Apollo Sindoori Hotels Ltd Management Discussions

Economic and Industry Overview

Indias economy continued to demonstrate resilience during the year, supported by structural reforms, consumption-led demand, and investments in infrastructure and manufacturing. Key trends impacting the Groups businesses include:

Rapid urbanization and rising demand for institutional and consumer food services

Growth in healthcare and education, driving catering and biomedical infrastructure requirements

Expansion of aviation and transport infrastructure, creating opportunities in integrated facility management

Shifts toward premium, experience-led consumption among younger demographics, fueling growth in consumer brands

Consolidated Group Performance

Apollo Sindoori Hotels Limited

CIN:L72300TN1998PLC041360

Hussain Mansion, Ground Floor, # 43/5, Greams Road, Thousand Lights, Chennai-600006 Tel:044 4904 5000, Email:info@apollosindoori.com, Website:www.apollosindoori.com

Extracts of Standalone and Consolidated Financial Results for the Quarter ended 30th June, 2025

(Rs. In Lakhs)

		Standalone				Consolidated
Particulars	Quarter Ended 30.06.2025 (Unudited)	Quarter Ended 31.03.2025 (Audited)	Quarter Ended 30.06.2024 (Unudited)	Year Ended 31.03.2025 (Audited)	Quarter Ended 30.06.2025 (Unudited)	Quarter Ended 31.03.2025 (Audited)	Quarter Ended 30.06.2024 (Unudited)	Year Ended 31.03.2025 (Audited)
Total income from	7,887.51	7,866.21	7,182.22	30,857.14	13,828.16	13,805.7	12,769.91	54,178.84
operations (net)
Other non operating	204.76	208.25	206.93	827.29	445.3	240	271.92	1,030.01
Income
Total income	8,092.27	8,074.46	7,389.16	31,684.43	14,273.46	14,045.7	13,041.83	55,208.85
Net Profit / (Loss) for	408.42	232.8	375.9	1,238.72	471.21	149.11	350.91	1,206.9
the period (before Tax,
Exceptional and/or
Net Profit/ (Loss) for	408.42	232.8	375.9	1238.72	471.06	149.11	350.91	1,206.9
the period before tax
(after Exceptional and/or
Extraordinary items)
Net Profit/ (Loss) for the	300.4	285.96	234.02	1003.97	394.83	215.87	148.79	772.49
period after tax (after
Exceptional and/or
Extraordinary items)
Total Comprehensive	300.4	647.36	234.02	1365.37	400.13	704.79	206.07	1,156.2
Income for the period
(comprising Profit/(Loss) for
the period after and other
Comprehensive Income
(after Tax)
Rs.5/ per share each)	130.02	130.02	130.02	130.02	130.02	130.02	130.02	130.02
Basic & Diluted (not	11.55	11	9	38.61	15.18	8.3	5.72	29.71
annualised)

Business Segment Analysis

Apollo Sindoori Hotels Limited (ASHL) Performance:

Delivered consistent revenue growth, driven primarily by healthcare and institutional catering

Expansion into education, industrial, and central kitchen models supported order book growth

Consumer-facing initiatives (Sketch cafes, cash & carry formats) improved margin profile

Outlook:

Expected CAGR of 12% over the next 3 years, supported by government focus on Make in India and increasing demand for scalable food services in industrial clusters

Sindoori Management Solutions Pvt Ltd (SMS) Performance:

?€? Revenue growth supported by aviation and healthcare verticals

Technology adoption (IoT-enabled monitoring, predictive maintenance) improved operational efficiency

Retained Indias only NABL-accredited IFM certification, ensuring leadership in compliance-driven segments

Key Growth Areas:

Aviation O&M: baggage handling, runway maintenance, gate access services

?€? Biomedical Engineering: With Make in India focus in the Biomedical devices and the huge growth in the healthcare ecosystem, SMS is looking at a much larger Total Addressable Market for BEMS.

Outlook:

Targeting 15 20% annual growth over five years

EBITDA margins expected to expand with higher adoption of technology-enabled services

Olive Plus Twist Avenues Pvt Ltd (OPTA) Performance:

?€? Portfolio of homegrown consumer brands demonstrated strong traction in metro

?€? Stable performance of supply chain vertical

Outlook:

Projected to contribute 20 25% topline growth to the Group

Expansion into experiential dining formats (Canvas, Glazed & Co, Arena 27) to position OPTA in premium lifestyle categories

Long-term value creation expected through brand equity and consumer loyalty

Opportunities and Risks

Opportunities	Risks / Challenges
Rising demand for organized catering in healthcare,	Rising input costs (commodities, manpower)
education, and industrial clusters	impacting margins
Growth in aviation sector and investments in airport	Regulatory compliance costs in healthcare and
infrastructure	aviation
Increasing healthcare focus \u2192 greater demand for	Competitive intensity in facility management sector
biomedical equipment management
	Brand scaling risk in consumer-facing businesses
Shift toward premium, experience-driven consumption
among urban youth	Talent retention in high-skill areas
Digital transformation and predictive maintenance
technologies

