The hospitality chain posted revenue from operations of Rs 144 crore for the quarter under review compared to revenue from operations of Rs 1020 crore for the corresponding period of the last fiscal. IHCL posted losses of Rs 313 crore for the quarter ended June 30, compared to a profit of Rs 5 crore for the same period last year.
IHCL said the business of the group in India and international markets has been severely impacted during the quarter on account of Covid 19 and ‘softer’ revenues due to the lockdown. The management has secured additional financing for the next 12 months to prevent disruption of the operating cash flows and to enable the group to meet its debts and obligations as they fall due.
CEO Puneet Chhatwal said over 50% of IHCL hotels were closed for most part of quarter one due to government lockdowns. “The global travel and tourism industry was at a virtual standstill in the last three months which had a big impact on the hospitality sector,” he said.
“We implemented RESET 2020, a strategy to mitigate the impact of Covid 19 and several revenue enhancement and spend optimisation measures initiated have started yielding results. We remain confident given the strength and power of our brand and our market leadership that we will weather this disruption and emerge stronger,” he added.
IHCL said its RESET 2020 strategy provides a framework to help the company overcome Covid19 challenges. It involves revenue growth through new generation initiatives, enhanced SOPs , rationalizing resources and optimising expenditure, renegotiation of contracts and monetisation of assets and reduction of corporate overheads and ensuring adequate cash flows.
CFO Giridhar Sanjeevi said the company has taken substantial steps to preserve liquidity. “In addition, we are rationalising all costs and maintaining the highest financial prudence. This will assist us in managing the evolving situation,” he added.
During the period under review, IHCL signed a binding agreement to acquire 100% shareholding in ELEL Hotels and Investments for the Sea Rock Hotel. It restructured holding of Taj Cape Town, which becomes a wholly owned subsidiary of IHCL by aquiring 50% of holdings in Tata Africa Holdings (TAH). The chain also launched a new brand called Qmin for culinary offerings. The company signed two hotels in the April to June quarter-a Vivanta in Lucknow and an IHCL SeleQtions hotel in Tadoba Andhari Tiger Reserve in Maharashtra.