Praveg Ltd

Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY '26 Results Conference Call of Praveg Limited, hosted by Kirin Advisors Private Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded.

I now hand the conference over to Mr. Parth Acharya from Kirin Advisors Private Limited. Thank you, and over to you, sir.

Thank you. On behalf of Kirin Advisors, I welcome you all to the conference call of Praveg Limited. From the management team, we have Mr. Vishnu Patel, Chairman; and Ms. Bijal Parikh, Finance Director.

With that, now I hand over the call to Ms. Bijal Parikh.

Good afternoon, everyone, and thank you for joining us today. It is a pleasure to connect with all our investors, analysts and stakeholders. At Praveg Limited, our focus has always been to create a meaningful, nature-led, eco-responsible luxury experiences for our guests. Our resorts are located in culturally and ecologically important destinations, and we continue to build our presence in a thoughtful and responsible manner. Alongside our hospitality business, our event and destination management capabilities remain a strong pillar of our overall strategy.

We also had a significant operational milestone in H1 financial year '26. We received the Letter of Award for World Lion Day 2025, which reinforced our long-standing presence in premium government event management. We also officially commenced operations at Praveg Adalaj Theme Park on 25th September 2025. This property marks an important addition to our experiential and event-driven assets and positions us strongly in the premium events and entertainment category. The strength of our operational footprint and the expansion of our room inventory continue to create a solid foundation for future growth.

Let me now take you through our financial performance for H1 financial year '26. On a consolidated basis, total income grew by 28.94% to INR77.71 crores. This growth has been supported by continued expansion of our hospitality portfolio and steady performance in the events and advertisement segment.

Consolidated EBITDA for H1 financial year '26 stood at INR10.17 crores. The company reported a consolidated net loss of INR14.97 crores. Margins were impacted during the first half due to higher operating costs at newly launched properties, along with the temporary closure of our four seasonal resorts during Q2, and owing to adverse weather conditions. This resort and

new properties require initial ramp-up investment before they stabilize, and this is a normal size in hospitality operations.

Profitability was also affected by fixed lease commitments payable to the government under PPP model. On a stand-alone basis, total income stood at INR56.55 crores. EBITDA for H1 financial '26 was INR3.72 crores, and the stand-alone net loss was INR16.71 crores after accounting for Ind AS 116 adjustment. Depreciation for the half year was INR15.98 crores, which reflects the larger operating base created through recent expansion.

Travel typically picks up from October onwards due to the festive season, the winter holiday period, higher leisure travel, destination weddings and corporate events. This trend is seen consistently across the industry and supported by broader travel and hotel occupancy data.

With our seasonal properties reopening and our newer properties gaining traction, we expect healthier operating leverage and an improvement in profitability during the second half. Our long-term strategy focuses on disciplined expansion, strengthening our eco-luxury positioning and enhancing operational efficiency. With a growing presence across high potential destinations and an expanding portfolio of unique experiences, we believe Praveg is well placed to capture the rising demand for experiential and sustainable travel in India.

Before closing, I would like to thank all our investors, partners, employees and guests for their continued support. Your trust motivates us to keep improving, keep innovating and keep building Praveg into a leading name in eco-responsible luxury hospitality. Thank you once again for joining us today. We are now happy to take your questions.

The first question comes from the line of Mohit Jain from DRChoksey Finserv Private Limited.

My first question, ma'am, you have written on the press release that there are a few fixed PPP leased commitments with the government, which continue even in low occupancy months… I'm sorry to interrupt, Mohit. Could you be a little louder, please? Can you hear me now? Yes.

Yes. I was saying the fixed PPP lease commitments with the government continues even in the low occupancy months. So are you renegotiating any of these terms, especially for properties where seasonal volatility is higher?

Yes. The voice is coming low for me. If he can speak near the mic for clarity. Do I repeat the question, sir? Yes.

My question is that the fixed PPP lease commitments with the government which continue even in low occupancy months. I would like to ask, sir, are we negotiating these terms, especially for the properties, which are very high, you know, seasonal volatility is higher?

Let me tell you. Yes, I understood your point. Basically, the government's property or private property, especially the PPP property has tendering. And tender is always according to the terms of 5-7 years. And according to that, according to the feasibility, the terms of the rent are paid.

We are not running any property on sharing basis to the government. And the government is also not interested that on the sharing basis there should be a revenue audit and they should ask for sharing. Normally, we don't have such conditions in any tender. So, whatever the rent is, it is a fixed rent.

