Calcutta, Oct. 31: The Oberoi group-controlled EIH Ltd, formerly known as East India Hotels Ltd, has reported a 242 per cent jump in net profit to Rs 27.46 crore for the second quarter ended September 30 from Rs 8.03 crore in the same period last year. The hotel chain’s half-yearly net profit in the current financial year also rose sharply by 107.8 per cent to Rs 52.14 crore from Rs 25.09 crore in the year-ago period.

The profitability of the company has spurted because of an increase in revenue from hotel operations. Revenue from hotels went up to Rs 199.49 crore during the July-September quarter from Rs 152.10 crore in the year-ago period. In spite of July-September being lean months for the hotel industry, EIH has been able to increase its room occupancy rate as well as revenue per room during the period that translated into a higher operating profit. The average revenue per room for EIH has increased by 34 per cent during the April-September period this year.

The operating profit of the company for the second quarter as well as for the half-year period improved significantly following a lower growth in expenses. Operating profit for the second quarter increased to Rs 60.23 crore (Rs 41.52 crore) and that for the first six months went up to Rs 131.93 crore (Rs 84.33 crore).

However, its income from other operations such as flight catering and tour operations remained unchanged at Rs 8.60 crore compared with the year-ago period.

Net sales for the six months ended September 30 went up by 29.53 per cent to Rs 384.56 crore.

In July, EIH had sold its majority stake in Mercury Travels to Ashwini Kakkar, whereby Mercury Travels ceased to be a wholly-owned subsidiary of EIH with effect from July 28. EIH reduced its stake to 25.1 per cent from 100 per cent in Mercury Travels.

However, Mercury Car Rentals continues to be a subsidiary of EIH, which holds a 66.67 per cent stake in it.

EIH has earlier proposed to transfer Trident Hilton in Bhubaneswar and The Oberoi Cecil in Shimla to EIH Associate Hotels Ltd. But it has not yet got the approval of high courts. Consequently, the second quarter results of the company include the performances of these two hotels as well. However, the high court approvals for the transfer of Trident Hilton and The Oberoi Cecil to EIH Associate Hotels are expected soon and this will be reflected in the second-half performance of EIH.

EIH has also proposed to merge Rajgarh Palace Hotel and Resorts Ltd with itself with effect from April 2005. But pending the merger, the performance of Rajgarh Palace Hotel has not been included in the second-quarter results.