Hospitality major EIH Ltd has reported its final quarter net profit at Rs 36.44 crore as against Rs 27.04 crore in a year ago period, a jump of about 35%. Net sales for the quarter under review stood 3.34% higher at Rs 354 crore.
The profit after tax stood at Rs 95.04 crore for the financial year 2013-14 as compared to 50.96 crore of the previous financial year, a jump of 86.5%.
“Despite the depressed market conditions, the company has recorded a healthy revenue increase over the previous year and significant growth in profitability,” said S.S. Mukherji, Vice Chairman and Chief Executive Officer at EIH.
EBIDTA during the financial year was 279.27 crores compared to 244.35 crores during the previous year. EBIDTA as a percentage of revenue increased from 20.8% to 21.8% for the financial year 2013-14.
Mukherji further added that, “With a newly elected government at the centre and focus on infrastructure development, the travel and tourism industry is expected to receive a major boost.”
The Indian Hotel Industry has been facing weak demand and an excess supply of rooms caused by the economic slowdown resulting into suppressing Average Room Rates (ARR) and reducing occupancy. During the year, some of the industry players have face occupancy level going below 50% as well.
According to Mukherji, construction of an Oberoi resort in Ajman, UAE is currently underway. The Hotel will be managed by a wholly owned overseas subsidiary of the company.
The Oberoi, Marrakech is under construction. The hotel will have 84 luxury rooms. In addition to the Hotel, branded Villas for sale are planned at the adjacent site. The Hotel is scheduled to open in October 2015 and will be managed by a wholly owned overseas subsidiary of the company.
Construction is currently underway for The Oberoi, Chandigarh, the company said in a statement.
EIH scrip closed at Rs 81.10, down by 0.80%, on BSE on Friday.