You will have to consider that if the rent is quarter 1, quarter 2, 3, 4 everyone gets the same rent.

So, the seasonal effect definitely has an effect on the bottom line of the book. Especially, the projects which are of seasonal variation and where we are not in city metro and according to the experience, its effect is mostly seen in quarter 2 every year. So, that will remain.

The next question is about the renting negotiation. Government is the transparent process or the bidding process. There is no negotiation in this. But if there is any issue related to any extraordinary problem there or if there is a strike or if there is a resource shortage then in that case, we can ask in force majeure. If there is no such event, then we can't ask. In short, we can't negotiate it. But when the tender again comes, automatically that value will be again reset in terms of the market feasibility and market competition.

Okay sir. Sir, my second question is, sir, the Praveg Adalaj Theme Park, which is our new initiative, do you expect it to be margin accretive from the first year and can you give us some figure on when do you expect breakeven, targeted first year revenue from it, etcetera, etcetera?

Yes, I will tell you. The design of Pravek introduced by Bijal sister that there are so many rooms.

Apart from that, Pravek's portfolio is quite vast. First of all, I told you that a lot of our revenue has started from advertising. We have acquired Abhik and Bidhan company and we are in expansion mode in that company. And we have shown the revenue H1 also.

Same way, in exhibition events, which you might know if you have taken the last con-call, for 1.5-2 years we have compromised the exhibition event due to development of hospitality segments and resorts. The eco-friendly resort, Pravek's in-house team, in-house architect structure and in-house development team, we have shifted to development of hotel and resorts.

That's why we have compromised the business of exhibition and events.

In that, you find since last year's announcement is done, we have again recaptured that business and started on that line. The business earlier before 2020 or '21 which was INR50 crores, INR70 crores, INR80 crores above which is almost came to INR10 crores rupees. So now again we are regaining that portfolio and we have built up team accordingly and we have redesigned and reshaped our team from development team as well as exhibition events team. So we are recapturing that portfolio also.

Now I come to our, Lakshadweep, two properties which we are going to inaugurate 100 rooms in Thinnakara North and 100 rooms in Thinnakara South. Out of that, 100 and 200 rooms is a special property of India basically. It's not only hotels or resorts. It's beyond that. You will get all activity; water sport, water activity, yacht as well as experience boating. We have planned a lot there and it is such a big property where wedding has a lot of potential where we can do 200- 250 room wedding.

Because we have 50 rooms already started in Bangaram that's operated by Taj SeleQtions. 100 rooms nearby we are launching, so 100 rooms -- then after again 100 rooms we are launching depend upon our occupancy response. So as to fixed cost we can avoid. So we are doing 250 rooms there. So apart from room revenue, we are going to get various conference, exhibitions as well as government of India, different, different state government is interested for conference as well as business program of entire India's corporate team. So many things is going to happen in that place. So it's beyond room and beyond ARR income.

Same way, Adalaj. Adalaj, we have only 10 rooms just to host our themed destination. There I have a little powder room. Guests come we need 2-4 rooms according to that. Otherwise entire venue is a thematic as well as thematic Jal Tarang if you see the photo. It's a natural stone heritage made after again 500 years. Before 500 years, Adalaj's step well was made. After that, the new step well which is being made in Praveg that also is from real stone.

And it's effect and it's cultural program, theme program, corporate program, wedding, Garba. 11:59 Garba just we have launched on the first day of Navratri. We got tremendous response.

Some social media, it was highly published in Gandhinagar and Ahmedabad area. And more than 1 million likes and views we got and people who went to that place they gave the marketing.

And apart from that, it's experience. So next year, it's marketing has been great.

Apart from that, the wedding season has started. Now just from 14th November, our wedding back to back booking has been done this year. So around 20 plus wedding income will also come there. But since the property started 2 months before, next year's wedding, there is a lot of enquiry, interest and booking. So we'll see that Adalaj will be outperformer for Ahmedabad and Gandhinagar theme-based destination, especially for culture, music, festivals, as well as wedding program.

My last question, sir, since I know we have more than 850 rooms, we are in the operation stage, we are expanding very rapidly. First half sir, I think there has been a little compromise in growth.

May be because of monsoon, may be because of something which was not in your hands. So sir, I want to understand how are you looking at second half? What's your view on the second half?

