Oriental Hotels FY20 revenue dips due to COVID-19 lockdown
Jun 04, 2020
Chennai (Tamil Nadu) [India], June 4 : Oriental Hotels Ltd has reported a loss of Rs 3.8 crore in 2019-20 as compared to a profit of Rs 89 crore in the previous financial year due to business interruption across properties on account of COVID-19.
The revenue declined to Rs 301 crore in FY20 from Rs 357 crore in FY19 while earnings before interest, taxes, depreciation and amortisation (EBITDA) came down to Rs 49 crore from Rs 62 crore.
"The company managed to achieve an EBITDA margin of 16 per cent in the current year vis-a-vis 17 per cent in the previous year despite fall in revenue due to business interruption across hotels on account of Covid-19 in March," said Managing Director and CEO Pramod Ranjan.
However, the company has declared a 20 per cent dividend for FY20.
The company said it expects all its hotels to become operational in a staggered manner after the lockdown is lifted.
"We expect a recovery in business to be driven by domestic leisure tourism, staycations, domestic business travel and limited international travel," said Ranjan in a statement.
Oriental Hotels is an associate company of Indian Hotels Company Ltd (IHCL). It has seven properties -- Taj Coromandel in Chennai, Taj Fisherman's Cove Resort and Spa in Chennai, Taj Malabar Resort and Spa in Kochi, Vivanta Coimbatore, Gateway Hotel Pasumalai Madurai, Gateway Hotel Old Port Road Mangalore and Gateway Coonoor -- an IHCL SeleQtions hotel.
