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Indian Hotel Company Limited (IHCL) has recorded a loss of ₹97.72 crore for the Q4 of FY21 compared to a profit of ₹76.29 crore at the same quarter the previous fiscal. Its revenue from operations was ₹615.02 crore compared to ₹1,062.98 crore in the same period last fiscal. The hospitality company said it will raise ₹275 crore.
Commenting on the fiscal performance, Puneet Chhatwal, Managing Director and Chief Executive Officer, IHCL, said despite the pandemic-related challenges that have impacted the travel and hospitality sector, IHCL has remained focused on executing its R.E.S.E.T 2020 strategy.
“The company has developed innovative revenue streams to meet evolving customer needs and have followed stringent spend optimization and financial prudence measures. These initiatives helped the company achieve quarter-on-quarter growth and deliver a positive EBITDA in the last two quarters of FY21. The company will continue to evolve to cater to dynamic market trends, with agility at its core.”
During FY21, IHCL signed 17 hotels and opened seven new ones. Driven by an asset-light growth strategy, approximately 80 per cent of the development pipeline comprises management contracts.
Equity dividend
For the year ending March 31, the Board of Directors has recommended an equity dividend of 40 per cent amounting to ₹0.40 per share.
At the time of intimating the date of informing the results to the exchanges, IHCL had said that the board shall be considering fundraising options for the company, as it may deem appropriate.
The auditors’ report for IHCL said that the company has adequate funds at its disposal. The board approved the raising of long-term funds not exceeding ₹275 crore by way of External Commercial Borrowings, Foreign Currency Borrowings, Non-Convertible Debentures, Term Loans or through any other debt instrument in one or more tranches.”
The auditors pointed out that the managerial remuneration paid / payable to the Managing Director and CEO of the company mounting to ₹7.23 crore and consequently the total managerial remuneration for the financial year amounting to ₹7.23 crore exceeds the prescribed limits under Section 197 read with Schedule V to the Act by ₹5.91 crore.
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