Do you think they will have a good growth in second half?

You can even see the historical data of our Praveg balance sheet. You always find Q1 and Q2 weak, Q3 and Q4 always beyond that. So because of this is a seasonal variation. And Q3, Q4 will be same like earlier trend.

So, I don't see any problem in this. Talking about result expectation, I would like to say that our Bangaram is launched, which is not working this year from 15th May to around October, it was

not working. So entire cost is on this balance sheet. Number two, exhibition event management team, we have rebuilt to -- after 2 years, all my debt portfolio I want to recover, which we have lost due to this experiences. Hospitality development which had to be done. So, all the teams which were transferred to development division.

So, we brought that team back. Plus, we are building exhibition team. CEO is also appointed.

The next question comes from the line of Pratik Patel from 50 Millionaires.

Sir, I have a question. When will your Thinnakara resort start? And what is the response we have got in Bangaram? As an occupancy or the booking of this season. So, this is my first question.

Then I will ask the second question. So I want to know about Thinnakara and Bangaram.

See, Bangaram resort is already started operation in this October month. And in initial October, November month, it is normal, but we are expecting December, January, February, March are outstanding. And we have good amount of inquiry, which is came, as well as we have started city-wise targeting various city for the Bangaram and Thinnakara business.

So, Bangaram has a very good response. As you know, this is a greenfield or gray area, which we have started. Now publicity is started. And in Bangaram, extraordinary response we are expecting. And Thinnakara, we are starting in very near time line and make its announcement in very near future.

Sir, any idea like within 3 months or 6 months, Thinnakara will be launched?

One month. You can allow us 15 days plus/minus, okay?

So we can get the benefit of these next few months season wise, as Praveg? Yes.

Because Lakshadweep has a season till March. So, will we be able to take benefit of that as a Praveg?

It remains till May 15 and will continue till May 15. But May is little weak. Normally, April is good from November. Because, what is it called? Dolphins also come in January, February, March, April. So, many foreign tourists also come. And I would like to tell you one thing. I would like to tell all the investors and analysts that Bangaram is the beauty of India.

That you all know. That is no problem. But the Bangaram having a problem of various logistics and public awareness in Indian mainland. So, we will have to give time for all these things. But as guests come and go to the mainland after seeing them. So, the factor of mouth publicity will be seen a lot in the next season. It will be out of box. This is our total team's opinion.

Okay. So, sir, if you can share numbers in Bangaram. What is the average occupancy according to the bookings?

October, Taj SeleQtions is operating there. I have to tell -- Bijal ma'am, can you share anything about October data, October, November?

So October, the occupancy level was approximately 25% to 30%. The weather was impacting...

Yes, weather was -- yes, very raining ma'am since cyclone was there in October.

Okay. And sir, I have seen some reviews of Bangaram. And the feedback I saw online. Some people are demanding maybe non-veg. So do we have the availability of non-veg because as a Praveg, we don't serve here, that we serve only vegetarian, yes?

I would like to tell and focus about it. Praveg is a pure veg restaurant, pure vegetarian company.

So we are not providing. But Taj SeleQtions, other than our 50 rooms, adjoining government property is there, there full non-veg facility is there, which is already managed by the Taj Group.

And it's in books of the Taj. They are sharing their profit and whatever it may be with the government. We have nothing to do with that. But in our 50 room and our services, we are not providing non-veg on our books.

And do you think sir, I think next one year as we have invested a lot of money in Lakshadweep.

So, do you think that Praveg's future trajectory can be very good in terms of earning?

Definitely. I would like to tell everyone who is in the con call, to go and visit the place once. Then give your review in the next call.

And sir, any guidance for this year if you can share?

I have told you one thing. In guidance, I say only one thing. The difference between H1 and H2 is historical with Praveg. You can analyse it. Beside that, what we are progressing in Exhibition, Event line. But the entire surplus will be in addition to the last year trend, as well as advertisement. Both will be the trending, which was almost very visible in last '25 -- last two quarters of '25.

This last two quarters, you can find Advertisement and Exhibition business on good scale.

Besides, Hospitality business incremental due to our season. Third and fourth quarter is our season. So that will increase in proportion. These two additional factors will provide valuable guidance, and as a result, the second half of the year is expected to perform better than the first half.

Sir, H2 is always better. But this time, what do you expect? Like last year's H2, any expectation for us?

