ICRA DOES A VOLTE-FACE ON LEELAVENTURE
Article Abstract:
Hotel LeelaVenture Ltd's (HLVL)fixed deposit and non-convertible debenture (NCD) programmes have been downgraded by ICRA to inadequate safety rating. The downgrading of eight slots is an exceptional one. This rating is also subject to further watch thus not ruling out more changes. In September 1998, ICRA had assigned a high safety rating but press reports had dubbed this rating as not justified as the company's internal accruals was not enough even for its debt servicing. As on March 31, 1998, HLVL had debts to the tune of Rs421 crore with interest costs estimated at Rs63 crore for 1998-99. With internal accruals of Rs48.66 crore before interest payment and an equity dividend payment of Rs12.60 crore, cash availability to service the debt would be Rs36.06 crore. Part-payment of the principal for 1998-99 is Rs21 crore, redemption of preference shares Rs14 crore and repayment of short-term loans Rs73 crore. Thus repayment itself would burden HLVL to the extent of Rs108 crore in 1998-99, implying further borrowing. (nr)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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ITC SHOWS 20% GROWTH IN OPERATING PROFITS
Article Abstract:
ITC has posted 20 percent rise in its operating profits to Rs247 crore during the third quarter ended December 1998 (Rs206 crore during the third quarter ended December 1997). During the period, it recorded net profit of Rs136 crore (Rs117 crore). Its profit before tax was Rs208 crore (Rs179 crore). The fall in profits was attributed to difficult trading conditions and poor state of the Indian hotel industry. Slump in export of leaf tobacco has also affected the company's finances. ITC is likely to end 1998-99 with a net profit of Rs620 to Rs630 crore (Rs526 crore in 1997-98). (ag)(psr)
Comment:
ITC has posted 20 percent rise in its operating profits to Rs247 crore during the third quarter ended December 1998 (Rs206 crore during the third quarter ended December 1997).
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
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