Shares of EIH Ltd today lost nearly four per cent after the hospitality major, which runs hotels and resorts under Oberoi and Trident brands, posted a net loss at Rs 12.24 crore for the June quarter.
The company had posted a net profit of Rs 21.15 crore for the April-June quarter of the previous fiscal.
Reacting to the numbers, the shares opened on a weak note at Rs 114, then slumped 5.89 per cent to an intra-day low of Rs 109.30 and finally settled at Rs 111.60, down 3.92 per cent on the BSE.
At the end of today's trade, the market capitalisation of the company stood at Rs 6,378.71 crore.
On the NSE, the stock opened at Rs 113.70, then slipped over 4 per cent to Rs 111 during the day. The stock settled at Rs 111.70, down 4.04 per cent.
Standalone total income from operations also declined to Rs 276.17 crore for the quarter under review as against Rs 301.04 crore for the same period a year ago. Market experts said the fall in the counter was largely because of the company's net loss in the first quarter.
Moreover, the broader market was also trading in the negative territory, which dampened investor sentiment further.
"The exceptional items for the the three months ended June 30, 2016 represents write off of assets arising out of renovation of the Oberoi, New Delhi," EIH said.
The exceptional items for April-June, 2015 represent profit on sale of property at Darjeeling, West Bengal, it added.
Meanwhile, after the company's AGM in Kolkata, CEO and MD of EIH Vikram Oberoi said: "Disruptive business models are not affecting our businesses now. But we will continue to pay attention on these disruptive models.
