Earnings per share has fallen to Rs 23.53 from Rs 35.29 on an unchanged equity capital base of Rs 52.39 crore. Interest and depreciation burden also increased during 1997-98. While interest cost rose marginally to Rs 13.90 crore from Rs 12.32 crore in 1996-97, depreciation rose to Rs 20.41 crore against Rs 15.67 crore in the previous year.

Gross profit after interest but before depreciation stood at Rs 153.44 crore as against Rs 169.82 crore in 1996-97. Annoucing the financial results after a board meeting here on Thursday, vice-chairman and managing director PRS Oberoi said though 1997-98 was a bad year for the hotel industry, he was confident that the current year will change for the better.

Foreign exchange earnings of the company declinedmarginally to Rs 284 crore as against Rs 288 crore in 1996-97. The company's reserves, excluding revaluation reserves, have increased to Rs 577.92 crore in 1997-98 from Rs 483.49 crore.

He said the Oberoi group was going ahead with its plans to set up a 500-room Trident hotel in Mumbai. The hotel is expected to cost Rs 400 crore.Oberoi said work has already commenced on a 175-room Trident hotel in Pune which is being set up at a capital outlay of Rs 115 crore. Other plans include management of deluxe Oberoi brand hotels which are under construction in Chennai (325 rooms) and Agra (104 rooms), which are both opening in 1999. New Trident brand hotels in Udaipur and Cochin are expected to open in the next few months.