Poor overseas performance worries Tatas’ Indian Hotels
25 May 2011
The Indian Hotels Co Ltd, the Tata group's hospitality company that owns the Taj properties, has posted 57 per cent increase in standalone net profit for the January-March quarter compared to the year-ago period.
But despite the impressive growth, it is worried by the fact that some of its foreign operations, particularly in the US, are bleeding money.
Indian Hotels executive director, finance Anil P Goel said while there has been a growth in the company's topline, the management is concerned about some pockets in its overseas operations.
''We are very much concerned about our US operations. The business there is still under pressure and is actually denting the overall profitability at the consolidated level,'' said Goel, without giving details.
The group runs 107 hotels in India and other parts of world through direct ownership, subsidiaries or management contracts, and hopes to add 16 hotels in the current financial year.
The group is also planning to expand its footprint by managing hotels in 'tier II' Indian cities and in Morocco in North Africa.
