Embracing Change, Strengthening Our Future
It is not the strongest of the species that survives, nor the most
intelligent that survives. It is the one that is most adaptable to change.- Leon C.
Megginson on Darwinism
With a year of learning under its sleeve, the Indian hospitality sector
has been pushing hard and witnessing faster than expected recovery led by focus on
alternative customer segments and ancillary revenue streams. From the second quarter of FY
2021-22, the industry saw a strong recovery in occupancy with pent-up demand in leisure
space, new lines of businesses and strong demand for workcations as most people worked
from home. The recovery gathered steam with start of domestic business travel, weddings
and social functions. The trend continued till the end of 2021 with strong pick-up in
leisure as well as business destinations.
2022 started with the onslaught of the Omicron variant, bringing travel
to a halt. The variant spread quickly, but higher and effective mass vaccination drives
across the country enabled to tackle the low severity of this variant. A quick recovery
thereon brought back confidence almost immediately. Air traffic picked up to ~80% of
pre-pandemic levels in India, business travel kicked back again and MNCs across the world
finally called employees back to office after two years. March, April and May of 2022 saw
some of the best months of hospitality performance since the pandemic, with leisure
destinations such as Goa delivering better than pre-pandemic performance. Major cities
like Mumbai, too, saw a surge in occupancies.
The shadow of the Russia-Ukraine war and the resultant economic damage,
increase in commodity prices, sharp escalation in fuel prices and general inflationary
trends seen across the globe is likely to have short-term impact on the complete recovery
of the industry.
The events of the past few years along with changing climate and
successive geopolitical tensions has increased the need to build a sustainable tomorrow
and reaffirm focus on ESG (Environmental, Social and Governance).
In the past financial year, the Company amended its Vision Statement to
include sustainability as a Corporate Goal. The Company was also the first hospitality
company across the globe to sign all the three climate group initiatives on EV100 (100%
Electric Vehicles), EP100 (100% improvement in Electricity Productivity) and RE100 (100%
Renewable Energy). Further details of the Companys ESG journey are covered on page no. 30
of this Report.
GLOBAL ECONOMY
The path to recovery for the global economy post the pandemic was
marred by period of stagflation and recessions in 2022. As per IMF: "A tentative
recovery in 2021 has been followed by increasingly gloomy developments in 2022, as risks
began to materialise. Global output contracted in the second quarter of this year, owing
to downturns in China and Russia, while US consumer spending undershot expectations".
While World Bank predicts: "Global growth is expected to slump from 5.7% in 2021 to
2.9% in 2022. It is expected to hover around that pace over 2023-24, with the war in
Ukraine disrupting investment activity and trade in the near-term, and as pent-up demand
fades, and fiscal and monetary policy accommodation is withdrawn".
INDIAN ECONOMY
With major transitions taking place across the globe, following the
Covid-19 pandemic, India seems to be in a sweet spot as technological leaps (including
connectivity, direct benefit transfers and more), the energy transition with focus on
solar and other renewable sources and geopolitical shifts are creating new opportunities.
India is poised to bring in new tools and explore ways to fix the intractable problems.
IMF projects the Indian GDP to grow by 7.4% in FY22-23 and 6.1% in
FY23-24, the fastest-growing country in this period.
GLOBAL HOSPITALITY INDUSTRY PERFORMANCE
As per JLLs ‘2022 Global Hotel Investment Outlook: At year-end
2021, the proportion of RevPAR recovered relative to 2019 by region, ranged from 50% to
79%, with Americans leading the way. That said, performance was uneven with markets
heavily dependent on business and group demand progressing slower towards a full recovery
than markets reliant on leisure demand. Similarly, markets that historically relied on
international demand faced greater challenges than those dependent on domestic demand.
In 2022, the composition of demand and the progression of the recovery
will continue to be on top of the minds for hotel owners, operators, and investors.
Additionally, the industry will have to navigate operational hurdles brought on by labour
shortages, rising inflation, supply chain issues and the impact on service levels, given
the difficulties operating in such an environment. With ESG evolving beyond corporate
statements, sustainability will also be a key focus as failure to commit to both short and
long-term sustainability goals have the potential to decrease asset value, increase
operational costs, and discourage consumer demand."
