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Indian Hotels Q2 PAT rises to Rs 82.61 cr

Our Bureau

MUMBAI, Oct. 24

INDIAN Hotels Company Ltd (IHCL) on Wednesday reported a rise in profit after tax for the second quarter ended September 30, to Rs 82.61 crore, from the previous corresponding Rs 8.47 crore.

IHCL, which runs the Taj group of hotels, made a pre-tax profit of Rs 88.64 crore on the sale of its air catering business, transferred into a separate company on September 30, following the joint venture agreement with Singapore Airline Terminal Service s (SATS), an official statement said.

SATS will have a 49 per cent share holding in venture.

Profit before exceptional items and tax for the just ended quarter was Rs 9.78 crore (Rs 17.11 crore for the year ago period). The same for first half was Rs 29.67 crore (Rs 37.14 crore).

IHCL's total revenues for the October-December 2001 quarter are likely to decline by 25-30 per cent, Mr Zubin Dubash, Executive Director of the company said at an analyst meet.

For the first half, IHCL's total income was Rs 318.52 crore (Rs 293.79 crore) and its profit after tax, Rs 94.69 crore (Rs 23.22 crore).

Total income of the company for Q2 was Rs 155.38 crore (Rs 149.33 crore), including sales and other operating income of Rs 147.27 crore (Rs 142.94 crore) and other income of Rs 8.11 crore (Rs 6.39 crore).

Total expenditure stood at Rs 120.87 crore (Rs 112.69 crore).

Interest amounted to Rs 12.41 crore (Rs 8.56 crore), while depreciation touched Rs 12.32 crore (Rs 10.97 crore). Provision for tax payable was Rs 20.69 crore (Rs 77 lakhs) and that of tax deferred tax, Rs 9.29 crore (Rs 9.03 crore).

EPS was Rs 18.31 (Rs 1.88). IHCL's opening reserves now stand at Rs 903.44 crore following adjustment of deferred tax provision amounting to Rs 76.66 crore, the statement said.

IHCL proposed to amalgamate Oriental Hotels Ltd, Covelong Beach Hotel (I) Ltd and Coromandel Hotels Ltd, Mr Dubash said.

Regarding the ITDC disinvestment process, he said, IHCL's board had agreed to sign an agreement with the Central Government for a `tag along right'. ``Whoever buys 90 per cent of ITDC will have to buy our 10 per cent stake in ITDC,'' Mr Dubash said.

IHCL has maintained for long a 10 per cent equity stake in ITDC, often described as a ``strategic stake''.