Mumbai, Oct 19: Indian Hotels has posted a 4 per cent increase in net profit to Rs 18.58 crore for the quarter ended September 2000 as compared to Rs 17.82 crore for the corresponding quarter in the previous year. Turnover rose by 16 per cent to Rs 142.94 crore from Rs 123.12 crore for the same period. Indian Hotels' results seem to be slightly better off this time, rising on a wave of buoyancy in the hotel industry and an improved bottomline as compared to the previous quarter.However, it is important to note that the company has increased its turnover despite major renovations undertaken at several of its properties during the second quarter. The bottomline was also affected on account of the increase in interest and depreciation cost due to new projects, property upgradations, expansions and strategic investments.
Interest cost increased by 112 per cent to Rs 6.56 crore while depreciation cost increased by 11 per cent to Rs 10.97 crore over the corresponding quarter.
The board was of the opinion that the incremental capacity of 857 rooms added during the last 18 months will take some time to derive benefits in the form of additional revenue.
Other income for the third quarter declined by 36.7 per cent over the corresponding quarter. It included profit on sale of idle assets to the tune of Rs 5.34 crore. The company has introduced a voluntary retirement scheme (VRS) to rationalise employee deployment and made payments aggregating to Rs 28.80 crore upto September 2000. The cost will be amortised over 72 months commencing from September 1, 2000. For the 6-month period ended September 2000, the company posted a net profit of Rs 35.99 crore and a turnover of Rs 283.31 crore.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.