TAJ GVK reported 5.4% yoy increase in sales as ARRs for Chandigarh increased by 14% yoy while those for Taj Krishna in Hyderabad remained flat as compared to a year ago. Operating margins improved marginally by 30bps yoy as other expenditure declined yoy.
During the quarter, the company carried out routine renovation work which led to higher depreciation charge but a lower tax outgo led to 7% rise in net profit. For the full year FY08, PAT increased 9.5% as ARRs rose 3.7% on average across four properties.
The company is expected to commission its 215 room hotel in Chennai in May taking total room inventory to 899 rooms. The company is expected to report a Modest EPS Growth of Rs 12.8 for FY09.