Daspalla net up 54 per cent

Visakhapatnam-based Daspalla group, which operates three 3-star hotels and two restaurants in Visakhapatnam and Kakinada, posted 54 per cent growth in net profit during the just ended fiscal, compared with the preceding year.

The company saw a 5 per cent increase in the occupancy rate during 2006-07. Turnover was marginally up to Rs 24.15 crore, as compared with Rs 21.30 crore in 2005-06, K Raghavendra Rao, chairman and managing director, Daspalla Group, said.

In the current year, it will invest about Rs 14 crore in Hyderabad and Vizag projects. "We are spending about Rs 1.5 crore on renovations of our hotel at Visakhapatnam and another Rs 12.5 crore on the Hyderabad hotel project," he said.

Daspalla is constructing a 110-room three-star hotel at Hyderabad at a plan outlay of Rs 25 crore. In the current fiscal, the group will spend Rs 12.5 crore on this venture. Of the Rs 25 crore, the group will pump in Rs 2 crore from internal accruals, promoters will contribute Rs 5 crore and financial institutions the remaining 18 crore, he said.