TAJGVK Hotels and Resorts Limited Q2 Results FY16

Q2 Results

• During the second quarter of FY 2015-16, the Company’s total income was Rs. 60.18 Crores as compared to Rs. 59.21 Crores in the corresponding period last year, registering a growth of 2%.

• The company recorded a loss before tax of Rs. 1.10 crs as compared to a loss before tax of Rs. 1.18 crores in the corresponding period last year due to increase in demand in the source markets and stable geo-political environment.

• EPS for the quarter was Rs. (0.15)/- against Rs. (0.14)/- during corresponding quarter of the previous year on the face value of the equity shares of Rs. 2/- paid up.

H1 Results

• During the first half of FY 2015-16, the Company’s total income was Rs. 122.29 Crores as compared to Rs. 113.06 Crores in the corresponding period last year.

• The company recorded a loss before tax of Rs. 0.76 crs for H1 2015-16 as compared to a loss before tax of Rs. 5.72 crores in the corresponding period last year.

• EPS for the period was Rs. (0.13)/- against Rs. (0.68)/- during corresponding period of the previous year on the face value of the equity shares of Rs. 2/- paid up.

Major Expansion Plans

Investment in Mumbai Hotel

The Company jointly with M/s. Greenridge Hotels & Resorts LLP (Greenridge - a GVK Company) through its SPV M/s. Green Woods Palaces & Resorts Private Limited (Green Woods) are setting up a 5 Star luxury hotel comprising of 279 rooms near Terminal 1C, Santacruz, Mumbai at Mumbai International Airport, under the brand “Taj Santacruz”. TAJGVK has invested Rs.110.25 crs for 49% stake in the SPV and the hotel shall commence commercial operations during the current year.

Work is in the closing stages in this project and the launch is planned during the current financial year.

Other plans

The company has been allotted around 7.50 acres of land at Yelahanka near Bangalore for hotel project. 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 expected 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.

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 three premium 5-star business properties, Taj Deccan and Taj Banjara and Vivanta by Taj - Begumpet, TAJGVK is the market leader in Hyderabad. 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. 

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