INDIAN HOSPITALITY INDUSTRY PERFORMANCE
The resilience of the sector was evident from its steep bounce back
after each of the two highly infectious waves of the Covid-19 pandemic. The industry saw a
healthy recovery in the third and fourth quarter of 2021. While 2022 started weak, it
recovered well mid of February onwards, leading to the best few months since the pandemic,
in April & May 2022.
HVS ANAROCK in its report India Hospitality Industry Overview 2021
stated: "The hotel sector ended the year with an India-wide occupancy of 42-45%, up
10-13 PP* (Y-o-Y), which resulted in a 24-27% increase in RevPAR to Rs 1,800 - Rs
2,100". They expect the India-wide occupancy to improve to 66% in 2022, which along
with a 28% increase in ARR will push RevPAR to Rs 3,731 during the year.
While general sentiments and economic conditions are recording
favorable performance in India, the hospitality industry has been thankful to the Indian
Government to have extended the Emergency Credit Line Guarantee Scheme (ECLGS) up to March
2023, with an additional Rs 50,000 crore for hospitality and related sectors providing a
means to tide over the rough patch for the players with smaller operations and higher
impact on balance sheet. Please refer to the Operating Environment section on page no. 22
of this report, highlighting industry Threats and Opportunities. Key areas of risk have
been detailed on page no. 53 of this Report.
COMPANY
HOSPITALITY OPERATIONS
2021-22 started amidst the second wave which swept the nation and
impacted businesses in Q1. The restrictions brought many cities to a standstill and the
hospitality business segment was hit hard. The cases started easing from June, with faster
vaccination drives across the country and there was visible pick-up in demand occupancies
to 64% in December.
Business segments moved from quarantine guests in April-May 2022 to
segments of Bollywood shoots, IPL, sea-farers, recruitment drives, and social functions.
With ease in restrictions across the board, the banking, consulting, financial services
and project-related businesses started to progress from September onwards, along with
increase in F&B revenues.
Based on the performance post the first two waves, the overall recovery
was faster, post the 3rd wave. From mid of February 2022, the cases subsided to few
hundreds per day on an average, in India and this led to immediate uptick in consumer
confidence & resumption of travel and business operations. March to June saw the best
levels of occupancy and rate within the pandemic period.
The Company has achieved some long-term cost efficiencies over the past
two years. Outsourcing laundry, centralization of finance, re-working long-term contracts
with vendors and introducing technology in day-to-day operations, are a few examples which
have resulted in significant cost-saving and reduction in dependencies on manpower. Though
management of costs continue to be a key focus area for the Company, building a healthy
work environment and giving back to society remains a key business decision maker. For
further details, please refer the Social section of this Report.
COMMERCIAL OPERATIONS
The Rental and Annuity business of the Company continued to provide a
cashflow hedge throughout the lockdown through timely receipt of rentals.
Re-strategizing:
We have been evaluating the performance of all our non-hotel assets to
its best suited use. The retail assets at Sahar, Mumbai, and Whitefield, Bengaluru, were
lagging in recovery because of low footfalls and pandemic led causes. With the approval of
the Board, the Management decided to repurpose the assets into commercial offices with a
focus on reducing the variability of earnings from non-core businesses.
The converted office space at Sahar, Mumbai, along with the existing
office in this location, has a total leasable area of 0.5 million sq. ft., of which 0.47
million sq. ft. is already leased and the rest is in process. This location also houses a
few F&B outlets.
The Inorbit Mall at Whitefield, Bengaluru, had been underperforming.
This was mainly owing to the onset of the pandemic forcing malls to remain shut across the
country for several months, impacting retailers. This made us re-visit the market dynamics
and take suitable action. The asset is currently in the process of being re-purposed to an
office space and expected to be operational by 2022-23.
With this strategy, the Company added ~0.4 million sq. ft. of office
space to its existing 0.5 million sq. ft. portfolio. The new setup is expected to be
EBIDTA and Return Ratio- accretive.
