EIH slips into loss in Q2

Hospitality major EIH Ltd, in which Reliance Industries Limited entered as a board member in 2010, registered a net loss of Rs. 18.3 crore for the quarter ended September 2012, on account of increased operational expenses. HT reports.

Hospitality major EIH Ltd, in which Reliance Industries Limited entered as a board member in 2010, registered a net loss of Rs. 18.3 crore for the quarter ended September 2012, on account of increased operational expenses.

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It had registered a net profit of Rs. 16.6 crore in the year-ago period.

EIH, that owns the Oberoi Hotel brand, has slipped into the red for the first time in more than two years.

It has registered a net loss of Rs. 8.9 crore for the first half of the current fiscal against a net profit of Rs. 32.0 crore for the year-ago period.

ITC was believed to be keen to up stake in EIH.

However, in 2010, RIL entered EIH as stakeholder and bought 14.8% from the company for Rs. 1,021 crore.

In the first week of November, ITC raised its stake in EIH by 1% for Rs. 41.9 crore.

ITC bought 5.73 million shares while HSBC Bank (Mauritius) sold 5.74 million shares for Rs. 41.93 crore.