Praveg Ltd Management Discussions

The global economy in FY 2024-25 demonstrated notable resilience despite persistent challenges such as geopolitical tensions, elevated in ation, and sustained monetary tightening by major central banks. According to the IMFs April 2024 World Economic Outlook, global GDP is estimated to have grown by around 3.2% in 2024, with a similar pace expected for 2025. Many advanced economies, including the US and parts of Europe, managed to avert deep recessions, supported by strong labour markets, steady wage growth, and resilient consumer spending.

Emerging markets continued to lead global economic expansion, with India standing out as one of the fastest-growing major economies, recording an estimated real GDP growth rate of about 6.8% for FY 2024-25 (as per the IMF and RBI estimates). Indias growth was driven by robust domestic consumption, increased government spending on large-scale infrastructure projects, rapid digitalisation, and policy reforms aimed at boosting manufacturing, exports, and renewable energy. Strong foreign direct investment in flows, India attracted record annual FDI of over USD 85 billion in FY 2024-25, a favourable demographic pro le, and expansion of key sectors such as services, technology, and green energy have further cemented Indias position as a major growth engine for the global economy.

The countrys proactive policy measures, resilient corporate sector, and macroeconomic stability including manageable in ation, a comfortable foreign exchange reserve buffer of about USD 650 billion, and a contained current account de cit have enabled it to withstand external headwinds better than many peers, making India an attractive destination for global investors seeking stable, high-growth markets.

Global trade and travel also showed a gradual recovery as supply chain disruptions eased and cross-border restrictions continued to loosen. According to the WTO, global merchandise trade volume is projected to grow by 2.6% in 2024 and 3.3% in 2025, signalling steady revival. International tourism and business travel revived significantly, benefitting Indias hospitality and aviation sectors as well. Overall, while global uncertainties remain, Indias strong macroeconomic fundamentals and sustained growth momentum continue to reinforce its role as a key contributor to global economic stability and expansion.

India retained its position as one of the fastest-growing major economies in FY 2024 25, demonstrating remarkable resilience amid global economic uncertainties and geopolitical challenges. The countrys robust economic momentum was primarily driven by strong domestic consumption, healthy growth in manufacturing and services sectors, and increased government capital expenditure on critical infrastructure such as roads, railways, and smart cities. Indias GDP is estimated to have expanded by 6.5% - 6.8% in FY 2024 25, supported by stable in ation that declined to around 4.8% by March 2025, and healthy foreign exchange reserves.

The Governments sustained focus on structural reforms, digitalisation, and ease of doing business continued to enhance the investment climate, attracting both domestic and foreign capital. Key policy measures such as the Production Linked Incentive (PLI) schemes and sector-specific reforms across electronics, renewable energy, and semiconductors are expected to further boost manufacturing output and exports, which reached a record high of over USD 825 billion during the year.

Despite global headwinds, India maintained macroeconomic stability with a manageable scal de cit, resilient banking system, and buoyant investor con dence. Positive demographic trends, a large and growing middle class, and an expanding digital economy continued to underpin growth. Indias stable economic environment and proactive governance helped it move closer to becoming the worlds fourth-largest economy, with its nominal GDP expected to surpass USD 4.2 trillion in FY 2025.

The Governments thrust on promoting tourism, MSME development, and startup ecosystems created new avenues for employment generation and inclusive growth. Going forward, Indias strong fundamentals, policy stability, and emphasis on innovation and sustainability are expected to reinforce its position as a key driver of global growth and an attractive destination for long-term investment.

The Indian hospitality and tourism industry witnessed steady and resilient growth during FY 2024 25, underpinned by multiple positive factors shaping demand and supply dynamics. A significant resurgence in domestic travel, buoyed by an aspirational middle class and increasing disposable incomes, drove higher footfalls across leisure, business, and niche tourism segments. According to the Ministry of Tourism, domestic tourist visits crossed 1.9 billion, while foreign tourist arrivals rose to approximately 19 million, recovering strongly and surpassing pre-pandemic levels.

Government-led initiatives such as the Dekho Apna Desh campaign, the development of regional tourism circuits, and investments in last-mile connectivity and infrastructure continued to play a pivotal role in encouraging both inter-state and intra-state travel. The emergence of Tier II and Tier III cities as vibrant travel destinations widened the industrys footprint, driving demand for quality accommodation and unique local experiences beyond traditional urban hubs.

