Indian Hotels Q2 profit vaults 32%

BS 200 Scorecard

Sales and operating income increased 17.82 per cent to Rs 136.5 crore from Rs 115.9 crore in the quarter.

Profit before tax increased 34 per cent to Rs 5.50 crore because of an exceptional expense of Rs 2.9 crore towards voluntary retirement scheme.

Total operating expenses increased by Rs 17 crore. The company attributed the increased costs due to operating expenses of the Taj Lands End property by Rs 12.4 crore.

Pay roll costs were higher by Rs 4.6 crore and increase in travel costs by Rs 1.9 crore. Interest costs has dropped owing to swaps and lower interest rates.

For the six months ended IHCL reported a net profit of Rs 7.2 crore in the six month ended September 30, 2003, up 97.49 per cent as compared with Rs 3.7 crore. Sales and other operating income increased 16.51 per cent to Rs 266.2 crore during the period under review.

Explaining on the improved performance, company executives said, room revenues grew 19 per cent in second quarter over the previous year owing to higher occupancies. Occupancies have increased from 53 per cent in Q2 of 2002-03 to 63 per cent in 2003-04.