The Indian Hotels Company Ltd’s, a Tata Group firm, growth remained more or less flat in the third quarter ended December on account of weaker domestic demand and high interest costs that affected the hospitality sector in India.
The company on Wednesday posted a net profit of Rs 50.5 crore in the October-December quarter against a profit of Rs 50.3 crore in the corresponding quarter of last fiscal, a marginal year-on-year growth of 0.4%.
The company’s total income grew by 7.5% for the third quarter at Rs 521.5 crore against Rs 485.3 crore in the corresponding quarter last year.
Indian Hotel’s expenses for the quarter were recorded as Rs 407.3 crore against Rs 370.9 crore in the corresponding quarter.
The company also saw an increase in its first nine months net profit to Rs 80.1 crore from Rs 44.3 crore in first nine months of the corresponding period. The company’s total income also jumped to Rs 1,245 crore from Rs 1,142 crore in the first nine months of last fiscal.
The company also said that it has received Rs 200 crore from insurer against the damage of property of Taj Mahal, Mumbai and would be receiving Rs 36.3 crore shortly.
The company in a statement to Bombay Stock Exchange said, “During the quarter the company has received a confirmation from the insurer of the minimum amount of net assessed insurance claim figure in respect of Taj Mahal Palace Mumbai totalling to R236.3 crore as against the company’s accrued claim of Rs 239.8 crore.”