Sri Lanka’s Taj unit profits up, revenues down

Chief Regulatory Officer at CSE Renuke Wijayawardhane presenting the listing certificate to Executive Chairperson at Renuka Hotels Shibani Thambiayah

May 12, 2013 (LBO) – Profits at Taj Lanka Hotels Plc, a unit of India’s Taj Hotels and Resorts rose 228 percent to 24.8 million rupees in the March 2013 quarter from a year earlier helped by as absence of forex losses, but revenues weakened. The firm reported earnings of 19 cents per share for the quarter. For the year to March it reported earnings of 1.58 rupees per share on total profits of 216.9 million rupees.

Revenues in the March quarter fell 2 percent to 439.4 million rupees despite a depreciation of the rupee from a year earlier, costs were flat at 306.3 million rupees and gross profits were down 8 percent to 133.1 million rupees.

Operating profits were also down 20 percent to 60.1 million rupees.

But net profits were helped by lower finance charges of 14.4 million rupees, down from 66.5 million rupees last year.

Profits in the March quarter last year were depressed by forex losses on loans as Sri Lanka’s rupee depreciated sharply.

Indian tourist arrivals to Sri Lanka dropped 4.4 percent in the first quarter to 38,559. In March arrivals plunged 18.1 percent to 11,789.

Sri Lanka’s state-run SriLankan Airlines halved its flights to South India following attacks on tourists from the island by Tamil nati