EIH dropped 5.59% to Rs 120.65 at 10:08 IST after the company reported a net loss of Rs 9.65 crore in Q2 September 2009 compared with a net profit of Rs 31.31 crore in Q2 September 2008.
The result was announced after market hours on Wednesday, 28 October 2009.
Meanwhile, the BSE Sensex was down 189.78 points, or 1.17%, to 16,093.71.
On BSE, 51,100 shares were traded in the counter as against an average daily volume of 1.51 lakh shares in the past one quarter.
The stock hit a high of Rs 122.50 and a low of Rs 117.30 so far during the day. The stock had hit a 52-week high of Rs 154 on 16 October 2009 and a 52-week low of Rs 74 on 7 November 2008.
The stock had outperformed the market over the past one month till 28 October 2009, rising 4.16% as compared to the Sensex 2.45% fall. It outperformed the market in past one quarter, gaining 9.23% as against 6.21% rise in the Sensex.
The mid-cap company which owns and runs the Oberoi hotel chain has an equity capital of Rs 78.59 crore. Face value per share is Rs 2.
Sales declined 33.4% to Rs 156 crore in Q2 September 2009 over Q2 September 2008.
EIH said in a statement that travel advisories issued by several countries after the terrorist attack on Mumbai in November 2008 continued to adversely affect hotel industry and tourism. Business was further adversely affected due to global economic downturn, the company added.
However, EIH said its performance for the first half of this year is not indicative of its annual result due to the seasonal nature of the domestic hotel industry.
EIH added that it was adequately insured against damage caused by terrorism at its two Mumbai hotels viz. Trident, Nariman Point and The Oberoi, Mumbai, based on replacement value. Therefore no effect has been given in the books in respect of damage to the properties. The Oberoi, Mumbai, continues to remain closed. Restoration/renovation work is progressing satisfactory, the statement disclosed.
Other operating income for the six months ended 30 September 2009, includes Rs 52.68 crore being claim submitted to the insurance company for losses due to business interruption at Trident, Nariman Point and The Oberoi Mumbai, the statement added.
Terrorists armed with grenades and rifles had stormed into the Taj Mahal Palace and Oberoi hotel late on 26 November 2008, killing 183 people. The operation to flush out the terrorist was completed on 29 November 2008.
EIH owns and operates luxury hotels and resorts in India'. The company also manages a mid-price hotel chain in India, in addition to hotels in Egypt, Australia, Sri Lanka, Indonesia and Saudi Arabia.
Promoters have pledged 95.14 lakh shares representing 2.42% of the equity capital of the company. Total promoters shareholding in the company is 46.42% (as on June 2009).