Hotels and resorts across categories reported improved occupancy rates and stronger pricing power. Nationwide hotel occupancy reached about 67.5%, with Revenue per Available Room (RevPAR) seeing double-digit growth of 11-12% year-on-year, according to leading industry reports. Upscale and luxury segments saw particularly strong demand, boosted by the revival of corporate travel, destination weddings, MICE (Meetings, Incentives, Conferences, Exhibitions) events, and inbound tourism.

Evolving consumer preferences towards sustainability, wellness, and immersive travel experiences further shaped the sector. Eco-friendly resorts, adventure tourism, wellness retreats, and heritage stays gained significant traction among modern travellers seeking authenticity and responsible travel options.

Technology adoption and digital transformation continued to reshape the industry landscape, with increased reliance on online booking platforms, AI-driven guest services, contactless check-ins, and customisable travel solutions enhancing operational ef ciency and guest satisfaction.

Amid this promising backdrop, Praveg Limited, with its diversi ed presence across exhibitions, tourism infrastructure, and unique resort properties, remains strategically positioned to capitalise on the sectors robust growth trajectory. By leveraging its expertise in creating distinctive experiential offerings and forging strategic partnerships, the Company aims to tap into emerging trends, expand its geographic footprint, and deliver sustained value to stakeholders in Indias evolving hospitality and tourism landscape.

Praveg Limited continues to strengthen its position as a leading player in the exhibitions, hospitality, and advertising sectors. The Companys strategic initiatives, including targeted acquisitions, meaningful partnerships, and steady organic expansion, provide a robust foundation for sustained long-term growth.

With the resurgence of domestic and international travel, increasing consumer spending, and the growing demand for unique experiential events and high-quality hospitality services, the Company is well-placed to capitalize on emerging market opportunities. Pravegs recent collaborations and investments in new properties and service offerings are expected to drive revenue growth and enhance its brand presence across India and key global markets.

The management remains con dent of leveraging favourable industry trends, expanding its footprint into untapped geographies, and diversifying its portfolio to meet evolving customer preferences. Continued focus on innovation, operational excellence, and digital transformation will further strengthen the Companys competitive edge.

Backed by its dedicated workforce, strong financial position, and clear strategic roadmap, Praveg Limited is committed to delivering sustained value to all stakeholders and aims to achieve new milestones in its growth journey in the years to come.

During the year, the Companys Revenue from operations increased by 45.05%, rising from Rs. 9,141.75 lakhs in FY 2023-24 to Rs.13,262.73 lakhs in FY 2024-25, reflecting continued growth momentum. Profit after tax for the year remained strong at Rs. 1,286.29 lakhs, maintaining stable Profitability levels.

On a consolidated basis, income from operations recorded an impressive growth of 82.52%, increasing from Rs. 9,159.67 lakhs in FY 2023 24 to Rs.16,717.60 lakhs in FY 2024 25, showcasing the Companys consistent expansion. Profit after tax increased by 23.42%, rising from Rs.1,299.98 lakhs in FY 2023 24 to Rs.1,604.84 lakhs in FY 2024 25, demonstrating the strength of the Companys operational performance.

In line with its commitment to rewarding shareholders, the Board has recommended a nal dividend of 10% (i.e., Rs. 1/- per equity share of Rs. 10/- each) for FY 2024 25.

During the financial year 2024-25, Praveg Limited significantly expanded its hospitality footprint across Indias prominent tourist destinations. The Company grew its operational resorts from 4 (four) at the beginning of the year to over 15 (fteen) by the end of March 2025, adding more than 600 rooms to its inventory. Key additions included the launch of premium resorts at Nagoa Beach in Diu, Praveg Caves in Jawai, Rajasthan, and Praveg Atoll on Bangaram Island, Lakshadweep, which commenced operations under a prestigious management tie-up with Indian Hotels Company Limiteds Taj SeleQtions brand. These developments reflect the Companys strategic focus on strengthening its position in the eco-resort and boutique hospitality segment.

