Taj Samudra owners report loss despite higher top line

By Chandeepa Wettasinghe 
The owners of Taj Samudra Hotel, Colombo TAL Lanka Hotels PLC, posted a net loss of Rs.s28.35 million for the fourth quarter of 2016 (4Q16) compared to a net profit of Rs.19.43 million a year ago, despite higher top line performance. 
Revenue expanded 24 percent year-on-year (YoY) to Rs.695.47 million, while direct costs grew 10 percent YoY to Rs.504.47 million. Operating profits increased to Rs.64.71 million from Rs.14.46 million YoY.
Finance costs and unrealized forex losses, stemming from a weakened rupee, were seen eating into the profits.
The balance sheet remained relatively unchanged, with the asset base weakening slightly to Rs.4.65 billion compared to Rs.4.79 billion a year ago.
For the 2016 financial year, the group posted a net loss of Rs.116.91 million, improving from a Rs.180.83 million loss incurred in 2015 due to a period of refurbishment.
Revenue improved 34 percent YoY to Rs.2.66 billion, while direct costs increased 14 percent YoY to Rs.1.96 billion. 
Operating profits increased to Rs.272.96 million from Rs.79.91 million YoY.  Finance costs rose 144 percent YoY to Rs.383.22 million while unrealized forex losses rose from Rs.47 million to Rs.244 million. TAL Hotels & Resorts Ltd owns 58.14 percent of the shares in TAL Lanka Hotels, while ICOHO B.V. owns another 24.62 percent of the shares and the Employee’s Provident Fund owns 5.33 percent of the shares.
Along with owning and managing Taj Samudra, the company manages Airport Garden Hotel in Seeduwa.