PORTFOLIO
An overview of the updated portfolio of the Company has been provided
on page no. 8 of this report.
CAPEX PIPELINE
The development on the new commercial towers at Whitefield, (Bengaluru)
and Powai (Mumbai) is going as per plan, with likely completion within FY 2022-23.
The erstwhile Renaissance at Powai has, after 20 years of gracing the
Powai Lake front, given way to a renovated and rebranded The Westin Mumbai Powai Lake on
March 01,2022. We finished the phase I of renovation at the hotel and the new reception
lobby, Mayochi - the Oriental Tapas bar, deli, spa, gym and the 150 renovated rooms have
been received well. We will shortly be commencing Phase II of the renovation with
remaining 150 rooms and specialty restaurant, expected to be completed by the end of this
year.
The work on the completion of the 88 rooms at Novotel, Pune, is ongoing
and expected to be operational by Q3 2022-23.
The Company will continue to evaluate the demand dynamics in order to
assess its decision on recommencement of the Hotel Project, The Westin Hyderabad HITEC
City and the proposed new hotel at Airoli, Navi Mumbai.
Residential Project - Koramangala, Bengaluru
The residential project at Koramangala in Bengaluru was stuck in
litigation over cancellation of the NOC over height, issued earlier by Hindustan
Aeronautics Limited (HAL). The project was under development with several towers under
progress, at various stages of completion. The Company worked out a revised development
plan and executed settlement terms with HAL. During the year, the Company signed terms for
an amicable settlement of all disputes with an undertaking to demolish already constructed
structures above 932 meters Above Mean Sea-Level and this marks the closure of the
long-standing litigation on this project.
The revised development plans were approved by the remaining flat
owners and the demolition work for higher floors has also been concluded. The Company has
received a fresh NOC from HAL. The project is currently in the process of getting
necessary local approvals to restart the development and completion of the project.
Results of Operations for the year ended March 31, 2022
The Companys Consolidated Financial Performance for the year ended
March 31,2022.
(Rs in million)
| Particulars |
For the year
ended March 31 |
Change % |
|
2022 |
2021 |
|
| Revenue from Operations |
5,078.07 |
2,855.76 |
78% |
| Other Income |
219.32 |
219.44 |
0% |
| Total Income |
5,297.39 |
3,075.20 |
72% |
| Total Expenses |
4,093.30 |
2,785.16 |
47% |
| EBITDA from Continuing operations |
1,204.09 |
290.04 |
315% |
| Depreciation and Amortization Expenses |
1,184.23 |
1,174.62 |
1% |
| Finance Costs |
1,444.13 |
1,519.78 |
-5% |
| (Loss) Before Exceptional Items and Tax
from Continuing Operations |
(1,424.27) |
(2,404.36) |
|
| Exceptional items |
(44.58) |
(41.71) |
7% |
| (Loss) Before Income Tax from Continuing
Operations |
(1,468.85) |
(2,446.07) |
|
| Tax Expense |
(719.53) |
(1,091.55) |
|
| (Loss) for the Year from Continuing
Operations |
(749.32) |
(1,354.52) |
|
| (Loss) for the Year from Discontinued
Operations |
(65.37) |
(36.76) |
|
| (Loss) for the Year |
(814.69) |
(1,391.28) |
|
| Particulars |
Q4 2022 |
Q3 2022 |
Q2 2022 |
Q12022 |
| Revenue from Operations |
1,480.12 |
1,641.80 |
1,281.83 |
674.32 |
| Other Income |
55.07 |
15.15 |
91.84 |
57.26 |
| Total Income |
1,535.19 |
1,656.95 |
1,373.67 |
731.58 |
| Total Expenses |
1,165.85 |
1,237.51 |
925.28 |
764.68 |
| EBITDA from Continuing Operations |
369.34 |
419.44 |
448.39 |
(33.10) |
| Depreciation and Amortization Expenses |
302.69 |
284.65 |
304.59 |
292.30 |
| Finance Costs |
355.96 |
336.56 |
392.25 |
359.36 |
| (Loss) Before Exceptional Items and Tax from Continuing
Operations |
(289.31) |
(201.77) |
(248.45) |
(684.79) |
| Exceptional Items |
(10.09) |
(9.03) |
(15.07) |
(10.39) |
| (Loss) Before Income Tax from Continuing Operations |
(299.40) |
(210.80) |
(263.52) |
(695.18) |
| Tax Expense |
(184.84) |
(119.82) |
(140.05) |
(274.82) |
| (Loss) for the period/ year from Continuing Operations |
(114.56) |
(90.98) |
(123.47) |
(420.36) |
| (Loss)/Profit for the period/year from Discontinued
Operations |
- |
(52.86) |
(14.76) |
2.25 |
| (Loss) for the period/year |
(114.56) |
(143.84) |
(138.23) |
(418.11) |
In addition to the annual performance, an analysis of the sequential
half year performance in 2020-21 has also been made available in this document.
