GVK Power

Taj GVK Hotels drifted into the red after it reported a net loss of Rs.37 lakh in Q4Fy15 compared to a net profit of Rs.5 crore in previous Q4. The company’s net sales rose 5% at Rs.69 crore. Costs rose 9% and its interest cost is also pretty huge at Rs.8 crore v/s Rs.6 crore in Q4Fy14. EBITDA was at Rs.13 crore, down 13%. Operating margins came in at 18.84% down from 23.08% (YoY). It ended FY15 with a net loss of Rs.2 crore v/s net profit of Rs.5 crore in FY14.

Slow economic recovery, higher interest cost and influx of competition have negatively impacted the company’s bottomline. The company owns and operates five star hotels in Hyderabad, Chennai and Chandigarh.