BackIndian Hotels reports marginal increase in profit to `65.51 crore
Sales rose by 3.61% to `564.24 crore from `544.55 crore earlier
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Mumbai: Indian HotelsCo. Ltd(IHCL), the Tatagroup company that runs Taj Hotels Resorts and Palaces, reported a marginal increase in net profit to 65.51 crore for the December quarter, from 64.62 crore a year earlier, as demand in the hotel industry remained suppressed.
Sales rose by 3.61% to 564.24 crore from 544.55 crore earlier.
IHCL, in a note to investors, said its board had in a meeting on 8 November decided not to pursue the offer the company had made in October 2012 to acquire a 93.1% stake in Orient-Express Hotels Ltdat $12.63 a share. It owns the balance 6.9% stake in Orient-Express Hotels.
On 18 October 2012, Indian Hotels had said it was making another bid to gain control of Orient-Express Hotels, which runs a chain of luxury hotels around the world, after being rebuffed five years ago.
In the quarter ended March 2013, the company had recognized an impairment of 305 crore in its investment in Taj International Hotels (HK) Ltd, the company said on Tuesday.
“In view of the foregoing, the company has reviewed its current value of long-term strategic investments, held either directly or through its overseas subsidiaries, and considered it prudent to recognize a further diminution in its investment in Taj International Hotels by an amount of 287 crore, which was undertaken in the quarter ended 30 September 2013," the statement said.
Indian Hotels rose 4% to 60.05 on BSE on Tuesday, while the Sensex ended the day nearly unchanged at 20,363.37 points.
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