Lords Ishwar Hotels Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENTS:

The hospitality industry is a vital part of the global economy, cantered on delivering services related to lodging, food and beverage, recreation, tourism, and event management. It plays a key role in job creation, GDP growth, and foreign exchange earnings across many countries. The industry is experiencing significant growth, with increasing demand for both leisure and business travel, and is adapting to new trends like personalized experiences and technological advancements. Domestic travel, high disposable income and the advent of better locations are expected to drive this growth.

India is a large market for travel and tourism. It offers a diverse portfolio of niche tourism products - cruises, adventure, medical, wellness, sports, MICE, eco-tourism, film, rural and religious tourism. India has been recognized as a destination for spiritual tourism for domestic and international tourists. The implementation of digital payment services in India, e-commerce has experienced significant growth, especially in the aftermath of the pandemic. According to the State of Indias Digital Economy (SIDE) Report, 2024, India is the third-largest digitalized country in the world, behind the US and China.

2. OPPORTUNITIES, THREATS, RISK AND CONCERNS:

Opportunities:

Hoteliers are required to renew their IT structures, expand digital communication channels and integrate new technologies. Because all digital helpers from the digital guest directory to intelligent room controls and smart hotel systems, hotel apps and check-in terminals have one thing in common. It will help survive the pandemic and at the same time will open up new sale potential.

Hotel Management is dynamic, and a degree in hotel administration prepares students to capitalize on burgeoning market opportunities and seamlessly readjust to new requirements. Hospitality is an industry that involves administrative, operational, and commercial facets that can be applied to any sphere of interest that prioritizes service. That means you can apply your hospitality knowledge from your degree and your passion to a wide range of enterprises, from property and event management and marketing, to tourism, entertainment, food and beverage management and entrepreneurship.

Your Company is in well position to take advantage of the following situations:

• Healthy economy having positive support of Tourism Sector.

• Well framed State and Central Government policies to attract tourists.

• Proximity to Railway station and Bus station.

• Healthy Competition in the city.

• Extending the product portfolio by offering various types of facilities.

• Demand between the national and the inbound tourists can be easily managed due to difference in the period of holidays.

Threats, Risk and Concerns:

The hospitality industry faces a wide array of threats, including cyber security breaches, economic downturns, natural disasters, staffing shortages, and reputational damage. These challenges can significantly impact operations, profitability, and guest satisfaction.

The ultimate goal for any hospitality company is to deliver high-quality guest experiences while maintaining profitability. But a number of factors must coalesce to achieve the sweet spots between capacity and demand and revenue and costs.

A problem or unexpected change in any area — food costs, labour availability, regulatory requirements, guest expectations, discretionary spending — can swiftly and profoundly impact a hospitality companys fate. A restaurant that struggles with employee turnover, for example, may not be able to serve as many diners, could see its food quality and service suffer and might take a hit to its reputation. At the same time, the restaurant may have to spend more time on training and offer higher wages or other benefits to attract and retain workers. Thus, the labour issue hits the restaurant on both the revenue and expense sides, making it much harder to turn a profit.

3. FINANCIAL AND OPERATIONAL PERFORMANCE:

The total revenue of your Company for the year 2024-25 was increased to Rs. 860.73 Lakhs as against Rs. 770.13 Lakhs of the previous year. The Company reported net profit after tax of Rs. 34.50 Lakhs for the year 2024-25 in comparison with a net profit after tax of Rs. 49.02 Lakhs of the previous year.

4. DETAIL OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS:

Details of Significant changes in Key Financial Ratios given in Note No.44 of the Notes on financial statements for the year ended on 31^st March, 2025.

5. FUTURE PROSPECTS:

The hospitality industry has increasingly embraced sustainable practices, responding to travellers heightened awareness of environmental impact. This trend is expected to continue, shaping the industrys future direction. Taking advantage of the growing demand for unique travel experiences involves identifying and promoting new vacation spots and attractions across India. With its diverse landscapes, natural beauty, and rich cultural heritage, India offers a wealth of opportunities. Discovering and highlighting lesser-known destinations, offbeat locations, and historical sites can significantly boost tourism and open up new avenues for the hospitality sector.

The future prospects of the hospitality industry are highly promising, driven by rapid technological advancements, evolving customer preferences, and a growing focus on sustainability. As digital transformation continues to reshape guest experiences, technologies such as artificial intelligence, IoT, and virtual reality will become increasingly integrated into hotel operations, enabling personalized, efficient, and contactless services. Sustainability will also play a central role, with eco-friendly practices and green certifications becoming key differentiators for brands. The rise of wellness tourism, bleisure (business + leisure) travel, and work-from-anywhere trends will fuel demand for flexible, health-focused, and digitally equipped accommodations. Additionally, emerging markets and secondary cities present significant growth potential, supported by infrastructure development and government incentives. Hospitality businesses are also shifting to asset-light and hybrid models, combining co-living, co-working, and subscription-based stays to cater to changing lifestyles. As consumer expectations continue to rise, the industry must prioritize innovation, digital literacy, and environmental responsibility to remain competitive and resilient in the years ahead.

6. ADEQUACY OF INTERNAL CONTROL SYSTEM:

The Company has put in place a comprehensive and independent system of internal controls specifically designed to ensure the protection and safeguarding of all its assets against unauthorized access or loss. These robust controls meticulously oversee that all transactions are properly authorized, meticulously recorded, and accurately reported. To reinforce these controls, the Company has instituted a detailed internal audit program that undergoes regular scrutiny by management. This program is supported by a set of well-documented policies, guidelines, and procedures that govern every aspect of the internal control system. The framework is meticulously crafted to guarantee the reliability and integrity of financial records and other critical data. It plays a crucial role in facilitating the accurate preparation of financial statements and ensures rigorous accountability for all assets. By adhering to these rigorous standards and practices, the Company maintains a high level of operational transparency and financial integrity.

7. HUMAN RESOURCE DEVELOPMENT:

The manpower employed in your Company for 2024-25 was 83 employees. The Company depends extensively on its human assets and consider this as one of the most precious assets and not affordable to lose.

Your Company has a team of able and experienced industry professionals. Your Company always believe to invest in human resources by means of providing various facilities, with a view to strengthen its presence in existing business and for taking advantage of the emerging growth opportunities in the hospitality sector. Your Company seeks regular feedback from its employees to ascertain their levels of satisfaction and to ensure that employees morale and motivation are constantly improved. Critical human resource issues are analysed, corrective actions initiated and results monitored regularly. In order to preserve competent employees and to provide homely environment, your Company has arranged monthly staff function, religious programs, picnic tours, etc. Human resource is drawn from diverse academic backgrounds and the Company has placed emphasis on recruiting people with formal training that matches their job profile.

8. CAUTIONARY STATEMENT:

Certain statements made in the Management discussion and analysis report, describing the Companys objectives, projections, estimates, predictions and expectations may be forward looking statements, within the meaning of applicable securities law and regulations and actual results may differ materially from those expressed or implied. Significant factors that make differences to Companys operations include competition, changes in Government policies and regulations, tax regimes and economic development within India. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent development, information or events or otherwise.