Viceroy Hotels Ltd Management Discussions

We, the Management & Board of your Company, take this opportunity to bring the 59th Annual Report to you while it is the first Annual Report post Corporate Insolvency and Resolution Process (‘CIRP) process.

As you all know, CIRP was initiated against your company on March 12, 2018 and the Resolution Plan, submitted by Anirudh Agro Farms Limited, was approved by Committee of Creditors and later it was approved by Honble NCLAT on October 06, 2023. After the Resolution Plan was successfully implemented, we, the new management took over the companys operations.

As we move forward, by giving a new start to the company, your Board and the management of your company intend to channelize companys expertise, experience, and resources to shape new future of the company. We believe any business in todays world needs to be flexible enough to change its course with changing times and for this, the Board wants to make this company agile enough to seize any winning opportunities.

Viceroy Hotels Ltd is in the hospitality business and owns and operates 2 hotels in Hyderabad with the Brand Name of Marriott and Courtyard by Marriott. These hotels are located in the Central Business District of Hyderabad and cater to both the luxury and business segments. Our vision is to be the premier choice for travellers seeking luxury and comfort at affordable price, and our mission is to exceed guest expectations through impeccable service and innovative offerings.

For the fiscal year ended March 31, 2024, Viceroy Hotels Limited reported total revenue of H11,945.27 Lakhs, an increase of 21% compared to H9,875.30 Lakhs in the previous year. The increase in revenue is due to increase in occupancy and ARR.

The company reported an EBITDA of H2,333.83 Lakhs for the fiscal year, from H1,370.69 Lakhs in the previous year. The net profit for the year was H703.30 Lakhs, compared to a net profit of H476.31 Lakhs in the prior year. The increase in net profit was driven by increase in the revenue of the Company.

Total expenses for the fiscal year amounted to H11,137.77 Lakhs, from H9,352.59 Lakhs in the previous year. This increase in expense is due to increase in Employee Benefit Expense and Operating Expenses.

As of March 31, 2024, VHLs total assets stood at H23,878.75 Lakhs, an increase from H23,565.09 Lakhs in the previous year, largely due to increase in cash and Cash Equivalents from operations. Total liabilities decreased significantly to H11,963.16 Lakhs from H63,680.71 Lakhs, reflecting the extinguishment of balance liabilities to financial creditors and other operational creditors.

Cash flow from operating activities was positive at H1,858.97 Lakhs, up from H940.38 Lakhs in the previous year, demonstrating improved operational performance. Cash flow used in investing activities was H1,445.80 Lakhs, primarily for property maintenance and upgrades. Cash flow from financing activities amounted to H1,445.88 Lakhs, mainly from new borrowings. The net cash flow for the year was positive at H1,859.05 Lakhs.

Our operational performance was robust, with several key metrics showing positive trends. The overall occupancy rate for the year was 66.8%, with the Average Daily Rate H6707 and Revenue Per Available Room (RevPAR) of H4383 showing resilience despite market challenges.

The hospitality industry saw a varied performance during the year, influenced by global economic conditions and travel patterns. The industry is experiencing a rebound in travel demand post-pandemic, with increased domestic and international tourism. However, rising operating costs and labor shortages remain significant challenges.

Key risks include economic fluctuations, regulatory changes, and potential geopolitical impacts on travel. To mitigate these risks, VHL has implemented comprehensive risk management strategies, focusing on operational efficiency and cost control. Opportunities for growth include expanding into emerging markets, enhancing digital capabilities, and developing new service offerings to meet evolving customer needs.

Looking ahead, VHL is committed to expanding its footprint with new properties. We are investing in digital transformation to enhance guest experiences and streamline operations. The hospitality industrys outlook remains positive, with expected growth in travel and tourism activities, and VHL is well-positioned to capitalize on these opportunities.

Our board of directors comprises of experienced professionals with diverse backgrounds, ensuring robust governance and strategic oversight. VHL is committed to maintaining high standards of corporate governance and ethical conduct, fostering transparency and accountability in all our operations.

Despite facing challenges, Viceroy Hotels Limited has demonstrated resilience through effective cost management and strategic investments. We are optimistic about the future and remain dedicated to delivering exceptional hospitality experiences and driving sustainable growth for our stakeholders.

This comprehensive Management Discussion and Analysis report provides a clear and detailed overview of Viceroy Hotels Limiteds financial and operational performance, strategic direction, and future outlook for the fiscal year ended March 31, 2024.