EIH Ltd, that runs The Oberoi Group of hotels, has reported a consolidated net profit of Rs 66.31 crore for the year ended March 31, 2010 against Rs169.95 crore in the previous year, a drop of 61%. Consolidated total income of the company stood at Rs 1,038.30 crore in FY’10 against Rs 1,199.21 crore in the same period last year. PRS Oberoi, chairman, EIH Ltd, said, ?The financial year 2009-2010 was yet another difficult year for the hospitality industry. The economic environment continued to be clouded by the global financial crisis. The developed economies were seriously affected. Consequently, there was a decline in the number of foreign visitors to India. This was further aggravated by the H1N1 pandemic during the first half of the financial year.?
The company was also affected with the Oberoi property in Mumbai remaining shut for renovation. The Oberoi, Mumbai, which was closed after substantial damage following the terror attacks, re-opened on 24th April 2010. The hotel has been restored at a cost in excess of Rs150 crore. Oberoi said, ?The demand for hotel rooms is expected to grow as the year progresses. The opening of Trident, Bandra Kurla, Mumbai and the re-opening of The Oberoi, Mumbai will ensure that the company has at hand the requisite inventory of rooms to cater to this demand.
On standalone basis, the company reported a net profit of Rs 57.23 crore in FY’10 as against Rs 170.44 crore during the previous year, a drop of 66%.