Indian Hotels Company Ltd, the Tata group's hospitality company, has posted a 18.15 per cent decline net profit of Rs 12.08 crore for the quarter ended June 30, 2001, compared with Rs 14.76 crore in the corresponding period last fiscal.
Total income increased 12.94 per cent from Rs 144.46 crore in the quarter ended June 30, 2000, to Rs 163.1 crore in the quarter ended June 30, 2001.
During the current quarter ended June 30, 2001, the company has amortised Rs 2.43 crore towards VRS expenses.
In view of the seasonally of the business, the financial results for the first quarter for the company are not indicative of the full years performance.
The company has taken steps to improve its major properties and to upgrade its service standards.
The company has also invested substantial amounts in renovations along with strategic acquisitions. The company has also undertaken financial restructuring of associate companies.
This has however led to an increase in interest and depreciation costs which stood at Rs 12.34 crore and Rs 12.25 crore, respectively, compared with the corresponding figure of interest at Rs 7.21 crore and of depreciation Rs 10.77 crore for the corresponding quarter, respectively.
Deferred tax provision relating to previous years amounting to Rs 78.66 crore has been adjusted against reserves as of April 1, 2001.
The reserves as a result now stand at Rs 903.44 crore. This has been done in accordance with the requirement of the new accounting standard 22 issued by the Institute of Chartered Accountants of India.
