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| Q2 loss of Rs 9.6 crore for EIH |
| BS Reporter / Kolkata Oct 29, 2009, 00:30 IST |
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Hospitality major EIH Ltd, which owns and runs the Oberoi hotel chain, has posted a net loss of Rs 9.65 crore in the July-September quarter against a profit of Rs 31.3 crore in the corresponding quarter of last year.
“Travel advisories issued by several countries after the terrorist attack on Mumbai in November 2008 continued to adversely affect and tourism. Business was further adversely affected due to global economic downturn,” the company said in a statement.
Net sales of the company, in which Analjit Singh is set to buy a controlling stake, were also down 33 per cent to Rs 156 crore compared to Rs 234.2 crore for the same period of the previous financial year.
However, EIH said its performance for the first half of the year was not indicative of its annual result due to the seasonal nature of the domestic hotel industry.
It added that it was adequately insured against damage caused by terrorism at its two Mumbai Hotels i.e. Trident, Nariman Point and The Oberoi, Mumbai, based on replacement value.
“Therefore no effect has been given in the books in respect of damage to the properties. The Oberoi, Mumbai, continues to remain closed. Restoration/ renovation work is progressing satisfactory,” the statement disclosed.
“Other operating income’ for the six months ended September 30, includes Rs 52.68 crore being claim submitted to the insurance company for losses due to business interruption at Trident, Nariman Point and The Oberoi Mumbai,” the statement added.
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