New Delhi, May 30 (IANS): East India Hotels (EIH), which runs hotel brands such as the Oberoi and Trident, reported an 86.49 percent rise in profit after tax at Rs.95.04 crore for the financial year ended March 31, 2014.
The company had reported a profit after tax of about Rs.50.96 crore for the previous financial year.
According to the company, its total revenue, including other income, during the financial year under review grew by 8.7 percent at Rs.1,278.94 crore from Rs.1,177.01 crore during the previous financial year.
The company further reported an increase of 34.76 percent in net profit for the fourth quarter of the last fiscal at Rs.36.44 crore from Rs.27.04 crore for the corresponding period of the previous fiscal.
The company's total revenue in the period under review increased 3.2 percent at Rs.366.36 crore from Rs.355 crore in the corresponding period of the last fiscal.
"The Indian hotel industry has been facing weak demand and an excess supply of rooms caused by optimism about the Indian growth story prior to 2008. This has led to new hotel openings by Indian and International hospitality brands," S.S.Mukherji, vice chairman and chief executive of the company said.
"However, due to the economic slowdown, supply has outpaced demand, suppressing Average Room Rates (ARR) and reducing occupancy.”
According to Mukherji, despite the depressed market conditions, the company has recorded a healthy revenue increase over the previous year and significant growth in profitability.
The company's EBIDTA (earnings before interest, taxes, depreciation, and amortization) during the financial year under review grew by 14.29 percent and stood at Rs.279.27 crore from Rs.244.35 crore during the previous year.
The company board recommended a dividend of Rs.1.10 per equity share.