Calcutta, May 31: EIH Limited, part of the Oberoi Group, today rewarded shareholders with a 1:2 bonus and a 100 per cent total dividend for the year.

The company board, which met today in Delhi to finalise the accounts for 2005-06, also declared a stock split. Each existing share of face value Rs 10 will be split into five shares of face value Rs 2.

Revenue increased 29 per cent to Rs 803 crore in 2005-06 from Rs 625 crore in 2004-05. Profit after tax rose by 221 per cent from Rs 33.12 crore to Rs 188.80 crore. The operating profit increased to Rs 292.33 crore from Rs 183.77 crore in 2004-05, an increase of 59 per cent.

“The hospitality industry in India is emerging as one of the fastest growing sectors in the world. The entry of several international hotel brands into the country has brought about a structural change in the industry. The emergence of new international competition will compel the Indian hotel groups to improve their product and service quality. However, we expect to maintain our leadership position,” said chairman P.R.S. Oberoi.

Business in the current year is better than the previous year and the company expects the trend to continue.

The company will announce the launch of several hotels in the next few months, he added.

Oberoi said to provide improved and contemporary guest facilities, the company has opened a new restaurant called the Vetro at The Oberoi, Mumbai.

The company has also opened a spa at The Oberoi, New Delhi. The spa has a large gymnasium, several therapy suites and a heated indoor lap pool.

Flight service operations have begun in Bangalore. This is in addition to operations in Mumbai, Delhi, Chennai and Calcutta. A new flight kitchen in Chennai will be operational in August. The booty from the company management, however, failed to cheer the EIH stock in today’s falling market.

The stock closed at Rs 683.80, down 3.35 per cent or Rs 23.70.

However, in the last one week, the stock has gained by 11.86 per cent.

The Oberois hold a 46.3 per cent stake in the company, while three ITC group companies continue to hold a 14.6 per cent stake.