Indian Hotels pares losses, cuts debt under outgoing chief Rakesh Sarna

Asset sales and capital raising help lower debt, improve debt-equity ratio

Rakesh Sarna, outgoing managing director and chief executive officer of the Tata group-owned Indian Hotels Company (IHCL), has managed to reduce the company’s debt, debt-equity ratio and losses during his tenure.  

IHCL, owner of the Taj Group of Hotels, shed Rs 1,143 crore gross debt in financial year 2016-17 as it sold Taj Boston for Rs 839 crore ($125 million) and divested its entire holding in Belmond (Orient Express) for Rs 455 crore ($68 million). In 2015-16, conversion of debentures into equity helped the company reduce its debt by Rs 1,000 crore, which was added to its net worth.