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Taj GVK Hotels gains after turnaround Q2 show

Capital Market 

Taj GVK Hotels & Resorts rose 1.11% to Rs 155 after the company reported consolidated net profit of Rs 1.18 crore in Q2 September 2021 compared with net loss of Rs 12.67 crore in Q2 September 2020.

On a consolidated basis, net sales surged 433.87% to Rs 55.95 crore in Q2 September 2021 over Q2 September 2020. Pre-tax profit was reported at Rs 5.20 crore in Q2 September 2021 compared with pre-tax loss of Rs 12.71 crore in Q2 September 2020.

Total expenses surged 118.06% year-on-year to Rs 50.83 crore in Q2 September 2021. Cost of material consumed stood at Rs 6.45 crore (up 437.50%), employee expense was at Rs 11.52 crore (up 195.38%), fuel, power and light expense came in at Rs 5.37 crore (up 212.21%) and other expense stood at Rs 18.99 crore (up 167.46%) during the period under review.

Net cash from operating activities surged to Rs 13.28 crore as on 30 September 2021 compared with Rs 5.32 crore as on 31 March 2021.

The company said that its business improved in the quarter under review with opening up of inter-state travel, relaxations by various State Governments and the increase vaccination drive across the country.

The company said that it has adequate funds at its disposal after securing the funds under Emergency Credit Line Guarantee Scheme (ECLGS 3.0) to enable the company to meet its debts obligations, for the next 12 months, as they fall due. Accordingly, the financial results of the company have been prepared on a going concern basis.

Taj GVK Hotels & Resorts is a joint venture between the Indian Hotels Company and the Hyderabad-based GVK Group. The company owns & operates three five star hotels in Hyderabad and one five star hotel each in the cities of Chennai and Chandigarh.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Wed, October 20 2021. 13:12 IST