The Hindu Business Line : Indian Hotels Q3 net up 76 pc on higher room revenues

ROBUST business in food and beverages and banqueting and a healthy growth in room revenues helped Indian Hotels Company Ltd (IHCL) report a net profit of Rs 61.54 crore in the quarter ended December 31, 2005. This was a 76.33 per cent growth on the Rs 34.97 crore recorded in the same quarter last year.

Total income during the third quarter ended December 31, 2005, stood at Rs 328.50 crore (Rs 252.58 crore).

Net profit for the nine-month period ended December 31, 2005, at Rs 104.93 crore (Rs 63.68 crore) recorded a 64.77 per cent growth year-on-year. Total income stood at Rs 761.74 crore (Rs 603.42 crore), up 26 per cent.

During the third-quarter, other income moved up sharply at Rs 11.05 crore (Rs 3.49 crore) on the back of a favourable movement in the forex rate, applicable to the FCCB funds previously raised by the company.

The company had raised $150 million (Rs 663.30 crore) through an FCCB issue in February 2004.

Further, the conversion of bonds worth $115 million (Rs 508.50 crore) into equity shares by bondholders pushed up the company's equity capital by Rs 10.37 crore at Rs 55.49 crore.

Mr Raymond N. Bickson, Managing Director, said average room rates increased by 20-35 per cent across cities. The average occupancy in Mumbai, Bangalore and Delhi was at 85 per cent. The Goa property, which is a seasonal destination, was currently sold out.

The company had completed the share purchase agreement for the `W' Hotel in Sydney and the property would become part of IHCL effective February 1, 2006.

For the first time in its history, the group turnover topped Rs 2,000 crore on the back of a record increase in share value on January 4, 2006.

The share closed Friday's session on BSE at Rs 1,158 as against its previous close of Rs 1,144.90.