Hospitality firm TajGVK Hotels and Resorts today posted a 52% decline in net profit to Rs 6.09 crore for the third quarter ended December 31, 2011, due to an increase in expenditure on a new hotel at Hyderabad.
In the three months ended December 31, 2010, the company's net profit stood at Rs 12.91 crore, it said in a filing to the BSE.
The firm's net sales increased by 5.83% to Rs 66.01 crore in the third quarter from Rs 70.10 crore in the corresponding period of the previous fiscal.
"During the quarter under review, the company commissioned its new Vivanta by Taj - Begumpet hotel at Hyderabad. Resultantly, the current quarter's profitability takes into account the pre-operating expenses of the new capacity added, which has been charged off to the profit and loss account," the filing said.
With the recent capacity expansion, the company's room inventory has gone up from 902 rooms to 1,083 rooms, it added.
TajGVK Hotels and Resorts is a joint venture between the Tata Group's Indian Hotels and Hyderabad-based GVK Group.
The firm's scrips were trading at Rs 74.25 per share, down 3.07% from their previous close on the BSE.