Hospitality firm TajGVK Hotels and Resorts today reported 46.21 per cent decline in net profit for the fourth quarter ended March 31, 2012 at Rs 6.90 crore due to expenses on new project.
The company's net profit in the three months ended March 31, 2011 was Rs 12.83 crore.
The firm's net sales increased 2.30 per cent during the fourth quarter of FY12 to Rs 70.65 crore, from Rs 69.06 crore in same period 2010-11, it said in a filing to the BSE.
For the year ended Mar 31, 2012, the company's net profit was down 32.32 per cent at Rs 29.33 crore, against Rs 43.34 crore in the previous year.
Net sales declined by two per cent to Rs 253.96 crore, from Rs 259.28 crore in the corresponding period last year.
"The company commissioned a new Vivanta by Taj Begumpet hotel at Hyderabad in November 2011. Resultantly, the current year's profitability takes into account the pre-operation expense of the new capacity addition," it said.
The 181-room hotel became operational in the third quarter. With this recent capacity expansion, the company's room inventory has gone up from 902 rooms to 1,083 rooms.
TajGVK Hotels and Resorts is a joint venture between the Tata Group's Indian Hotels and Hyderabad-based GVK Group.
Shares of TajGVK Hotels and Resorts closed at Rs 57.65 per share, down 4.95 per cent from the previous close on BSE.
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