Hospitality major EIH Ltd is hit by general slowdown and high Goods and Services Tax (GST), a top company official said on Wednesday.
The company which comes under The Oberoi Group said it has Rs 84.5 crore dues from the grounded Jet Airways.
"The drop in revenue and profitability in the first quarter of the current year is attributable to a general slowdown in business activity, decline in air travel and a reduction in the airline catering business," EIH executive vice-chairman S S Mukherjee said at the company's 69th AGM here.
He chaired the AGM in absence of EIH executive chairman PRS Oberoi.
In the Q1FY'20, the company posted consolidated revenue of Rs 358.22 crore as compared to Rs 400.35 crore registered in the same quarter last year.
Voicing concern on GST, Mukherjee said, "We continue to be impacted adversely by GST for published tariffs for hotel rooms charging Rs 7,500 and above. Much lower rates between 6 per cent to 10 per cent in other Asian countries such as China, Thailand and Malaysia will take leisure away from India."