Rakesh Sarna has resigned as Managing Director and CEO of Tata group’s Indian Hotels Co Ltd, which runs the Taj group of hotels. Sarna was one of the high-profile recruitments from outside the Tata group made by ousted Tata Sons Chairman Cyrus Mistry. Sarna has submitted his resignation as MD and CEO and as a director of the company and its associated companies for personal reasons, Indian Hotels said in a BSE filing. Commenting on the development, IHCL chairman N Chandrasekaran said Sarna has chosen to resign upon completion of his 3-year tenure as MD and CEO of the company. “The board respects his decision and has requested him to continue till September 30, which he has kindly agreed to. The board appreciates his contribution to the company in its transformation to operational excellence,” he said.
After the exit of Mistry from the group, there was speculation that Sarna may follow suit. He was considered to be close to Mistry. Sarna joined IHCL in September 2014 replacing the company’s long-serving head Raymond Bickson. Before he joined IHCL, Sarna was the group president, Americas, of Hyatt Hotels Corporation. “I would like to thank my board members and colleagues for their support during my stint at IHCL,” Sarna said.
Meanwhile, Indian Hotels Company has reported a 54.55 per cent dip in its standalone net profit to Rs 31.16 crore for the fourth quarter ended March 31, 2017 as against a net profit of Rs 68.57 crore for the corresponding period of the previous fiscal. Standalone revenue from operations rose to Rs 707.03 crore for the quarter under review as against Rs 685.88 crore for the same period a year ago. For the fiscal ended March this year, the net profit of the company however rose to Rs 141.94 crore as against Rs 84.15 crore for the year-ago fiscal.
Revenue from operations for the fiscal ended March 31, 2017 also rose to Rs 2,391.25 crore. It was Rs 2,267.85 crore for the previous year. The board of directors has also approved amalgamation of TIFCO Holdings Ltd with the company.