Tata Group-backed Indian Hotels Company Ltd on Thursday said that sales volumes, revenue, and profit of the company will be impacted during the first and second quarter of the financial year 2021 as its operations are presently shut-in most geographies.
In a regulatory filing, the company said that it will gradually ramp up the operations only after the resolution of the pandemic.
“Since the situation is exceptional and is changing dynamically, the company is not in a position to gauge with certainty, the future impact on its operations,” it said.
It said that the company is confident about adapting to the changing business environment and respond suitably to fulfill the needs of its customers.
It said that the lockdowns and restrictions imposed on various activities due to the Covid-19 pandemic have posed challenges to all the businesses of the company and its subsidiaries, joint ventures, and associates. Lockdown guidelines issued by Central and state governments mandated closure of hotel operations and cessation of air traffic and other forms of public transport.
“This has resulted in low occupancies/shutdowns of our hotels pan India. Business operations in the various international markets where the company operates have also been impacted to the varying extent based on the spread of the pandemic and the restrictions on business activities placed by the respective foreign governments,” said the filing.
On the resumption of services, the company said that with the partial lifting of the lockdown restrictions, Indian Hotels has started re-opening a few hotels in the non-containment zones, after establishing thorough and well-rehearsed safety protocols.
It expects all the hotels to become operational in a phased manner after the lockdown is lifted and the confidence of travelers is restored. However, at this stage, the duration for which these restrictions will remain in place is uncertain and resumption of full-fledged operations will depend upon directives issued by the Central and state governments.
Informing the exchanges that the company is taking all necessary measures to contain costs and uplift revenue, it said: “The company has put in place a series of short term & long-term measures to optimize cost across all the lines namely raw material, manpower, power & fuel, corporate overheads & other costs. The company is also in discussion with all its lessors for waiver or deferment of lease rentals during the lockdown period.”
Further, all employees in its hotels and offices have been working from home in accordance with the guidelines issued by the Centre, states and municipal authorities. An exclusive helpline & online counseling for employees is made available and the company has been providing help to the employees as and when needed for various purposes.
The safety of employees who are now required to step out for work is being ensured and they have been mandated to use protective gear and take all safety precautions. All employees have been instructed to download the Aarogya Setu app, the company said.
