New Delhi (India), August 18: Praveg Limited (BSE – 531637), a renowned name in the Indian Tourism & Hospitality and Event & Exhibition Management industries, reported its unaudited Financial Results for the Q1 FY24.
Key Financial Highlights:
Q1 FY24:
• Total Income ₹12.45 crore
• EBITDA of ₹ 4.94 crore
• EBITDA Margin at 37.34%
• Net Profit of ₹ 1.17 crore
• Net Profit Margin at 9.38%
• EPS (Diluted) ₹ 0.51
Speaking on the occasion Mr. Vishnu Patel, Chairman of Praveg Limited said –
“This year has been marked by our unwavering dedication to the Hospitality Business, where we have passionately allocated all our resources to the development of 15 resorts within the year. While this commitment has temporarily impacted the revenue from our event and exhibition sector, it’s important to note that this strategic shift is part of our broader vision.
We believe that Praveg is in the process of a business transformation where it is investing in growth for its Hospitality business in coming 12 months which is expected to see strong business traction from Q3FY24 onwards.
We also believe that post Q3FY24 onwards we are confident of ramping up our Events & Exhibition business once the company’s oncoming hospitality projects go on stream as planned earlier.
The establishment of new resorts in previous and current financial year hassled to an increase in depreciation by over 234% on a YoY basis which was necessitated by large capex incurred on new resort properties in Q1FY24 thereby influencing our profitability at this juncture.
Also EBIDTA margins were down to 37.34 % from 43.09 % as depreciation as a percentage of operational revenues increased to 27 % from 4.83 % in Q1 last year followed byhigher employee costs as a percentage of operational revenues to 15.12 % from 6.78 % in Q1 last year.
To further elevate our company’s professionalism and expertise, we are excited to announce the appointment of seasoned professionals to our board. These individuals bring a wealth of knowledge from diverse backgrounds, including finance and engineering. Their valuable insights are poised to propel us even further in these domains.
Looking ahead, we’re thrilled to share that ten out of the fifteen resorts will be in operation from Q3 of FY24. We’ve already initiated substantial recruitment efforts to ensure a robust team is in place to facilitate this growth. These endeavours are projected to significantly contribute to our performance in the current year.
As we chart our course forward, it’s evident that our primary focus is on nurturing our Hospitality Business. This deliberate strategy will undoubtedly be the cornerstone of our growth, reflecting the entire management’s resolute dedication to capturing the full potential of this thriving sector.
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