Oriental Hotels‘ reported its earnings for the quarter ended June on Friday evening.
What Happened: The Tata Group company’s standalone net profit for the period came in at ₹3.64 crore, down over 70% from the ₹12.20 crore reported in the corresponding quarter of the previous year. Revenue from operations for the year went down around 11% to ₹81.36 crore, compared to the ₹91.93 crore posted in the same quarter last year.
The company explained the massive fall by stating that the standalone result for the current quarter is not comparable with the corresponding quarter of the previous year. This is because Taj Malabar Resort & Spa, Cochin and the Ballroom at Taj Coromandel, Chennai were undergoing renovations in the current quarter.
See Also: India’s 13 Maharatna Companies: What You Need To Know About These Special PSUs
“While the renovations have impacted Q1 results due to the reduced availability of room inventory and facilities, these investments are in line with the strategic intent to maintain long-term leadership in our key markets. With the completion of significant upgrades across the portfolio, the upcoming quarters will witness strong demand driving full-year performance ahead of the previous year,” said Pramod Ranjan, CEO, Oriental Hotels.
Oriental Hotels Limited is an associate company of The Indian Hotels Company Limited (IHCL).
Price Action: Oriental Hotels’ share price was down 1.54% to close at ₹136.62 on Friday.
Read Next: HCLTech Reports 20% Growth In Profit At ₹4,257 Cr, Beats Estimates
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.