EIH gains 5% on turnaround Q2 results

EIH is trading higher by 5% at Rs 98 after reporting a net profit of Rs 16.6 crore in the quarter ended September 2011 as against net loss of Rs 14.97 crore in the corresponding quarter of the previous year. Net sales rose 8.79% to Rs 217 crore on year-on-year (y-o-y) basis.

Lower interest charges help the company to post a turnaround results during the recently concluded quarter. Total interest cost declined by 70% to Rs 11.88 crore on y-o-y basis. The Oberoi group company had raised Rs 1,178 crore through rights issue of shares in March 2011, and used Rs 896 crore (upto 30 September 2011) to cut its debt.

Meanwhile, the company said it inducted Nita Ambani, wife of Mukesh Ambani, whose Reliance Industries (RIL) holds 14.8% in the company, as an additional director in the company.
 
The stock opened at Rs 95 and hit a high of Rs 99 on the National Stock Exchange. A combined 326,138 shares have already changed hands on the counter in opening trades, as against an average 200,000 shares that were traded daily in past two weeks.