IHCL net profit grows 58% to Rs 60 cr

Improved occupancies across most of its properties, aided by a slight increase in room rates, helped Mumbai-based Indian Hotels Company (IHCL), the company which owns the Taj chain of luxury hotels, post 58 per cent growth in net profit for the quarter ended March 31. The company posted a standalone net profit of Rs 59.9 crore for the reporting quarter against Rs 38.25 crore posted in the corresponding quarter a year earlier.

Average occupancies improved to 76 per cent during the reporting quarter, compared to 64 per cent in the comparable quarter a year earlier.

However, average room rates were still lower at Rs 9,600 against Rs 10,300, said a senior company official.

The company has four brands under its fold — Taj, Vivanta by Taj, Gateway and Ginger — and runs 103 properties. It will spend Rs 250-260 crore in setting up new properties this year.

During the quarter, its net sales improved 22 per cent to Rs 438 crore compared to Rs 359 crore.

IHCL had raised Rs 700 crore through three unlinked issues of debentures during the last year.

It had used these proceeds, as well as money raised through off-loading of stake in the special purpose vehicle which handles the Sea Rock redevelopment project, to other group companies and Tata Capital, to retire debt of offshore companies to the tune of $204 million (Rs 930 crore).