Indian Hotels Net Rises 4.8% To Rs 147crore
Tata group hotels major Indian Hotels yesterday announced a 4.8 per cent rise in net profit to Rs 146.88 crore during 1996-97.
The companys income rose from Rs 547.36 crore in 1995-96 to Rs 613.33 crore in 1996-97, while the dividend has been hiked to Rs 8.5 per share from Rs 7.5 per share.
The company announced its results after a board meeting in Mumbai. Company officials could not be contacted about the other items on the meetings agenda, but sources close to Tata Sons chairman Ratan Tata said the issue of a succession at Indian Hotels was not discussed.
Indian Hotels chairman and managing director Ajit B Kerkar is slated to retire by September 30 this year.
Various names have been touted as possible successors to Kerkar, but no decision has yet been taken on the issue.
Despite the uncertainty regarding top-level changes, Indian Hotels posted a gross profit of Rs 253.21 crore.
A fall in tax pay-out from Rs 39 to Rs 33.6 crore boosted the companys profitability. The reduced payout proved beneficial for the hotel majors margins since the profit-before-tax of Rs 180.48 crore was only Rs 91 lakh more than the 1995-96 figure of Rs 179.57 crore. Interest costs rose to Rs 45.55 crore from Rs 41.2 crore, while depreciation rose to Rs 27.18 crore from Rs 20.37 crore.
The companys earnings per share (EPS) increased from Rs 31.15 to Rs 32.55.