The Company saw a gradual pick-up in business performance in 2021-22 as
the center and state governments systematically eased restrictions and public confidence
grew.
• Revenue increased from Rs 674 million in Q1 2021-22 to Rs 1,480
million in Q4 2021-22.
• EBITDA showed positive results from Q2 2021-22 which moved up
from Rs (33) million in Q1 2021-22 to Rs 419 million in Q3 2020-21 and dropped to Rs 369
million in Q4 2021-22 due to the third wave.
Revenue break-up
(Rs in million)
| Particulars |
For the year ended March 31 |
|
2022 |
2021 |
Change % |
| Hospitality |
4,099.74 |
2017.95 |
103% |
| Room Revenue |
2,195.09 |
1,131.66 |
94% |
| Food & Beverage Revenue |
1,565.44 |
683.77 |
129% |
| Other Revenue |
339.21 |
202.52 |
67% |
| Rental & Annuity |
1,019.75 |
837.81 |
22% |
| Lease Rent |
933.64 |
780.90 |
20% |
| Maintenance and other recoveries |
70.95 |
52.71 |
35% |
| Revenue from other Services |
15.16 |
4.20 |
261% |
| Real Estate |
|
|
|
| Sale of Residential flats |
- |
- |
|
| Other Income |
177.90 |
219.44 |
(19%) |
| Total Income |
5,297.39 |
3,075.20 |
72% |
Hospitality 2021-22 performance:
• Hospitality revenue increased by 103% against previous year and
formed 77% of the consolidated revenues
• Room revenue increased by 94% against the previous year, driven
by 13% increase in Average Daily Rates (ADR) for the year, while the Occupancy contracted
by 2,100 Bps to 51% for the same period
• Food and Beverage revenue increased by 129% to Rs 1,565 million
• Other revenue increased by 67% over the previous year.
(Rs in million)
| Particulars |
For the 6 months ended |
|
March 2022 |
September 2021 |
| Hospitality |
2722.87 |
1,376.87 |
| Room Revenue |
1,396.38 |
798.71 |
| Food & Beverage Revenue |
1,085.80 |
479.64 |
| Other Revenue |
240.69 |
98.52 |
| Rental & Annuity |
440.47 |
579.28 |
| Lease Rent |
387.67 |
545.97 |
| Maintenance and other recoveries |
43.85 |
27.10 |
| Revenue from other services |
8.95 |
6.21 |
| Other Income |
28.80 |
149.10 |
| Total Income |
3,192.14 |
2,105.25 |
Hospitality KPI
| Particulars |
For the year
ended March 31 |
For the 6
months ended |
|
2022 |
2021 |
Change % |
H2 2021-22 |
H1 2021-22 |
| ADR (Rs) |
4,576 |
4,040 |
13% |
5,244 |
3,743 |
| MMR* |
4,714 |
4,056 |
16% |
5,565 |
3,738 |
| Bengaluru |
4,403 |
4,611 |
(5%) |
4,623 |
4,088 |
| Hyderabad |
4,850 |
4,161 |
17% |
5,279 |
4,193 |
| Pune |
3,505 |
2,871 |
22% |
3,896 |
2,943 |
| Occupancy % |
51% |
30% |
21pp |
57% |
46% |
| MMR |
58% |
35% |
23 pp |
62% |
53% |
| Bengaluru |
28% |
24% |
4 pp |
33% |
23% |
| Hyderabad |
45% |
19% |
26 pp |
54% |
35% |
| Pune |
64% |
28% |
36 pp |
76% |
53% |
| RevPAR |
2,355 |
1,214 |
94% |
3,004 |
1,709 |
| MMR |
2,715 |
1,416 |
92% |
3,436 |
1,999 |
| Bengaluru |
1,220 |
1,127 |
8% |
1,511 |
931 |
| Hyderabad |
2,169 |
794 |
173% |
2,864 |
1,477 |
| Pune |
2,253 |
805 |
180% |
2,961 |
1,549 |
*MMR represents Mumbai Metropolitan Region Half Yearly performance:
• Hospitality revenues grew from Rs 1,377 million in H1 2021-22 to
Rs 2,723 million in H2 2021-22
• Room revenues grew from Rs 799 million to Rs 1,396 million from
H1 to H2 2021-22 led by occupancy expansion of 1,100 bps to 57% during the same period