Last year's turnover, the same proportion of turnover which increased in quarter one and quarter two, the same turnover, top line will increase in it. That's all I can say. Plus exhibition business will come in it. That's why I am not telling you the exact figure. There is a reason for that. Total business of exhibition event is on government.

So it depends how many tenders or exhibitions or events came into place. So we do tendering based on that. Sometimes government business comes in it. So it depends on how much we can take in it. But I say this much that last year there was nothing. Instead of that, this time we have done around INR10 crores business.

We have done INR8 to INR10 crores business in this month. In the last two months. Now there is a big season coming which will come till December, January, February, March. So I am very optimistic that the business which was there last year, it will grow here. If it recovers.

Okay. And sir, any comment on the White Rann, Kutch?

White Rann is good, and we are almost in a mode of expansion there also, and you will find some exciting news.

Because I am not seeing Praveg's Board. I am seeing Lallu's film board a lot. So why is our marketing less this time? Regarding White Rann? Marketing, Bijal ma'am, you answer it.

So basically, for Praveg White Rann Resort, what we felt is that we don't require marketing.

Rather than doing the holdings and all, we do the -- our marketing expenses on the social media side, which gives us the better results. So we are more focused on the digital marketing side.

Okay. Thank you. And sir, good advertising is going on. I am seeing around Ahmedabad. So thank you and wish you best of luck.

The next question comes from the line of Kailash from Sikhwal Securities.

Sir, Namaskar. Sir, my question is that any chance of margin improvement? Whenever I see the balance sheet, the margin is 30%, 20%, 50%. But in the last couple of quarters, the margin is decreasing. Anyway, can you guide us on that?

That is very minor share we are giving to landlords. Rest of the resources are on the renting basis. We don't look at the season in rent. The rent is the same in quarter 3, quarter 2, and 1. The second reason is, last year there was no Bangaram. In this first quarter, the first year of Bangaram was off-season. From 15th to almost 15th October, there was no business. Because of that, there was no permission. We couldn't keep it running. It was an island, a separate tapu. We couldn't work there. The business wouldn't keep running. So, there was a fixed cost.

The third point is, our exhibition event development division, we have created new team in quarter 2. Plus, there was an additional overhead. The CEO was appointed. So, we had to do a lot of overhead to launch the exhibition event business. So, we had to pay for that as well. So, in total, the two major sources of revenue are hospitality and the second is advertisement.

So, the income from hospitality and all the overheads, like I told you, the rent difference, the difference in business, the proportion of rent increases in percentage of cost. The third is to set up an exhibition event team. Fourth, as I told you, we are focussing on the service of the

customer, rating of the customer. Like a 5-star property, we have to give the best service.

Wherever there is any compromise, we can't run on that mode.

So, according to that, the entire team, as I told you earlier, a year and a half ago, we had a team of 100 people. Food and beverage is what outsourced. Housekeeping was outsourced. Now, the team from 100 is become 1,500 employee team within 1.5 years.

So, whether it's a season or off-season, if the outsourced food and beverages, the outsourced hospitality, the housekeeping team, I can fire them. I can reduce that time. But where there is an in-house team, I have to retain them. And there is only one benefit that is customer satisfaction.

It's a trained team. It works according to our SOP. So, that is our cost due to this satisfaction, customer satisfaction, which is the best rating, review. You go to our trip advisory.

Daman's entire property, our trip advisory, is almost number one. Daman also has the same status. If you look at our property in Ahmedabad, the rating you are getting everywhere, there is only one reason for that. It's a dedicated team. As soon as I outsource it, I can save 5%-7% profit.

But it will be at cost of customer satisfaction.

If I want to deploy the company in a good experience hospitality segment, in India and Africa, then service will be the prime focus. Balance sheet is the utmost important, I'm not deny that.

But in longer run, I will convert that experience to balance sheet.

Sir, I have one more question. Sir, today, Praveg stock has increased from INR1,200 to INR300.

So, what clarity would you like to give to the minority shareholders, sir?

Yes, that's a very good question. See, Praveg is following 100% corporate governance and compliances. Even before Diwali, income tax surge also came to Praveg. And we have declared, we have filed in the exchange that they found nothing, any objectionable. Nothing is happening.

Why? Because of our corporate and accounting governance, number one. Number two, what was your second question? Tell me. About the price. Okay. I would like to tell you, those who are on our analyst on phone. December 23 was the date when, I think, November or December 23, when our Honorable Prime Minister visited Laxmi. That time, Bangaram was awarded to Praveg. That you know well. Agati was awarded to Praveg.

