Tata Group firm Indian Hotels Company (IHCL) today reported a standalone net loss of Rs 338.90 crore for the fourth quarter ended at March 31, 2013 hit by weak domestic and global economic conditions.
The company had posted a standalone net profit of Rs 65.21 crore in same quarter of previous fiscal, IHCL said in a filing to the BSE.
Total income during the quarter under review was at Rs 555.83 crore as against Rs 560.15 crore in the year-ago period, it added.
For the financial year ended in March 2013, IHCL posted a loss of Rs 276.61 crore.
However, in the previous fiscal of 2011-12, the company had posted a net profit of 145.35 crore.
IHCL’s total income in 2012-13 increased to Rs 1,875.86 crore as compared to Rs 1,808.73 crore in 2011-12.
Commenting on the results, IHCL Managing Director, Raymond Bickson said: “The hospitality sector was facing unprecedented challenges on account of sluggishness in the domestic economy, influx of new supply of rooms in the market that were commissioned during the boom cycle as also due to the weak economic environment on the US/Europe which are key source markets for the high end hotels in the country.”
Despite the current pressures, he said the company continued to roll out its new hotels in the domestic markets with recent launches of Vivanta by Taj at Coorg and Gurgaon and new Gateway hotel in Hubli.
During the current year, the group plans to launch Vivanta by Taj at Dwarka, New Delhi and at Surajkund along with new Gateway hotel in Kolkata and Chennai, amongst other locations, he added.
Shares of IHCL today closed at Rs 52.90 per scrip, up 0.38 per cent from the previous close on the BSE.