 "TajGVK Q4 net declines 88%")
Lower revenues, additional power charges and high interest costs on account of its new property in Hyderabad contributed to the poor financial performance in the fourth quarter.
Revenues declined 10.11% to Rs 64.26 crore in the quarter under review as compared with Rs 71.49 crore in the corresponding previous quarter.
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"Slowdown in the Indian economy along with increase in competition in all geographies negatively impacted operations of the company in the fourth quarter of the year. Further, an additional hit of Rs 1.69 crore arose in the quarter on account of the fuel surcharge adjustment demanded by Central Power Distribution Company Limited of Andhra Pradesh," the company said.
Vivanta By Taj, opened last year, was well received in the city though the higher interest and depreciation for the new property impacted the financials in the quarter, it said.
The company's total income for the full year ended March, 2013, declined 1% to Rs 254.23 crore from Rs 255.93 crore in the previous year while net profit decreased 68% to Rs 13.6 crore as compared with Rs 42.78 core in the year ago period.
TajGVK, a joint venture between the GVK group and Indian Hotels Company Limited, operates hotels in multiple locations with a total 1,080 rooms.
New hotel in Mumbai
The company is developing a 275-room 5-star hotel project near Mumbai airport jointly with Greenridge Hotels and Resorts Private Limited, a GVK company. It will invest around Rs 110.25 crore in the project.
Besides, it has been allotted 6 acres at Yelahanka near Bangalore for hotel projects. It is also planing to enter the value for money segment through the Ginger brand in Andhra Pradesh and the work on its first Ginger hotel in the city is in progress, a release stated.