In Q4FY12, the exceptional item of Rs.418 crore helped the company post a net profit of Rs.210 crore but this time around, there was no such rescue and thus the company ended current Q1 in the red, with a net loss at Rs.102 crore, higher than the net loss of Rs.26 crore in Q1FY12. The 36% rise in operating expense, interest outgo of Rs.89 crore was not enough to post a profit on a topline of Rs.138 crore.

The company has approved preferential allotment worth Rs 100 crore to a promoter group company and also approved resolution to raise up to Rs 1000 crore. Promoters stake as at 30th June is at 56.57% of which 85.38% is pledged. ITC holds 12.88% stake and its 100% subsidiary, Russell Credit owns another 1.10%. The company is sitting on a huge pile of debt at Rs.4300 crore and it has approval for a CDR from its 17 lenders. Last fiscal, it sold its Kovalam property for Rs 500 crore. In the coming months, it plans to sell the Business Park constructed next to the Chennai hotel having a total built-up area of 2.25 lakh sq.ft, another plot of land in Hyderabad and other non-core real estate properties like the JV in Pune for a residential complex and the company’s share from the JV for residential development with Prestige Estates at its two-acre site adjoining its Bangalore hotel. Will take a while for the company to recover.