Despite poor performance in the fourth quarter of FY 2012/13, TAJGVK Hotels and Resorts Limited (TAJGVK), formed through a strategic alliance between the Hyderabad based GVK Group and Indian Hotels Company Limited (IHCL), remains upbeat on its expansion plans in India.
During Q4, the company’s total income was lower at Rs.64.26 crores as compared to Rs.71.49 crores in the corresponding period last year while Profits before Tax slid down by 88 per cent to Rs. 1.11 crores.
As per company statement, the slowdown in the Indian economy along with increase in competition in all geographies has negatively impacted operations of the company in the fourth quarter of the year. Further, an additional hit of Rs.1.69 crores arose in the quarter on account of the Fuel Surcharge Adjustment demand by the Central Power Distribution Company Ltd of Andhra Pradesh.
However the company said, “With the continuing recovery in the global economy and Indian economy, the hotel industry is expected to perform better. The Company with its prime properties in key metros is well positioned to benefit from the growing demand and restricted supply going forward.”
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 quarter, the investment will bear fruit once the operations stabilize, it said.
Expansion plans
The company is creating a 20,000 sq.ft closed banqueting facility over the car parking facility at Taj Krishna which will attract larger functions, exhibitions, conferences and events and with the synergy already available between Taj Krishna and Taj Deccan with the interconnecting bridge. The additional facility will bring in more room and F&B business to both properties. Further, the landscaping at Taj Krishna is also planned to be improved along-with a new fitness centre and Jiva Spa, the statement said.
Taj GVK Hotels 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.