Return on equity defined as PAT/EQUITY is perhaps the most important ratio from the viewpoint of an investor .we can observe from the above graph a stagnant RoE over the four financial years .we can attribute this to the slump in the hotel industry . This slump has mainly to do with the devaluation of Asian currency which has made them much cheaper and they have been able to lure the foreign tourist more effectively, eating into the IHC hotel chain revenues.This along with the Kargil war issue has put the Indian hotel industry in disfavour with the international tourist traveler.

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