Indian Hotels Company, India’s biggest in the segment and owner of the Taj brand, reported a 22.5 per cent fall in net profit at Rs 50.3 crore for the quarter ended December 31, 2010, as compared to Rs 64.9 crore in the corresponding quarter a year before.
The third quarter is considered the best one for business by hospitality companies. The earnings before interest, depreciation, taxation and amortisation trailed revenue growth, as expenditure increased by 19 per cent to Rs 341 crore during the quarter, as against Rs 286 crore in the corresponding one last year. Net sales grew nearly 15 per cent to Rs 485 crore for the reporting period, as compared to Rs 422 crore in the same quarter last year.
“During the third quarter last year, we had accrued an estimated compensation of Rs 15.6 crore towards loss of profits for the Taj Mumbai, which has not accrued in the current year. Separately, during the quarter, we have incurred non-recurring expenses towards the launch of the Vivanta by Taj brand and on the launch of the Taj Falaknuma Palace, as also towards the reopening of the heritage wing of Taj Mumbai,” stated the IHCL spokesperson.
