Tata group hospitality arm Indian Hotels Company Ltd (IHCL) on Wednesday reported a consolidated net loss of Rs 133.22 crore for the quarter ended December 31, 2020, due to the continued adverse impact of the COVID-19 pandemic.
The company had posted a net profit of Rs 213.17 crore for the corresponding period of the previous fiscal, IHCL said in a filing to BSE.
Consolidated total income of the company stood at Rs 614.53 crore for the quarter under consideration. It was Rs 1,408.91 crore for the same period a year ago, it added.
“The third quarter saw stronger recovery driven primarily by leisure demand and resumption of weddings. With innovation at the heart of our strategy, we continued to unlock the potential of our ancillary businesses, creating alternative sources of revenue”, IHCL MD and CEO Puneet Chhatwal said.
Despite challenges, the company opened four and signed six new hotels in the quarter and continued its focus on adopting an asset-light model, which has helped IHCL achieve a 44 per cent managed portfolio, further boosting consistent portfolio growth without additional capital deployment, he added.
Whilst COVID-19 continues to impact the hospitality sector at large, the company’s performance has shown consistent progress quarter on quarter, IHCL said.
The company has reported positive earnings before interest, taxes, depreciation, and amortisation (EBITDA) of Rs 38 crore for the first time in FY20-21, it added.
‘We are seeing positive revenue growth quarter on quarter whilst delivering on spend optimisation. We will continue to keep this focus and introduce multiple initiatives to manage operational costs and strengthen the balance sheet,” IHCL Executive VP and CFO Giridhar Sanjeevi said.
Shares of IHCL closed at Rs 122.85 per scrip on BSE, down 0.41 per cent from its previous close.