|
GUJARAT JHM HOTELS LIMITED
ANNUAL REPORT 2007-2008
MANAGEMENT DISCUSSION AND ANALYSIS
DISCLAIMER ON THE FORWARD LOOKING STATEMENT:
This part of the report contains forward looking statements which may be
identified by their use of the words like 'plans', 'expects', 'may',
'will', 'would', 'intends', 'anticipates' etc. All these statements are
expectations of the future about the company's strategies for growth and
developments, product planning and development, market position and
financial results.
Forward looking statements are based upon certain assumptions and/or the
set of given circumstances and/or expectations of future. The company
cannot guarantee that these future assumptions and expectations are
accurate or would be realized. The company's actual performance may differ
from the ones made hereunder. The company does not own any responsibility
to publicly amend or vary these statements on the basis of any subsequent
developments on information or events.
INDUSTRY STRUCTURE & DEVELOPMENTS
The Hotel Industry continues to do well and is likely to do so in the
coming years too. However, the increasing crude price and volatility in
value of US $ can negatively affect the revenues in India. The stronger
middle class and their increasing purchasing power may contribute towards
better performance for the hotels. The opening up of the aviation industry
in India has exciting opportunities for hotel industry as it relies on
airlines to transport majority of international arrivals. The government's
decision to substantially upgrade 28 regional airports in smaller towns and
privatization & expansion of Delhi and Mumbai airport will improve the
business prospects of hotel industry in India. REVIEW OF OPERATIONS
During the year ended 31st March 2008, your company has posted the highest
ever revenues of Rs. 3380.61 lakhs. As a result, the company has posted a
net profit of Rs. 629.83 lakhs. The Earning Per Share worked out to Rs.9.30
as compared to Rs. (1.5) on the corresponding previous year.
FUTURE PLANS AND OUTLOOK
As informed in the previous year's report, from 'Holiday Inn - Surat' to
'Gateway Athwa Lines' has led to good growth in the revenues. Your company
has already completed its expansion phase of the rooms. Your company has
also entered into contract with M/s Atlantis Development Corporation
Private Limited for setting up state-of-the-art resort cum hotel property
at Hazira, District: Surat.
SEGMENT WISE PRODUCT WISE PERFORMANCE
Segment wise performance for the financial year ended 31st March 2008 is as
under (Rupees in lakhs)
Segment 2007-O8 2006-07
1. Hotel Business 2514.66 1867.04
2. Liquor Business 377.99 306.45
3. Windmill Business 389.23 183.52
Total 3281.88 2357.01
RISK FACTORS
Risk factors include socio-economic and political factors. Concern is also
expressed for sky-rocketing crude oil prices and rising rate of inflation
and consequently increased cost of operations and of capital funds
particularly consumer finance and industrial finance which may lead to cut
in expenses for hospitality industry. Risk is also perceived from the
volatility of the Stock Markets,
FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
There has not been a major change in the product or the services offered by
your company since the last year. Due to higher sales and increase in the
Hotel Business segment, your company posted a better bottom line this year
as compared to the previous year.
HUMAN RESOURCE ETC.
The company being in the labour-intensive industry in the service sector,
continued to employ a large number of personnel in various categories
throughout the year under review. The relations with this very important
resource continued to be very cordial and amicable. There was no case of
unrest or otherwise. Your company has believed in multi-tasking and mulli-
training activities and could get better than expected results from its
valuable work-force.
SOCIAL RESPONSIBILITY
The business of the company provides huge employment and tries to address
the issue of unemployment. During the year your hotel was instrumental in
providing training to number of students coming from various catering
institutes. The company contributes huge amount to state and central
exchequer in the form of Luxury Tax, VAT and electricity Duty.
The company also contributes to the exchequer of the Central government in
the form of Corporate Income Tax and Fringe Benefit Tax. The company has
also donated funds to the deserving institutions carrying out social
activities.
|