IHCL Clocks Rs 2.65-cr Net; Expects Business To Pick Up

Mumbai, October 25: | Updated: Oct 26 2002, 05:30am hrs
Post addition of 600 rooms at the end of the second quarter to its portfolio, Indian Hotels Company Ltd (IHCL) expects business to pick up in the coming two quarters with the only overhang being the potential war in Iraq.

IHCL (Taj group) posted a net profit of Rs 2.65 crore for the quarter ended September 30, 2002. There is no comparable figure available for the corresponding quarter last year, due to the transfer of Taj Air Catering (TAC) to a joint venture with Singapore Airport Terminal Services (SATS) last year. The company had posted a net profit of Rs 82.61 crore in the quarter ended September 30, 2001 with TAC. The companys total income for the September quarter has increased to Rs 126.40 crore from Rs 124.07 crore in same period last year without TAC. Sales and operating income for the quarter were lower by 0.22 per cent at Rs 115.86 crore as against Rs 116.12 crore in same period last year without TAC.Basic and diluted Earnings per Share (EPS) of Rs 10 each, for the second quarter of 2002-03 was Rs 0.59.

Net profit for the company for the half year ended September 30, 2002 was Rs 3.67 crore. With TAC, net profit was Rs 94.69 crore last year. Total sales for the period was Rs 228.46 crore, a drop from Rs 243.11 crore, without TAC last year. Total income was at Rs 244.17 crore. EPS for the half year was at Rs 0.81.

The worst has passed us post-September 11, and we are presently doing far better than in the same period last year. There has been a visible month to month improvement since July, despite the travel advisories, said IHCL executive director, Zubin Dubash. With the addition of Taj Lands End, we have taken our position in the highly competitive North Mumbai market and even in the last one and a half months of the acquisition we are seeing a profit from it, which is remarkable, he added. The company is set to sign a management contract of a business hotel in Thiruvantapuram, which will function under the Residency umbrella. It has also concluded the purchase of the ITDC Chandigarh property. IHCLs performance in the market saw the hotel majors share price drop. The scrip opened at Rs 149 on The Stock Exchange, Mumbai.