Itc Hotels Payout At 30 Per Cent

The board of directors of ITC Hotels Ltd have declared a 30 per cent dividend for the year ended March 31, 1997. Profit after tax during 1996-97 was pegged at Rs 31.05 crore, which is 17.08 per cent more than the Rs 26.52 crore recorded in the last fiscal. This is attributed to a paid up equity capital of Rs 30.21 crore.

The New Delhi-based company which held its board meeting in Calcutta yesterday declared a dividend of Rs 3 per share against Rs 2.75 per share declared in 1995-96. The hotel major, who owns the Maurya chain of hotels, has recorded a turnover of Rs 129.24 crore for the financial year 1996-97, indicating a 7.7 per cent increase over Rs 120 crore posted in 1995-96. Foreign exchange earnings during the year were higher by 6.97 per cent, to Rs 71.92 crore.

After paying a slightly lower interest of Rs 4.72 crore (Rs 9.14 crore) and depreciation of Rs 4.60 crore (Rs 3.98 crore), the profit before tax stood at Rs 37.56 crore against Rs 31.80 crore earned in the previous financial year 1995-96. Company reserves increased to Rs 162.35 crore from Rs 141.27 crore and earnings per share jumped from Rs 8.78 to Rs 10.28 crore.

The company's performance for the fiscal 1996-97 seems pedestrian compared to a spectacular 73 per cent jump in turnover last year over the previous financial year 1994-95.

Stability and continuing economic reforms sustaining the business travel to tourist destinations during the year 1995-96 were mainly responsible for the spurt in the company's fortunes.