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TajGVK Hotels & Resorts Ltd.

BSE: 532390 Sector: Services
NSE: TAJGVK ISIN Code: INE586B01026
BSE LIVE 10:54 | 12 Dec 164.85 0
(0.00%)
OPEN

164.85

HIGH

165.60

LOW

161.50

NSE 10:37 | 12 Dec 165.40 1.40
(0.85%)
OPEN

165.10

HIGH

166.45

LOW

164.30

OPEN 164.85
PREVIOUS CLOSE 164.85
VOLUME 4695
52-Week high 197.65
52-Week low 102.05
P/E 117.75
Mkt Cap.(Rs cr) 1,034
Buy Price 164.50
Buy Qty 2.00
Sell Price 164.85
Sell Qty 50.00
OPEN 164.85
CLOSE 164.85
VOLUME 4695
52-Week high 197.65
52-Week low 102.05
P/E 117.75
Mkt Cap.(Rs cr) 1,034
Buy Price 164.50
Buy Qty 2.00
Sell Price 164.85
Sell Qty 50.00

TajGVK Hotels & Resorts Ltd. (TAJGVK) - Chairman Speech

Company chairman speech

TAJGVK HOTELS AND RESORTS LIMITED ANNUAL REPORT 2009-2010 CHAIRMAN'S REPORT Ladies and Gentlemen, It gives me great pleasure in welcoming you all to the 15th Annual General Meeting of your Company. The Audited Accounts for the Financial Year 2009-10 along with the Directors' Report are already with you and with your permission, I will take it as read. Economic Scenario: India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with less than one-third of its labour force. India has capitalized on its large numbers of well- educated people, skilled in the English language, to become a major exporter of software services and software workers. An industrial slowdown early in 2008, fol lowed by the global financial crisis, contributed to the slowdown in annual GDP growth to 6.1% in 2009. However, India escaped the brunt of the global financial crisis because of cautious banking policies and a relatively low dependence on exports for growth. Domestic demand, driven by purchases of consumer durables and automobiles, has re-emerged as a key driver of the economy, as exports have fallen since the global crisis started. The government has expressed a commitment to fiscal stimulus in 2010, and to deficit reduction the following two years. It has proposed limited privatization of government- owned industries, in part to offset the deficit. The economy is predicted to grow at 8.5% in 2010-11 as against the 7% growth witnessed in the previous financial year. Hospitality & Tourism Industry: India appears among the top 5 in the best country brand for authenticity and art & culture, and the fourth best new country for business. India made it to the list of 'rising stars' or the countries that are likely to become major tourist destinations in the next five years, led by the United Arab Emirates, China, and Vietnam. The Government of India promoted India as a safe tourist destination and undertook various measures, such as stepping up vigilance in key cities and at historically important tourist sites. It also deployed increased manpower and resources for improving security checks at key airports and railway stations. According to the latest Tourism Satellite Accounting (TSA) research, released by the World Travel and Tourism Council (WTTC), the demand for travel and tourism in India is expected to grow by 8.2 per cent between 2010 and 2019 and will place India at the third position in the world. Operating Results: Your Company weathered the global slowdown and the aftermath of the terror attacks in Mumbai and reported satisfactory results. Your company recorded a turnover of Rs.229.25 crores which is 4% lower than that of previous year's figure of Rs.238.21 crones. The PBDIT of Rs.86.74 crores was 14% lower than the previous year figure of Rs.101.46 crores.The net profit after taxes at Rs.36.27 crores, saw a de-growth of 31% as compared to Rs.52.76 crores in the previous year. Your board of directors has recommended a dividend of 100% (100% in previous year) for the financial year 2009-2010, considering the remarkable recovery in business in the second half of the 2009-10 fiscal as well as the future outlook for the economy and the hospitality industry as such. Expansion plans at Hyderabad: The civil works and interiors for the new five star hotel project site at Begumpet, Hyderabad is progressing as per schedule. As per asset light strategy of the company, the owner of land has put up the structure and the company is doing the interiors. The project would consist of around 189 rooms with cost of interiors and equipments estimated at around Rs.80 crones, and is expected to be operational by 2011. A top end branded retail arcade atTaj Krishna has already been completed with super luxury brands like Rolex, Burberry, Canali, Paul & Shark, Versace occupying the same. Further, the Company is also planning to construct service apartments, a spa and an additional car parking facility at the existing premises of Taj Krishna. Other plans: The company has been allotted around 6 acres of land at Yelahanka near Bengaluru for hotel projects.The Company is also planning to enter the value for money segment through the 'Ginger' brand in Andhra Pradesh. The first 'Ginger' hotel in Hyderabad planned near the Hardware Park close to the Shamshabad Airport is expected to be completed over the next two years. Outlook: The past year and a half has been quite turbulent for the Indian economy. The economic outlook for the global economy in general and India in particular seemed extremely bleak. However, the second half year of the 2009-10 fiscal has seen an upturn.The stimulus program put in place by the government involved reducing interest rates, offering tax breaks, and increased spending, and has been very successful in guiding the Indian economy through a global downturn.The Sensex has rebounded from a low of 8,000 to its current level of about 18000 within the last one year. Companies are hiring again and salaries are on the rise once again. Consumer confidence is strong and discretionary spending is exhibiting healthy increases. The amount of new supply proposed in many markets remains an area of concern, especially as numerous projects that were proposed during the heady days see completion and open in the next one year.Though there wil I be pressure on occupancy in some markets in the near future, in the long term, however, the demand-supply gap in India is very real and there is need for more hotels in most cities.Tourism will also be boosted by sports events such as the Commonwealth Games, The ICC World Cup Cricket and Formula One over the next one year. Barring unforeseen circumstances, the Company's immediate prospects appear to be promising and the long term prospects, bright. Acknowledgements: I take this opportunity to thank my colleagues on the board for their whole-hearted support, our employees for their dedication and you our shareholders for the confidence reposed in the company. I am confident that with your continued support, the company will scale greater heights in the days to come. Dr. G.V. Krishna Reddy Executive Chairman