Praveg Communications (India) Ltd (NSE: PRAVEG) Q4 2025 Earnings Call dated Jun. 02, 2025
Corporate Participants:
Unidentified Speaker
Bijal Parikh — Finance Director
Vishnukumar Patel — Chairman (Non-Executive Director)
Analysts:
Unidentified Participant
Ganesh — Analyst
Ranodeep S — Analyst
Vaidik — Analyst
Gautam Gosar — Analyst
Nikhil Poptani — Analyst
Avinash Gorakshaker: — Analyst
Manan Shah — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Pravej Ltd. H2FY25 earnings conference call. 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 the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ganesh from Kiran Advisors. Thank you. And over to you sir.
Ganesh — Analyst
Thank you. On behalf of Kirin Advisors, I welcome you all to the conference call of Private 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 for the opening remarks. Over to you, ma’ am.
Bijal Parikh — Finance Director
Thank you. Good evening everyone. It is my pleasure to welcome all of you to the conference call for Prave Ltd. Thank you for joining us today. Before we dive into the detailed performance review for the second half of the financial year 2024 25, I would like to share a brief brief overview of our company and recent developments. At Prave, we are proud pioneers in the field of eco responsible luxury hospitality. Our vision is to blend sustainable tourism with premium graced experiences. Our properties are thoughtfully developed in areas of cultural and ecological significance enabling us to offer exclusive travel experiences while preserving the integrity of local ecosystems.
In addition to our core hospitality business, Prave continues to excel in the event management space. We entered the high growth destination, wedding and premium banquet segments creating a strong avenue for future revenue generation by offering holistic event solutions. From venue management to event coordination, we aim to be a one stop solution for luxury experiences. During the second half of financial year 25 Limited made significant strides in the expanding its footprint and strengthening its market position in the eco luxury hospitality and event space. We formed a strategic partnership with Laluji and Son as master franchisee for marketing and booking of 400 luxury tents at Ranodso 202425 Prave also led event conceptualization, consulting, management and artist coordination offering a premium visitor experience at this iconic festival.
We expanded our resort network with four new launches. Praveg Resort at Damanganga Silvasa and Praveg Beach Resort at Jalandhar House Div strengthening our presence in culturally rich scenic locations. On January 1st, 2025 we began operations at Prave Cave Jawai at an upscale resort in the wilderness that deepens our luxury offerings. Shortly after that, on 1-18-19 we launched Prave Atolls on Bangaram Island Lakshadweep managed by IHCL under the selections brand, this resort merges global luxury standards with the island’s pristine beauty. In a major operational move, we partnered with Roots Corporation Limited, Ginger and IHCL Brand, blending our eco luxury concept with Ginger service excellence to enhance guest experience and property management.
We also signed a three year agreement with Mahindra Holidays and Resources India Limited allocating 80 rooms across selected PROVEC properties to integrate with their holiday network together. This H2 financial year 25 milestone reflect Pravet’s focused execution of its Eco consciousness experience driven growth strategy. Turning to our financial performance, we are pleased to report robust growth across key metrics reflecting the success of our expansion strategy and the strength of our business model. For the fourth quarter of financial year 25 on a consolidated basis, total income stored at rupees 59.29 cr compared to rupees 33.50 cr. In the same quarter last year, EBITDA grew to rupees 16.60 cr from rupees 9.46 cr while net profit roses to 3.42 cr up from 1.59 cr.
Earning per share for the quarter increased to 1.58 from 0.73 in Q4 financial year 24. On a standalone basis for the same quarter, total income was 43.62 cr up from 33.50 cr. EBITA stood at 11.90 cr compared to 9.36 and net profit rose to 3.11 cr from 1.48 with EPS at 1.18 versus rupees 0.68 in the previous year’s quarter. For the full financial year financial year 25, we delivered strong performance as well. On a consolidated basis, total income was 174.43 cr, a substantial increase from 94.55 year. In financial year 24, EBITDA rose to 56.88 cr from 32.14 cr and net profit grow to 16.13 cr compared to 12.95 cr.