That time, if you see that time of Twitter, then after next month, i.e., January 24, Ram Mandir temple was inaugurated. Two properties were awarded to Praveg that time. And entire boom in social media lead to this market panic mode. And all the investors are on emotional ground, maybe.

I can't comment on it. But they do the buying. And the investor boom of the company was manifold increase. And that was the reason for the INR1,300. That is not exactly my opinion about any pricing. I am not making any opinion for pricing. We are following corporate governance.

So, this is not my subject. But as a layman, I studied it. Everybody was behind Twitter and social media. And that's why the price was shoot up. Then after, obviously, if anything goes up, it has

to have a corrective effect. And it is possible that due to temporary phenomenon, as I told you, Praveg's first focus was to operationalize 18 resorts in 2 years. There was some query also at that time. If you see our earlier con-call, that how will you be able to operationalize 18 resorts in 1.5 years. We did it and showed.

After that, we acquired advertising company last year. So, it had a turnover of INR32 crores.

Now, if you see in 1 month, it had a turnover of INR23 crores, INR24 crores. We completed it in half a year of last year. So, this year also, you will get to see that in H2.

So, in short, we have nothing to do with Praveg's price market. I have to give performance.

Definitely, I do accept that your expectation may not have been fulfilled. Due to many reasons, I explained. Our team will do its best. Right now, it is operationalized.

Right now, we are running development plans on other models, as well. We have some inquiries for the hospitality company as well. So, we are regaining that. We are putting it in a new expansion. Our exhibition event business, which was worth INR100 crores before 2023, is now worth INR50 crores, which was almost zero. We have to recover that. All these effects will come. So, you will have to give time to a company.

When a traditional hotel company is put on hold to build a business, it is operationalized after 4 years. We have done it in 1.5-2 years and shown it to you. Now, we will show you how to operationalize it well, take a good margin, regain the exhibition, do it on the new hotel expansion investor model, increase good room inventory in less capex, give good experience, send good theme park and experience, if there is any new proposal from the government, do that, do expansion in the museum, there is a lot of potential.

So, as an investor, I would say only one thing. You think about longer vision rather than shorter vision. The shorter vision people may be not satisfied at that time and they may have sold their portfolio during this period. So, always any flight, even aircraft, when it takes off, it consumes more fuel. You understand this. And your company is not an old company in hospitality. You have to give some time to take off.

Got it. My last question is, the fiscal issues that got cancelled in yesterday's notification, now there will be no funds, there will be no inflow. So, will there be any impact on the company's growth for future development? And additionally, there was some debt added in this quarter. So, how should I see this as an investor?

No, see, are you talking about the warrant? Yes, sir.

Yes, the warrant money is a 25% forfeited that you know, right? That's come to be a part of reserve without any debt, without any liability, number one. And number two, to that extent, you can fill up by the debt of the group company or from promoter or from banks if required for the growth. And we have shifted our focus from in-house capex to investor capex model.

The next question comes from the line of Hrushikesh Shah from Alchemy. Please go ahead.

Hrushikesh, please go ahead and unmute your line in case if you're on mute.

Yes. Sir, I wanted to ask you, as you have guided us that we should look at growth on H1 to H2 basis. So, if we look at our H1, we have made a revenue of almost INR80 crores, right? So, H2, usually H1 has one third and H2 has two third. So, is it right to think that we should think that in the second half, it will be like INR160 crores?

No, you understand. I said two things to you. First, I said INR160 crores. I said that on the basis of the last year. Plus, the exhibition event plus the advertisement is for revenue, which was not there in the last year.

Yes, right. Right. So, if you understand, in H1, I understood that H2 should be more than INR160 crores, according to you. No, no. Exhibition and… It will be more than last year. Very much. It's good.

Okay. It will be good on the basis of growth, right?

So, on the basis of growth, you are seeing that the growth in the quarter will continue. That's what I am telling you.

Okay. Okay. Understood. Sir, my second question was this. If we look at H1, then our operating expense is INR66 crores. On the revenue of INR77 crores, the operating expense was INR66 crores. So, how will it play out in H2? I mean, how much will it increase? Because it is operational -- plus, we get seasonal. So, how should we look at that?

