Economic slowdown in addition to increased costs pulled down net profit of Hotel Leelaventure by a whopping 40 per cent for the quarter ended September 30, 2008.
The city-based Rs 1,000-crore company reported a net profit of only Rs 24.05 crore for the period as against Rs 40.12 crore posted for the same quarter last year. Its expenditure increased by nearly 30 per cent to Rs 80 crore, from Rs 61 crore reported in the same quarter a year ago.
Vivek Nair, vice-chairman and MD, said, “Though the business segment had been affected by the economic slowdown and has had an effect on the group’s business hotels, the leisure segment has shown marked buoyancy as a result of which its Goa and Kovalam resorts have shown growth of 40 per cent and 18 per cent respectively”.
Although there was a slide in net profit, the company had seen a marginal growth in its topline which increased by 9 per cent to Rs 109.37 crore for the second quarter ended September 30, 2008, as compared to Rs 100.14 crore in the corresponding quarter a year ago.