Last year, EPS for the year was 5.96 slightly up from 5.78. On a standalone basis, full year income rose to 139.60 cr from 94.37 cr. EBITDA improved to 45.70 cr from 32.03 cr and net profit came in at 12.95 cr compared to 12.84 cr. In financial year 24, EPS was 5 rupees compared to 5.73 in the previous fiscal. In terms of segmental performance. The hospitality and event segment contributed to 45.65 year to revenue while the advertising segment generated 12.41 cr in Q4 financial year 25. We currently operate 775 rooms across 15 resorts and one hotel and we are well on track to achieve our Vision 2028 goal of managing over 2,500 rooms across 55 to 65 locations.
We are extremely encouraged by our revenue and operating profit growth even as recent expansion has resulted in higher depreciation temporarily impacting net margins. As this new properties mature and stabilize, we expect to see improved profitability going forward. Looking ahead, we remain highly optimistic about the future. The Indian hospitality industry is poised for accelerated growth with the rising demand for personalized premium and experiential travel. Our eco conscious luxury offerings are uniquely positioned to meet this demand, particularly in emerging tier 2 and tier 3 cities. As we expand further and deepen our partnerships, we remain committed to delivering sustainable growth and shareholder value.
On behalf of the entire management team, I extend our sincere gratitude to all our stakeholders, investors, customers, partners and employees. Your trust and support have been instrumental in our journey so far. We look forward to continuing this journey together with confidence and with purpose. With that, I would now like to open the floor for any questions you may have. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the attach tone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Thank you. We take the first question from the line of Ranodeep s from MAS Capital. Please go ahead.
Ranodeep S
Yeah. Thank you for the opportunity. First, congratulations. Very heartening to see the partnerships with IHCL and Mahindra Group which actually gives the validation of the curated and exquisite properties that is building. And also happy with the statement that Vision 2028 of which is of 2000 + 2500 + rooms is also being retained. My question was in this regard we did speak about in the past about international expansion. Can you throw some light in terms of in the vision 2028 which is 2500 plus rules what percentage share will be of international and if we have made any progress in expansion in any of the countries.
If you can share some plans. Thank you.
Bijal Parikh
Sure. Our chairman Mr. Vishnu Bhai Patel will throw lights on this.
Vishnukumar Patel
Thank you. Mass Capital, Mississippi. Thank you. Ganesh. Investor, investor, representative and Analyst as asked by you, our development overseas is nearby Serengeti. We have just two days before get environment clearance. That is the final certification for that project and my project team is working on it. Soon we will deploy our team to the Serengeti and the work will start. We want to finish that project as early as possible and there is a good potential in terms of strategic alliance internationally. And that 25 room which we are developing will generate the revenue more than Indian revenue per room revenue we got.
Secondly, we are trying to acquire further resource location at Masai Mara. So that two location is highly strategical. So we are working on that. Thank you.
Ranodeep S
Very very happy to hear this sir. I think there’s a big contingent of Indian travelers who visit these two locations that you mentioned. So happy to know that it’s finally happening. Congratulations on that sir. My second question was is that change in strategy? The reason I’m asking sir, because if I see the earlier projects like especially versus now we are becoming more exquisite and high end which maybe 20 to 30 rooms or cocoons or you know various interesting concepts like the Javai or the caves that you are doing. Is there a change in strategy sir or can you throw some light on that?
Vishnukumar Patel
This is not change of strategy. This is already focused by the prave and private creative team. We. We want to give some more value addition to the experiential hospitality. That’s why we are working on unique model that is private specialty. My total engineering teams of 50 people executing that dreams whatever we visualize in our head office for the particular project There is two things which is very important for us now we want to work only in experiential hospitalities Beautiful scenic river, seashore jungles like that Places where we can give more experience to my tourists my guest.
That is the basic purpose and obviously as a commercial entity we also have an interest to generate more ARR for such kind of locations. So now we are working to generate more arrocation where there is a lower competition but where is location added advantages like Serengeti and Kenya so like Lakshdeep that’s why we are focusing this segment Unlike already promised before 2,3 Concol before 1 year that my company is not interested to work in city metro hotels like model we are in some different kind of models that we are working on it. And in terms of total vision 28 we are further acquiring more properties more location which will you get a good location ideology of the private.
So we are working on that in this year we have planned to build five to 10 resorts which we are under under progress.
Ranodeep S
In fact my question next question was on yes sir, please go.
Vishnukumar Patel
So right now we are operating in 1718 resorts still 23 location is under development which you get a strategical date of operation in laksdeep. You know these are rainy season so we have. We are going to start in October that operations. So we are working on that to conclude as well as to maximum we can generate revenue as well as repetition over lakshdeep. Thank you.
