The Hindu Business Line : Indian Hotels net rises 42%

Mumbai, July 31 Indian Hotels Company Ltd, which operates the Taj Hotels Resorts and Palaces, has reported a net profit growth of 42 per cent at Rs 54.7 crore for the first quarter ended June 30, 2007 (Rs 38.50 crore).

The growth has been boosted by healthy improvement in average room rates and occupancy across the portfolio, backed by steady growth in its food and beverage business across all key markets.

The total income grew by 35 per cent to Rs 364.40 crore (Rs 270 crore) for the same period.

Occupancies up

According to Mr Anil P. Goel, Chief Financial Officer, IHCL, while occupancies in cities such as Delhi, Kolkata, Goa, Mumbai have been up, Bangalore and Hyderabad have been soft with a lot of supply coming in at the four star hotels level.

However, the company feels the scenario would not continue for long and the demand would eventually go up.

On the recent acquisition of Amalgam Foods, Mr Goel said, “The business is stabilising and the company will grow it as we go along.”

He added the company is streamlining its Kochi facility and setting up a plant in Vishakhapatnam focussing on marine products. While food items like packed samosas, parathas and others will be catering to domestic market, sea food would be exported.

IHCL is also adding more kitchens for its inflight catering business.

“We would be looking at more such kitchens close to all the upcoming airports in India,” said Mr Raymond N. Bickson, Managing Director of IHCL.

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