OVERVIEW
This Managements Discussion and Analysis Report discusses our
financial and operating performance, business indicators and outlook from managements
point of view. This should be read in conjunction with the Companys financial statements,
the schedules and notes thereto and other information included elsewhere in the Integrated
Report.
INDIAN ECONOMIC OVERVIEW
The Indian economy showed rapid growth in 2022, the second consecutive
year of strong recovery following deep economic contraction in 2020 due to the COVID-19
pandemic. According to Indias National Statistical Office, the First Advance Estimate for
real GDP growth for FY2022-23 is 7.0% year-on-year (y/y). 1
According to estimates from the International Monetary Fund (IMF),
Indias economy surpassed that of the United Kingdom in terms of size in 2022 and rose to
become the fifth largest in the world.
The Indian economy has remained resilient despite the ongoing global
headwinds caused by external factors like postpandemic spillovers, supply chain
disruptions due to the ongoing Russia-Ukraine conflict, and potential recessionary
pressures facing developed economies. 2
INDUSTRY STRUCTURE AND DEVELOPMENTS Tourism & Hospitality
Indias rich and exquisite history, culture, and diversity are
showcased through tourism while also providing significant economic benefits. The
consistent efforts of the central and the state governments have helped the tourism
industry to recover from the covid-19 pandemic shock and operate at the pre-pandemic
level. The countrys rising middle class and increasing disposable income has supported
the growth of domestic and outbound tourism.
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. 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.3
Events & Exhibitions
Exhibitions and events are some of the critical enablers and triggers
of the economy. With India being one of the fastest- growing economies, the government
initiatives to help enterprises in different industries are expected to improve the need
for events and exhibitions in the country.
The Indian event and exhibition market was valued at USD 3,674.95
million in 2022, and it is expected to reach USD 7,550.05 million by 2027, registering a
CAGR of 12.43% during the forecast period of 2022-2027.4
OPPORTUNITIES AND THREATS
The Companys businesses have ample opportunities. Our more than 20
years of experience in providing end-to-end services have made us a strong and
well-recognized brand. Capabilities to attract and retain quality manpower, financial
strength to meet the evolving demands by investing in infrastructure and personnel
development and our ethical and professional business practices have made us the most
preferred and trusted business associate/partner for our stakeholders and the
industry we operate in. Our philosophy of constantly broadening our
horizons by venturing into key areas has ensured upward growth for the Company. At this
moment, the Company has successfully proven its capabilities in Hospitality, Tourism apart
from the Events and Exhibitions.
Our business deals with prime challenges like intensified competition
and evolving marketplace. However, the Companys proven work records, capabilities and
ability to adapt persuade our clients to collaborate with us.
SEGMENT-WISE OR PRODUCT WISE PERFORMANCE
Praveg Limited is the leading Tourism & Hospitality and Event &
Exhibition Company with more than 20 years of proven experience.
Tourism & Hospitality
In the realm of tourism, our company, Praveg, has been dedicated to
promoting the joys of travel through a series of diverse tourism events ever since its
inception. Our widely acclaimed publication, Pravegs Tourism One, a monthly tourism
trade magazine, has gained widespread circulation across India, further strengthening our
commitment to the tourism industry.
Taking a bold stride into hospitality, we embarked on a journey that
began with the management and operation of the White Rann Resort in Dhordo, Kutch, during
the Rann Utsav in 2015, in collaboration with the Tourism Corporation of Gujarat Limited.
This endeavor saw the resort being bestowed with the esteemed Deluxe status by the
Ministry of Tourism, a testament to the high-quality experience we offer.
The journey continued with the inauguration of Tent City Narmada,
adjacent to the Statue of Unity at Ekta Nagar, in partnership with the Tourism Corporation
of Gujarat Limited. Since its commencement in 2018, this resort has rapidly gained a
reputation as a preferred conference destination, boasting state-of-the-art conference
amenities and an impressive array of 200 all-weather tents. Over the course of four years,
the resort has played host to numerous grand government events, graced by the presence of
distinguished VVIP dignitaries such as the Honble Prime Minister Shri Narendra Modi,
Honble President, State Heads, and other high-ranking government officials.
