INDIA BUSINESS WORLD - JUNE 2006
THE MONTH THAT WAS...

EIH DECLARES 1:2 BONUS

EIH LTD, part of the Oberoi Group, has declared a 1:2 bonus, with one bonus equity share of Rs. 2 for every two shares of Rs. 2 face value.

The company posted a sharp jump in net profit for 2005/06 to Rs 188.8 crore while revenues rose 29% to Rs 803 crore. Operating profits have increased 59% to Rs 292.33 crore. The board of directors of EIH have declared an interim dividend of 50%, while the total dividend will be 100%.

Also, the board of directors has announced a stock split, with each equity share with a face value of Rs 10 now equivalent to five shares, each with a face value of Rs 2.

The entry of several international hotel brands into the country has brought about a structural change in the industry and will compel Indian Hotel groups to improve their product and service quality. However, we expect to maintain our leadership position- EIH Ltd chairman PRS Oberoi.