IHC net cut 80% by Mumbai terror attack

Hurt by the closure of its Taj Heritage wing due to the 2008 terror attack in Mumbai...

Hurt by the prolonged closure of its Taj Heritage wing due to the 2008 terror attack in Mumbai,Indian Hotels Company today posted a nearly 80 per cent decline in its profit after tax (PAT) at Rs 3 crore for the quarter ended June 30,2010,over the year-ago period.

The company,which operates Taj hotels and resorts,had a PAT of Rs 16.4 crore in the corresponding quarter of the last fiscal.

“The total income has,however,been impacted because of the continued closure of the heritage wing in the Taj Mahal Palace & Tower,Mumbai,which is undergoing renovation and will be fully reopened on August 15,2010,” Indian Hotels company said in a filing to the Bombay Stock Exchange.

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During the quarter,the company’s total income grew by 15.4 per cent to Rs 328.7 crore as compared to Rs 284.8 crore recorded in the year-ago period.

“The hotel was covered for loss of profits on account of business interruption for a period of 12 months,which expired in November 2009,” it said.

The company said it has received Rs 180 lakh from insurance companies by way of “on account” payment,covering claims towards business interruption and property damage.

Luxury hotels Taj Mahal Palace and Oberoi Trident were targeted by terrorists in Mumbai on November 26,2008. Over 200 people were killed and the hotels badly damaged in the co-ordinated attacks.

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