Ranodeep S
So can you. Can you kind of share the guidance for FY26 given? I think you can in the presentation it’s very nicely laid out that I think nine more upcoming results which kind of adds 505 rules. So is my reading correct that we will end FY26 with around 1250-1300 rooms? If yes, what is the ARR that we will end with at FY26? If you can just share that.
Vishnukumar Patel
I would like to tell you one thing. The guidance is depend upon the operationalization of the resource number one. Number two, the matter is when we are operating the resort and starting the operation. So there is a. We need to give some times in terms of marketing brandings as well as exploring that location we need to have minimum five, six months to 12 months if that’s our experience. So. So what happened in the last this year we have started operation of 18 resorts out of that around 60% resort is inaugurated in this year only. So in terms of EBITDA margin in terms of sales volume it’s going to change in the next year.
Then when the property is older by two years it will be further add the more error as well as more occupancy. So it depend upon that and you get this. My result is itself speaking that we will reach to our target for the operation of 25 resorts in this year. That I can say the revenue is always upward will increase in this year, this current year because of last year all out of 1718 resort 60% resort was operation for 3 months, 4 months, 8 months maximum. So that we need some time to reach to our desired goal of 40% EBITDA margin.
We always working for EBITDA margin Average EBITDA margin of 40% over a period of project period which is being awarded to us by government 40% EBITDA margin. Then only we trigger that acquisition. So that is our philosophy and I would like to tell you in the first year of measure operationalize this 245 March 25th you can see that 35 or 34% EBITDA margin in the first year we reach so more lucrative and more incremental EBITDA margin we will find in 26 as well as in terms of turnover also you will find a major chunk of incremental revenue from in top line.
Thank you.
Ranodeep S
Thank you so much sir. Really appreciate you taking time to kind of explain the litty and sharing the details. Thank you. I’ll join back with you. Thank you.
operator
Thank you. The next question is from the line of Vedic from Monarch Network Capital. Please proceed.
Vaidik
Congratulations sir on good set of numbers. Firstly sir, my question is on the gross margin front I just wanted to. Ask on a sequential basis our revenue. Has increased by 7% but gross margin has expanded by close to 10 11%. So what cost are being added to that event and site expenses. Can we know that in the reason behind gross margin contracting which just made. Are you talking about standalone unconsolidated margin console Gross margin. Gross margin.
Bijal Parikh
You are talking about.
Vishnukumar Patel
So Gross margin was 35.09 for 24 is come to 34.02 right? No sir, it’s a 35% EBITDA margin in last year. This is a 34% EBITDA margin in consolidated.
Vaidik
Okay, so sir answer on the next question in the presentation.
Vishnukumar Patel
So 1% 1% EBITDA margin variation. This variation is depend upon the newly proportion of the newly in started resource. In this year was maximum. It was in March 24 there was only five, six resort was operationalized. In this current March ending 2025 we have started around 10 to 12 new resorts. So always in beginning our margin is also under pressure.
Once the properly the time period for marketing, social media or what the promotion strategy of the product will come into effect after 6, 7, 812 months that lead to a higher EBITDA margin, higher gross margin. There’s a natural process of the hospitality industries that you’re talking about.
Vaidik
Sir, you are talking about full year. I was talking about on a Q about quarterly in the current quarter Q4. But other than this are a few other questions. Firstly in the presentation you mentioned that. We have around 505 upcoming rooms in this year. So I just wanted to know for how many resorts have we got approval and by when will they be operational?
Vishnukumar Patel
Okay, I would like to tell you we got just clearance from for Serengeti. We are already working under development. It’s a thinakara two. There’s a 200 room sarangit is at 225 rooms. Kasid and Kihim out of that one. Resorts approval is nearby to complete it’s around 35 to 40 rooms. Then after Jaisal where we are working that direction that is around 40 rooms, 50 rooms. That all will come in this year. Apart from that there is.
There is always chances to have more acquisitions during the current year. That equation may be of the ready property. Maybe underdeveloped property. It’s depend upon the market scenario.
Vaidik
In the presentation you mentioned Udaipur 35 rooms. Random more 30 rooms. Bangaram 200 rooms, 150 rooms. Kim and Kashid 4040 rooms each.
