Home / NEWS / Back of House / IHCL claims Rs22.52 lakh as loss of profit

On the day of the attack: The 287-room Palace wing is still under renovation

IHCL has claimed Rs22.52 lakh as loss of profit from its insurers based on the 26/11 terror attack on the Taj Mahal Palace & Tower last year. Calculated on an estimated basis for the pro-rated period, this is for the ‘business interruption’ during the quarter ended June 30, 2009 the company stated in its report.

Its first quarter income is at Rs285 crore and profit after tax at Rs16 crore.

However, the LoP cover will not last long, lapsing on the first anniversary of the attack.

IHCL declined to share the maths when asked for its RevPAR and occupancy figures on which it is basing the LoP claim given that the industry was not doing too well at the time. It also declined to answer whether the LoP was for the severely damaged Palace wing which is still under repair, or for the Tower wing which opened a few weeks after the attack, or for both.

“At this point, we are unable to share data that you have requested for,” said the Taj spokesperson.

The company is adequately insured for the restoration of the Taj Mahal Palace & Tower and has not made any adjustments in its books. Overall, IHCL’s income declined by 24% YoY ending June 30, 2009, which it says was 'adversely impacted' because of the closure of the hotel's 287-room Palace wing.

Story continues below

Advertisement

COMMENT Comment on this article