Any current/future new fundraising through debt or equity?

There is no mention of any current or planned fundraising through debt or equity in the provided transcript of the Praveg Limited conference call dated February 14, 2023. The discussion primarily focuses on expansion plans, resort development, payback periods, project details, land acquisition, and operational aspects. Capital expenditure is discussed (INR 90 crores for upcoming projects), but the source of funding (debt or equity) is not specified. The company emphasizes growth via PPP projects and own land but does not mention raising new capital through fundraising channels.

Any current/future capex/capital investment/strategic investment?

INR 90 crores capex planned for the current year focused on developing 9 resorts. Targeting turnover of INR 60 crores next year from these new resorts. Strategic plan to develop 9-10 resorts annually through 2024-2026, depending on opportunities. 40% of resorts to be developed on company-owned land, remaining 60% on leased/government land. Tent structures budgeted at INR 15 lakh per room for temporary and INR 30 lakh for semi-temporary structures (excluding land cost). Expansion includes Indian projects (Sikkim, Northeast, Uttar Pradesh) and future international projects (Kenya, Maasai Mara fo

Future growth expectations in sales/revenue/volumes?

Praveg plans to develop 9-10 resorts annually for the next 3-4 years, aiming to expand capacity from currently 10-12 resorts. Target is steady growth by capturing opportunities in India and overseas, including at least one resort in Kenya (Maasai Mara) for experience before aggressive expansion. The company targets an INR 60 crore turnover from the nine upcoming resorts next year, backed by INR 90 crore capex. Payback period for investments is aimed at a threshold of 1.5 years; up to 3.5 years considered acceptable for some projects. Event management and hospitality segments contribute

Future growth expectations in earnings/operating earnings/profits/EPS?

Praveg plans to develop 9-10 resorts annually from 2023 to 2026, targeting a maximum payback period of 1.5 years, extendable up to 3-3.5 years for select projects. Capital expenditure for FY 2023 is INR 90 crores for nine resorts, expected to generate about INR 60 crores turnover next year. Management aims to maintain EBITDA margins around 50%, with quarterly margins recently reaching around 60% due to higher business volumes. Revenue mix is roughly 60% hospitality and 40% events/exhibitions, with a growing focus on hospitality to mitigate event seasonality. Growth target includes scaling turn

Current/ Expected Orderbook/ Pending Orders?

Praveg Limited is actively planning to develop 9 to 10 resorts annually over the next 3-4 years, aiming for steady capacity growth. Currently, the company has 4-5 resorts on its own land and 5 in Public-Private Partnership (PPP) mode. The strategic plan is to diversify geographically, ensuring no state accounts for more than 20% of the total resorts. About 40% of resorts will be on owned land and 60% on leased or government land. The company has specific projects lined up, including Tent Cities at Daman, Diu, Jampore Beach, and others like Sasan Gir, Kevadia, Kumbhalgarh, Velavadar, Ranthambor

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Praveg LtdQ4 FY23Leisure Services

Praveg Ltd Q4 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹265Market Cap: ₹680 CrSector: Leisure Services

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Praveg plans to develop 9-10 resorts annually for the next 3-4 years, aiming to expand capacity from currently 10-12 resorts.
→Target is steady growth by capturing opportunities in India and overseas, including at least one resort in Kenya (Maasai Mara) for experience before aggressive expansion.
→The company targets an INR 60 crore turnover from the nine upcoming resorts next year, backed by INR 90 crore capex.
→Payback period for investments is aimed at a threshold of 1.5 years; up to 3.5 years considered acceptable for some projects.
→Event management and hospitality segments contribute 40% and 60% respectively to revenue, with expected growth as pandemic restrictions ease.
→Plans to increase resorts across states, avoiding concentration in one state (>20%) and balancing owned land (40%) with leased land (60%).
→Seasonal resorts like Varanasi and Runn of Kutch operate 7-8 months; other resorts aim for year-round operations to mitigate seasonality.

Margin guidance

Category 3

→Praveg plans to develop 9-10 resorts annually from 2023 to 2026, targeting a maximum payback period of 1.5 years, extendable up to 3-3.5 years for select projects.
→Capital expenditure for FY 2023 is INR 90 crores for nine resorts, expected to generate about INR 60 crores turnover next year.
→Management aims to maintain EBITDA margins around 50%, with quarterly margins recently reaching around 60% due to higher business volumes.
→Revenue mix is roughly 60% hospitality and 40% events/exhibitions, with a growing focus on hospitality to mitigate event seasonality.
→Growth target includes scaling turnover possibly approaching INR 200 crores by FY 2025, subject to occupancy and new resort performance.
→The company pursues disciplined financials, focusing on rapid payback investments and expanding presence across Indian states, plus potential PPP resorts.

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Fundraise plans

→There is no mention of any current or planned fundraising through debt or equity in the provided transcript of the Praveg Limited conference call dated February 14, 2023.
→The discussion primarily focuses on expansion plans, resort development, payback periods, project details, land acquisition, and operational aspects.
→Capital expenditure is discussed (INR 90 crores for upcoming projects), but the source of funding (debt or equity) is not specified.
→The company emphasizes growth via PPP projects and own land but does not mention raising new capital through fundraising channels.

Order book

Yes

→Praveg Limited is actively planning to develop 9 to 10 resorts annually over the next 3-4 years, aiming for steady capacity growth.
→Currently, the company has 4-5 resorts on its own land and 5 in Public-Private Partnership (PPP) mode.
→The strategic plan is to diversify geographically, ensuring no state accounts for more than 20% of the total resorts.
→About 40% of resorts will be on owned land and 60% on leased or government land.
→The company has specific projects lined up, including Tent Cities at Daman, Diu, Jampore Beach, and others like Sasan Gir, Kevadia, Kumbhalgarh, Velavadar, Ranthambore, and Udaipur.
→No explicit numeric detail of total orderbook value or pending orders was disclosed, but the pipeline includes 24 projects expected by 2024-25.
→The company is poised to capture every opportunity annually, increasing its development capacity from 10 to 12 resorts per year going forward.

Capex plans

Yes

→INR 90 crores capex planned for the current year focused on developing 9 resorts.
→Targeting turnover of INR 60 crores next year from these new resorts.
→Strategic plan to develop 9-10 resorts annually through 2024-2026, depending on opportunities.
→40% of resorts to be developed on company-owned land, remaining 60% on leased/government land.
→Tent structures budgeted at INR 15 lakh per room for temporary and INR 30 lakh for semi-temporary structures (excluding land cost).
→Expansion includes Indian projects (Sikkim, Northeast, Uttar Pradesh) and future international projects (Kenya, Maasai Mara forest).
→A subsidiary established in Kenya to facilitate future resort development.
→Focus on aggressive growth where payback period is around 1.5 years; may extend up to 3-3.5 years if opportunity arises.
→PPP mode used for some projects; strategic decision to have presence across multiple states with no state exceeding 20% resort share.

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