Indian Hotels reports Rs137 crore net loss in FY10
26 May 2010
The Indian Hotels Company Ltd today reported an after-tax net loss of Rs136.88 crore for the financial year ended 31 March 2010 against an after-tax profit of Rs12.46 crore for the year ended 31 March 2009.
Total income of the group declined to Rs2,548.68 crore during the year ended 31 March 2010, from Rs2,782.12 crore in the previous year (ended 31 March 2009).
"The consolidated net sales for the year ended 31 March 2010 declined by 6 per cent because of the slowdown not just in India, but also in many international markets, within which the company owns and operates hotels," the Tata Group company said in its stock market filing.
The board of directors of the Indian Hotels Company that owns the Taj Group of hotels, which met today, inter alia, recommended a dividend of Re1 per ordinary equity share of Re1 each (100 per cent) compared with the previous year's Rs1.20 per share (120 per cent).
On a standalone basis, the company posted a profit after tax of Rs153.1 crore during the year ended 31 March 2010 compared with Rs234.03 crore in the previous year ended 31 March 2009.
Total income of the company decreased to Rs1,517.03 crore during the year ended 31 March 2010, from Rs1,706.52 crore in the year ended 31 March 2009.
"The total income for the year ended 31 March 2010 was adversely impacted by the closure of 287 rooms in the palace wing of Taj Mahal Palace & Tower, Mumbai, which is undergoing renovation and is scheduled to reopen in early July 2010," the company said.
The Indian Hotels Company (IHCL) and its subsidiaries are collectively known as Taj Hotels Resorts and Palaces, which is recognised as one of Asia's largest and finest hotel companies. Incorporated by the founder of the Tata group, Jamsetji Tata, the company opened its first property, the Taj Mahal Palace hotel, Bombay in 1903. The Taj, a symbol of Indian hospitality, completed its centenary year in 2003.
Taj Hotels Resorts and Palaces comprises 64 hotels in 45 locations across India and 15 international hotels that include The Pierre in New York's Fifth Avenue as also the Taj Boston and the Blue in Sydney, Australia.