Indian Hotels net up 75% on healthy ARRs

BS 200 Scorecard

Indian Hotels Company (IHCL) has reported 75 per cent jump in net profit at Rs 46 crore for the second quarter ended September 2006 compared with Rs 26 crore in the previous corresponding quarter. Growth in profits was driven by healthy improvement in ARRs (average room rates) across the portfolio, backed by steady growth in its food and beverage business.

During the quarter under review, IHCL's total income rose 30 per cent to Rs 293 crore from Rs 226 crore in the same quarter of 2005-06. The company's expenditure went up 23 per cent to Rs 209 crore in Q2 FY07 from Rs 169 crore in Q2 FY06. According to Raymond Bickson, managing director, IHCL, with the market currently quite encouraging, the company expects a much stronger growth in the next quarter of the current financial year.