Vishnukumar Patel
Exactly over that. Out of that I have explained the status of these six Resort is under progress as well as ready to progress. Ready to start with development process and remaining is. I have just told you Serengeti presentation is already operation 50 room is already given to Indian hotels.
Just vigil told about it. January 2025 we have started Bangaram resorts. The Banga instead of Bangaram you put as a Thinakara 2 resort. Bangaram and Thinakara is nearby island. So there may be some correction that thinakara2 is a 200 rooms and jaisalmer that’s almost clearance is near to come. So total six resort is under development. Out of that two resort is under development already nearby finishing stage. What is. What is legal clearance is already done. So it will work on that direction.
Vaidik
Okay sir. That’s it.
operator
Thank you. The next question is from the line of Gautam Ghosar from Monarch aif. Please proceed.
Gautam Gosar
I wish. Thank you for the opportunity. First question is on your ARR. If I go through your PPT in some of the properties there has been a decline in the ARR than what we used to indicate. So for example in property we used to indicate around 10,000 to 10,500 ARR. In Jabai we used to indicate around 25,000 rupees ARR which had come down to around 18 to 20,22,000. So can you help us understand what is leading to this impact?
Vishnukumar Patel
Yes Javai Our properties just started in February. January February 2025. Then after the season is on summer due to summer season property for summer season may come. So always we have to have a seasonal tilt. In such cases improvement property. January or February. Initially we are keeping the track marketing team occupancy plus minus Karthi always the operational or a marketing strategy experience. Then after is going to improve ARR Always we need to have minimum one year for improving ARR status of the new project. So Java is a new project.
Gautam Gosar
We can understand that. But for the A bit older properties.
Vishnukumar Patel
I like to tell about Kwadi also But just you told me there is a many competition in the kvadia also. So March 25th improve the occupancy. We are trying to have some balance error looking to the competitive scenario. Same way in in last year there was not a certain date is blocked for government business is not accumulated into converted into business. But this year we are getting good response and we have catalyst fee for conference in current quarter also so marketing strategy. So we have always strategically balanced ARR as well as conference and government business also.
Thank you.
Gautam Gosar
So secondly on our occupancy of Kevaria which we were talking about sir are we seeing a decline in the occupancy for our existing properties in some of the areas like Kwadia where the footfall used to be higher in the initial year and now it is slowing down.
Vishnukumar Patel
It’s not about occupancy decrease occupancies. I think already we are maintaining occupancy level of the property and that’s why the property is made occupancy ER + minus is a strategical decision. Sometimes as well as seasonal effect is also to be considered this year. What happened? I would like to tell about investor about the scenario of the last quarter. Last quarter there was measure boom at Kumb Marketing was. You know all all India we are knowing all the public was diverted to Kumbh so it’s affected to other property for tourists also. So effect America property may be.
So that’s why we have to balance occupancy level as well as marketing ARR. So certain extraordinary steps we have we have to take in this quarter last quarter. So that is also effect of gross margin some variation. EBITDA margin some variation.
Gautam Gosar
Understand how much revenue did we build in property this year as well as last year. So we can understand the trend how much generating from this property.
Vishnukumar Patel
I I it’s being our competitor scenario is also there. I would like to not comment about the total revenue that is strategic decision. But I would like to tell you my KVDR performance in a earlier year and this year there is a variation of about 15% in in total cell volume 15 to 20% sell volume is affected and that is not due to occupancy but it is due to government business. Please understand. So that impact 15% to 20% impact of the sales is majorly due to government business. This year we have restrategized the strategy. We have taken a good conference of Supreme Court of Chief justice came just in one month before in our property Apart from that Rajasthan government has done great conference here also in 7th May 5th, 67th of May.
Apart from that there is also another private conference. Is there? Apart from that this year we were. We are doing very few weddings in Kia this year we are getting good in terms of manifold incremental in wedding revenue this year. So. So we have restrategized this. I, I I would like to rest assured that this year is going to contribute by Kadia will be tremendous incremental to us.
Gautam Gosar
Cost. How much rental have we paid in this year? In FY25. How much is the lease cost?
Vishnukumar Patel
Lease cost is depend upon total to.
Gautam Gosar
No sir, I’m asking how much was paid already in FY20K.
Vishnukumar Patel
I’m talking about K13 16cr these are. We paid 16cr rent.
Gautam Gosar
Oh total. Okay. Thank you sir. All the best.