In line with its growth plans, Praveg Limited successfully mobilised capital through preferential allotments during the year. The Company allotted over 12,93,024 equity shares at Rs.955/- per share and issued 8,56,976 convertible warrants, at a price of Rs.955/- each payable in cash (‘Warrants Issue Price), on preferential basis. The warrant holders have paid 25% of the warrant issue price and have options to convert the warrants within a period of 18 months, further strengthening its capital base. During the year under review, the Company also allotted 315,058 equity shares pursuant to the conversion of warrants on a preferential basis to the respective allottees (“warrant holders”) at an issue price of Rs. 487/- (Rupees Four Hundred Eighty-Seven only) per warrant, which includes the warrant subscription price of Rs. 121.75/- and the warrant exercise price of Rs. 365.25/- per warrant. Further, in accordance with Regulation 169(3) of Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, the Company forfeited 184,942 warrants due to the non-exercise of the conversion option within the prescribed period.

The proceeds from these issuances have been deployed towards the development of new projects, acquisitions, and working capital requirements to support the Companys rapid expansion.

During the year under review, the Company acquired a majority stake of 51% each in Abhik Advertising Private Limited and Bidhan Advertising & Marketing Private Limited, thereby strengthening its presence and capabilities in the advertising and marketing segment.

Further, in December 2024, the Company entered into a strategic partnership with Mahindra Holidays and Resorts India Limited (MHRIL) through an inventory arrangement for 70 rooms across prime locations in Daman, Diu, and Ayodhya, enhancing its hospitality footprint and customer reach.

Additionally, the Company executed a Hotel Management Agreement for its agship Praveg Atoll Resort, which will be operated under the prestigious Taj SeleQtions brand by The Indian Hotels Company Limited, marking a significant milestone in aligning the Companys resort portfolio with world-class hospitality standards.

During the year under review, the Board of Directors approved a Scheme of Amalgamation for the merger of Eulogia Inn Private Limited with Praveg Limited, which was duly approved on April 23, 2025. This strategic amalgamation is aimed at enhancing operational ef ciencies, optimising resources, and strengthening the Companys hospitality business.

Praveg Limited remains committed to its social responsibilities and undertook meaningful initiatives during the year under review. In FY 2024 25, the Companys key CSR initiative was Project Apna Ghar, Umta, aimed at eradicating hunger, poverty, and malnutrition while promoting gender equality and empowerment. This project was implemented in Mehsana, Gujarat (local area) through the implementing agency Maa Madhuri Brij Varis Seva Sadan Apnaghar (CSR Registration No. CSR00003469), with a total spend of Rs. 48.50 lakhs.

Praveg Limited continues to align its CSR activities with the Schedule VII provisions of the Companies Act, 2013, contributing to sustainable community development and the overall social well-being of the regions it serves.

The Companys diversi ed operations are exposed to external risks, including changes in economic conditions, competitive dynamics, regulatory changes, and unforeseen global events. The management maintains robust risk management practices and proactively adapts its strategies to mitigate these risks.

Praveg Limited has established comprehensive internal control systems designed to ensure efficient operations, safeguard assets, prevent fraud and errors, and ensure compliance with statutory requirements and corporate policies.

With a resilient business model, clear strategic focus, and favourable industry dynamics, Praveg Limited is con dent of sustaining its growth trajectory. The Company remains committed to creating long-term stakeholder value through disciplined execution, prudent governance, and responsible business practices.

As of March 31, 2025, the Company employed over 1,347 people who play a vital role in driving its diverse operations in the tourism and hospitality sector. Recognising that its workforce is the cornerstone of its growth, the Company continued to strengthen its human resource practices through various initiatives. These included re ning the Performance Management System to align individual goals with organisational objectives, expanding Reward & Recognition programmes to celebrate outstanding contributions, and promoting a transparent, participative work culture that encourages open communication and collaboration.

During the year, the Company introduced ESOP 2024 and granted new stock options to eligible employees, demonstrating its commitment to attracting, rewarding, and retaining top talent while aligning employee interests with long-term shareholder value creation. Industrial relations remained harmonious throughout the year, supported by ongoing employee engagement and development efforts.

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include, among others, fluctuations in earnings, our ability to manage growth, competition, economic growth in India, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, government policies and actions with respect to investments, scal de cits, regulation, etc.