Pecos Hotels & Pubs Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENT:

The past financial year has been one of recovery. After enduring two years of COVID induced disruption, it appears that the worst may be finally behind us. However, the industry landscape has changed to some extent. We are extremely grateful to our returning customers for their loyalty to our establishments and grateful to all our staff who chose to remain with the company in possibly some of the most trying circumstances.

Looking ahead, we are encouraged by the pace of recovery of our industry, although we continue to remain cautiously optimistic. We are not completely out of the woods; we have new macro-economic conditions to contend with i.e. inflation, and the ongoing crisis in Ukraine continues to cause supply disruptions which have led to an escalation of prices across commodities. We are continuously monitoring these issues and will be proactive in resolving any concerns that arise.

2. OPPORTUNITIES:

As we step into the post COVID era, we consider our company fortunate to be among the few that have survived the pandemic. During COVID we had to resort to many new and innovative ways of connecting with customers and conducting our business; many of these innovations will continue to be part of our new routine.

The pace of recovery by the industry has allowed many businesses to explore new growth opportunities, develop new restaurant concepts and return some of the vibrancy that our industry was experiencing pre pandemic. We expect this growth to continue as consumption and spending patterns improve in many of the metros across the country. The improved consumer confidence and increased footfalls are important metrics going forward.

3. SEGMENT WISE OR PRODUCT WISE PERFORMANCE:

Your company will concentrate on consolidation and also growing its well-established brand "PECOS" in markets outside Bangalore and other key cities in India. The company is focusing on cities where we are confident our brand will be well received and find its own fan following. There is an ongoing process of research and development in this area, to identify new territories and new product verticals.

4. OUTLOOK

The management remains optimistic for the next year. With COVID 19 firmly in the rear view mirror and our outlets now operating at pre pandemic levels, your company can now concentrate on new opportunities for growth and new markets to expand our brand PECOS.

5. RISKS AND CONCERNS:

Your company has been dealing with business risks such as market competition and staff attrition for numerous years. Over time we have developed a robust risk mitigation system to address these issues. Regulatory policy especially with regard to alcoholic beverage is a state subject and varies significantly from one state to another. This remains an area of concern for us.

We are continuously monitoring these concerns and will be proactive in taking measures to mitigate risks.

6. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

This past financial year has been one of recovery for your company. As our outlets have now returned to their pre covid levels of business, our attention must now turn to now ensuring these numbers stabilise so that we have a strong foundation for future growth.

At an operational level the performance of our units reflects the improved consumer confidence and growing spending patterns seen in our industry. We believe these figures will only get better from here onwards.

7. MATERIAL DEVELOPMENT ON HUMAN RESOURCES:

The F&B business is highly dependent on human capital. Your company takes full cognisance of this and continues to invest in training and upskilling of staff to optimize their potential. Fresh talent is also introduced in the company whenever and wherever needed. Despite being in an industry that is plagued by alarming attrition rates, your company is blessed with a dedicated and loyal workforce, many of whom have been with the company for decades. We believe our commitment to offer the best possible product and experience to our clientele is shared by each and every member of our team. This dedication to serve, going the extra mile, for our customer continues to be our recipe for success.

	For and on behalf of the Board
	SD/-
	Liam Norman Timms
Date: 10-07-2024	Whole Time Director
Place: Bengaluru	(DIN:06453032)