Vishnukumar Patel
So it’s. It’s about. I. You can understand 10% of the total revenue. And this year even is what is a beginning for the project journey. So this 17 property will come in some property coming to second year of operation. Some property coming to third year operation. Some property. Very few property come after five years of operation experience. So that products mix will contribute sales as well as EBITDA margin as well as bottom line. Because 35. But how to give. You have to give some times to Prague. I would like to tell my investor that always needs some time.
So we journey start operationalized and we need to give some more time because of Agarap traditional hospitality construction to develop that property. Then after 1, 2, 3 years you have to reach to breakeven point. 18 resorts depreciation sizable contribution net profit may even first year of operation. No hospitality company in India generating net profit. You can. You can study on the hotels model.
Gautam Gosar
Thank you.
operator
Thank you. The next question is from the line of. Before we take the next question, ladies and gentlemen. In order to ensure that the management is able to address questions from all participants and the conference. Please submit your questions to two per participant. The next question is from the line of Nikhil from Kizuna Wealth. Please proceed.
Nikhil Poptani
Yeah. Hi sir. Thank you for giving me the opportunity. So sir Mayor sir, I have a question on your like Vision 2028. We are saying that we are going to go beyond 2500 rooms right now 777 rooms.
Vishnukumar Patel
Yeah. We have already resources to have a fund of warrants that will suffice to develop this five resorts. Out of that Tinakara is already we have invested huge cost for Tinakara, for Jisal Mer, for Kasib or Serengeti. We have our own fund for the company as well as warrants for that third third one. I would like to tell you that many proposal is under our vetting for the investment model. That’s called operation and development model. That is a third model. This is a different model is started by the Prave tourism or turnkey solution. In terms of development that means our engineering, our architects, our structure, our MEP design, our landscape consultant which is in house team of the Praveg will design and visualize that resource.
My development team will do the development of that project. We get certain profit on that development also that that will be major share. With that we make a major share contribution in terms of top line and bottom line also. And after that ready. We will operate it for 30 years or 30 years or when 15 years depends upon the lease period. If the it’s not owned by that investor. In that case 15 years, 20 years, 30 years depend upon that agreement. So this is a unique model which we have launched already and we you will get certain outcome in very near future.
Nikhil Poptani
Yes sir. Thank you for the reputable answer.
Vishnukumar Patel
For that we not need to have capex. Instead of Capex we get the revenue for development of their property. Please understand along with operation regular income.
Nikhil Poptani
Okay, that’s great to hear. So sir, further preference share equity raise. Yeah. For these additional rooms. Right? So that’s what you’re indicating.
Vishnukumar Patel
We are. We are debt free company right now. We do not want to raise any debt. That is our strategy.
Nikhil Poptani
Okay, so that’s. That’s really great to hear.
Vishnukumar Patel
But. But maybe. Maybe promoter will. Promoter can. Or Promoter group can contribute fund if required. In that case if the fund is required.
Nikhil Poptani
That’s great to hear. Until now you have done a strategic lines with IHCL and Mahindra. As in it is a based on revenue percentage of revenue.
Vishnukumar Patel
Yes. Yes. Good question. Good question. Our operational property they are booked by bulk inventory by arrangement. So number one the Mahindra is not taking any money from us. Any charges from us. Mahindra is giving a contribution to us in terms of sales. Number one, earlier representatives or retail inventory self value. We effect ati. You are smart analyst. So understand this also. Number two Operation management contract. So management contract with the Taj is on our books. So all turnover will give business and profit to private. They will charge operate management fee that vary and depend upon their brand and their strategy.
And always we get good cooperation from Indian hospitals for strategic alliance for such kind of resorts. So they are highly connected with our team Also that management where required support they Give they analyst. They give such a cooperation in terms of commercial negotiation. They give the best rate to us. I can say only this. I can’t sell publicly the management fee. But it’s a very minor diversified incremental benefit experience Ginger. And we get a lucrative result for that operation because of value additional. So Maribi internal competition. Same way we applied and replicate that model in Tinakara and Bangaram.
We have given 50 room to Taj because we are coming with 200 rooms nearby in this decision after any season. So that is a strategical alliance. And it is always a mutual beneficial basis. So that management fee is not a major way impacting to the profit. It’s even contributing their experience their customer base improve our net margin also. Thank you.