• ADR during the year improved from Rs 3,743 to Rs 5,244 from H1
2021-22 to H2 2021-22
• With ease in restrictions on dining out and banqueting events,
curation of innovative streams of revenue, Food and Beverages revenue grew from Rs 480
million in H1 2021-22 to Rs 1,086 million forming 40% of H2 2021-22 revenues
• Food and Beverage revenues higher by 129% for the year as
compared to 2020-21
Rental and Annuity:
• Steady rentals from commercial helped us keep head above water
• Segment Revenues increased by 22% as compared to the previous
year
• Rental revenues from commercial segment remained steady
• Due to lockdown restrictions the retail business were primarily
closed during the initial months of the year while we saw gradual pick-up in footfall
during the remaining months as public sentiment gradually improved
Real Estate:
• The Segment saw no income or sale as there were no ongoing
residential projects during the year.
Other Income for the year Rs 177.90 million is in line against Rs
219.44 million for the previous year.
Operating Expenses:
Operating expenses for the period were higher by 47% against the
previous year due to recovery of hotels business post pandemic.
| Particulars |
For the year
ended March 31 |
|
2022 |
2021 |
Change % |
| Real Estate development cost |
221.66 |
95.06 |
133% |
| Changes in inventories of finished good and
construction work in progress |
(12.80) |
- |
100% |
| Food and Beverages consumed |
538.63 |
238.73 |
126% |
| Operating Supplies consumed |
243.76 |
123.35 |
98% |
| Employee benefits expense |
999.76 |
893.39 |
12% |
| Other expenses |
2,102.29 |
1,434.63 |
47% |
| Total Expenses |
4,093.30 |
2,785.16 |
47% |
• Real Estate development cost was at Rs 222 million against Rs 95
million in the previous year
• Food and Beverages Consumed for the period was higher by 126% in
line with recovery of hotels business post pandemic
• Operating Supplies consumed higher by 98% and other expenses
higher by 47% in line with recovery of business post pandemic and cost control initiatives
• Employee benefit expenses were higher by 12% as compared to
previous year. Employee cost was 20% of revenue from operations for the year as compared
to the 31% of revenue from operations in previous year, led by initiatives in increased
employee productivity and efficiency
• Additional details of the cost control initiatives are provided
on page no. 81 and details on energy conservation are provided on page no. 33.
EBITDA
Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
before exceptional items was at Rs 1,139 million as compared to the previous year of Rs
253 million. EBITDA margin for the period was at 21.5% against 8.2% for the previous year,
led by recovery in revenues and cost saving initiatives discussed.
In the current financial year, the Company has discontinued its retail
operations. The Company is in the process of repositioning the said building as commercial
office building. The income and EBITDA of retail operations at Bengaluru has been
disclosed separately as income and EBITDA from discontinued business operations. The
discontinued business costs include all direct and indirect costs of retail operations at
Bengaluru.
