Sayaji Hotels (Pune) Ltd Management Discussions

[Pursuant to Regulation 34 read with Part B Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 20151

Management Discussion and Analysis Report will provide details of performance of the Company as well as its approach to sustainability and risk management. This report describes Companys objectives, projections, estimates and expectations, may constitute forward-looking statements within the meaning of applicable laws and regulations. Although the expectations are based on reasonable assumptions, the actual results might differ.

Industry structure and developments:

The India economy has emerged as the fastest-growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years, backed by its robust democracy and strong partnerships.

The Indian economy is expected to grow at 6.8% during the year 2025-26, while the global growth is estimated to be 3.3%. The Real GDP growth of India in Financial Year 2024-25 is 7% according to a report by the International Monetary Fund.

The Indian hospitality sector is expected to witness high growth over the long term. Domestic travel, high disposable income and the advent of better locations are expected to drive this growth. India is expected to have 1,00,000 start-ups by the year 2026 which will not only create employment for millions of people, but also provide an impetus to business travel and related events. The travel market in India is projected to reach US$ 125 billion by FY 2027. International tourist arrivals are expected to reach 30.5 million by 2028. The Indian tourism and hospitality industry has emerged as one of the key drivers of growth among the services sector in India. Tourism in India has significant potential considering the rich cultural and historical heritage, variety in ecology, terrains and places of natural beauty spread across the country. Another factor is Indias emergence as a destination to avail world class medical facilities at competitive cost. Tourism is also a potentially large employment generator besides being a significant source of foreign exchange for the country. The deepening penetration of internet usage and smart phones in India has led to increased booking of hotels through online portals and applications in recent times. This is also expected to significantly enlarge the size of the Indian online hotel industry in the coming years.

The Indian hospitality sector is segmented into luxury, mid-scale, and budget categories, with a mix of branded chains, standalone hotels, and alternative accommodations (e.g., homestays). In FY 2024-25, the sector grew by 12-15% in revenue with occupancy rates averaging 68-72% across key markets as per The Federation of Hotel & Restaurant Associations of India(FHRAI) estimates, driven by domestic tourism, MICE demand, and a 10% rise in foreign tourist arrivals. Key developments include consolidation among mid-tier players and the rise of Tier-II cities as hospitality hubs.

In FY 2024-25, the industry benefited from government initiatives like Dekho Apna Desh, infrastructure development (e.g., new airports and highways), Bharatmala and a favorable visa regime boosting inbound tourism.

However, challenges such as inflationary pressures, rising operational costs (e.g., energy, food, and labor), and competition from alternative accommodation models like vacation rentals persist. The luxury and mid-segment hotel categories, where [Company Name] operates, saw strong demand, particularly in metro cities and emerging Tier-II destinations.

In India, the industrys direct contribution to the GDP is expected to record an annual growth rate of 7-9% between 2019 and 2030. The Indian airline travel market was estimated at US$ 20 billion and is projected to double in size by FY27 due to improving airport infrastructure and growing access to passports. The Indian hotel market including domestic, inbound and outbound was estimated at US$ 32 billion in FY20 and is expected to reach US$ 52 billion by FY27, driven by the surging demand from travelers and sustained efforts of travel agents to boost the market. By 2028, international tourist arrivals are expected to reach 30.5 billion and generate revenue over US$ 59 billion.

However, domestic tourists are expected to drive the growth, post pandemic. International hotel chains are increasing their presence in the country, and it will account for around 47% share in the tourism and hospitality sector of India.

The Indian tourism and hospitality industry have emerged as one of the key drivers of growth among the services sector in India. Tourism in India has significant potential considering the rich cultural and historical heritage, variety in ecology, terrains and places of natural beauty spread across the country. Tourism is an important source of foreign exchange in India similar to many other countries.

