Indian Hotels reports Q1 net loss of Rs 19.09 crore

NEW DELHI: Tata Group firm Indian Hotels Company today reported narrowing of its consolidated net loss at Rs 19.09 crore for the first quarter ended June 30, 2013.


The company had posted a net loss after taxes, minority interest and share of profit/loss in associates at Rs 33.36 crore for the corresponding period previous fiscal, Indian Hotels Company Ltd (IHCL) said in filing with the BSE.

Consolidated total income of the company, however, rose to Rs 908.70 crore for the quarter under consideration from Rs 852.57 crore for the same period year ago, it added.

"In view of the seasonality of the sector, the financial results for the quarter are not indicative of the full year's expected performance, nor are these comparable to the results of the quarter ended March 31, 2013," IHCL said.

IHCL said its auditors have "invited attention to the company's investment in Orient Express Hotels through a wholly -owned subsidiary, the carrying cost of which significantly exceeds the market value as on the reporting date."

"In view of the strategic nature of the investment, in the opinion of the management, there is no diminution, other than temporary, in the value of the aforesaid investment," IHCL said.

Last year, IHCL, which holds 6.9 per cent in Orient Express, had made a second attempt to acquire the latter but was rejected.

IHCL and its subsidiaries are collectively known as Taj Hotels Resorts and Palaces. Incorporated by the founder of the Tata Group, Jamsetji N Tata, the company opened its first property, The Taj Mahal Palace Hotel, Bombay in 1903.

Taj Hotels Resorts and Palaces comprises 100 hotels in 58 locations across India and additional 16 international hotels in the Maldives, Malaysia, Australia, UK, USA, Bhutan, Sri Lanka, Africa and the Middle East.

Shares of the company today closed at Rs 42.95 per scrip on BSE, up 1.18 per cent from its previous close.