EIH slips on reporting Q3 net loss of Rs 56 cr

EIH fell 1.19% to Rs 91.70 after the company reported consolidated net loss of Rs 55.78 in Q3 December 2020 as against net profit of Rs 102.56 crore in Q3 December 2019.

Consolidated net sales tumbled 64.8% to Rs 179.16 in Q3 December 2020 as against Rs 509.55 crore in Q3 December 2019. Pre-tax loss for the quarter stood at Rs 67.41 crore as against pre-tax gain of Rs 136.30 crore in Q3 December 2019. Current tax expense for the quarter dropped 91.5% to Rs 2.46 crore as against Rs 28.78 crore in Q3 December 2019. The Q3 result was declared after trading hours on Friday, 29 January 2020.

The global outbreak of COVID-19 has had an adverse impact on the company's activities and financial performance. The management of EIH Flight Services, Mauritius, a subsidiary, has evaluated the implications of COVID-19 and the uncertainties posed as a result of related impact on international travel and viability of the company's main clients, i.e. the airlines. With a view to mitigate the risk of uncertainties in the airline sector, EIHFSL has commenced the business of outdoor catering in Mauritius from August 2020. The company expects to expand on this new business opportunity going forward.

EIH, under the aegis of The Oberoi Group, operates hotels and cruisers in five countries under the luxury 'Oberoi' and five-star 'Trident' brands. The Group is also engaged in flight catering, airport restaurants, travel and tour services, car rentals, project management and corporate air charters.

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