Income from operations rose marginally to Rs 26.04 crore as against Rs 25.07 crore in the previous year. Gross profit was Rs 3.43 crore as against Rs 2.54 crore, while profit before tax was Rs 1.31 crore as against Rs 76 lakh in the previous quarter.

Depreciation was higher at Rs 2.12 crore in the quarter ended June as against Rs 1.78 crore in the corresponding quarter of previous year. Total expenditure was marginally up at Rs 21.93 crore as against Rs 21.70 crore in the corresponding quarter of previous year.

The hotel major's foreign exchange earnings dipped to Rs 13.28 crore in the quarter as against Rs 14.97 crore in the corresponding period of previous year.

The board of directors of the company took on record the unaudited financial results at their meeting on Tuesday.

The first quarter results ofa hotel company are not indicative of the full year's performance. Generally the performance of the hotel is considerably better in the second half of the year, which is the busy season for the industry.

ITC Hotels had recorded a net profit of Rs 11.97 crore on an income of Rs 120.97 crore for the financial year ended March 31, 1999. Gross profit was Rs 20.77 crore while profit before tax stood at Rs 13.40 crore for the period. The foreign exchange earning of the company was Rs 69.32 while reserves (excluding revaluation reserves) stood at Rs 185.57 crore.

According to a company statement, ITC Hotels has undertaken refurbishment and upgradation of its existing hotels. As part of its expansion plans, the company has announced the opening of its 400-room hotel in Mumbai and the 100-room new tower block at the Maurya Sheraton in New Delhi.

The company has also planned another hotel in Parel in Mumbai while the 250-room hotel project in Calcutta is expected to commence from October 1999. The joint venturewith Ansal group for a 222-room hotel opening in early 2000 will materialise into ITC Hotels' second hotel in the Capital, the statement added.