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Praveg Announces Opening of Praveg Tent City, Saryu, Ayodhya along with Q3 & 9M FY24 Results

Business | February 16, 2024 2:54:43 PM IST
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PNN

Mumbai (Maharashtra) [India], February 16: Praveg Limited (BSE - 531637), India's Premier Eco-Responsible Luxury Resorts Company, Unveils Praveg Tent City, Saryu, Ayodhya, and Releases Unaudited Financial Results for Q3 & 9M FY24.

Key Financial Highlights

Q3 FY24:

* Total Income Rs34 crore

* EBITDA of Rs13 crore

* EBITDA margin at 39%

* Net Profit of Rs8 crore

* Net profit margin at 24%

* EPS (Diluted) Rs3.55

Developments during the Quarter:

1) Praveg Receives 3 Work orders for Nagoa Beach at Diu, Jalandhar House at Diu and Damanganga Circuit House atSilvassa;

2) Praveg Receives Work order for Developing Tents at Agatti Island, UT of Lakshadweep, Development, Operation, Maintenance and Management for the above islands;

3) Launching of two properties namely Praveg's Tent City at Ayodhya, Brahmakund, Uttar Pradesh and Beach Resort at Ghoghla Beach, Diu on the auspicious day of Deepavali2023; and

4) Preferential allotment of 200,000 equity shares converted from warrants at INR 487/- in November 2023.

In the most recent quarter, our company experienced a commendable surge in revenues of 16% YoY and 131% QoQ, fueled by robust demand during the festive season and optimal utilization levels at our resorts. Our hospitality business contributed 77.33% to revenues increasing by 64.73% in YoY.

Despite encountering challenges such as heightened operational costs linked to ongoing project developments, resulted in a slight contraction of EBITDA margins and profits. However, we remain strategically focused on significant investments in resort and hotel properties designed for year-round operation. The recent inauguration of Phase 2 in Ayodhya signifies a significant milestone for us in Uttar Pradesh. With this addition, we have now nine operational properties and thirteen under development, positioning us for robust growth in the upcoming financial year.

During the quarter, our expenses, including depreciation charges, experienced a notable increase, primarily attributed to the rise in overheads for setting up new resorts. Despite this challenge, we maintained a resilient EBITDA margin of 39.2% in Q3 FY24. Our steadfast commitment continues as we actively seek opportunities for expense optimization and operational refinement to enhance financial performance in the upcoming quarter. Our Operational resorts showcased impressive occupancy rates of 47% during the quarter, coupled with a noteworthy average daily room rate (ADR) of INR 9,790.

Commenting on the results & Tent City, Chairman Mr. Vishnu Patel said, "the operational resorts are gaining significant traction across all locations. Anticipation is high for forthcoming resorts to become operational in the next 6 months, with expectations of increased occupancy and interest. Our exhibition business has made a substantial contribution to total revenues, with promising inquiries received, indicating positive prospects ahead. The exceptional on-ground professional team has played a pivotal role in accelerating our growth, efficiently overseeing resort development and management, ensuring a swift pace in delivering luxurious experiences to our customers. These collective efforts are poised to yield positive outcomes for our overall performance this year.

Looking ahead, we project our operational resorts to achieve occupancy rates of 45% to 50% in the upcoming quarter, accompanied by an average daily room rate (ADR) of INR 9,000 to 10,500. Our ongoing commitment to nurturing our Hospitality Business remains steadfast, complemented by anticipated growth in our Events and Exhibition sector, promising to elevate our overall operations to new levels of success.

I am thrilled to announce the commencement of Praveg Tent City, Saryu, Ayodhya. I hold firm confidence that our property, distinguished by its exceptional location, eco-responsible design aesthetics, and a dedicated team of young and experienced professionals, is poised to provide a unique and distinctive service to guests hailing from every corner of the globe.

Praveg Tent City, nestled near the tranquil bank of river Saryu in Ayodhya, offers a blissful retreat with 39 well-appointed tents, each promising a harmonious blend of comfort and nature's embrace. Embracing the rich cultural heritage of Ayodhya, the tent city beckons travelers with a myriad of amenities designed to elevate every aspect of their stay.

Saryu, a sacred water body in Ayodhya, holds profound significance in Hindu mythology, believed to be the spot where Lord Rama took his final bath before ascending to heaven. The picturesque surroundings of river Saryu exude an aura of tranquility and spirituality, drawing pilgrims and tourists alike to its banks.

Anticipating the growing significance of spiritual tourism in India, we are optimistic about Praveg Tent City, Saryu, Ayodhya, witnessing substantial footfalls. With the opening of this property, we project an average occupancy rate of 60-70% in the coming year and the Average ARR would be INR 10000 to 12000. Our unwavering commitment to expanding our portfolio with more eco-responsible luxury resorts across India remains steadfast.

With this addition, a total of 10 (Ten) resorts are operational and 12 (Twelve) resorts are under development."

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