Meanwhile, The 29% rise in interest cost and 44% rise in deprecation during the quarter resulted in sharp 69% fall in PBT before forex gain/(loss) to Rs 3 crore. However, the change in accounting standard helped the Company to post PBT of Rs 3.00 crore with 70% fall YoY and resultantly PBT was higher by Rs 7.18 crore. Further, The marginal decline in effective tax rate resulted in net profit of Rs 2.01 crore with 70% fall YoY basis.

During the quarter, it has commissioned new Vivanta by Taj hotel at Coimbatore and also completed the new wing to the Vivanta by Taj, Fisherman's Cove, Chennai. With the recent capacity expansion the room inventory has gone up from 857 rooms to 1051 rooms. Consequently, the current quarter profitability takes into account the pre-operating expenses of the new capacity additions.

Quarterly performance:

Total Revenues (including other operating income Rs 0.90 crore) grew by 9% to 71.03 crore for the quarter ended December 2011. However, OPM witnessed steep 750 bps fall YoY to 20.2% on the back of rise in staff cost by 380 bps, other expenses by 190 bps and Fuel, Power & Light costs by 130 bps YoY as percentage to sales. As a result, operating profit fell by 20% to Rs 14.38 crore. Further, Other income declined by 5% to Rs 0.19 crore.

Moreover, with 29% rise in interest cost to Rs 5.85 crore and 44% rise in depreciation to Rs 5.72 crore, PBT before forex gain/(loss) fell by 69% to Rs 3 crore. The Company in the past availed US dollar designated loans and also swapped Indian Rupee loans into US dollars to benefit from the lower interest costs. But the deprecation of Rupee during the quarter should result in the forex loss. However, the change in accounting standard helped to post PBT Rs 3.00 crore, which was still a 70% fall on YoY basis. The company has not booked any forex impact in the quarter ended December 2011, as against forex loss of Rs 8.34 crore in the previous quarter ended September 2011 and Rs 0.25 crore of forex gain in the corresponding previous period. Consequently, PBT was higher by Rs 7.18 crore for the current quarter. Further, with 60 basis points decline in effective tax rate to 33% net profit fell by 70% YoY to Rs 2.01 crore.

Nine months Performance:

Net sales grew by 11% to Rs 181.36 crore for the nine months ended December 2011. However, Operating profit margins dipped by 220 bps YoY to 18.7% resulting marginal 1% decline in operating profit to Rs 34.14 crore. Further, other income surged 255% to Rs 2.73 crore resulted 5% increase in the PBIDT to Rs 36.87 crore. However, The rise in interest cost by 4% to Rs 11.88 crore and depreciation by 18% to Rs 13.42 crore resulted 6% decline in PBT before forex gain/(loss) to Rs 11.57 crore. With no forex gain and EO income compared to Rs 0.83 crore, Rs 2 crore forex gain and EO income respectively in corresponding previous period, PBT was down by 24% to Rs 11.57 crore. The change in accounting standard resulted PBT higher by Rs 15.72 crore. After marginal incline in effective tax rate by 70 bps to 32.8% net profit was down by 24% to Rs 7.78 crore.

Other Information:

• The scrip is hovering around Rs 24.25 at BSE, India on 20^th January 2012.