The company posted a standalone net loss of Rs3.8cr in FY20 against a profit of Rs89.44cr of FY19. Meanwhile, revenue slumped to Rs301.3cr in the fiscal from Rs356.7cr in FY19.
Pramod Ranjan, Managing Director & CEO, Oriental Hotels Ltd, said, “The company managed to achieve an EBITDA margin of 16% in the current year vis-à-vis 17% in the previous year despite the fall in revenue due to business interruption across hotels on account of COVID-19 in March 2020.”
Talking about Covid-19 impact, Oriental Hotels said, "The hotel business has been severely impacted on account of COVID-19. Many of the hotels have been closed since the mandated lockdown from March 22, 2020. The Company is currently operating a few hotels and the Company expects all the hotels to become operational in a staggered manner after the lockdown is lifted."
It added, "We expect a recovery in business to be driven by domestic leisure tourism, staycations, domestic business travel and a limited international travel. Our Brands have tremendous Trust with our customers, and we have very clear SOP's for ensuring a safe stay for our Guests. We do not expect any significant challenge to our supply chain. We will keep our investors & other stakeholders updated
with relevant updates."
In its meeting held on Wednesday, the company's board recommended a dividend of 20% (Rs0.20 paise per share of Rs1 / -) for FY20 subject to the approval of the Members at the forthcoming Annual General
On Thursday, the stock plunged by 10% by recording the lower price band of Rs22 per piece on Sensex. The stock ended at Rs22.90 per piece down by 6.15% on the index.