Riding on strong revenue and profit growth durig the year, Indian Hotels Company Ltd (IHCL) has posted a 44 per cent increase in net profit to Rs 37 crore for the fourth quarter ended March 31, 2004 as compared to Rs 26 crore in the same quarter ended March 31, 2003. Total income increased 26 per cent from Rs 176 crore last year to Rs 222 crore in the quarter under review.
It has posted a 50 per cent increase in net profit at Rs 61 crore for the year ended March 3, 2004 as compared to Rs 40.4 crore for the year ended March 31, 2003. Total income increased from Rs 591 crore in the year ended March 31, 2003 to Rs 696 crore this year clocking an 18 per cent increase.
The group has posted an increase of 161 per cent in net profit at Rs 73 crore for the year ended March 31, 2004 as compared to Rs 28 crore in the previous year. Total income increased from Rs 905 crore to Rs 1,047 crore, clocking a 16 per cent growth.
The board of directors has recommended a dividend of 80 per cent on the equity shares for the year ended March 31, 2004. Room revenues grew by 18 per cent for the year under review due tohigher occupancies and ARRs. Occupancies have increased from 60 per cent last year to 69 per cent for this year and ARRs have shown an increase of 7 per cent.
Commenting on the results, IHCL managing director Raymond Bickson said: "IHCL utilised last years strong growth in revenues to invest in key areas like human resources, brand visibility and developmental activities which will enable the company to continue strong revenue growth and pursue additional growth opportunities through management contracts. He added that the company will be setting up a 24 hour call center for the Taj group of hotels which will have a domestic line for the first six months and an international one for the remaining six months. This should be operational this current year.
The company will continue its expansion through its asset light strategy and has set up a captial expenditure plan of about Rs 160 crore for 2004-2005, under which leisure will utilise Rs 18 crore, business Rs 10 crore and Rs 132 crore will be used for the luxury division.
The company has successfully completed its foreign currency convertible bonds aggregating $150 million in February 2004 which carry a coupon of 1 per cent and have yield to maturity of 3.15 per cent. Investors have the option to convert the bond into a global depositary receipt or an equity share at Rs 501.53 per share between March 28, 2004 and January 28, 2009.
IHCL had also implemented a voluntary retirement scheme at one of its units involving an outlay of Rs 2.56 crore and is amoritising the same over 60 months from the month in which it is implemented.