CITCO records 21 per cent fall in turnover, little signs of recovery

Decrease of over Rs 39 crore as compared to last year has been due to drop in sales of hotels and industrial units.

By: Express News Service | Chandigarh | Published:September 6, 2016 2:51 am

The Chandigarh Industrial and Tourism Development Corporation (CITCO) has witnessed over 21 per cent fall in turnover in the first four months of the current financial year and there are no foreseeable signs of recovery.

According to the performance report, the turnover at Rs 147,19 crore is about 21.31 per cent lower than the turnover of Rs 187.04 crore achieved in the corresponding period last year.

The decrease of over Rs 39 crore has been owing to drop in sales of its hotels and industrial units.

The financial report was tabled in a board meeting held on Monday. The report states that CITCO suffered a cash loss – loss before depreciation, provision for retirement benefits and tax— of Rs 1.34 crore as against cash profit of Rs 81 lakh earned in the corresponding period last year.

According to the report, cash loss of Mountview, the first five-star hotel of the city, has enhanced from Rs 75 lakh to Rs 2.01 crore. Shivalikview suffered cash loss of Rs 89 lakh against cash profit of Rs 27 lakh achieved last year. Similarly, profit of Parkview has come down from Rs 1.53 crore to Rs 89 lakh.

The steel depot also witnessed fall in cash profit. The depot recorded cash profit of Rs 45 lakh against Rs 65 lakh recorded during same period last year. Industrial Development Facility Centre (IDFC), which provide testing facilities to small-scale industrial (SSI) units, suffered a loss of Rs 19.62 lakh against Rs 23.91 lakh last year.

Corrective steps

To attract customers to its hotels, the corporation has taken various steps for improving the food quality and service. Professional chefs have been hired for improving the quality and imparting training to Chef De Parte (CDC) and kitchen staff of all the hotels. To increase its sale, the corporation is making efforts to forge tie-ups with public sectors banks and multi-national companies to ensure confirmed business.

From the past few years, the corporation has been witnessing a steep fall in its revenue. There are around 1,000 employees working in different units of CTICO, while a workforce of around 600 has been hired on contract through service providers.