Due to forex losses, lower treasury income, and an investment in a new property, the Indian Hotels Company (IHCL), which runs the iconic Taj Mahal Hotel in Mumbai city as well as other hotels, reported a 49.79 per cent increase in consolidated net loss at Rs 33.36 crore for the June quarter.
owever, the company’s turnover improved by 20 per cent to Rs 852.57 crore for the quarter, from Rs 711.64 crore in the same period year ago. The first two quarters are usually the leanest period for the industry. This quarter has seen the hotel company's loss increasing to Rs 33.36 crore mainly due to the initial gestation cost of its recently opened Yashwantpur hotel in Bangalore.
The forex loss and lower treasury income have also put pressure on margins, IHCL Managing Director Raymond Bickson said. The sector usually earns about 60-65 per cent of profit in the last two quarters, he added.