Hyderabad|India|July'2009: During the first quarter of FY 2009/10, the Company’s total income registered a decrease of 18% to Rs.47.79 Crores from Rs.58.74 Crores in the corresponding period last year.

v The company’s Hotels at Hyderabad as well as the one at Chandigarh have achieved an occupancy of 58% with the new hotel Taj Mount Road at Chennai touching 30% for Q1 2009-10.

v Profit after Tax was at Rs 4.89 crores

v EPS for the quarter was Rs.0.78/- against Rs.2.41/- during corresponding quarter last year on the face value of the equity shares Rs.2/- paid up.
 

Major Expansion Plans

Begumpet

The civil works for the new five star hotel project site at Begumpet, Hyderabad is progressing as per schedule. As per asset light strategy of the company, the owner of land is putting up the structure and company would be doing the interiors. The project would consist of around 189 rooms with cost of interiors at around Rs.80 crores, and is expected to be operational by 2010.

Taj Krishna Expansion

The Company is proposing the construction of service apartments (43 nos.), 7000 sq ft spa and the additional Car parking facility at the existing premises of Taj Krishna, at an estimated cost of Rs. 75 Crores. The excavation works for the car park facility is nearing completion. The Company is now awaiting the necessary statutory approvals in this regard.

Other plans

The company is in process of acquiring land in Bangalore for hotel projects. The Company is also exploring the possibility of entering the value for money segment through the ‘Ginger’ brand in Andhra Pradesh.

Outlook

The Company’s newly launched hotel, Taj Mount Road, Chennai built up its level of operations albeit slowly due to the tough market conditions. The hotel has been well received in the city with its popular food & beverage outlets Kefi, Beyond Indus, the bistro Club House and the high energy bar Blend, being the talk of the city. It is expected that this hotel would contribute substantially to the Company’s growth during the year 2009-10. With the economic factors indicating early signs of recovery, the industry is expected to recover during course of the year. The company is well placed to take advantage of the upswing with its prime properties in Hyderabad, Chandigarh and Chennai.