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The Indian Hotels Company Ltd (Taj Hotels) reported a turn over of Rs 1823.13 crores for the year ended March 31, 2008 and a PAT of Rs 377.46 crores, which were 13% and 17% higher than the results for the corresponding 12 months of the preceding financial year.
The Profit Before Interest and Tax for the year aggregated to Rs 674.75 crores and reflected margins 37% of sales as against 34% of sales as reported for the previous year.
With the continued strong performance of its subsidiaries, joint venture and associate companies as well, IHCL’s consolidated revenues for the year ended March 31, 2008 improved by 16% to Rs 3076.77 crores. The consolidated profit After Tax of Rs 354.98 crores was achieved after absorbing the impact of interest of US$ 9.69 million on the loan raised by Samsara Properties Limited, the Company’s 100% overseas subsidiary which has acquired 11.5% of the Common Stock A of Orient-Express Hotels Limited. In addition, the Company has shut down the Rooms division of The Pierre hotel in New York with effect from January 1, 2008 to undertake exhaustive renovations across the property, relating to which, IHMS Inc has incurred an expenditure of US$ 12.25 million on employee severance.
The Board of Directors at its meeting held on April 15, 2008, had recommended an interim dividend of 190% or Rs 1.90 per ordinary share in respect of the year ended March 31, 2008 which has since been distributed to the shareholders. The Board of Directors have not recommended any final dividend.
Announcing the results, Mr Raymond N. Bickson, Managing Director, said that the Company had closed the preceding year reporting record growth in turnover and profits and the outlook for the year ahead was encouraging. He further stated that continuing an aggressive growth agenda, the Taj Group is scheduled to open new hotels in Bangalore, Chennai and Trivandrum during the second quarter of the current year and also expand capacity at Lands End in Mumbai and Fisherman’s Cove in Chennai later in the year.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales. She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
