Indian Hotels Company Ltd net profit dropped 30.57 per cent to Rs 65.21 crore for the quarter ended March 31, 2012, as a result of higher expenditure (higher licence fee, staff costs etc). It posted a net profit of Rs 93.93 crore in the corresponding quarter last year.
The total income of the company, which owns and operates the chain of Taj hotels and resorts, was Rs 560 crore for the quarter ended March 31, 2012, against Rs 531 crore for the corresponding quarter of the preceding year.
During the latter part of the year, the company launched a new hotel (Vivanta by Taj at Yeshvantpur) in Bangalore.
Forex loss
The company said that operating profits for the fourth quarter were adversely impacted on account of the initial gestation period cost of the new hotel, foreign currency fluctuation loss and lower treasury income.
Announcing the results, Mr Raymond Bickson, Managing Director, said that the sector continues to face pressure on demand due to the current economic environment.
This, in turn, had kept the room rates subdued below desired levels.
Dividend
The company reported a net profit of Rs 3.06 crore in its consolidated results for the 2011-12 fiscal against a consolidated loss of Rs 87.26 crore in the last fiscal.
The Board recommended a dividend of 100 per cent or Re l an ordinary share in respect of the year ended March 31, 2012, which is subject to shareholders' approval.
IHCL scrip was down 0.52 per cent at Rs 56.90 on the BSE on Monday.