IHCL net at Rs 9.1 cr; posts 3rd quarterly profit in a row

The Indian Hotels Company (IHCL), the largest hospitality chain in South Asia that runs the Taj and Vivanta brands of hotels, today reported a consolidated net profit of Rs 9.1 crore for June quarter, against a net loss of Rs 28.44 crore a year ago, boosted by a rise in margins and revenue.

However, on a standalone basis, the company reported a net loss of Rs 16.75 crore, compared with a net profit of Rs 7.66 crore a year ago, despite a marginal rise in revenue and a massive improvement in margin which rose 183 bps.

For the reporting quarter, the Tata group company reported a rise in consolidated income at Rs 979.7 crore, against Rs 911.16 crore in the year-ago quarter. On a standalone basis, the same rose 8.23 per cent to Rs 579.67 as per IndAS accounting norms, according to an exchange filing.

IHCL managing director and chief executive officer Puneet Chhatwal blamed the poor set of standalone numbers to a Rs 50.17-crore forex loss in the quarter, against a gain of Rs 15.76 crore in the year-ago period, coupled with provisions for impairment of investment in a subsidiary that incurred loss of Rs 1 crore, against Rs 5.44 crore profit a year ago.

Chhatwal further said demand continues to outpace supply and IHCL saw an increase in revenue per average room by about 6 per cent even in a lean season.

"I am delighted with the over 8 per cent growth in revenue and improvement in operational margin of 183 bps. During the quarter, we signed six new hotels with an inventory of around 800 rooms across all our brands in key locations in the country and overseas," he said.

Giridhar Sanjeevi, chief financial officer, IHCL, said, "We are progressively executing the strategic plan in driving profitable growth. We delivered a net income of Rs 9.1 crore, marking the third consecutive quarter of achieving positive results on a consolidated basis."