The Indian Hotels Company Limited which operates the Taj group of hotels has announced a total profit of ₹95.96 crore in the quarter ended 31 December as compared to a net profit of ₹130.92 crore in the earlier quarter. IHCL reported its consolidated revenue from operations increased sharply to ₹1,111.22 crore in the December quarter from ₹728.37 crore in the quarter that finished in September.
The company’s total income was surged up to ₹1,133.92 crore in the third quarter against ₹752.28 crore in the last quarter. The company regulates hotels under the brand’s Taj, SeleQtions, Vivanta and Ginger.
The company announced its business has been affected during the nine months to December due to COVID-19. During the first three months of the year, the firm saw weaker revenues due to the second wave of covid-19 and resultant lockdowns in various states across the country.
However, during the second and third quarter of the year, it substantiated a sharp recovery of demand, particularly in vacation destinations. The fourth quarter, though, has begun with the Omicron wave and the company is closely overseeing the circumstance.
In October 2021, the company’s board had upheld the investment of a balanced stake in Roots Corporation Limited which operates Ginger Hotels, aggregating to nearly 40% of the equity share capital of the company from the established shareholders of RCL from Omega TC Holdings, Tata Capital, Tata Investment Corporation and Piem Hotels, at a trading expense, not more than ₹500 crore.
The transaction implied RCL would evolve as a completely owned subsidiary of the firm. During the third quarter, the company finalized 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 problem. The buyout from the staying shareholders will be obtained on receipt of all essential permissions.
Last quarter, its board also upheld plans to boost a total of ₹4000 crore of which ₹2,000 crore would come from swapping shares to existing investors and another ₹2,000 crore by trading shares to financial organizations.
