Hotel Leelaventure posted a higher net profit at Rs 209.66 crore for the quarter ended March 31, 2012, as a result of the sale of its Kovalam property.

The hotel had posted a profit of Rs 11.29 crore during the corresponding quarter last year.

The company said that the net gain of Rs 414.7 crore on the sale has been included under the “Exceptional Items”.

Debt restructuring

The income and expenses relating to the Kovalam Hotel accounted during the first three quarters to the extent of Rs 45.87 crore and Rs 33.54 crore respectively have been reduced from the income and expenses for the fourth quarter.

For the year ended March 31, 2012, the company's net profit reduced 50.7 per cent to Rs 18.63 crore from Rs 37.84 crore in the previous year.

The total income from operations for the quarter ended March 31, 2012 is Rs 139 crore as against Rs 98.95 crore of the corresponding period last year.

For the fourth quarter of FY12, the company's interest cost went up to Rs 115 crore from Rs 15 crore in the fourth quarter last year.

The company has been undergoing a corporate debt restructuring process.

It has outstanding loans of Rs 4,300 crore borrowed from a consortium of 17 bankers.

Repayment schedule

Since it could not service its loans from January, the company approached the corporate debt restructuring cell in February “to seek 10-year extension of tenure”.

The company said that the restructuring package of its debts under the Corporate Dent Restructuring mechanism is under discussion.

The company has serviced its debts up to January 31 and has sought moratorium of interest and principal repayments for two years and a longer repayment schedule.

The share price of Hotel Leelaventure was up 4.4 per cent at Rs 33.25 on the BSE on Tuesday.

niveditag@thehindu.co.in

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