Net Profit Jumps by 90 Percent at Taj Hotels
The Tata group company’s efforts to reduce debt has started showing results as interest costs in the quarter fell 33 percent to around Rs 52 crore, aiding the expansion in the bottom line.
LED BY a substantial decline in interest costs, Indian Hotel Co Ltd posted a near 90 percent year on year jump in consolidated net profit to Rs 75.50 crore in the fourth quarter of 2017-18.
The Tata group company’s efforts to reduce debt has started showing results as interest costs in the quarter fell 33 percent to around Rs 52 crore, aiding the expansion in the bottom line. However, the expansion was capped by an exceptional hit of over Rs 14 crores, primarily on account of change in fair value of derivatives contract.
As the demand outlook for the hospitality industry improves and room occupancy levels shoot up, consolidated revenues of the hotels giant rose nearly 9 percent to Rs 1,143 crore in the quarter. Industry experts had anticipated that demand growth, presence in the higher growth premium segment, improving margins and steps to reduce debt would reflect the performance of the company.
The increasing Foreign Tourist Arrivals (FTAs) by the graph of 4.4 percent y-o-y has been a major attraction for IHCL for increased room occupancy rates.
The company has also witnessed 3.8 percent rise in Food and Beverage expenses, while employee benefit expenses have reduced by 1.3 percent compared to the previous financial year.
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