India is the most digitally advanced traveler nation in terms of digital tools being used for planning, booking, and experiencing a journey. Indias rising middle class and increasing disposable income has supported the growth of domestic and outbound tourism. By 2028, Indian tourism and hospitality is expected to earn US$ 50.9 billion as visitor exports.

The travel market in India is projected to reach US$ 125 billion by FY27 from an estimated US$ 75 billion in FY20. The Indian airline travel market was estimated at US$ 20 billion and is projected to double in size by FY27 due to improving airport infrastructure and growing access to passports.

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.

Following the implementation of digital payment services in India, e-commerce has experienced significant growth, especially in the aftermath of the pandemic. India is the third-largest digitalized country in the world, behind the US and China. India has the second largest global network of internet users. Recent estimates indicate that approximately 300 million Indians use UPI, making India the worlds second-largest digital payment system after China.

Several measures and strategies have been implemented to facilitate the granting of credit to micro, small, and medium sized enterprises (MSMEs) and businesses. Accelerated digital transformation and increased demand for high-speed data, increased adoption of 5G services, along with the incorporation of cutting-edge technologies such as artificial intelligence, the Internet of Things, and machine learning, would also significantly contribute to the digital empowerment of the nation. We have seen green shoots in private capital expenditure, mild increase in rural consumption, acceleration in services export and improved PMI in recent months.

Safety and Hygiene

Hygiene, cleanliness and the associated need for more safety and security are probably some of the most important factors and hotel industry trends of the year. The pandemic has ensured that cleanliness, which is standard in every hotel, came back into focus. In these challenging times, hygiene is simply a part of a carefree guest experience. Hotels should therefore do everything in their power to ensure that the guests enjoy a hygienic stay.

Hotels should accompany their guests at every step, from booking to arrival, and tell them what measures they have taken to ensure their safety. This is not primarily about cleaning more, as the hygiene standards in the hotel industry have always been high. It is about showing, saying, explaining, and illustrating to the guests exactly which steps are being carried out from beginning to the end.

Post-pandemic, safety and hygiene remain paramount. Our Company maintained rigorous protocols, achieving a 100% compliance rate with FSSAI and WHO-aligned standards such as UV disinfection systems, contactless check-ins, and staff training, earning great guest safety rating. Industry-wide, hygiene certifications are now a competitive differentiator.

Green and Sustainable Tourism

A focus on environmental sustainability isnt new, but the degree to which guests expect (and prefer) eco-friendly products and services is. Todays traveler wants to stay at hotels that have integrated green practices in all aspects of their business. From physical changes to hotel buildings, like the addition of solar panels, to F&B menus with more vegetarian and vegan choices, its evident that these environmentally friendly trends are here to stay.

Sustainable tourism is now a new way of practicing tourism. Tourism plays an important role in the economy of most countries. The well-being of the host community became the priority instead of the tourists. Sustainability has been one of the hotel industries trends for a number of years. Due to the coronavirus, environmental protection and sustainability have slipped into the background for a short time, as it initially seemed difficult to combine it with the new hygiene conditions.

Nevertheless, "green" tourism is still important for your potential guests. Protection of the environment is particularly important to Generation Z and the next generation.

Customization through Digitalization

A trend that will become more important than ever is customization. However, this does not necessarily mean in personal conversation. It is much more a matter of creating a unique and individual experience for the guest. In order for the stay to be extraordinary, however, it takes more than just basic standards such as free Wi-Fi or a bottle of free water in the room. Guests want to be excited, both digitally and personally

Act Globally and Think Locally

In a world so connected by business and economic ties, it only makes sense that globalization would have implications in the hotel industry. As globalization drives incomes in countries around the world, more people can afford to travel, which means that hotels face opportunities and challenges that come with accommodating new travelers from different places. Along with this rising middle class, increased income inequality further distances the highest earners from the rest. Luxury travelers continue to have an appetite for over-the-top experiences. Like domestic travelers, International Guests are interested in local attractions and regional delicacies. Bring your surroundings to life and encourage your guests to become familiar with their local people.

