Hotel chain operator Indian Hotels Co Ltd (IHCL), part of the Tata Group, posted a marginal rise of 0.38 per cent in the net profit for the quarter ended December 31, 2011, on the back of a slowdown in the domestic and global economy.
The net profit for the third quarter of FY12 stood at Rs 50.48 crore compared with Rs 50.29 crore for the corresponding period last year.
The total income rose from Rs 485.34 crore to Rs 521.48 crore for the third quarter of the current fiscal.
“The downturn in the domestic economy and the continued uncertainty in the economic environment in the key overseas source market have affected the results,” Mr Raymond Bickson, Managing Director of IHCL, said at a press conference. The company is expecting higher occupancy and revenues in the next three months as well as rupee depreciation to increase foreign visitors to its Indian properties.
During the quarter under review, the company finalised the final compensation receivable by it towards the insurance claim covering Taj Mahal Palace, Mumbai, at a value of Rs 236.32 crore.
It has received Rs 200 crore from the insurance company and balance receivable is Rs 36.32 crore which is expected to be received shortly.
The company that runs hotels and resorts under the Taj brand plans to open 12 new hotels under its mid-range Gateway brand in the next couple of years.
IHCL has a total of 112 hotel properties and aims to open 14 new properties next year, the company said.
It will open new hotels under Vivanta brand at Bekal, Coorg and Gurgaon after having set up a new one at Coimbatore.
The company maintained an occupancy rate of 65 per cent to 68 per cent across its properties during the quarter, said Mr Anil Goel, Executive Director of the company. “The company has a total debt of Rs 3,650 crore out of which Rs 900 crore is overseas debt,” Mr Goel added.