Excluding this, EBIDTA from Continuing operations was at Rs 1,204
million as against Rs 290 million during the previous year.
Depreciation and Amortization expenses were steady at Rs 1,184
million for the year as compared to Rs 1,175 million.
Finance Costs were at Rs 1,444 million which was lower by Rs 76
million from the previous year. The average cost of Rupee loans for the year was 7.52% as
compared to 8.04% for the previous year.
Exceptional Items
| Particulars |
For the year ended March 31 |
|
2022 |
2021 |
| Provision for estimated cost in relation to potential
cancellation |
(44.58) |
(41.71) |
The Company had commenced a residential project at Bengaluru after
obtaining requisite approvals. During the year 2013-14, Hindustan Aeronautics Limited
(HAL) had raised an objection with regard to the permissible height of the buildings.
Pursuant to an interim order passed by the Karnataka High Court, in the petition filed by
the Company, the Company had suspended construction activity at the project and sale of
flats. By judgement dated 29 May, 2020 the Honorable High Court of Karnataka has allowed
the writ petition in part, quashing the cancellation of the NOC and remanding back the
matter to HAL for re-survey in a time bound manner and thereafter to proceed in accordance
with law. The Company had filed an appeal in November 2020 against the said Order. The
Company and HAL after discussions, signed terms for an amicable settlement of all the
disputes between the parties, as per which the Company would undertake demolition of
already constructed structures above 932 meters Above Mean Sea Level AMSL. Final orders
in the matter have been passed by the Court on October 26, 2021 as per the said settlement
terms and consequently, the litigation stands disposed. Demolition work of the area above
10th floor for all the 9 buildings has been completed in April 2022, and the NOC from HAL
has been received. Process for obtaining all other approvals is underway. The Company has
executed Supplemental MOUs with all existing flat owners, with revised terms inter-alia
consenting to the revised development plans, subject to applicable regulatory approvals.
Further, flat owners above 10th floor have consented to relocate to lower floors.
The Company had estimated and accounted interest payable on
cancellation to flat owners above 10 floors amounting to Rs 553.94 million as at March
31,2022. The said provision shall be reversed upon receipt of all regulatory approvals
from statutory authorities. Management is of the view that no changes are required on this
account in the consolidated financial results for the year ended March 31, 2022. In the
meantime, the Company continues to make provision for interest in relation to potential
cancellations which amounted to Rs 44.58 million for the year ended March 31,2022 (March
31,2021 : Rs 41.71 million) and the same is reflected as an exceptional item.
(Loss) for the year
Loss for the year with discontinued operations was at Rs 815 million
against a loss of Rs 1,391 million in the previous year. The cash burn from operations
(EBITDA less Finance Cost) for the Company was at Rs 305 million as against a cash burn of
Rs 1,267 million in the previous year.
Equity & Debt
| Particulars |
For the year ended March 31 |
|
2022 |
2021 |
| Equity share capital |
2,050.24 |
2,050.24 |
| Other equity |
11,362.31 |
12,110.38 |
| Non-Controlling interests |
(2.62) |
(3.22) |
| Total equity |
13,409.92 |
14,157.39 |
| Gross Debt (Excl Pref Capital) |
25,339.82 |
20583.24 |
| Debt/Equity |
1.89 |
1.45 |
• For the year ending March 3 1,2022 the ecb exposure was at usd
15.11 million at the end ot the year as compared to USD 20.80 million at the beginning of
the year.
• The capital expenditure for 2021-22 was at Rs 3,489 million
towards ongoing projects.
Equity
Total equity was lower by Rs 747 million accounting for losses for the
year.
Return on Net-worth:
| Particulars |
FY 2021-22 |
FY 2020-21 |
| Return on Net Worth |
(5.91%) |
(9.37%) |
Due to pandemic led weak operating performance, the Company has not
generated profits for the last two years and hence the Return on Net Worth is not the
right measure to evaluate the Companys efficiency in utilising funds.