In this context, it is necessary to stress the need for collaboration. Through cooperation, be it with regional farmers, local excursion destinations or with technology providers, you can create a network to meet the changing guest needs. In addition, this is the only way to create truly local experiences and at the same time generate synergy effects. Whole regions, guests and your wallet can benefit from more cooperation.

New concepts in our Industry

In addition to the classic hotel, a large number of new, alternative types of accommodation have developed on the market in recent years. Boarding houses, services apartments, coliving spaces for remote workers or single travelers are just a few examples of these alternatives. Soon these will no longer be alternatives, but a part of the standard as well as classic hotels. Because one thing is clear, the longer hotels are empty, the more money is lost. And that is precisely why more and more experienced hoteliers are looking for creative ways to fill their hotel again and use the rooms for other purposes.

Innovations like bleisure (business + leisure) stays, co-living hotel spaces, and wellness retreats gained traction. Industry-wide, experiential travel (e.g., culinary tours, heritage stays) is redefining hospitality offerings.

New Preferences

Smart Rooms -The internet of things is spreading not only into homes, but also into hotel rooms. From access to streaming services to a room key on your smartphone, the essential hotel amenities in a guestroom are becoming increasingly digital. Guests want concierge services or temperature controls at the push of a button (or tap of a finger), and voice- activated controls are expanding beyond simply asking Alexa to play your favorite song. These trends might sound futuristic now, but in a few years, guests will expect them. Many of these innovations require only minimal changes to a modern guestroom, so a forwardthinking hotelier can implement them quickly and efficiently.

Changing Workforce- While an increasingly digital world means that an employees tasks are changing, the workforce itself is changing too. These changes arent only in demographics, driven by the rise of Generation Z and a more global workforce, but also evident by a growing focus on safety, unionization, "gig" work, and human resources technology. Hoteliers must be cognizant to these changes in the workforce in order to hire effectively, reduce turnover, and keep employees safe and happy.

Desired travel destinations are also changing. Currently, international air travel and global luxury cruises do not belong to the wish lists of guests. Tourists are now looking increasingly for more regional and national experiences. In addition, the trend in the hospitality sector towards online bookings will continue. The uncertainty that currently prevails among guests when it comes to traveling has a significant impact on the travel destinations and travel arrangements. Last-minute trips and flexible cancellations conditions will also be increasingly popular in 2024. Similar to previous survey findings, around 60% of respondents agreed they would be willing to pay for flexibility with their accommodation booking. A preference for flexibility may be an enduring outcome of the pandemic as consumers, some who were perhaps short-changed due to travel disruption and cancellations during the pandemic, seek an extra layer of protection in a new age of travel.

Opportunities and Threats:

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.

To implement these strategies, digital knowledge will be a necessity, as well as that of online marketing. Without this, it is becoming increasingly difficult for hoteliers to build a profitable business model. However, it is important to note that not every technical gimmick is suitable for every hotel and suits the clientele, hence we are looking together with our employees to see which digital helpers offer real added value for guests and really benefit the operation of our hotel units.

While considerable challenges lie ahead, the crisis also provides an unprecedented opportunity for transformation. It offers the possibility of rethinking tourism so as to leverage its impact on destinations and build more resilient communities and businesses through innovation, digitalization, sustainability and partnerships. Innovation and sustainability will be two key pillars of a recovery focused on building tourism back better and stronger. In a sector that employs 1 in 10 people globally, the goals of harnessing innovation and digitalization, embracing local values, fostering accessibility and creating decent jobs for all, especially for youth, women and the most vulnerable groups, should be at the forefront of that recovery.

