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EIH revenues, profits dip -- To maintain dividend

Our Bureau

NEW DELHI, May 29

EIH Ltd, a member of the Oberoi Group and a major hotel chain in the country, has announced a dip in total revenues and net profit for the year 1999-2000.

The company's total revenues at Rs. 466.32 crores for the year ended March 31, 2000 was marginally lower than the Rs. 475.69 crores achieved in the previous year.

The profit after tax worked out to Rs. 72.47 crores during 1999-2000 as compared to Rs. 96.41 crores in the previous year, representing a fall of about 25 per cent. The foreign exchange earnings at Rs. 275 crores during the year was lower than the Rs. 31 5 crores recorded during the previous year.

A company release said that the board of directors, which met here today, decided to maintain the dividend at Rs. 5 per share (50 per cent), the same level as last year. As much as Rs. 4.42 crores has also been paid as pro-rata dividend on 9.6 per cent c umulative redeemable preference shares of Rs. 100 crores issued during the year.

While announcing the results for the year ended March 2000, the Vice-Chairman and Managing Director, Mr. P.R.S. Oberoi, said that since 1995 there has been a negative growth in general economic activity and consequently, business travel has dropped sharp ly. Insofar as tourism is concerned, there has been no increase in visitor arrivals. He felt that these factors had adversely affected the company's performance.

Mr. Oberoi has further said that the occupancies in the industry have shown some improvement. He added that the current year's results will show improved profitability. The EIH Vice Chairman also pointed out that unless the Government has a more liberal airline policy, improved infrastructure and a reasonable tax structure, the growth of tourism will continue to suffer.

The group is also planning to open new hotels at two overseas and two domestic locations including the Mauritius; Sahl Hasheesh, Red Sea, Egypt; Agra and Mashobra in Himachal Pradesh. These hotels are expected to open by the last quarter of 2000. The com pany release also added that the construction of the Udaivilas in Udaipur is progressing and is scheduled to open in the third quarter of 2001.

To provide speedy and accurate services to shareholders, the company has established direct V-SAT connectivity with the National Securities Depository Ltd (NSDL) and the Central Depository Services (India) Ltd.

It has also transferred an amount of Rs. 30 crores to the General Reserve and Rs. 18 crores to the Foreign Exchange Earnings Reserve. The shareholders funds has increased to over Rs. 1,000 crores and the earnings per share (EPS) is Rs. 12.90 for the curr ent year as compared to an EPS of Rs.18.40 for 1998-99, the company has said.

EIH Ltd is a diversified hospitality company with interests in hotels, airline catering, airport restaurants, travel agencies and car rental services.