The company became a subsidiary of Tata Group's The Indian Hotels Company Limited (IHCL) in 2011.

While Taj Ganges Varanasi and Taj Nadesar Palace at Varanasi have 140 rooms and suites, The Gateway Hotel at Gondia has 34 rooms.

The company has been participating in the globally recognised Earth-Check benchmarking and certification system. The Company has been certified Earth-Check Gold for its Taj Ganges Varanasi Hotel continuously for a period of 3 years.

Quarter results

For the quarter ended June 2019, sales grew 18% to Rs 11.78 crore. OPM improved 460 basis points to 18.1% which saw OP grow 59% to Rs 2.14 crore.

Other income fell 86% to Rs 6 lakh and interest cost stood soare d98% to Rs 22 lakh. As depreciation grew 13% to Rs 1.43 crore, PBT grew 52% to Rs 54 lakh.

Tax provision grew 71% to Rs 16 lakh (tax incidence jumped from 26.8% to 30.2%) after which PAT went up 44% to Rs 38 lakh.

FY 2019 results

In FY 2019, sales grew 26% to Rs 59.68 crore..

The revenue from operations has increased primarily due to commencement of the new banquet hall at Taj Ganges- Varanasi, during Q3 ended December 2018.

OPM improved 540 basis points to 29.2% which saw OP jump 55% to Rs 17.45 crore.

Other income fell 16% to Rs 71 lakh and interest cost stood at Rs 76 lakh against Rs 12 lakh. As depreciation jumped 25% to Rs 5.23 crore, PBT grew 55% to Rs 12.18 crore.

The results include accelerated depreciation of Rs. Nil (against Rs 1.19 crore) on assets which were identified to have shorter useful life, considering factors such as renovation commenced before the approval of Financial Results or other factors.

Tax provision grew 153% to Rs 3.45 crore after which PAT grew 35% to Rs 8.72 crore.

Key highlights

The hotel has completed 2 phases of Renovation starting from 2017/18. Ninety-six rooms, the Lobby and Tea Lounge have completed renovation.

The hotel has commenced the third phase of Renovation from May 2019. 34 Rooms will be renovated during this phase.

The hotel has installed Solar Power Plants with a capacity of 256 KW as part of its initiatives on Renewable Energy.

Benares Hotels Limited, has been recognized as India's Best Company' in the Hospitality segment post research conducted by Berkshire Media, a multinational business consulting and market research firm headquartered in USA.

Varanasi continues to get tourism boost

In the coming years, Varanasi being the Prime Minister's constituency is expected to receive greater attention in terms of infrastructure, industries and connectivity with major cities in India. The government has also proposed to set up a coordination committee for the integrated promotion of tourism and culture in Varanasi, in order to fully utilize the opportunity of spiritual and religious tourism along the holy river Ganga.

Other projects in Sarnath include the development of Buddha theme park and development of Sarang Kund. The projects like cruising in Ganga between Rajghat to Assi Ghat and light and laser show at Assi Ghat are in the pipeline.

There is no significant new competition expected in Varanasi in the near future and The Gateway Hotel Ganges is expected to maintain its market dominance.

The scrip trades around Rs 1464.