I am telling you. See, every hospitality company has a fixed cost. This is the difference between season and off-season. Off-season, when our season is like quarter 2, then automatically our EBITDA will get straight hit. Now, as the sales volume increases, it will contribute 80% to the profit. Because I don't have to pay additional rent.

I don't have to do any construction there. Whatever I have to do, I have to spend a little on F&B.

And there is not a lot of expenditure in the electric sector. There are staff as well as employees.

So, the incremental revenue in H2, I can say that it is 75%. Please understand this 75% or 70% straight margin. This is what happens in a new hospital business. Because we have already removed the bottom line.

Right. Understood. So, there is an additional 25% in the cost. Rest, 75% of incremental is directly into your margins.

Sir, now, I would also like to tell you something important. To all our esteemed team, analysts and investors. In this year's 18 resorts, around 50% resorts were operated in the last one year.

Please understand this. So, the first day resort does not come in profit. Please understand this thing.

So, you have to give 1 year, 2 years, a little time. You will have to give time even in the last week. If you launch it today, then you will expect that 80%, 70% occupancy will be there. That does not happen. It increases in the second year, in the third year. But you can expect. My longer vision is that the property that runs for 7-8 years, then the average 40% occupancy should be deivered.

That is my expectation. So, in the first year, it may be 10%, 5%, 15%-20% in the second year.

It depends upon trending, depends upon location, depends upon public response. Many things should be taken into account. I understood. Sir, I have a question….

Hrushikesh, you are breaking up. Hrushikesh, we are not able to hear you. You are breaking up. Hello. Yes, please go ahead, Hrushikesh. I am listening.

Yes. Sir, I wanted to ask you, how much is the capex in H1?

Look, I would like to tell you. Almost capex is done. Thinnakara North also capex will be done in H1, Bijal bhai you can tell about this.

Sir, it will be there in quarter 2 balance sheet we filed. This figure you can get in presentation also… This is fine. I will see this in the financials. I need clarity. You said Q1 to Q1 compare. How should we compare? Q1 to Q1. Last year, this year. You mean Q1 to Q1, right? Q1 to this year Q1.

Okay. More than that will grow as per you.

You will get Q1, Q2, Q3, Q4. That's what I wanted to say. Last year, there was no business of exhibition, advertising. It was not there.

Okay. Understood. Thank you. Thank you, sir.

WRR announcement is done? Published? Any queries please, next question please.

I would like to tell my old on-call investor analyst, just we have filed an exchange, additional inventory of 252 bed in Kutch, which is awarded to us for 35 years. It is a good, amazing moment for the company's acquisition. Just we have published in exchange, so I can announce now, that 252 bed is equivalent to, we can say, 126 rooms, besides 76 rooms which we already hold.

So, total inventory will be around 202 rooms in Kutch. In this season there will be 76, next season it will be 202 rooms, including this, I have told about this dormitory room. So, we have major expansion coming in Kutch next season. Thank you. Now question.

Thank you. The next question comes from the line of Rahul Dhruv from Pegasus Growth. Please go ahead.

Yes, hi. Sir, I wanted to ask you that the warrant which has been forfeited, if the money is not coming, and you have written in your presentation that you are adding 500 more rooms in the next one year, all the properties of Maharashtra etcetera. So, for that approximately, let's assume, if I take INR50 lakhs per room, then you have a capex of INR250 crores. So, sir, where did that money come from? What will be your debt due to this?

I would like to tell you. First of all, let me brief you a little. Just now I announced that 126 rooms are coming in Kutch. Out of 500, let me brief you one thing. Out of 500 rooms, out of the 126 rooms coming in Kutch, the property which you know is of Kashi, the Varanasi. The entire infrastructure is coming in Kutch.

So, this is the good news of the project that the capex has been forfeited. So, the entire resource will be generated in these 126 rooms. So, the property which was not there for 2 years, will be used in the Kutch of the next season….

That whole infrastructure is coming to Kachchh. So, this is the good thing of Praveg that one hotel has been closed. So, we will take the whole resort and generate income in 126 rooms. So, the property that was lying for 2 years, we will use it from next season in Kachchh.

So, you can understand that its capex will be very minimum. It will cost me INR5 crores, INR7 crores, which will make the 126 rooms, due to installation and all that cost. Whatever is needed to finish.

So, our 126 rooms are made from Varanasi. The second thing that I have already told you that our work is going on our investor model. Investors will invest and we will develop that property as per the vision of Praveg. After development, we will operate it also.

