Tuesday 17 May 2016

Sri Lanka Taj unit in the red on forex losses

ECONOMYNEXT - Taj Lanka Hotels Plc, a unit of India's Taj Hotels and Resorts reported losses of 28 million rupees in the March 2016 quarter down from a profit a year earlier, despite strong revenue gains as interest costs and forex losses took its toll.

The firm reported losses of 20 cents per share for the March quarter and 84 cents per share for the full year on total losses 116 million rupees, down from 190 million a year earlier.

Revenues rose 24 percent to 695 million rupees in the March quarter and costs rose 10 percent to 504 million rupees, allowing the firm to grow gross profits 82 percent to 191 million rupees.

Finance costs rose from 51 million rupees to 86 million rupees.

In the year to March finance costs rose from 157 million rupees to 383 million rupees. For the year unrealized forex losses rose from 47 million rupees to 244 million rupees.

Sri Lanka's rupee fell from 131 to 148 to the US dollars over the past year as the central bank printed money to keep interest rates down despite a rising budget deficit.

Taj has dollar revenue which push up rupee nominal income but it also has forex borrowings which also go up when the domestic currency falls.

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