Indian Hotels Company Ltd (IHCL), the operator of the Taj Group of Hotels, on Wednesday reported that its consolidated net loss for the fiscal 2013 first quarter has narrowed to R18.78 crore. In the same quarter last year, the company had a net loss of R22.71 crore.
“Profit was impacted by initial gestation period for cost of new hotel in Bangalore, foreign currency fluctuation and lower treasury income,” said Raymond Bickson, managing director of IHCL. “The sector continues to face pressure on demand because of the current economic environment which has kept the room rates below the desired levels.”
The company’s consolidated net sales for the quarter increased nearly 20% to R852.57 crore from R711.64 crore in the same quarter last year.
Consolidated net loss after share of losses in associates and minority interest increased to Rs 33.36 crore as compared to Rs 22.27 crore in the same quarter.
On Wednesday, the company’s shares closed 0.74% higher at Rs 60.90 on the BSE.