So, there will be a margin in development and there will be a margin in operation. And the benefit of the investor is that on the basis of the low capex model of Praveg, his resort will be made on his own books.

Sir, I have understood Kachchh that if there is incremental capex, it will be less. In your presentation, the other properties like Udaipur, Kanchanpur, Kihim, Kashi, Thinnakara, Bangaram. I can assume that you have approximately INR130 crores in CWIP. But the balance amount that you have to put in all this, how much will it be approximately?

I am telling you the same thing again. I have given reconciliation of 126 rooms. Thinnakara North is ready. No additional capex is needed. Already done from our existing capex. So, Thinnakara North is okay. 100 rooms, 126, 100 rooms. South, we have built around 80% there also. We have done already capex for 80%.

So, you can understand that the expense of 20 rooms, INR10 crores, INR15 crores investment will be additional there. So, in INR15 crores, 5A and INR20 crores, we will have 326 rooms from INR15 crores, INR20 crores. Clear? Is this point clear?

So investor plus Praveg will be the joint development activity for the future expansion, so as to we can minimize our capex. It's having a good response from capex side with the Praveg. In that case, such an extraordinary property is required to acquire on our own. But wherever possible, now we are expanding investor model also.

Okay. So, sir, how will this investor module work? How much money will you invest? How much money will he invest? Can we get some basic idea?

I can give you five, six model. Number 1, land is of investor. Development is done by Praveg.

In that case, we are selling land. Number 2, land is of Praveg. Investment is done by Praveg. In that case, private will take its margin. In that case, capex will also have a reasonable margin.

And according to that margin, resources will be made. It will be provided by operation management.

So, this is the 2nd module. 3rd module is PPV module, which government we are bidding. We develop it. We do our capex. And we take its revenue. So, this is the 4th module. If someone has a good ready hotel. It goes according to my experience. And if he wants to give me a readymade, then we can also take it by random. So, 4-5 modules are going to be developed according to that.

Sir, let me put it the other way round. You have done a capex of INR41 crores in the 1st quarter.

So, approximately how much capex will be there in the 2nd half?

In the 2nd half, as I told you, the capex of Thinnakara North, we have added a new addition of INR10 crores, INR11 crores. Now, it is almost on the inauguration stage. So, it will be of almost INR10 crores, INR15 crores. Rest of the capex. And it has been completed. For your kind information. And will you take more loans or not?

Sir, what you are saying, if the money for the warrant comes, then it was going to be utilized in future expansion. In which, sorry, like the requirement of INR10 crores, INR11 crores is of INR10 crores, INR15 crores in the South. Like it is in Alibag. It was going to be used for that.

But we will manage it from our side. It may come from the promoter also. It may come from our good investors also.

So, you won't take loans now, right? You won't have to take more loans than this.

It depends. If there is an opportunity, and if it is required, if it is required in the working, then according to that. So the loan almost Praveg has taken it from the group company, number 1.

There is no other loan except some BB and CC limits, very less, INR5 crores, INR10 crores.

This INR500 crores net worth company having INR10 crores, INR15 crores limit is only for the management of bank guarantee or government business, that you know.

The next question comes from the line of Vrushank Patil, an Individual Investor. Please go ahead.

My question was on the trade receivables appearing on the balance sheet. So what I see is INR69 crores worth of trade receivable is there, and our revenue for the half year is around INR76 crores. So if you could just throw some light on what kind of -- because I understand that this would be -- most of the receivables would be from the resort bookings where there won't be any substantial credit period. So what this receivable comprises -- trade receivables?

There is a trade receivable from government exhibitions as well as corporate conference, corporate bookings, where there is flexibility with them.

So generally, what is the credit period we are giving over there?

See, many times there is a routine business. So, there is a new business, then there is a new ad, payment comes, so it is like a cycle. And where there is a single business, where there is a non- group, where we can trust, then we give some credit and work. And in the government, in the government, many times the processing takes time.

So, many times it takes a year as well. We have to recover from the government. There is a process for it. According to the government, there is a payment system. So, all that is collected in the trade receivable bank.

The next question comes from the line of Mehul Panjuani from 40 Cents. Please go ahead.

Hello, sir. Thank you so much. You told us a lot in detail.

Ready to share anything about our company.

Yes, which is giving us a lot of confidence despite the loss reported… You see the future of Praveg, not only the historical data.

