Mumbai, June 1: Hotel Leelaventure has registered a sharp drop in net profit to Rs 13.49 crore for 1998-99, down from Rs 42.59 crore in the previous year. This has come despite an increase in sales to Rs 121.68 crore, from Rs 114.30 crore last year. The board of directors announced a 10 per cent dividend. Much of the decline in net profit is due to a higher interest burden of Rs 30.99 crore compared to a mere Rs 4.12 crore last year. Depreciation has also doubled to Rs 12.69 crore for the year under review, from Rs 6.46 crore in the previous year. Expenditure has also increased sharply from Rs 58.21 crore last year to Rs 70.41 crore.
The only factor shoring up the bottomline is the higher other income of Rs 9.02 crore this year compared to Rs 3.03 crore last year. The foreign exchange earnings as a porportion of total earnings has declined marginally from 88.9 per cent last year to 82 per cent this year.
In the current year, the Leela Palace, Goa became operational.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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