Indian Hotels, the nation’s largest operator, reported it biggest drop in profit in almost eight years as costs rose and it kept part of the terrorist-hit Taj Mahal Hotel & Towers closed for renovation.
Net income at the company chaired by Ratan Tata plunged 80% to INR33.3 million in the three months ended June 30 from INR164.4 million in the year earlier period, the company said in a statement to the Bombay Stock Exchange.
That’s the biggest drop in profit since the quarter ended Sept. 30, 2002, according to data on the Bloomberg.
The heritage wing of the hotel built in 1903 was gutted when militants armed with guns and explosives killed 166 in attacks across Mumbai in 2008. Sales at the company, which plans to open the renovated heritage wing on Aug 15, rose 25% in the quarter.
Indian Hotels has spent INR1.8 billion renovating its flagship hotel. The company’s insurance for business interruption expired in November.
