Hospitality chain TajGVK Hotels & Resorts Ltd has recorded a 54 per cent drop in net profit for the first quarter ended June 30, 2012 at Rs 5.74 core, down from Rs 12.59 crore logged for the corresponding quarter last year.
The company attributed the lower profit to general slowdown in the economy. High interest rates and depreciation for new property have impacted the company profitability. However, this investment will bear fruit once operations stabilise, the company said.
Higher occupancy
Income from operations was up 6 per cent at Rs 62.46 crore for the first quarter, against Rs 58.96 crore for the corresponding quarter last year.
For the financial year ended March 31, 2012, the company had closed with a net profit of Rs 42.77 crore with a total income of Rs 255.93 crore.
Ms G. Indira Krishna Reddy, Managing Director of TajGVK, said that Taj Deccan and Taj Banjara clocked improved occupancy level of 70 per cent and Taj Club House in Chennai had occupancy of 67 per cent. Vivanta by Taj, opened last year, is in the process of scaling up operations.
EXPANSION
The expansion at Taj Krishna is nearing completion, and it has begun work on a hospitality project near the new international airport.
The civil works for the Rs 110-crore project in Mumbai, being executed with Greenridge Hotels & Resorts, a GVK Group company, is at an advanced stage.
The company’s shares closed the day down 2.3 per cent at Rs 63.60.