Travels & Rentals Ltd Management Discussions

For the Financial Year ended 31st March 2025

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian travel, tourism and mobility industry has witnessed robust growth in recent years, supported by rising disposable incomes, growing business travel, and increasing demand for leisure and experiential travel. Post-pandemic recovery has accelerated, with both domestic and international travel showing strong momentum. The mobility services and rentals segment is also expanding, driven by demand from corporates, SMEs, and individuals seeking cost-effective and flexible travel solutions.

Government initiatives such as the "Dekho Apna Desh" campaign, infrastructure upgrades, and growing emphasis on digitalization are expected to further support industry growth.

2. OPPORTUNITIES AND THREATS Opportunities:

• Rising demand for customized and corporate travel solutions.

• Growth of digital booking platforms and online distribution channels.

• Expansion of business travel and MICE (Meetings, Incentives, Conferences and Exhibitions) segments.

• Increasing preference for rental and subscription-based mobility.

Threats:

• Intense competition from organized and unorganized players.

• Regulatory changes affecting travel and tourism.

• Volatility in fuel prices impacting operating costs.

• Geopolitical risks and global uncertainties affecting international travel flows.

3. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

Travels & Rentals Limited operates primarily in the travel and rental services domain, catering to both corporate and individual clients. During the year under review, the Company strengthened its presence in the corporate travel solutions segment while continuing to expand offerings in leisure and personalized travel services.

The Company has also diversified into value-added services, including curated experiences, hospitality tie-ups, and digital booking solutions, which are expected to contribute to long-term growth.

4. FINANCIAL PERFORMANCE

During the financial year under review, the Company achieved steady growth in revenues from both corporate and leisure segments. Listing on the BSE SME platform has provided greater visibility and improved access to capital markets. The focus remained on operational efficiency, cost optimization, and enhancing service quality.

Statement of Profit & Loss

Balance Sheet Position

A significant increase in equity and reserves is attributable to the successful IPO, which raised approximately ?1224 lakhs net of expenses. The strengthened balance sheet underpins investments in brand building, technology infrastructure, and working capital.

Cash Flow

The Company generated strong cash flows from operating activities, aided by efficient working capital management and steady profit accruals. IPO proceeds were deployed as per the stated objects in the prospectus—primarily towards working capital and General Corporate expenses.

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year)

The details of the key financial ratios in which there has been a significant change (i.e. change of 25% or more) along with detailed explanations thereof:

5. RISK MANAGEMENT AND INTERNAL CONTROL SYSTEMS

• Fluctuations in fuel and operating costs may impact margins.

• Dependence on macroeconomic stability and discretionary consumer spending.

• Seasonal nature of leisure travel.

• Cybersecurity and data privacy risks in digital platforms.

The Company continues to strengthen its risk management framework and adopts proactive measures to mitigate operational and financial risks.

Travels & Rentals Limited has in place robust internal control systems commensurate with the nature and size of its business. These controls ensure efficient operations, compliance with applicable laws and regulations, safeguarding of assets, and reliability of financial reporting. The internal control framework is assessed regularly by the Audit Committee and subject to statutory audit review. For FY 2025, auditors issued an unqualified opinion, confirming the adequacy and effectiveness of controls.

6. HUMAN RESOURCES & INDUSTRIAL RELATIONS

Travels & Rentals Limited recognizes its people as its foremost asset—critical for delivering personalized and seamless travel experiences. The vibrant team grew during the year to support expanded services and a higher client base.

• Recruitment & Training: The Company maintains a focus on hiring skilled professionals and investing in frequent training—in product knowledge, digital tools, customer experience, and destination specialization.

• Workplace Culture: The work environment emphasizes teamwork, ethical conduct, and merit-based advancement. Employee relations have been stable, with no material disputes or turnover concerns reported in the period under review.

7. OUTLOOK

The Company remains optimistic about the future growth trajectory of the travel and rentals industry. With increasing digital adoption, rising demand for corporate mobility, and growing consumer preference for experiential travel, the business environment presents significant growth opportunities.

Travels & Rentals Limited intends to leverage its brand presence, service quality, and customer-centric approach to expand its market share. The Company is also exploring strategic partnerships and technology-enabled solutions to enhance efficiency and customer engagement.

8. CAUTIONARY STATEMENT

This report contains forward-looking statements, representing management perceptions and expectations, which are inherently subject to risks and uncertainties. Actual results may differ materially due to factors beyond the Companys control, including but not limited to market movements, policy changes, and external disruptions.