Sales, revenue to be impacted in Q1, Q2 of FY21 due to Covid-19: TAJGVK

In a regulatory filing, the company said since the situation is exceptional and is changing dynamically, it is not in a position to gauge with certainty the future impact on its operations

TAJGVK Hotels & Resorts on Saturday said its sales, revenue and profitability for the first and second quarter of the current fiscal would be impacted due to Covid-19 pandemic.

The company also said the lockdowns and restrictions imposed on various activities due to Covid-19 had posed challenges, as it faced a lot of cancellations of confirmed bookings, thereby impacting the financials.

In a regulatory filing, the company said since the situation was exceptional and changing dynamically, it was not in a position to gauge with certainty the future impact on its operations.

"We believe there will be impact in sales volumes, revenue and profitability for Q1 and Q2 as our hotel operations are presently shut and will gradually ramp up only after the resolution of thepandemic," TAJGVK Hotels & Resorts said in the BSE filing.
 

However, the company is confident about adapting to the changing business environment and responding suitably to fulfill the needs of its customers, it added.

Considering that all company hotels are operated under the iconic Taj brand, the company does not foresee any challenges in recovery, post the revival of the economy, the filing said.

"However, revenues are expected to be softer in the initial phase of the lockdown, and for some time after the lifting of the lockdown mainly due to lower occupancies and limited food and beverages offtake arising out of the reduced business and leisure travel," it added.

The company is in a comfortable liquidity position to meet its commitments,the filing said.

TAJGVK Hotels & Resorts is a joint venture between Indian Hotels Company Ltd (IHCL) and Hyderabad-based GVK Group.