IHCL reports consolidated net profit of ₹96 crore in Q3
Premium- IHCL said its consolidated revenue from operations rose sharply to ₹1,111.22 crore in the December quarter from ₹728.37 crore in the quarter ended September.
NEW DELHI: The Indian Hotels Company Limited which runs the Taj group of hotels has reported a consolidated net profit of ₹95.96 crore in the quarter ended 31 December against a net loss of ₹130.92 crore in the previous quarter.
IHCL said its consolidated revenue from operations rose sharply to ₹1,111.22 crore in the December quarter from ₹728.37 crore in the quarter ended September.
The company's total income was up at ₹1,133.92 crore in the third quarter against ₹752.28 crore in the previous quarter.
The company operates hotels under the brands Taj, SeleQtions, Vivanta and Ginger.
The company said its business has been impacted during the nine months to December on account of covid-19. During the first three months of the year, the company witnessed softer revenues due to the second wave of covid-19 and consequent lockdowns in several states across the country.
However, during the second and third quarter of the year, it witnessed a sharp recovery of demand, especially in leisure destinations. The fourth quarter, though, has started with the Omicron wave and the company is closely monitoring the situation.
In October 2021, the company's board had approved the purchase of a balance stake in Roots Corporation Limited that runs Ginger Hotels, aggregating to almost 40% of the equity share capital of the firm from the existing shareholders of RCL from Omega TC Holdings, Tata Capital, Tata Investment Corporation and Piem Hotels, at an acquisition cost not exceeding ₹500 crore.
The transaction meant RCL would become a wholly owned subsidiary of the company. During the third quarter, the company completed this purchase of 65,35,948 shares from Piem Hotels at ₹85.08 crore (net of TDS) (6.95 % of the equity share capital of RCL) out of the proceeds of the rights issue. The buyout from the remaining shareholders will be completed on receipt of all necessary approvals.
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Last quarter, its board also approved plans to raise a total of ₹4000 crore of which ₹2,000 crore would come from selling shares to existing investors and another ₹2,000 crore by selling shares to financial institutions.
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