Last Updated : Feb 12, 2013 12:01 PM IST | Source: Moneycontrol.com

Indian Hotels shares rise on Q3 earnings

Indian Hotels' shares rose 2 percent in morning trade on Tuesday after the luxury hotels operator reported a 28 year-on-year rise in third quarter standalone net profit and said it would review its options over its bid for luxury hotels to trains operator Orient Express Hotels by the end of the current financial year.

 
 
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Moneycontrol Bureau


Indian Hotels' shares rose 2 percent in morning trade on Tuesday after the luxury hotels operator reported a 28 year-on-year rise in third quarter standalone net profit and said it would review its options over its bid for luxury hotels to trains operator Orient Express Hotels by the end of the current financial year.


The Tata group company, which through a subsidiary holds 6.9 percent in Orient Express, had in October last year bid to acquire the remain stake in a deal valued at USD 1.86 billion. The Orient Express board, however, rejected that bid in November saying the offered price was too less.


"An offer like this can't be kept open indefinitely. So the board will take a call on what they would want to do within March 2013," Anil Goel, ED - Finance, told reporters late on Monday evening.


Indian Hotels, which operates the Taj, Vivanta, Gateway and Ginger brand of hotels, said standalone net profit in Oct-Dec was up 28 percent from a year ago to Rs 65 crore, while net sales grew at a slower 4 percent to Rs 545 crore.


Its consolidated profit was up 2 percent to Rs 50 crore, while revenue rose 5 percent to Rs 1,060 crore.


"The company surprised by arriving at consolidated net sales of Rs 1,060 crore, which was up by 30 percent as compared to Q2 FY13. The EBITDA for the quarter was Rs 210 crore, which was 5 times up as compared to the last quarter...Hence at the current market price of Rs 62, we recommend a "buy" for the stock with a target price of Rs 81," Microsec Capital said in its initial analysis.


The company has plans to open 13 hotels with 1,710 rooms in FY2014.


At 10:10hrs, Indian Hotels shares were up 1.5 percent at Rs 62.55 on NSE.

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First Published on Feb 12, 2013 10:37 am
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