Economic Environment An Overview
Global Economy:
The global economy continued to show resilience in financial year 2024-25, with signs of stabilisation in both growth and inflation. According to the International Monetary Fund (IMF) April 2025 edition of the World Economic Outlook, global GDP is projected to grow at 3.2%, similar to the previous year, supported by sustained consumer demand, investment in digital and green infrastructure, and improving geopolitical conditions. Global headline inflation is projected to further ease to 4.5% in 2025, after moderating to 5.9% in 2024 from a peak of 6.8% in 2023. While risks from regional conflicts and commodity price volatility remain, the outlook is broadly balanced.
With employment rates improving and global consumption recovering, especially in the United States and Asia-Pacific regions, the hospitality and travel sectors are expected to see continued momentum. Advancements in technology, increased digital adoption, and consumer preference for unique and experience-driven travel also present significant opportunities for the hospitality industry globally.
Indian Economy:
India remained one of the fastest-growing major economies during FY 2024-25. As per the National Statistical Office s third advance estimates, India s GDP expanded by 7.0%, following 7.6% growth in FY 2023-24. Growth remained broad-based, with manufacturing, construction, and services leading the expansion. A normal monsoon, steady rural recovery, and improved private consumption contributed positively.
The Reserve Bank of India (RBI), in its April, 2025 Monetary Policy Report, reaffirmed India s growth trajectory, citing strong fundamentals, easing inflationary trends, and rising private investment. The services sector, including hospitality and tourism, outperformed pre-pandemic levels, supported by strong domestic travel demand and government policy support.
Private consumption rebounded, rural sentiment improved, and discretionary spending picked up, driven by rising incomes and a growing middle class. Continued investments through the Production Linked Incentive (PLI) schemes and Make-in-India initiatives helped drive FDI flows, particularly into sectors like electronics, mobility, and renewable energy.
Indian Hospitality and Tourism Industry:
The Indian hospitality and tourism sector maintained its strong recovery in FY 2024-25. Supported by steady growth in domestic travel and rising international tourist arrivals, the sector registered healthy growth in occupancy rates and Average Daily Rates (ADR).
According to data from the Ministry of Tourism, foreign tourist arrivals in the year 2024 reached approximately 10.2 million, a 10% increase over 2023, closing in on pre-pandemic levels of 2019. Government initiatives such as Dekho Apna Desh , UDAN, Swadesh Darshan 2.0, and the PRASHAD scheme continued to drive both infrastructure development and tourism promotion. The e-visa system further facilitated travel by international visitors.
The industry benefited from:
? Expansion of Tier-II and Tier-III city travel infrastructure
? Demand for experiential stays, wellness tourism, and spiritual circuits
? A growing aspirational middle class with greater disposable income
India s vacation ownership market remains underpenetrated at around 2%, offering long-term growth potential when benchmarked against more mature markets like the US (11%).
Discussion on Financial Performance with Respect to Operational Performance
The Company recorded a strong financial performance in FY 2024-25, supported by improved operational efficiency, higher occupancy, and increased footfall across properties.
? Revenue for FY 2024-25 stood at 5,642 lakhs, reflecting a year-on-year growth of approximately 4.2%.
? Net Profit After Tax was 1,192 lakhs, marking a remarkable increase of 185% over the previous year.
? This growth was driven by:
? >Higher average room rates
? Strong performance in the Food & Beverage segment
? Effective cost control and digital optimisation
The Company s premium positioning, high service standards, and customer-centric approach continue to differentiate its brand in a competitive market.
Outlook:
The outlook for FY 2025-26 remains positive, supported by robust domestic demand, increased air connectivity, and the expanding potential of Tier-II and Tier-III cities. The Company is well-positioned to benefit from:
? Rising demand for premium hospitality experiences
? Strategic investments in digital platforms to enhance booking and customer engagement
? Expansion of F&B offerings and event-hosting capabilities
? Growth in wellness and eco-tourism
The Company will continue to explore strategic alliances, improve customer satisfaction metrics, and invest in sustainable operations to strengthen its market position.
Internal Control Systems and their Adequacy:
The Company maintains a well-documented and robust internal control framework across all operational and corporate levels. These controls are designed to ensure the integrity of financial reporting, safeguard assets, comply with laws and regulations, and ensure operational efficiency.
The Audit Committee periodically reviews the internal audit reports and monitors the adequacy and effectiveness of the internal control systems and risk management processes. Recommendations from the audit process are implemented promptly.
Human Resources / Industrial Relations
As of March 31, 2025, the Company employed approximately 159 personnel, reflecting a marginal increase over the previous year. The focus remained on developing leadership from within, investing in upskilling programs, and maintaining a performance-driven culture.
Employee engagement and well-being were prioritised, with hybrid work models, wellness initiatives, and digital HR platforms enhancing work-life integration. The Company maintained cordial industrial relations throughout the year.
Cautionary Statement
Certain statements in the Management Discussion and Analysis may be forward-looking and are stated as required by applicable laws and regulations. These involve risks and uncertainties; actual results may differ materially. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of subsequent developments, information or events.
Details of Significant Changes in Key Financial Ratios
1. Current Ratio: During the year 2023-24, the current ratio was 1.28 which has decreased 7.15 times to 1.19 in the year 2024-25.
2. Debt Equity Ratio: During the year 2023-24, the Debt Equity Ratio was 0.00547 which has increased 78.05 times to 0.00974 in the year 2024-25 due to increase in secured borrowings.
3. Return on Equity Ratio: During the year 2023-24, the Return on Equity Ratio was 2.10 which has increased by 174.71% to 5.76 in the year 2024-25. The variance in ratio is due to the impact of deferred tax in arriving at Profit after tax (elaborated in Note No. 22 of Standalone Financial Statements).
4. Trade Receivables turnover ratio: During the year 2023-24, the Trade Receivables turnover ratio was 10.94 which has decreased 13.43% (in days) to 9.47 in the year 2024-25.
5. Net Profit Ratio: During the year 2023-24 the Net Profit Ratio was 7.70 which has increased by 174.26 times to 21.13 in the year 2024-25, the significant decrease has been due to the impact of deferred tax in arriving at Profit after tax (elaborated in Note No.22 of Standalone Financial Statements).
6. Return on capital employed: During the year 2023-24, the Return on capital employed was 2.34 which has decreased by 3.90 times to 2.25 in the year 2024-25.
7. Return on Investment: During the year 2023-24, the Return on Investment was 7.72 which has decreased by 20.83 times to 6.11 in the year 2024-25.
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248, DP SEBI Reg. No. IN-DP-185-2016, BSE Enlistment Number (RA): 5016
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.