Indian Hotels Q3 net profit dips 90% to Rs 10.05 crore due to rise in expenses

Tata group hospitality firm Indian Hotels Company on Friday reported a 89.95% dip in its consolidated net profit to Rs 10.05 crore for the third quarter ended December 31, 2015 mainly on account of rise in expenses and exceptional items.

The company had posted a net profit after taxes, minority interest and share of profit/loss of associates of Rs 61.84 crore for the corresponding period of the previous fiscal, Indian Hotels Company said in a BSE filing.

Consolidated net sales of the company, however, rose to Rs 1,308.97 crore for the quarter under consideration as against Rs 1,206.88 crore for the same period a year ago.

For the quarter ended December 31, 2015, exceptional item- others "comprises of expenditure on infructuous projects written off amounting to Rs 1,479 lakh, which includes Rs 496 lakh written off by a subsidiary company and also a loss on sale of a long term investment by a subsidiary company aggregating to Rs 1,378 lakh," Indian Hotels said.

Indian Hotels Company Ltd (IHCL) and its subsidiaries are collectively known as Taj Hotels Resorts and Palaces.

Shares of Indian Hotels Company Ltd on Friday closed 3.04% down at Rs 113.40 per scrip on BSE.