In the current year, our company has proudly introduced two new
resorts. The first, Tent City Varanasi, located on the banks of the revered River Ganga,
was inaugurated in January 2023 by none other than the Honble Prime Minister Shri
Narendra Modi and the Honble Chief Minister of Uttar Pradesh, Shri Yogi Aadityanath. This
new addition has garnered immense appreciation for its luxurious accommodations, top-tier
amenities, and an unparalleled exclusive setting.
The second, Praveg Beach Resort, nestled on the picturesque Lighthouse
Beach in Daman, is another jewel in our crown. With its beach-facing location and an array
of exclusive features, it has quickly become a magnet for tourists from all corners of
India.
Looking ahead, our company is poised for even greater expansion in the
hospitality sector. Our forthcoming projects include the Praveg Beach Resort at Jampore
Beach, Daman, and the Praveg Beach Resort at Chakratirth Beach and Ghoghla Beach, Diu, in
partnership with the Department of Tourism, DNH & DD. Collaborating with the Tourism
Corporation of Gujarat Limited, we are also set to establish a Resort and Theme
Destination at Adalaj, Gujarat.
Our sights are set on a wider horizon as we prepare to enrich our
hospitality portfolio by creating our own world-class resorts in Udaipur, Ranthambore,
Jawai Dam, and Velavdar in the foreseeable future.
In conclusion, our journey has been one of growth, innovation, and
unwavering commitment to enhancing the tourism and hospitality landscape. With each step
forward, we strive to create unforgettable experiences, and we invite you to join us on
this remarkable voyage.
Events & Exhibitions
Praveg has been organizing and managing exhibitions, events and
campaigns in India and abroad. The Company has designed, executed and managed more than
1000 major events and 2000 exhibitions all over the world.
Marching ahead with time, Praveg will carry forward its legacy of
success by creating its niche in the news genre. The Channel, which will soon be
commencing its journey as a Gujarati News Channel, is anticipated to transform into a
national news channel.
OUTLOOK
We believe the Company has a great deal of opportunities for future
growth. There is enormous untapped potential across our established brand equity and
diversified product portfolio and we continue to take several steps towards capitalizing
on these growth drivers. The Company also continues to converge on improving business
capabilities and enhancing growth levers.
The forthcoming period is set to witness robust growth primarily driven
by domestic demand, and this momentum is projected to remain strong throughout FY 2023-24.
While international travel is in the process of recovery, there remains ample room for
further demand escalation. A particularly noteworthy aspect is Indias G20 Presidency,
coupled with the hosting of international events like the ICC Mens World Cup, which is
set to create an additional surge in demand for accommodations in the cities playing host.
The growth trajectory of Indias service sector, paralleled by an
upswing in disposable incomes, is expected to translate into heightened demand for both
corporate travel and leisure getaways. As we peer into the near future, a plethora of
opportunities is on the horizon for distinct segments within the hospitality industry in
India. These encompass leisure travel, weddings, conferences, events, airline crew
layovers, and corporate travel, each poised to experience further expansion.
In light of these dynamics, our company is perfectly poised to seize
these opportunities and propel substantial growth. By harnessing our inherent strengths,
refining our services, and aligning with the evolving needs of our customers, we have the
capacity to not only optimize our market share but also drive profitability in the
burgeoning Indian hospitality arena. Our strategic positioning, combined with a steadfast
commitment to excellence, will undoubtedly catalyze our journey towards realizing untapped
potential and realizing significant success.
RISKS AND CONCERNS
As the Company is constantly evolving and expanding, much of our risk
mitigation focus during the year has been on the risk areas like Future-fit Portfolio
Transformation, Adaption to the Changing Market Trends and Technology, etc.
