The company recorded sales of Rs 135.80 crore in the year ended March 1999.

Asian Hotels managing director Sushil Gupta told The Financial Express that the growth target has been fixed keeping in mind the current political uncertainty and the continuing downturn in the hotel industry.

``Unless the industry scenario improves considerably over the next six months, the company will be able to achieve only seven to eight per cent growth,'' he added.

``We have not fixed any profit amount as such. However, there will not be much change in the profitability in the current year,'' he added.

The company intends to maintain its profitability by cost cutting and stepping up food and beverage sales. Asian Hotels recorded a 33 per cent drop in net profit to Rs 46.69 crore for 1998-99 from Rs 70.29 crore in the previous year. Turnover fell by 10per cent to Rs 135.80 crore from Rs 150.22 crore in the previous year.

The foreign exchange earnings of the company also fell by 10 per cent to Rs 127.18 crore in 1998-99 from Rs 140.24 in the previous year.

The company attributed the dip in profitability to the fall in room revenue. Room revenue fell to Rs 82 crore in 1998-99 from Rs 98 crore in 1997-98. The profit before depreciation and taxation fell to Rs 63.15 crore from Rs 80.42 crore in the previous year.

However, the company's food and soft beverage sales went up marginally to Rs 24.40 crore in 1998-99 from Rs 23.91 crore in the previous year. Liquor sales also went up to Rs 12.14 crore from Rs 9.19 crore in the previous year.

The earning per share (EPS) fell by 33 per cent to Rs 20.47 crore from Rs 30.87 crore in 1997-98.

The company's reserves went up to Rs 219.21 crore as against Rs 192.64 crore in the previous year.