OPPORTUNITIES	THREATS
• Re-think business model	• Economic environment: world recession, rising unemployment and jobs at risk, disposable income, uncertainty weighing on consumer and business confidence
• Innovation and digitalization	• Climate Change
• Sustainability and sustainable-oriented segments (rural, nature, health)	• Implementation of Lockdowns and travel restrictions
• Progress in adaptation plans in destinations & companies	• Changing travel patterns
• Utilizing Artificial Intelligence in customer support

Segment-wise or product-wise performance:

Your Company is in Hospitality sector and provides food and beverages and accommodation services to the customers. We have a single segment and the comparative performance of the Company has been detailed in the financial Statements for Financial Year 2024-25. Further details of the adequacy of internal controls and material developments in human resource are given in Directors Report which forms a part of this Annual Report.

Global and Domestic Outlook:

The global hotel industry in 2024-25 continues to ride the wave of a robust post-pandemic recovery, underpinned by a resurgence in travel demand, evolving consumer preferences, and technological advancements. The global hospitality market, valued at approximately USD 4.9 trillion in 2024, is projected to grow at a compound annual growth rate (CAGR) of 6.1%, reaching USD 7.23 trillion by 2029. This growth is driven by several key factors:

Leisure and Bleisure Travel: Leisure travel remains the cornerstone of global hotel demand, bolstered by high-income households and the growing trend of "bleisure" (business + leisure) travel. Major events such as the 2024 Summer Olympics in Paris and the UEFA European Football Championship in Germany have significantly boosted occupancy and average daily rates (ADR) in Europe, setting a positive tone for 2025.

International Tourism Recovery: International tourist arrivals are expected to reach prepandemic levels by the end of 2025, with Asia-Pacific markets, including India, benefiting from increased air connectivity and a rebound in long-haul travel from North America and Europe. The World Travel & Tourism Council (WTTC) estimates that the sectors contribution to global GDP reached USD 11.1 trillion in 2024, rising further in 2025, reflecting its critical economic role.

Sustainability and Technology: Hotels worldwide are increasingly adopting sustainable practices and contactless technologies to meet guest expectations and comply with stricter environmental, social, and governance (ESG) regulations. Personalization through artificial intelligence (AI) and data analytics is enhancing guest experiences, while rising costs of capital are prompting a shift toward asset-light models like management contracts.

Challenges: Despite the optimistic outlook, challenges persist. Inflationary pressures, geopolitical uncertainties, and a strong US dollar are tempering international inbound travel to certain markets. In the Asia-Pacific region, airline capacity remains 10-15% below 2019 levels, though this gap is expected to narrow by mid-2025, supporting further growth.

Globally, revenue per available room (RevPAR) is projected to grow by 2-3% in 2025, driven by steady occupancy gains and moderate ADR increases. The industrys focus on premium and mid-market segments, coupled with investments in urban and leisure destinations, positions it for sustained growth, albeit at a more normalized pace compared to the exceptional rebound of 2023-24.

The Indian hotel industry is poised for a landmark year in FY 2024-25, building on the momentum of a stellar FY 2023-24. With domestic demand acting as the primary growth engine, the sector is achieved double-digit revenue growth of 13-14% in FY 2024-25, moderating to 11-12% in FY 2025-26, according to industry estimates. This performance is underpinned by a confluence of structural and cyclical drivers:

Robust Domestic Demand: Domestic leisure travel, fueled by a growing middle class with rising disposable incomes, continues to drive demand. Weddings, social events, and spiritual tourism are key contributors, with destinations like Goa, Jaipur, Udaipur, and emerging Tier- II cities witnessing unprecedented footfalls. The Meetings, Incentives, Conferences, and Exhibitions (MICE) segment is gaining traction, supported by government initiatives like "Meet in India" and the opening of new convention centers in cities such as Mumbai, Delhi, and Jaipur.

Infrastructure and Connectivity: Indias aviation sector, now the third-largest globally, recorded 154 million domestic passengers in FY 2023-24, with a projected 7-10% growth in FY 2024-25. The addition of over 1,600 aircraft to Indian carriers order books and new airports will enhance connectivity to Tier-II and Tier-III cities, unlocking further hotel demand. Highway development and regional tourism circuits under schemes like Swadesh Darshan and PRASHAD are also key enablers.