Outlook

The Group is expected to deliver sustainable double-digit growth over the medium term, supported by:

Balanced portfolio: stable cash flows from ASHL, high-growth momentum from OPTA, and scalable opportunities in SMS

Technology adoption: enhancing operational efficiency and customer

?€? Governance and compliance focus: maintaining strong stakeholder trust

?€? Capital allocation discipline: reinvesting in growth while preserving liquidity strength

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The implementation of a comprehensive Human Resource Management System (HRMS) for employees will enable a fully paperless end-to-end process. This initiative not only drives operational efficiency, but also contributes meaningfully to the organizations Environmental, Social, and Governance (ESG) goals by minimizing paper consumption and promoting sustainable practices.

HRMS for Associate Employees: Digitization of all HR processes from onboarding to performance management enhances transparency, improves employee experience, and ensures real-time access to information. Cross-Functional Integration: Seamless integration of roles across Finance, Procurement, IT, and Administration will streamline workflows, eliminate redundancies, and boost productivity.

Cost Efficiency: Centralized data and automation of routine tasks will reduce manual effort decision-making, resulting in significant cost savings.

This strategic move aligns with our broader digital transformation agenda, ensuring a more agile, sustainable, and employee-friendly organization. There are 11015 employees for our group which includes permanent staff, FTCs Contracted/outsourced staff/Deputed staff as on March 31, 2025.

SEGMENT?€“WISE OR PRODUCT-WISE PERFORMANCE

We not only showed improvement in the financial frontier but also in the companys share performance in the market.

Discussion on financial performance with respect to operational performance The segment and product-wise performance is as below:

(Rs. In Lakhs)

S. No. Particulars	As at 31st March, 2025	As at 31st March, 2024
Catering & Management Services
1. Sale of Food & beverages	23,416.68	21,630.11
2. Management Service Charges	7,276.14	6,826.69
3. Room Revenue	164.31	164.38
Total	30,857.13	28,621.18

Yourdirectorsfeelthatthefinancial of the Company has improved in FY 2024-25 compared to last FY 2023-24.

INTERNAL CONTROLS AND THEIR ADEQUACY

Your Company remains committed to improve the effectiveness of internal control systems for business processes with regard to its operations, financial reporting and compliance with applicable laws and regulations. The company has proper and adequate internal control system to ensure that all the assets are safeguarded and protected against loss from unauthorized use or disposition and that all transactions are authorized, recorded and reported correctly.

Regular internal audits and checks are carried out to ensure that the responsibilities are executed systems and procedures to ensure the efficientconduct of business the Audit Committee of the Board oversees internal controls within the organization. Further, as per Statutory Auditor, the internal controls also commensurate with the size and complexity of the operation of the Company.

DETAILSOFSIGNIFICANT CHANGES(I.E.CHANGEOF25%ORMOREASCOMPAREDTOTHEIMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFORE, INCLUDING:

Ratio Analysis		FY 24-25	FY 23-24
Debtors Turnover Ratio	Turnover/Avg A/c\u2019s receivable	6.56 times	5.88 times
Inventory Turnover Ratio	Cost of goods sold/Avg Inventory	140.83 times	136.70 times
Interest Coverage Ratio	EBIT/Interest	3.26 times	3.58 times
Current Ratio	Current Assets/Current Liabilities	0.93 times	0.89 times
Debt Equity Ratio	Total Liability/Shareholders Equity+	0.83 times	1.10 times
	Reserves & Surplus
Operating profit Margin %	EBIT / Net Sales	5.79%	6.88%
Net Profit Margin %	Net Profit/Total revenue 3.25%		3.51%

(EBIT- Earnings before Interest & Taxes)

Your Companys financial performance has improved in the FY 2024-25 compared to last years. The revenue from operations has increased from 286.21 crores in FY 2023-24 to 308.57 crores in FY 2024-25. There has been an increase of 7.81% in the revenue as compared to last year, because of which there has been a change in most of the ratios.

DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF:

Return on net worth		FY 24-25	FY 23-24
Return on Capital	EBITDA/Capital employed	23.31%	28.12%
Employed %

(EBITDA- Earnings before Interest, Taxes, Depreciation and amortization)

Your Companys financial performance has improved in the FY 2024-25 compared to last years. The revenue from operations has increased from 286.21 crores in FY 2023-24 to 308.57 crores in FY 2024-25. There has been an increase of 7.81% in the revenue as compared to last year, because of which there has been a change in return on net worth.

DISCLOSURE OF ACCOUNTING TREATMENT:

In preparation of financial statements, the Company has followed the required Accounting Standards (Ind AS) and has not deviated from treatment as prescribed under Accounting Standards.