Indian Hotel Company Limited Reports 10% increase in Consolidated Income

The Indian Hotels Company Limited (IHCL), ended the financial year 2015-16 in the red, having posted a consolidated after tax loss of Rs 61 crores, an improvement from last years loss of Rs 378 crores.

The financial year results, which were, published recently shows a growth of Standalone total income by 13 per cent at Rs 2,382 crores. The company reported total consolidated income from operations of Rs 4591 crores, which was a rise of 10 per cent compared to the previous financial year. Consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) for the year was up by 25 per cent at Rs 732 crores.

The company reported a consolidated gross debt of Rs 4781 crores, taking into account the liquidity of Rs 395 crores, the net debt stood at Rs 4386 crores at the end of the financial year 2015-16.

The board of directors of IHCL have given approval to allow United Overseas Holding Inc (UOH), a wholly owned subsidiary of IHCL, to go ahead and pull out of Taj Boston by way of sale or disposal of the LLC interest in International Hotel Management Services (IHMS) Boston, LLC (a direct subsidiary of UOH), at not less than US$ 125 million, while retaining brand presence via a management agreement.

The board of directors had also approved the amalgamation of IHMS and Lands End Properties Private Ltd, two wholly owned subsidiaries of the company and this was approved by shareholders on May 4, 2016.

In the last financial year, the company added the new 150 room Vivanta by Taj in Guwahati, the 154 room Taj at Bangalore and the 283 room Taj Santacruz hotel in Mumbai. In addition, the 78 room Gateway Hotel in Nashik was added through a subsidiary. Two other Gateway hotels were added under management contract at Ajmer (81 rooms) and Pune (150) rooms.

The company has left three Gateway hotels in Ahmedabad, Jaisalmer and Jodhpur in the same period.

In the year 2016-17, the company will open its fifth lodge under Taj Safari at Chitwan, Nepall A Taj Exotica in Andaman; a Vivanta by Taj hotel in Amritsar and two hotels under the Ginger and four under the Ginger brand, a press release stated.