Economic and Policy Support: Indias GDP is expected to grow at 6.5-6.8% in FY 2024-25, per Deloitte Insights, supported by strong domestic consumption and government spending. The hospitality sector benefits from 100% FDI allowance under the automatic route and tax incentives for hotels in heritage and rural areas, fostering investment. However, inflationary pressures and potential disruptions from the national elections in Q1 FY 2024-25 could temper short-term demand.

World Economic Outlook

According to the International Monetary Funds (IMF) World Economic Outlook Update, global economic growth is expected to rise marginally to 3.3% in 2025. This growth trajectory reflects resilience in major economies, though it is tempered by ongoing geopolitical uncertainties, trade tensions, and inflationary pressures. For India, a critical market for the hospitality sector, economic prospects remain robust despite a global slowdown. The Reserve Bank of India (RBI) revised its growth projection for FY 2024-25 to 6.6% in December 2024, down from 7.2%, reflecting a slower first half but anticipating a recovery driven by increased government spending and resilient rural demand.

Globally, the hospitality industry is poised to benefit from a rebound in international travel, with the World Travel & Tourism Council (WTTC) estimating the sectors contribution to global GDP at $11.1 trillion in 2024, or approximately 10% of the total. In India, the hotel industry is expected to capitalize on rising domestic tourism, fueled by an expanding middle class and improved connectivity, alongside a gradual recovery in inbound international arrivals. This economic backdrop presents both opportunities and challenges for our company. While Indias strong growth supports demand for hospitality services, global uncertainties necessitate a strategic focus on operational efficiency, cost management, and capturing domestic market potential to sustain performance in FY 2024-25.

Source: International Monetary Fund (IMF), World Economic Outlook Update, July 2024, United Nations, World Economic Situation and Prospects 2025, January 2025, Reserve Bank of India (RBI), Monetary Policy Statement, December 2024, World Travel & Tourism Council (WTTC), Economic Impact Report, 2024.

Indian Economy

The Indian economy in the financial year 2024-25 has demonstrated resilience amid global uncertainties, maintaining a robust growth trajectory that continues to bolster the hospitality sector. India remains one of the fastest-growing major economies, with GDP growth projected to range between 6.5% and 6.8% for FY 2024-25, as per Deloitte Insights economic outlook.

This growth is underpinned by strong domestic consumption, a burgeoning services sector, and significant government investment in infrastructure. The services sector, which includes hospitality, grew by 7.2% in FY 2024-25, driven by robust demand in public administration, finance, and real estate, contributing significantly to Indias GDP and employment landscape.

The company remains well-positioned to leverage Indias economic momentum, aligning its strategies with the nations focus on tourism-led growth and infrastructure enhancement, while navigating the evolving macroeconomic landscape with prudence and adaptability.

Source: Deloitte Insights - "India Economic Outlook" (Published January 15, 2025); India Budget - Economic Survey 2024-25 Highlights; IBEF - "Growth of Hotel Industry in India" (Updated July 24, 2024); Hotelivate - "2024 Indian Hospitality Trends Report" (Published October 8, 2024).

RISK GOVERNANCE:

We understand that effectively managing risk is critical to the execution of our strategic objectives. We strike a balance between managing potential risks and seizing emerging opportunities to achieve excellence, both operationally and financially. To fulfil the Groups strategic aims, we are embedding a culture of proactive risk management by supporting acceptable and monitored risk-taking.

The number of risks that our sector is dealing with is on the rise. Hospitality sector faces a variety of potential risks that hotels need to contend with, particularly as they deal with an influx of both leisure and business travelers. Rapidly changing customer demands and a boom in guest-facing connected technologies are among the factors changing the risk landscape for hospitality companies.

