Indian Hotels Company Limited (IHCL) reported a turnover of Rs 379 crore for the quarter ended September 30, 2012 as against 358 crore registered for the corresponding quarter of the preceding year. For the half year ended September 30, 2012, the turnover of 775 crore improved over the corresponding six months of the preceding year by seven per cent. Profits for the quarter and six months ended September 30, 2011, a period which is essentially off season for the sector,
were impacted on account of the initial gestation period costs of new hotels recently commissioned. The standalone loss after tax at six crores for the quarter and two crores for the six-month period were impacted by pressure on operating margins, higher depreciation, and foreign currency fluctuation losses. The company also reported unaudited consolidated results for the half year ended September 30, 2012 as additional information. The unaudited consolidated turnover of 1666 crore improved over the turnover for the corresponding six months of the preceding year by 14 per cent. The loss after tax, after minority interest was Rs 91 crore against a loss of 70 crore that accrued for the corresponding six months of the preceding year. The consolidated profitability was adversely impacted by the subdued performance of the domestic portfolio during the off season. However, the company continued on its balance sheet restructuring initiatives and was able to reduce financing costs by 30 per cent during the period under review. Announcing the results, Raymond Bickson, Managing Director, IHCL, said that the sector continues to face pressure on demand due to the current economic environment, which in turn had kept the room rates subdued below desired levels in what is essentially an off season period.