TajGVK Hotels Q3 net slips 55%

Slowdown in economy negatively impacted operations of the company

Hyderabad-based TajGVK Hotels and Resorts Limited (THRL), formed through an alliance between the Hyderabad-based GVK group and Tata group's Indian Hotels Company Limited, reported a 54.68% decline in net profit to Rs 2.76 crore for the third quarter ended December 31, 2012, as against Rs 6.09 crore in the corresponding quarter last year.

Slowdown in the Indian economy along with global economic crisis have negatively impacted operations of the company, the company said in a press release.

Net sales of the hotel chain grew marginally at 0.51% to Rs 66.66 crore during the quarter, as against Rs 66.32 crore in the corresponding quarter, a year ago.

The company has reported 6.85% growth in the total expenditure to Rs 56.64 crore for the quarter as against Rs 53.01 crore in the same quarter last year.

TajGVK's scrip is currently trading at Rs 68 on BSE, down 0.29% over the previous close of Rs 68.20.