Following are risk identified and steps taken to mitigate them:

1. Business slowdown, Inadequate growth

Risk of business slowdown, inadequate growth and negative returns has been increased. Especially our industry has been the most affected one which has turned the growth chart downwards. We have identified four steps ?

• next-generation talent models,

• data-driven decision making,

• customer loyalty, and

• operational flexibility and responsiveness

to map out the kind of readiness thats likely to help our business even in a coming downturn. Whats left to determine is the path from theory to action which we are working on.

2. Cyber Security - Data Privacy

Cybersecurity has been a big concern for a number of sectors, but the hospitality business is more focused on preventing data and identify theft. A security breach has huge ramifications. At the very least, businesses are required to contact other guests (past and present) and inform them that their data may have been compromised. This alone can be costly and may also lead to brand damage. If stolen data is used by fraudsters, the businesses may face liability claims for failure to protect data and maintain reasonable safeguards. As more hospitality and travel companies use digital systems to automate tasks and manage their data, we are identifying the potential risks and putting all efforts to bring their solution to the table.

3. Guest behavior

In hospitality industry, Guests represent the fuel, without guests and travelers, our business wouldnt make any money. However, guests can also potentially be the biggest threats - both directly and indirectly - to profitability. Lawsuits from people who are injured or damage to guestrooms can represent a big risk to the bottom line. We have internal controls in place to handle guest destruction and ensure travelers safety during their stay. Small things, such as closer management of property and resources, helps in preventing incidents like this from happening in the first place.

4. Branding

As the hotel industry has consolidated, operators brands have expanded into a vast number of territories, and are often instantly recognizable to customers. Therefore, it is of vital importance to operators that the brand is protected in every unit. Hence, we ensure that high and consistent standards are maintained throughout all locations, which is challenging due to the geographical distance separating each establishment. We reduce this risk by establishing strong brand guidelines which are communicated effectively to staff in all Units.

Brand protection may equally involve the need to enforce intellectual property rights. Any infringement by an inferior brand may affect customers perception of our brand. Hence, we ensure that all rights are appropriately registered and regular intellectual property audits are carried out, if standards are not maintained.

Government Initiatives:

The Union Budget 2025-26, presented by Finance Minister, underscores the Indian Governments commitment to positioning tourism and hospitality as pivotal drivers of employment-led economic growth. A flagship initiative is the development of 50 key tourist destinations in partnership with state governments under a "challenge mode" framework. This performance-linked approach incentivizes states to improve destination management, including tourist amenities, cleanliness, and marketing efforts, while providing land for infrastructure development.

The Union Budget for FY 2025-26 allocates Rs. 2,541.06 crores (US$ 291.07 million) to the Ministry of Tourism, a notable increase from Rs. 850.36 crore in FY 2024-25 revised estimates, reflecting a renewed focus on infrastructure and sustainable tourism. Under the Swadesh Darshan 2.0 scheme, Rs. 1,900 crores are earmarked for integrated tourism circuits, emphasizing high-value and competitive tourism offerings. Additionally, the Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (PRASHAD) scheme continues to enhance pilgrimage and heritage sites, with a special emphasis on Buddhist circuits to attract Southeast Asian visitors.

To bolster connectivity, the government has expanded the UDAN scheme to include 120 new destinations, alongside a Rs. 1 lakh crore capex plan for airport infrastructure. This builds on the addition of 75 new airports over the past decade, bringing the total to 149 by 2024, and is expected to enhance accessibility to tourist destinations, thereby increasing footfalls at the companys properties. Furthermore, streamlined e-visa facilities and visa fee waivers for select tourist groups aim to boost foreign tourist arrivals (FTAs), which reached 7.6 million between January and October 2024.

