Economic slowdown, which has impacted the performance of hotel industry across all key markets, Indian Hotels Company, a Tata Group firm, has posted 73 per cent decline in its profit to Rs 16.44 crore for the first quarter ended June 30.
Total income of the company, which operates the Taj brand of hotels, also dropped to Rs 284.88 crore during the April-June period of FY10 from Rs 376.91 crore of the same quarter last year, Indian Hotels said in a filing to the Bombay Stock Exchange (BSE) today.
"Total income for the latest quarter declined by 24 per cent on account of the economic slowdown, which has significantly impacted the performance of the industry across all key markets," it said.
"Additionally, the income was also adversely impacted because of the closure of 287 rooms in the Palace wing of Taj Mahal Palace & Tower, Mumbai, which is undergoing renovation," it added.
Taj Mahal Palace & Tower was attacked by the terrorist in November last year, causing damage in the hotel's property.
Shares of Indian Hotels today closed at Rs 68.25, down 1.09 per cent from its previous close on the BSE.