TAJGVK HOTELS & RESORTS LIMITED

 TAJGVK HOTELS & RESORTS LIMITED

Q1 Results

v  During the first quarter of FY 2012/13, the Company’s total income registered a growth of 6% to Rs.62.47 Crores from Rs.58.97 Crores in the corresponding period last year.

v  Taj Deccan and Taj Banjara have clocked improved occupancy levels of 70% YoY and Taj Club House at Chennai has also performed better than the corresponding period previous year at 67% occupancy for Q1.

v  Profit before Tax was at Rs 5.74 crores in Q1 2012-13 as compared to Rs.12.59 crores in the corresponding period last year, thus registering a decline of 54%. Slow down in Indian economy along with global economic crisis have negatively impacted operations of the Company in the 1st quarter of the year. Vivanta By Taj - Begumpet which opened last year has been well received in the city and is in the process of scaling up its operations. Though the higher interest & depreciation for the new property have impacted the financials of the Company in the 1st quarter, the investment will bear fruit once the operations stabilize.

v  EPS for the quarter was Rs.0.60/- against Rs.1.92/- during corresponding quarter of the previous year on the face value of the equity shares of Rs.2/- paid up.

Major Expansion Plans

 

Taj Krishna Expansion

The construction of an additional Car parking facility along-with enhanced landscaping and connecting bridges at the existing premises of Taj Krishna is nearing completion.

Investment in Mumbai Hotel

The Company jointly with M/s. Greenridge Hotels & Resorts Private Limited (Greenridge - a GVK Company) through its SPV M/s. Green Woods Palaces & Resorts Private Limited (Green Woods) are setting up a 5 Star Deluxe (Luxury category) Hotel Project comprising of 275 rooms near Terminal 1C, Santacruz, Mumbai at Mumbai International Airport Private Limited (MIAL), under the ‘TAJ’ brand.

Necessary agreements to this effect have been entered into.  Civil work is in advanced stages. TAJGVK in tranches would invest around Rs.110.25 crs in the Hotel Project.

Other plans

The company has been allotted around 6 acres of land at Yelahanka near Bangalore for hotel projects. The Company is also planning to enter the value for money segment through the ‘Ginger’ brand in Andhra Pradesh. The excavation works on the first Ginger hotel on a site located near the Shamshabad International Airport have been completed and civil work is expected to commence shortly.

Outlook

With the continuing recovery in the global economy and robust Indian economy, the hotel industry is expected to perform well. The Company with its prime properties in key metros is well positioned to benefit from the growing demand and restricted supply going forward.

About TAJGVK Hotels and Resorts Limited

TAJGVK Hotels & Resorts Limited (TAJGVK), formed through a Strategic Alliance between the Hyderabad based GVK Group and Indian Hotels Company Limited (IHCL), owns 5-star deluxe hotel properties across multiple locations with a total room inventory 1080 rooms. With Taj Krishna, the flagship 5-star deluxe luxury property and two premium 5-star business properties, Taj Deccan and Taj Banjara and Vivanta by Taj - Begumpet, TAJGVK is the market leader in Hyderabad. The new Vivanta by Taj – Begumpet at Hyderabad has been well received with its unique & distinctive experience, innovativeness in its service offerings, efficient service, energetic & vibrant ambience. Taj Chandigarh, its 5-star deluxe property commands the market in Chandigarh. Taj Club House, its trendy hotel with its contemporary rooms and food & beverage outlets has captured significant market share in Chennai. The Company has plans to expand its footprints by setting up a hotel at Bangalore. Further, the Company has plans to enter the value-for-money segment by launching ‘Ginger’ hotels across the state of Andhra Pradesh. As also, the Company is investing in an SPV executing a Luxury Hotel project in Mumbai.