Risk management is integral to our Companys strategy and to the
achievement of Pravegs long-term goals. Our success as an organisation depends on our
ability to identify and exploit the opportunities generated by our business and the
markets we operate in. In doing this, we take an embedded approach to risk management,
which puts risk and opportunity assessment at the core of the Boards agenda.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Internal Audit reports are regularly reviewed by the management.
The Company has a proper and adequate internal control system commensurate with the size
of the business operations geared towards achieving efficiency in its various business
operations, safeguarding assets, optimum utilization of resources and compliance with
statutory regulations. Efforts for continued improvement of the internal control system
are being consistently made in this regard.
PERFORMANCE
Key Highlights of the Companys financial performance (standalone and
consolidated) for the year ended March 31,2023 is summarized below:
| FINANCIAL RESULTS AND
APPROPRIATIONS |
STANDALONE |
CONSOLIDATED |
| 2022-23 |
2021-22 |
2022-23 |
2021-22 |
| Income |
|
|
|
|
| Income from Operations |
8437.92 |
4498.86 |
8447.76 |
4524.96 |
| Other Income |
38.04 |
4.19 |
38.04 |
4.19 |
| Total Income |
8475.96 |
4503.05 |
8485.80 |
4529.15 |
| Expenses |
|
|
|
|
| Events & Site Expenses |
2895.26 |
1764.24 |
2898.02 |
1774.63 |
| Employee Benefit Expenses |
664.13 |
476.87 |
664.13 |
476.86 |
| Financial Costs |
68.99 |
50.07 |
69.03 |
50.08 |
| Depreciation and Amortisation Expenses |
608.76 |
267.87 |
608.76 |
267.87 |
| Other Expenses |
392.10 |
287.63 |
393.87 |
301.92 |
| Total Expenses |
4629.25 |
2846.68 |
4633.81 |
2871.36 |
| Profit /(loss) before tax |
3846.71 |
1656.37 |
3851.99 |
1657.79 |
| Tax Expense |
1008.69 |
433.59 |
1008.69 |
433.59 |
| Profit for the period |
2838.02 |
1222.78 |
2843.30 |
1224.20 |
MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT,
INCLUDING NUMBER OF PEOPLE EMPLOYED
As on March 31,2023, we have over 171 full time employees across all
our businesses. As we embark on our growth journey with entry into a larger portfolio, we
improved our people strategy and processes across the areas like Performance Management
System, Encouraging Transparent and Participative Organization Culture and Reward &
Recognition to propel this growth.
DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS AND RETURN ON
NETWORTH
Below are the details of significant changes in key financial ratios
and return of Networth of the Company.
| Sr. No. Ratio Name |
F.Y.
2022-23 |
F.Y.
2021-22 |
%
change |
Explanation |
| 1 Trade Receivables Turnover Ratio |
5.63 |
4.61 |
22.05 |
Not Applicable. |
| 2 Interest Coverage Ratio |
131.62 |
154.01 |
-17.01% |
Decrease due to company has marginally improved collection
mechanism and efficiently using its assets. |
| 3 Current Ratio |
4.99 |
2.56 |
94.75 |
Current Assets Ratio increase due to increase in Current
Assets which is due to temporary investment of part of Proceeds of Shares issued during
the year in Fixed Deposits, Increase in Inventory and increase in advances given to
suppliers. |
| 4 Debt Equity Ratio |
0.00 |
0.12 |
(97.12) |
Due to increase in equity base on account of money received
on issue of equity shares on preferential basis. |
| 5 Operating Profit Margin (%) |
51.05% |
44.32% |
13.18% |
Increase due to improvement on account of decrease in
operating cost pertaining to rent and travelling expenses significantly as compared to
previous year. |
| 6 Net Profit Margin (%) |
33.46% |
27.15% |
18.86% |
Ratio shows significant improvement on account of increase in
operating profit and marginal reduction in administrative costs as compared to previous
year. |
| 7 Return on New Worth |
25.21% |
44.16% |
-75.17% |
Net income of the company has increase significantly. However
ratio has decrease due to increase share holder equity. |
CAUTIONARY STATEMENT
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, fiscal deficits, regulation,
etc.
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