Dear Fellow Shareholders,
It gives me immense pleasure to speak to you on behalf of our Board of
Directors at the 36th Annual General Meeting of your Company. It has been an honour to
serve as the Chairman and Managing Director of your Company since its formation 36 years
ago.
I am extremely happy to share with you, your Annual Report for the
Financial Year 2022 - 2023, which highlights the Company's best financial results
ever achieved. Your Company's total revenues exceeded INR 1000 million for the first
time as a result of a 93% growth over the previous year. This was achieved without any
increase in the number of rooms or added facilities.
More importantly, your Company's profits before tax increased by
over 340% to INR 380 million. Importantly, even our profit after tax increased by 339% to
INR 286 million. The EBITDA Margin has increased from 22.3% in the previous Financial Year
to 40.90%, which is one of the highest EBITDA margins in the hospitality industry. I would
like to specifically highlight that your Company has reported a compounded annual growth
rate of 38% in PAT over the last three years. Some of these excellent results can be
attributed to the increased demand for hotel rooms in Goa, but a larger contribution is
due to the Management and dedicated employees, who make sure that we exceed guest
expectations.
People in the Indian hospitality industry are surprised that your
Company could achieve these results, especially since we do not have a management
agreement or a branded franchise. Due to our extraordinary results, we have chosen
The Company has declared 2 dividends totalling to 170% for the
Financial Year.
The Financial Year 2022-2023 highlights the Company's best
financial results ever achieved.
to declare two dividends totalling to 170% for the Financial Year. This
is a testament to our commitment in generating sustainable wealth for our shareholders. In
fact, an article published recently has announced that your Company is one of the top 10
dividend paying Companies in India.
Rising aspirations of India holidaymakers and the growth in MICE
sector, coupled with limited room supply, the hospitality landscape is witnessing a surge
in demand that surpasses available accommodations. This compelling trend has translated
into a remarkable upswing in average hotel rates across India, including the vibrant
locale of Goa. In fact, recent report showcased that hotel room rates in India increased
by 26% last year. Leisure hotels with capabilities of holding destination weddings have
greater potential to increase revenues further. Thus, your resort with 23 acres and
enhanced lawns on a wide beach frontage has a greater potential to increase revenues
without affecting the Golf course. We do not have this competitive advantage in the first
two quarters when these wedding events are fewer.
As per the World Travel & Tourism Council (WTTC), the contribution
of Travel and Tourism to the World's GDP increased from 6.1% in 2021 to 7.6% in 2022.
However, WTTC expects the contribution of Travel and Tourism to increase to 9.2% of the
World's GDP in 2023. As per the research published by the WTTC, the number of jobs in
this industry globally increased from 289 million to 295 million in 2022. The number of
jobs is expected to increase by 8.2% to 320 million in 2023.
An article published recently has announced that your Company is one of
the top 10 dividend paying Companies in India.
More importantly, your Company's profits before tax increased by
over 340% to INR 380 million.
Even our profits after tax increased by 339% to INR 286 million. The
EBITDA Margin has increased from 22.3% in the previous financial year to 40.90%
Rising aspirations of India holidaymakers and the growth in MICE
sector, coupled with limited room supply, the hospitality landscape is witnessing a surge
in demand that surpasses available accommodations. This compelling trend has translated
into a remarkable upswing in average hotel rates across India, including the vibrant
locale of Goa.
According to the WTTC, our industry contributed 7.6% of the total GDP
of India in 2022 as compared to 5.8% in 2021. Foreign tourists spent US $20.7 billion in
India in 2022 as compared to US $8.8 billion in 2021. The Bureau of Immigration of India
has determined that Foreign Tourists arrivals increased from 1.52 million in 2021 to 6.19
million in 2022. The largest share of Foreign Tourist arrivals was from the USA.
As far as the number of jobs in India, this industry contributed 32.1
million jobs in 2021, which increased to 37.2 million jobs in 2022. This amounted to 7.7%
of all jobs.
Amidst the ongoing challenge of generating employment opportunities for
our youth population, the hotel industry emerges as a promising solution. Known to offer
competitive salaries, this sector also presents a cost-effective avenue for training young
individuals. Thus, fostering the growth of the hospitality industry becomes imperative to
address both the issue of unemployment and the need for skill development. When foreign
tourists visit a hotel in India, they add to the economy of our country. Hence, these
amounts are classified as an Export. On the other hand, when a person from India visits
another country, there is a drain on our Foreign Exchange Reserves and add to the economy
of that country.
Today Goa has become an all season leisure destination with a steady
influx of travelers. The State has seen a massive spike in charter arrivals with almost 10
times the increase in arrivals and departures.
Further, with the objective of bringing more US tourists to India and
Goa, I have made a slide presentation on Goa at the Embassy of India in Washington and at
the Consulate of India in New York and also got our Resort featured in the Diwali event at
Times Square in New York.
Our Honourable Prime Minister, Shri Narendra Modi has made a huge
impact on his recent visit to the USA and we can expect more visitors from there. The
successful holding of the G20 meetings in different parts of India will add to the
attraction of India from G20 countries. Our Prime Minister needs to be complimented for
giving importance to Tourism and also appropriating
Our Honourable Prime Minister, Shri Narendra Modi has made a huge
impact on his recent visit to the USA and we can expect more visitors from there. The
successful holding of the G20 meetings in different parts of India will add to the
attraction of India from G20 countries. Our Prime Minister needs to be complimented for
giving importance to Tourism and also appropriating substantial financial resources for
improving the infrastructure of our Country.
substantial financial resources for improving the infrastructure of our
Country.
Lastly, I would like to acknowledge the immense contribution of each
and every person associated with our organization, which has enabled us to achieve these
unprecedented results.
Our aim is to consistently offer services of the highest quality
standards while maintaining cost efficiency. We are dedicated to enhancing shareholder
value supported by a deleveraged balance sheet and a strong growth trajectory going
forward.
With best wishes,
Sunder G. Advani
Chairman & Managing Director