TajGVK Hotels and Resorts Ltd has recorded a lower net profit of Rs 2.68 crore for the third quarter ended December 31, 2014 as against Rs 3.28 crore it logged for the corresponding period last year.
During the third quarter, the hospitality chain’s total income was up at Rs 68.33 crore as compared to Rs 65.30 crore in the corresponding period last year.
The company in a statement said that there were signs of a recovery in business in the third quarter on account of conferences and events as also stabilisation of political scenario in Hyderabad.
The lower profit is on account of higher depreciation on opening block of fixed assets charged off during the Financial Year 2014-15 on adoption of new depreciation rules under the Companies Act, 2013 as also higher interest incurred on incremental borrowings.
The company registered an earning per share (EPS) of Rs 0.43 for the quarter as against Rs 0.52 during corresponding quarter of the previous year on the face value of the equity shares of Rs 2 paid up.
For the nine-months ended December 2014, the company’s total income was Rs 181.39 crore (Rs 180.06 crore). It posted a loss of Rs 1.60 crore during the nine months (Rs 0.05 crore).
The company stated with the expected recovery in the economy, the hotel industry is expected to perform better. With its prime properties in key metros, the company said it is well positioned to benefit from the growing demand and restricted supply going forward.
TajGVK shares closed at Rs 85.60, down 1 per cent.