Indian Hotels Company which owns and manages the Taj and Ginger hotel portfolios reported a 22% drop in net profit of Rs64.88 crore for Q3 ending December 2009. Its net profit for the corresponsing period last year was Rs82.85.
Also, IHCL's total income was lower by 4.1% at Rs437.88 crore. The combined lower income and higher interest cost have impacted the company's bottomline.
According to IHCL, the hospitality sector has show a visible pick-up in occupancy across many Indian major cities in the last quarter after a difficult half year.
"While there are visible signs of recovery in India, many of the key international markets in which the company has a presence or from where our guests originate are yet to recover," said Anil Goel, executive director, finance, IHCL.
In related news, IHCL plans to issue bonds to the tune of Rs700 crore with an average tenure of seven years. These funds will be utilised to specifically retire some of its offshore debt in its international subsidaries.
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