ITC chairman YC Deveshwar told the shareholders that declining hotel occupancies and the changes in the travel patterns of high-spending travellers have resulted in the depressed yields. The gross profit during April-June period stood at Rs 2.54 crore as against Rs 3.63 crore in the corresponding period of previous year. The company's foreign exchange earnings improved to Rs 14.97 crore from Rs 14.03 crore.

The shareholders also approved a dividend of Rs 3 per share for 1997-98. The company had a turnover of Rs 130.85 crore for year ended March 31, 1998 as against Rs 130.71 in 1996-97. The net profit also camedown from Rs 31.05 in 1996-97 crore to Rs 26.21 crore in 1997-98. The foreign exchange receipts, however, were up six per cent over the 1996-97 figure in rupee terms. The foreign exchange earnings at rs 76.27 crore constituted as much as 58 per cent of the company's turnover. Deveshwar said the parent company ITC Ltd, having accepted hotels as a thrust area, would take over from ITC Hotels the Mumbai project now under construction.