Taj GVK Q2 net slips 61%

City-based TajGVK Hotels and Resorts Limited (THRL), formed through an alliance between the Hyderabad-based GVK group and Tata group's Indian Hotels Company Limited, reported a 61.02% dip in net profit to Rs 1.68 crore for the second quarter ended September 30, 2012, as against Rs 4.31 crore in the corresponding period last year.

Total income registered a growth of 2.77% to Rs 60.84 crore, compared with Rs 59.20 crore a year ago.

Slow down in Indian economy along with increase in competition in all geographies have negatively impacted operations of the company in the second quarter, the company said in a release.

Though the higher interest and depreciation for the new property have impacted the financial of the company in the quarter, the company is positive that the investment would bear fruit once the operations stabilize, the release added.

The Vivanta By Taj - Begumpet hotel, which was opened last year, currently in the process of scaling up its operations. 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. The company has been allotted six acre of land at Yelahanka near Bangalore for hotel projects.

"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," the release added.