Taj Samudra owner narrows losses in March

TAL Lanka Hotels PLC, which operates the Taj Samudra hotel in Colombo, managed to narrow its net losses to Rs.1.19 million during the March quarter (4Q17), compared to a Rs.28.35 million net loss year-on-year (YoY) through cut backs in expenses, during a period of poor tourist arrivals to Sri Lanka.
The loss per share fell to one cent compared to 20 cents YoY. The shares were trading at Rs.22.50 at market close yesterday, down Rs.0.30 compared to Friday.
Revenue for the quarter increased just 0.4 percent YoY to Rs.698.58 million. The closure of the country’s main airport in Katunayake during daytime for runway renovations from January to April caused tourist arrivals to Sri Lanka to slow down to 3.4 percent during the quarter. City hotels may not have had the same opportunity as hotels and resorts outside Colombo to attract locals through attractive offers to boost sales.
TAL’s direct costs for the quarter remained flat at Rs.504 million. Gross profit increased 1.9 percent YoY to 
Rs.194.62 million. 

The operating profits were up 12.6 percent YoY to Rs.72.84 million due to a cut down in marketing efforts. The finance expenses fell 19.4 percent YoY to 
Rs.69.62 million.
The net assets per share at the end of the 2017 financial year stood at Rs.17, up from Rs.11 at the start of the financial year. The total assets increased to Rs.5.35 billion from Rs4.65 billion mainly through increases in property, plant and equipment.
The firm had announced continuous refurbishment efforts since 2014.
The long-term borrowings narrowed to Rs.1.72 billion from Rs.2.05 billion at the end of the 2017 financial year, compared to the start.
For the 2017 financial year (FY17), TAL posted Rs.103.72 million net profit, compared to Rs.116.91 million net loss YoY. Earnings per share increased to Rs.0.74 from a Rs.0.84 loss per share YoY.
Revenue was up 6.2 percent YoY to Rs.2.83 billion. Revenue from accommodation increased to Rs.1.66 billion from Rs.1.59 billion YoY, while food and beverage sales increased to Rs.1.04 billion from Rs.979.84 million YoY.
The direct costs increased 4.8 percent YoY to Rs.2.05 billion. The finance expenses fell 41.9 percent YoY to Rs.222.8 million.
As at March 31, 2017, TAL Hotels & Resorts Ltd owned 58.14 percent of shares in TAL Lanka, while IHOCO B. V. held 24.62 percent of shares in the hotel. The Employees’ Provident Fund owned 5.33 percent of shares in the firm. (CW)