Source: Union Budget 2025-26 Speech by Finance; Ministry of Tourism - Budget Allocation Highlights (Published February 2025); Economic Survey 2024-25; Press Information Bureau (PIB) Release - "Union Budget 2025-26 Identifies Tourism as a Sector for Employment-Led Growth" (January 31, 2025).

Internal Control systems and their adequacy

The Company has in place a system of internal controls, with documented procedures covering all functions in the hotel operating units. System of Internal Controls are designed to provide reasonable assurance regarding the effectiveness and efficiency of operations, the adequacy of safeguards for assets, the reliability of financial controls, and compliance with applicable laws and regulations. The Company has a systematic process and well- defined roles and responsibilities for people at different hierarchical levels.

Discussion on financial performance with respect to operational performance:

• The Companys Total Revenue was 7769.42 Lakhs in 2024-25 as compared to Rs. 7128.42 Lakhs in the previous year, an increase of about 8.99 %

• Earnings Before Interest, Depreciation, Taxes, Amortizations and Exceptional Items (EBIDTA) was 2612.49 Lakhs as compared to Rs. 2488.39 Lakhs, an increase of about 4.99%.

• Profit before Tax was 2364.01 Lakhs as compared to Rs. 2193.74 Lakhs in the previous year, an increase of about 7.76 %.

• Net Profit after tax for the year was 1761.97 Lakhs as compared to Rs. 1663.68 Lakhs in the previous year, an increase of about 5.91 %

• Total comprehensive income was 1755.57 Lakhs as against Rs. 1658.07 Lakhs in the previous year, an increase of about 5.88 %.

• Cash and cash equivalent as at 31^st March, 2025 was Rs. 253.01 Lakhs as against Rs. 217.74 Lakhs in the previous year, an increase of about 16.20 %.

• The Company continuously trying to improve the cash flow by applying the various techniques as lease instead of buying of the property, improving inventory management, improvement in debtors ageing and encouragement to electronic payments etc.

• The Company and the Hotels have taken various initiatives to protect the Health and Safety of Guests and Employees. All precautions based on World Health Organization Guidelines and directions of the Central and State Governments have been implemented and are being strictly adhered to.

• The detailed Financial and Operational Performance present in notes to accounts for the financial year 2024-25 which forms a part of this Annual Report.

Material developments in Human Resources/ Industrial Relations front, including number of people employed

Your Company believes that its intrinsic strength is its people. Your Company strongly believes that human capital is the greatest asset and key differentiator. Your Company has always paid special attention to recruitment and development of all categories of staff. Your Company is committed to adhere to the highest standards of ethical, moral and legal conduct of business operations. The total number of people employed by the Company during the Financial Year 2024-25 was 314.

Details of changes in key financial ratio & return on net worth

The key financial ratios of the Company where there has been significant change (25% or more) and change in Return on Net Worth are summarized below along with detailed explanation:

Particulars	Unit	2024-25	2023-24	% of Change	Detailed explanation, if there is any significant change i.e. 25% or more
Debtors Turnover Ratios	Times	22.35	30.38	-26.43%	Increase in Average Trade Receivables in F.Y. 2024-25 as compare to F.Y. 202324 has resulted in decrease in ratio.
Inventory Turnover Ratio	Times	55.34	51.63	7.19%	-
Interest Coverage Ratio	Times	238.20	150.52	58.25%	Decrease in Finance Cost has resulted in Improvement in ratio.
Current Ratios	Times	1.74	1.09	59.71%	Increase in Current Assets in F.Y. 2024-25 as compared to F.Y. 2023-24 has resulted in an improvement in ratio.
Debt Equity Ratios	%	0.39%	3.02%	-87.13%	Decrease in Debt in F.Y. 2024-25 as compared to F.Y. 202324 has resulted in an improvement in ratio.
Operating Profit Margin	%	34.03%	35.31%	-3.62%	-
Net Profit Margin	%	22.95%	23.61%	-2.78%	-
Return on Net Worth	%	31.64%	38.28%	-17.34%	-