Working Capital movement
| Particulars |
For the year ended March 31 |
Change % |
|
2022 |
2021 |
|
| Debtors Turnover1 |
13.69 |
7.90 |
73% |
| Inventory Turnover2 |
6.30 |
2.65 |
138% |
| Current Ratio3 |
0.75 |
0.73 |
3% |
| Interest Coverage Ratio (Continuing operations)4 |
0.83 |
0.19 |
377% |
1: Revenue from operations/Average Trade Receivable 2: Cost of goods
sold/Average Inventory of Hotel Units 3: Current assets/Current liabilities
4: Earnings before interest, depreciation, amortization, exceptional
items and tax (EBITDA)/Finance Costs
Debtors and inventory turnover were lower due to conscious efforts by
the Company towards cash management. Interest coverage ratio improved on the back of
recovery of revenue and earnings.
Cashflow:
| Particulars |
For the year ended March 31 |
|
2021 |
2020 |
| Net Cash from Operating Activities |
622.20 |
601.71 |
| Net Cash from Investing Activities |
(3,960.98) |
(499.22) |
| Net Cash from Financing Activities |
4,109.46 |
(340.90) |
| Net Change in Cash and Cash Equivalent |
770.69 |
(238.41) |
Standalone Financials
The Total Income as per the Companys Standalone Financials accounts
for 94.7% of the Total Income as per the Companys Consolidated Financial Results.
| Particulars |
For the year ended March 31 |
Change % |
|
|
|
2021 |
| Revenue from Operations |
4,807.97 |
2,755.06 |
75% |
| Other Income |
206.74 |
203.16 |
2% |
| Total Income |
5,014.71 |
2,958.22 |
70% |
| Total Expenses |
3,836.10 |
2,614.58 |
47% |
| EBITDA from Continuing operations |
1,178.61 |
343.64 |
243% |
| Depreciation and amortization expenses |
1,090.92 |
1,076.34 |
1% |
| Finance costs |
1,399.54 |
1,450.08 |
(3%) |
| (Loss) before exceptional items and tax from Continuing
operations |
(1,311.85) |
(2,182.78) |
|
| Exceptional items |
(44.58) |
(41.71) |
7% |
| (Loss) before income tax from Continuing operations |
(1,356.43) |
(2,224.49) |
|
| Tax Expense |
(720.35) |
(1,093.21) |
|
| (Loss) for the year from Continuing operations |
(636.08) |
(1,131.28) |
|
| (Loss) year from discontinued operations |
(65.37) |
(36.76) |
|
| (Loss) for the period/year |
(701.45) |
(1,168.04) |
|
Standalone Revenue from Operations of the year grew by 75% to Rs 4,808
million against previous year led by 98% increase in Hospitality segment while Rental and
Annuity segment improved by 22%.
Earnings before interest, depreciation, amortization and tax (EBITDA)
including discontinued operations was at Rs 1,113.24 million with margin of 22.2% for the
year as compared to Rs 306.88 million with a margin of 10.4% in the previous year.
Loss for the year was at Rs 701.45 million as compared to loss of Rs
1,168.04 million in the previous year.
Internal Control Systems and Its Adequacy
We have well-established policies and procedures, for internal control
of our operations and activities. On a consistent basis, we strive to integrate our entire
organisation - from strategic support functions to core operational functions. To this
end, we follow standards that enable us to implement internal financial control across the
organisation and ensure that the same are adequate and operating effectively. The findings
and recommendations of the statutory and internal auditors are periodically reviewed by
the Board, who thereon suggest corrective actions, as and when required. The Audit
Committee of the Board of Directors proactively checks and balances the relevance and
reliability of the internal control systems and suggests improvements to strengthen the
same.
Cautionary Statement
Information in the Management Discussion and Analysis that describe the
Companys aims, plans, or projections may be considered forward-looking under applicable
securities laws and regulations. Actual outcomes may differ significantly from those
stated in the statement. Strong competition, leading to price cuts, high volatility in
prices of major inputs such as steel, cement, building materials, and petroleum products,
changes in Government regulations, tax laws, economic developments within the country, and
other factors such as litigation and labour relations are all important factors that could
affect the Companys operations.
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