New Delhi: Hospitality major Indian Hotels Company Ltd Thursday said sales, revenue and profitability of the company will be impacted for the first and second quarter of the current fiscal year due to the impact of COVID-19 pandemic.
The company in a regulatory filing said that since the situation is exceptional and is changing dynamically, it is not in a position to gauge with certainty the future impact on its operations.
“We believe there will be impact in sales volumes, revenue, and profitability for Q1 and Q2 FY21 as our operations are presently shut in most geographies, and will gradually ramp up only after the resolution of the pandemic,” Indian Hotels Company Ltd (IHCL) said in a filing to the BSE.
However, the company is confident about adapting to the changing business environment and respond suitably to fulfil the needs of its customers, it added.
“Considering the faith in the Tata Brand as also the iconic Taj brand, the company does not foresee any challenge in assuming its position soon, post the revival of the economy,” IHCL said.
However, revenues are expected to be softer in the initial phase of the lockdown and for some time after the lifting of the lockdown, mainly due to lower occupancies and limited food and beverage offtake arising out of reduced business and leisure travel, it added.
The company is also in constant touch with its key vendors and is working with them to mutually partner each other to propel the business forward, IHCL said.
“The company has assessed the potential impact of COVID-19 on its capital and financial resources; profitability; liquidity position; ability to service debt and other financing arrangements; assets; internal financial reporting and control; supply chain; demand for its products/services and is in a comfortable liquidity position to meet its commitments,” it added.
IHCL expects demand for its products, services to pick up at a slower pace once lockdown is lifted, the filing said.
“Based on the experience from markets in China and our own research, the company expects a recovery in business to be driven by domestic tourism, staycations, domestic business travel and a limited international travel. Our brands have tremendous trust with our customers, and we have very clear SOPs for ensuring a healthy and safe stay for our guests,” it added.
IHCL, with its 116 years of legacy and unbeatable brand equity, continues to be in a position of strength to overcome this crisis and capture future growth opportunities in an optimal manner, the company said.
Shares of Indian Hotels Company Ltd on Thursday closed 0.42 per cent lower at Rs 83.60 per scrip on the BSE.
(PTI)
