Hospitality firm EIH Ltd that operates hotels under Oberoi and Trident brands on Monday posted consolidated net loss of Rs 5.23 crore for the year ended March 31, 2011.
For the 12 months ended March 31, 2010, the company had posted consolidated net profit of Rs 66.31 crore, it said in a filing to the Bombay Stock Exchange.
The company’s consolidated net sales for the year under review increased 33.24 per cent to Rs 1,126.27 crore, compared to Rs 845.08 crore in 2009—10.
“It was widely expected that the global economy would recover during the current financial year, reversing the trend of the previous two years. Unfortunately, this is yet to happen,” EIH Chairman Mr P. R. S. Oberoi said in a statement.
Commenting on the future he said: “We expect the overall outlook for the current financial year to be stable with a continuing revival of demand for hotel rooms which began during the last few months.”
The company had made a rights issue of over 17.86 crore equity shares of face value Rs 2 each at a premium of Rs 64 per share (issue price Rs 66 per equity share).
“The rights issue raised Rs 1,178.86 crore to the existing shareholders. The proceeds will help the company to substantially reduce debt, bring down interest costs and enhance profitability,” the statement added.
The board of directors of the company has proposed a dividend of Rs 0.90 per equity share.
The company’s scrip closed at Rs 82.50 per share, up 1.04 per cent on the Bombay Stock Exchange.