The Hindu Business Line : Indian Hotels Q4 net up 71 pc

Mumbai June 19 Indian Hotels Company, which managed the Taj Group of hotels, has reported 71 per cent growth in net profit to Rs 134.52 crore for the fourth quarter ended March from Rs 78.85 crore in the corresponding previous period.

Revenues grew by 45 per cent to Rs 538.87 crore (Rs 371.42 crore).

For the year ended March, the company registered 75 per cent growth in net profit to Rs 322.39 crore (Rs 183.78 crore).

Revenues grew by 40 per cent to Rs 1,618.71 crore (Rs 1,154.80 crore).

Mr Anil P. Goel, CFO, said that the flow of foreign tourists to India had increased from four million in 2005-06 to 4.6 million in the fiscal gone by.

Correspondingly, the rooms sold across the country during the year increased to 13,255 from 12,000-odd in the previous fiscal.

Mr Goel also said that the company added five hotels during the year, including in Boston and San Francisco, taking the total number of hotels owned and managed by it to 81. It used FCCB proceeds to finance the acquisitions.

Through its subsidiary IHMS Inc, the company acquired the erstwhile Ritz Carlton in Boston for $170 million - it has been renamed as Taj Boston - and the Campton Place hotel in San Francisco for $58 million.

Stating that the company intended to grow in the international market as a high-end luxury brand, Mr Goel said the company would, at a later date, consider inviting "like-minded" financial investors to take a slice of equity in its foreign properties.

However, he made it clear that the Group would continue to hold majority stake in these hotels.

"The chief idea behind this thought is to release liquidity, which would enable us to pursue our growth agenda."

He added that the company would look for investors with experience in the real estate and hospitality sectors, besides a deep understanding of the Taj brand.