Indian Hotels Company Ltd (IHCL) is desperate to turnaround its US operations and start earning returns from its three hotels in that country.
“Now it is extremely important for us to ensure that we get returns from our US assets. We believe that we are moving in the right direction but within two years, maximum, we have to make these assets profitable in a very complex market,” said Mr Anil P. Goel, Chief Financial Officer, IHCL.
The company reported a net loss of Rs 87.26 crore in its consolidated results for the 2010-11 fiscal despite posting a net profit of Rs 141.25 crore in its standalone results for the fiscal.
For the fourth quarter, IHCL's net profit stood at Rs 93.9 crore, a growth of 56 per cent over the corresponding quarter last year. Total income stood at Rs 530.87 crore, a growth of about 20 per cent over the corresponding quarter last year.
Commenting on the results, Mr Raymond Bickson, Managing Director, IHCL, said that the company had faced unprecedented challenges over the last two years and now a turnaround has happened. The company is now operating on its full inventory and is set to open 10 hotels in the current fiscal with 2,143 rooms.
The company also expects an equity infusion to the tune of Rs 400 crore by the promoters by June 2012.
The company said that its board of directors has approved buying an additional stake in IHCL's associate company Piem Hotels, for Rs 51 crore. The investment will help IHCL to consolidate its position in the hospitality business, it said.
“With the acquisition of this stake, the company, together with its wholly owned subsidiary will hold the majority shareholding of Piem Hotels,” it added, without giving details.
IHCL's scrip closed at Rs 78.95 on the BSE, lower by 0.25 per cent.