Yes, sir. Sir, I wanted to know, you said that there is a revenue of INR11 crores in advertising?

INR11 crores. Yes, tell me.

Sir, is it a new segment or is Praveg already in it?

Let me tell you. Praveg own book was an advertisement event exhibition business. From 2014, we added first Kachchh. In 2018, we added Kevadia. In 2022, we added. Then after, you know the journey, right?

Same way, advertising and event is an integral part of the business. But we are segregated by the strategy that now we are looking at advertising and exhibition events separately. We are looking at advertising separately because of that, we had an SPV who was an experienced person of 20-25 years. He is also a 32-year-old guy.

So, in the experience team, we invested strategically and took 51%. After that, we had Gandhinagar Municipal Corporation, Jaisalmer, Goa, then after, Maharashtra Petrol Rural Figment, certain side of the railway, STK side, yes. So, we started the expansion of the new hoarding at the prime location.

So, we acquired it from 1st July. This 1st July completes our year. So, in July-August-September, the last year was INR32 crores, INR33 crores turnover. Now, in the same half year, we have made it INR24 crores. And this year, you will see a good growth in it. Not only for the financial side, but also acquisition of the new advertising area, new advertising monopoly in certain cities, certain big metro cities, also we are planning.

So, you find that development in that company. So, you can specifically judge what profit is made by that company. Same way, in exhibition events, which is Praveg portfolio, which we have lost for 2 years, we have not worked in it for 2 years, due to development, we are going to regain that also.

You have also filed 2 announcements for the new award. Our team is still working aggressively.

From its CEO, the whole team is ready. We have started bidding aggressively. You will also see a good business in the next half year. We are optimistic for that.

Right sir, right sir. Now we are confident. Sir, one more question, which you have announced, which Bijal ji has just told us… Yes, it is on.

Sir, is it Rann Katkai or somewhere else?

Sir, our 46 rooms and 30 bungalows have exactly adjoining properties. In the same property, 50,000 square meters of land has been awarded. And I would like to note it again. Till date, Praveg has seen 7 years, 10 years of tender. This announcement is for 35 years. That means, the company has got the longer term property.

Sir, but is this due to Lallooji & Sons or did you get it?

No, it is ours. It is Praveg award. You see, it is all filed. Government has given it to the tourism department.

Okay, okay. Sir, one more thing, now we have 18 resorts in total. Is that right?

I think so. Exactly. There are 18. Yes. Right now, two announcements are on the stage.

Okay. Sir, now I will talk about 18 resorts. Sir, out of these 18 resorts, how many resorts and revenues will you generate and how many will you do now? I mean, how many are left?

I will tell you. 18 resorts have already been operationalized. In two resorts, the announcement of the operation, I told you in a con call, you will get it by January.

No, sir, sorry, I would like to rephrase my question again. I asked the wrong question. The 18 resorts that you said are operational, how many resorts out of these have already been operational for a year?

Almost, if you take out the seasonal, it is 50-50. That is the reason that you are feeling pressure in Q1-Q2. In this, the property is 50% such that we have launched it in January-February.

Yes. Okay, so 50% is operational for 1 year and 50% is non-operational… I will tell you. Out of 18 resorts, take out 4 that are seasonal. 14 are left. Out of these, 7 are new and 7 are old. Approximately, I am saying. I am not a paper, but I am just saying the average.

This is a new property. Its margin will be suppressed. You have to bear with that time for 2 years.

Yes. But you will have to wait for 2 years. That is one thing. But the number of H2 will have a lot of improvement because all the resorts… It is a simple reason. You know when people go out. They don't go in monsoon. Everyone plans in winter. People go in May, April, May. Out of 15, 30th September, my business is almost down. And I can do it in one place only. That is advertisement and exhibition event management.

And we are recapturing that. So, I am assuring that in the next 2 years, in quarter 1 and quarter 3, sorry H1 and H2, the bottom line price you are seeing may not be there.

Okay, sir. Thank you so much. Congratulations to you and all the best, sir.

Thank you so much. Thanks for all of your blessing to the company.

Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to Mr. Parth Acharya for the closing remarks.

Thank you, everyone, for joining the conference call of Praveg Limited. If you have any further queries, you can write us at research@kirinadvisors.com. Once again, thank you, everyone, for joining the conference.

Thank you, sir. Ladies and gentlemen, on behalf of Kirin Advisors Private Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.