Taj group net profit grows 39 per cent

CORPORATE SCORECARD

Indian Hotels Company (IHCL), the operator of Taj Hotels, Resorts and Palaces, has posted a net profit growth of 39 per cent at Rs 54 crore for the quarter ended June 30, 2007 from Rs 39 crore in the corresponding previous quarter.

The company's growth was driven by improvement in average room rates and occupancy across the portfolio, supported by steady growth in its food and beverages business. During the period, IHCL's total income rose to Rs 364 crore from Rs 299 crore, recording a growth of 22 per cent.

Raymond Bickson, managing director, Taj group of hotels, said, "The company continues to pursue growth agenda and is building new five star hotels in Mumbai, Coimbatore and Bangalore besides renovating Falaknuma Palace in Hyderabad and expanding capacity at Lands End." Bickson said he foresees strong growth for the company in the next quarter.

The company has decided to raise funds to support its future growth. The proposal regarding the same will be presented to the shareholders at the company's forthcoming annual general meeting scheduled on August 13.

During the quarter the company launched its eighth Ginger Hotel in Nashik. It also signed management contracts for new premium hotels to come up in Noida and Trivandrum besides the new Gateway hotels in Kolkata and Pune.

In addition, new Ginger hotels are under construction at seven locations across India. The company is also scouting for opportunities for growth in key international destinations.