework to help overcome COVID-19 related challenges and achieve revenue growth. This, even as it optimizes expenditure and strengthens the balance sheet.

Decoding R.E.S.E.T 2020

Among the strategies it unveiled:

• Revenue generation initiatives such as Hospitality@Home, Qmin, and campaign offer such as 4D—Dream, Drive, Discover Story of the month and Delight, Urban Getaways, and Bizcation to stimulate domestic demand.

• Excellence: A focus on enhanced SOPs under Tajness—A Commitment Restrengthened and I-ZEST: IHCL’s Zero- Touch Service Transformation, which ensures heightened safety through a host of digital and service interventions.

• Spend Optimization: IHCL has leveraged opportunities across all cost heads to rationalize resources and optimize expenditure.

• Effective Asset Management: Undertaking renegotiation of contracts and lease rentals, while monetizing assets.

• Thrift and Financial Prudence: Ensure adequate cash flows while reducing the corporate overheads of the company. Giridhar Sanjeevi, Executive Vice President and Chief Financial Officer, IHCL, said, “We have taken substantial steps to preserve liquidity. Also, we are rationalizing all costs and maintaining the highest financial prudence. This will assist us in managing the evolving situation.”

IHCL has reported consolidated and standalone financials for the first quarter, ending June 30th, 2020. In the first quarter of FY 20/21, the hospitality group has generated revenue of Rs. 175 crore as compared to Rs. 1057 crore last year. The EBIT- DA reported in the first quarter is Rs.234 crore, whereas in FY 19/20 it stood at Rs.210 crore.