The Hindu Business Line : EIH net up at Rs 59 cr in fourth quarter

Kolkata June 15 EIH Ltd has reported a net profit of Rs 59.31 crore (Rs 37.33 crore) in the fourth quarter to March 31, 2006-07. The net profit for 2006-07 was Rs 200.45 crore (Rs 188.81 crore). The consolidated net profit stood at Rs 200.51 (Rs 195.24 crore).

The company's board on Friday proposed a final dividend of Rs 1.40 (or 70 per cent) on the enhanced paid-up capital of Rs 78.59 crore taking the total to 105 per cent on the previous share capital (before split and bonus). In 2005-06, it had delivered a dividend of 100 per cent. The company's revenue was up 24 per cent to Rs 997 crore from Rs 803 crore.

Better air connectivity

EIH, in a press note, further said that trends in the current year were better than the previous year and it expected the trend to continue. Growth potential for the flight catering business, the note mentioned, got a lift owing to improvement in air connectivity.

Mr P.R.S. Oberoi, Chairman, said, "The emergence of international competition will compel Indian hotel groups to further improve their product and service". The company, which has "established operating niches," is likely to be benefited, he suggested.

The 440-key Trident Hilton hotel at Bandra Kurla, Mumbai, was going ahead as envisaged.

Bonus shares issued

The shares of Rs 10 each was split to Rs 2 each and bonus shares were issued (ratio of one share of Rs 2 for every two shares) on September 20, 2006. This increased the paid-up capital to Rs 78.59 crore. The year-end EPS stood at Rs 5.1 (Rs 36.04). Incidentally, the company has recast the EPS for all previous periods to make them comparable.

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EIH net up at Rs 59 cr in fourth quarter