Taj GVK Hotels

TajGVK Hotels & Resorts is a joint venture, formed through a Strategic Alliance, between the Indian Hotels Company Limited (IHCL) and the Hyderabad based GVK Group. It owns & operates three five star hotels in Hyderabad and one five star hotel each in the cities of Chennai and Chandigarh. Its new hotel, Taj Santacruz is due to open in Mumbai soon. TAJGVK currently has a total room base of over 1083.

The company’s Q1FY16 performance came in as a pleasant surprise – albeit  a very small net profit it at Rs.8 lakh, it was a turnaround from a loss of Rs.3 crore in previous Q1. Net sales rose 15% at Rs.62 crore and the company said that stable geo-political in Hyderabad helped boost the topline. Total operating costs, as a percentage of revenue has come down from 96% to 87%. Over 25% of its total cost comprises of staff expenses, followed by 15% for fuel and power and 13% for raw materials. EBITDA for the quarter was at Rs.13 crore, up 44% (YoY) and margins improved from 16.67% to 2.97%.