Indian Hotels weakens after Q3 net slumps 84%

Net profit for the December 2015 quarter slumped 84% to Rs 10.05 crore as against Rs 61.84 crore in Q3 last fiscal

Shares of Indian Hotels Company were down over 5% at Rs 107 after the company reported a sharp drop in net profit for the quarter ended December 31, 2015.

Net profit for the December 2015 quarter slumped 84% to Rs 10.05 crore as against Rs 61.84 crore reported in the same quarter last year.

The sharp decline in net profit was on writing off of 'infructous projects' and a loss on sale of investment shown under the exceptional item.

“Exceptional item comprise expenditure on infructous projects written off amounting to 14.79 crore including Rs 4.96 crore written off by subsidiary company and a loss on sale of investment by an overseas subsidiary company aggregating to Rs 13.78 crore”, the company said in a release.

The stock opened at Rs 110 and touched a low of Rs 104. At 11am, over 400,000 shares were traded on both the stock exchanges.