IHCL net at Rs 9.1 cr; posts 3rd quarterly profit in a row
(Eds: Adding management quotes, info on new properties
in London, Delhi)
Mumbai, Aug 10 (PTI) The Indian Hotels Company (IHCL),
the largest hospitality chain in South Asia that runs the Taj
and Vivanta brands of hotels, today reported a consolidated
net profit of Rs 9.1 crore for June quarter, against a net
loss of Rs 28.44 crore a year ago, boosted by a rise in
margins and revenue.
However, on a standalone basis, the company reported a
net loss of Rs 16.75 crore, compared with a net profit of Rs
7.66 crore a year ago, despite a marginal rise in revenue and
a massive improvement in margin which rose 183 bps.
For the reporting quarter, the Tata group company
reported a rise in consolidated income at Rs 979.7 crore,
against Rs 911.16 crore in the year-ago quarter. On a
standalone basis, the same rose 8.23 per cent to Rs 579.67 as
per IndAS accounting norms, according to an exchange filing.
IHCL managing director and chief executive officer
Puneet Chhatwal blamed the poor set of standalone numbers to a
Rs 50.17-crore forex loss in the quarter, against a gain of Rs
15.76 crore in the year-ago period, coupled with provisions
for impairment of investment in a subsidiary that incurred
loss of Rs 1 crore, against Rs 5.44 crore profit a year ago.
Chhatwal further said demand continues to outpace
supply and IHCL saw an increase in revenue per average room by
about 6 per cent even in a lean season.
"I am delighted with the over 8 per cent growth in
revenue and improvement in operational margin of 183 bps.
During the quarter, we signed six new hotels with an inventory
of around 800 rooms across all our brands in key locations in
the country and overseas," he said.
Giridhar Sanjeevi, chief financial officer, IHCL,
said, "We are progressively executing the strategic plan in
driving profitable growth. We delivered a net income of Rs 9.1
crore, marking the third consecutive quarter of achieving
positive results on a consolidated basis."
In a separate statement, the company said it has
signed a new Vivanta hotel at the London Heathrow airport and
has won the bid for The Connaught hotel in the heart of the
It also informed the exchanges that the board
appointed Venu Srinivasan, chairman of Sundaram-Ciayton and
TVS Motor, and Mehernosh Kapadia as non-executive directors of
the company with immediate effect.
While Srinivasan is already a director on the board of
Tata Sons, Kapadia joined IHCL in 1977 and has served the Taj
group in a variety of managerial positions since then. He is
also the chairman of Taj Air and a director on Taj SATS Air
Catering, Tata Realty & Infrastructure and Ewart Investments.
Sanjeevi said the Heathrow property will be a 108-key
hotel, located across from the terminals 1, 2 & 3, while The
Connaught is an 85-room hotel in the heart of New Delhi.
That apart, it has also signed the first hotel in
Makkah, Saudi Arabia, which will be a Taj branded hotel and is
scheduled to open in January 2023, with around 340 rooms.
The other signings include a Taj hotel in Lonavala, a
Vivanta hotel in Katra in J&K and two Ginger hotels in Jhansi
and Visakhapatnam respectively.
The company also announced a major expansion of Taj
Bangalore located across the international airport with an
addition of 220 rooms, taking the total to 374 rooms.
Its London property, St. James' Court, which is a Taj
hotel, has been re-launched after a renovation of its Almoners
The IHCL counter plunged 3 per cent to Rs 123.90 on
the BSE today, against a 0.41 per cent correction in the
benchmark Sensex.(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)