Indian Hotels net up 111%

BS 200 SCORECARD

Indian Hotels Company (IHCL), owners of Taj hotels, resorts and palaces, has posted a 111 per cent growth in net profit at Rs 34.97 crore in the quarter ended December 31, 2004 compared with Rs 16.60 crore in the corresponding period last year.

India's largest hospitality chain reported a 29 per cent growth in revenues at Rs 252.58 crore compared with Rs 195.15 crore in the corresponding period last year.

The growth was driven by an increase in arrivals into India together with growth in domestic travel. Managing director Raymond N Bickson, said, "The strong performance for the period under review was driven by an all round growth in occupancies and rates across all key destinations."

For the first nine months of 2004-05, IHCL's net profit increased 167 per cent to Rs 63.68 crore on a turnover of Rs 581.30. Net profit during the nine months stood at Rs 23.84 crore on a turnover of Rs 456.04 crore. Gross profit for the third quarter of 2004-05 improved by 83 per cent to Rs 70.43 crore.

During the quarter, the company launched new hotels in Mauritius, Seychelles, Jodhpur, Kovalam and Gwalior, of which the first four were on management contracts.

Staff costs during the third quarter ending December 31, 2004 increased to Rs 57.14 crore compared with Rs 49.85 crore in the corresponding period last year, on account of induction of global skills and addition of new properties, explained Anil P Goel, senior vice-president -finance of IHCL.

Interest costs increased to Rs 9.34 crore compared with Rs 5.47 crore in the third quarter of 2003-04 owing to renovation undertaken at the company's key properties