TGB Banquets and Hotels stock gains ~5% despite facing severe losses due to Covid-19 crisis

This Industry is largely affected during the lockdown as all the tourism verticals have been severely impacted by the crisis; however, the gigantic jolt has been to the hospitality industry

Jun 23, 2020 12:06 IST India Infoline News Service

Stock Exchange
Ahmedabad based TGB Banquets and Hotels Ltd. informed the exchanges Monday that the company’s profitability will be affected during the period of lockdown, thereafter company is estimating recovery of loss incurred during the lockdown along with the profit in the end of the year.

“The company is into the Hotel, Restaurant and Accommodation Service which belongs to Hospitality, Travel Tourism Industries. Our Industry is largely affected during the lockdown as all the tourism verticals have been severely impacted by the crisis; however, the gigantic jolt has been to the hospitality industry.

All of our members have reported cancellations reaching a critical stage of up to 100% and, forward booking, which could have helped, has gone to almost negligible, with the news of disease spreading globally,” company said.

The company further said that Meeting Incentives, Conferences and Events (MICE), wedding tourism, all kinds of celebrations, medical tourism, medical room reservations and wellness sectors have been severely affected. The Hospitality sector comprising of Hotels and Restaurants are facing a catastrophic situation with revenues plunging over whelming and almost reaching to zero.

TGB Banquets & Hotels Ltd is currently trading at Rs2.66, up by Rs0.12 or 4.72% from its previous closing of Rs2.54 on the BSE.

The company’s operations were affected during lockdown (last week of March to May 31) in Ahmedabad. Government had given consent for operations for the Hotel and Restaurant from June 8, 2020.

In case of accommodation service and the in dine restaurant service company is evaluating the possibilities to reopen the operations in line with the notifications or guidelines issued by the Local  Authorities, State Government or the Central Government Authorities.

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