Eih Records 31% Jump In Net Profit

Riding high on better occupancy levels coupled with cost cutting, the Oberoi-promoted East India Hotels (EIH) has clocked a 30.8 per cent increase in its net profit for the year 2000-2001.

Net profit went up to Rs 94.82 crore in 2000-01, compared with Rs 72.47 crore in the previous year. Total revenue of the company increased by 11.3 per cent at Rs 518.93 crore, as against Rs 466.32 crore in the year-ago period.

Due to better profitability, the company's directors have recommended 60 per cent dividend for the year compared to 50 per cent in the previous year. For the current year, the earnings per share (EPS) is Rs 15.94.

The company's foreign exchange earnings stood at Rs 279 crore, compared to Rs 258 crore the previous year.

While Rs 60 crore has been transferred to general reserve, Rs 25 crore has been transferred to the foreign exchange earnings reserve.

"Due to political stability and improvement in business conditions, occupancy levels and average room rates have improved considerably. Also steps have been taken, to eliminate waste and contain costs," EIH vice chairman and managing director P R S Oberoi said.

A company spokesperson said costs have been cut in every possible sphere without compromising on guest services.

A hotel consultant said Oberoi's Delhi hotel has outperformed most other hotels in the capital in terms of improvement in profits over the last year.

Since a larger proportion of the group's rooms are located in the metros and since the metros have performed better because of better business opportunities last year, the consultant attributed the group's better performance to that account.