Tata Sons- owned Indian Hotels Company (IHCL) on Tuesday reported a 19.69% increase in its consolidated net profit to R59.57 crore for the December quarter from R49.77 crore in the same quarter of the previous year. The rise was on the back of a 10% increase in revenue.
Net sales rose R1,167.61 crore from R1,060.47 crore a year ago.
It also saw operating profit increase 20.92% on a year-on-year basis to R166.51 crore.
On a standalone basis, the Mumbai-based company, which runs Taj Hotels Resorts and Palaces, however, posted a flat net profit of R65.51 crore during the December quarter, up marginally from the R64.62 crore it posted in the same quarter of the previous year.
In the quarter ended March 2013, the company had recognised an impairment of R373 crore for its investment in Orient Express Hotels, made through its wholly owned offshore subsidary Samsara Properties, an IHCL release said.
?At a meeting of the board of directors held on November 8, 2013, the board decided not to pursue the offer it had made to the board of Orient Express Hotels in October 2012, seeking their consent for the company to acquire all the outstanding 93.1% Class A common shares of Oriental Express Hotels,? the release said.
?In view of the foregoing, the company has reviewed its current carrying value of its investments in Orient Express hotels and considered it prudent to recognise a further diminution in the value thereof by an amount of R365 crore, including related costs incurred thus far, which was undertaken in the quarter ended September 30, 2013,? it added.
IHCL currently owns 6.9% in Orient-Express Hotels.
Indian Hotel’s scrip rose 4.07% to R60.05 on the BSE on Tuesday.
