Taj GVK Hotels Q2 net up 59%

Taj GVK Hotels and Resorts Limited, the city-based hospitality joint venture between the Tatas and the GVK group, has reported a 59.14 per cent increase in net profit to Rs 4.09 crore for the second quarter ended this September, as compared to Rs 2.57 crore in the corresponding quarter last fiscal.

The operating revenue of the company has gone up 35.33 per cent from Rs 19.53 crore in the corresponding previous quarter to Rs 26.43 crore.

A release from the company said that the room income grew by 39 per cent, which was mainly driven by 30 per cent increase in average room rates (ARRs) and the room occupancy, which was up seven per cent. Food and beverages (F&B) showed a 29 per cent increase in income for the quarter.

The gross profit for the quarter grew 76 per cent to Rs 9.1 crore from Rs 5.17 crore. The earnings per share (EPS) for the quarter was at Rs 3.26, as compared to Rs 2.05 during the corresponding previous quarter.

Taj GVK's net profit for the first half of the financial year has gone up 88.83 per cent to Rs 8.12 crore from Rs 4.3 crore during the same period in the last fiscal. The company reported a 37 per cent increase in the operating revenues from Rs 36.16 crore to Rs 49.36 crore.

The room income during this period was up 42 per cent, which was mainly due to the 27 per cent increase in ARRs and 12 per cent increase in room occupancies. The F&B income increased 29 per cent compared to the corresponding period previous year. The earning per share was at Rs 6.48 as compared to Rs 3.43 during the corresponding period last fiscal.

The company, which currently operates three hotels in Hyderabad, Taj Krishna, Taj Residency and Taj Banjara, is poised to commission its fourth hotel in Chandigarh in January 2005.

Also, the board has appointed A P Goel, as an additional director on the board of the company, in the place of Zubin Dubash, who has resigned. Goel is the senior vice-president (finance and chief financial officer) of the Indian Hotels Company Limited.