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New investments and tax provisions have impacted TajGVK Hotels & Resorts Ltd's performance. It recorded a significant drop in net profit at Rs 7 crore for the fourth quarter ended March 31 against Rs 13 crore for the corresponding quarter last year.
However, the income was up three per cent for the fourth quarter at Rs 71.49 crore against Rs 69.68 crore.
It is entitled for deduction of 100 per cent of the cost of new project. Vivanta by Taj – Begumpet Hotel in Hyderabad became operational in the third quarter of financial year 2012. The company would be entitled to credit for making provision for deferred tax.
For the financial year ended March 31, 2012, the company income was down two per cent at Rs 255.94 crore, against Rs 260.76 crore for the year-ago period. And the profit was down 32 per cent for the year at Rs 29.33 crore (Rs 43.34 crore). According to a statement from Ms G. Indira Krishna Reddy, Managing Director of TajGVK, the company property in Chennai clocked an occupancy level of 72 per cent. With the addition of Vivanta, the company now has an inventory of 1083 rooms.
With the recovery in economy, hospitality industry is expected to perform well, she said.
The company shares closed the day's trade down 4.95 per cent at Rs 57.65.
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