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Oberoi Hotels sees a revival of its fortune no sooner than next year. Addressing the 59th AGM of EIH Ltd (The flagship company of The Oberoi Group) held in Kolkata on August 20, 2009, chairman PRS Oberoi told shareholders that he expected a revival in the financial year 2010-2011 at the earliest. “Although the future outlook looked grim, there are some positive signs. India now had a stable government. India is seeing some key signs of recovery as the government, despite an erratic monsoon,” he said.
The ongoing and combined global financial and health crisis is one of the tallest hurdles to a quicker recovery. Referring to the economic scenario, he pointed out that current business trends were not encouraging. Occupancies, average room rates and revenues continued to fall resulting in lower profitability. Consequently, the company’s performance during the financial year 2008-2009 was not healthy.
The total revenue was Rs1073.06 crore as compared to Rs1155.11 crore the previous year. Profit before tax was Rs273.26 crore as compared to Rs349.84 crore the previous year. Profit after tax was Rs170.44 crore as compared to Rs217.23 crore the previous year.
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The results of the first quarter of this year, too, were reflective of the difficult business environment. Total income for the first quarter was Rs218.10 crore as compared to Rs253.12 crore the previous year. Profit after tax was Rs19.05 crore as compared to Rs38.01 crore the previous year.
On his terror-damaged Mumbai hotel, The Oberoi, Oberoi said they are making steady progress and expect to reopen in the first quarter of 2010. “As the hotel is more than 20 years old, we decided to renovate the entire hotel and thus give it a new look. It is our endeavour to advance this hotel’s technology to make it more contemporary,” said Oberoi.
Click here for full details on the EIH 59th AGM
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