Nikhil Poptani
Yes sir. But my question was on like management fees. What range would be of the management teams like 1 to 5%, 5 to 10%.
Vishnukumar Patel
It’s a. It’s a confidential contract between company and Indian hotels. But it’s very minor in terms with the industrial standard.
Nikhil Poptani
Okay. And so now sir my next question is on presentation. When it’s a strong bulk sale. But the only portion was recognized. So what was the reason for the only portion was recognized Sales.
Vishnukumar Patel
One by one.
Nikhil Poptani
Yes sir. Run upset up the presentation with There was a bulk sale in run upserve. But only a portion of sales was recognized this quarter. So what was the reason for that?
Vishnukumar Patel
Okay. One crore. Yeah. It’s a. It’s a 1.5 cr contribution. In terms of accounting standard. We have bulk bulk done a business. But it will be treated as a principal agent concept. And that’s why 1.5 crore is a contribution of this quarter for the booking of this inventory of the Laluji company.
Nikhil Poptani
Okay sir. Yes. Yes sir. What was this like? I wanted to ask what would be our share of B2B a government corporate sales or retail cap.
Vishnukumar Patel
Total 76 room Amare company white run resorts. Approximately 8 crore rupees Amara revenue. Answer. Apart from that we have bulk Inventory sales arrangement, 1.5 crore contribution event as well as inventory arrangement as well as apart from dollar.
Nikhil Poptani
Yes sir.
operator
May we request you to join the queue again for a follow up question as there are other participants waiting for their turn. Thank you. The next question is from the line of Avinash from Profit Mart Security. Please proceed.
Avinash Gorakshaker:
Very good set of numbers. Congratulations. Like what is the outlook for the event business. That is question number one. Advertising agencies.
Vishnukumar Patel
The Prave is a known for advertising, event management exhibitions. And since last 10 years we have started operation in hospitality also. Right now we are rested. We have already restrategized our strategy. Based upon that for advertisement, outdoor media as well as publicity. We have acquired tools of Avik and Breathan two companies last year. The last two years. The logic behind acquisition of that property from a particular company. Smart toilets. Same smart model. Smart toilets advertising model. We want to run off in Rajasthan also we have already deployed two location at Jaisalmer.
Many inquiry came across India for the development of such type of smart toilets. You can see in the good location like SZ Road. Like Sindhugoan Road. Same way in Rajasthan. Government is also eager to expand that kind of models in Rajasthan same way in Maharashtra. So that company is a credential and only company which has operated successfully since last five years. So number one purpose was that advertising experienced people. The Mukesh Patel, managing director of AVIC is a 35 years experience guy. 30 to 35 years experience in outdoor media. After in acquisition of that particular two company we have expanded our network to Gandhi Nagar.
Gandhi Nagar Urban Development Authority. We got a good contract handsome contract for around 300 holding. That will just. We got a work order in this March or April. So lucrative and good handsome turnover will come from that. Apart from that we got a Maharashtra and Goa Hindustan Petroleum HPCL marketing of the holding contract for for Goa and Maharashtra all in except Mumbai Hindustan Petroleum. That that credential is with that company. That’s why we have acquired that company. So we get good sales revenue in this current year from Maharasht and Goa. Same way we are working on Gurgaon and Uttar Pradesh also for the smart toilets.
We may get a good handsome number of contract for smart toilet development as well as operational. This is a very unique model. India May or Joe facility road for example on the ease of road professional or backside for example 50 by 20. 50 by 50. Depend upon the size of that location. We have smart system and smart outsourced team which managing this type of smart toilet in Ahmedabad. So just we got a work order from Jaisalmer. Now we will get. Now we will get our further. We are expanding this across India. Across high profile Metro like Delhi, like Mumbai.
That we expect good revenue from that model. Apart from Hindustan for petroleum. Apart from outdoor 700 holding of the products. Right now in Big and Bredan we are this year we are expecting very high surge in revenue. Then traditionally Breathan and Abik was contributing. So by the change of management. The reason for that outdoor and media publicity we get sizable revenue generation. You can get in this year as well as next. Year onward.
Avinash Gorakshaker:
Okay. I mean just from the presentation I. Was thinking development project plan. You know you’ve got some rights to secure government advertising. So this is basically a good strategy to increase your advertising revenue. Right?
Vishnukumar Patel
Yeah. That’s. That’s why we’re working on that direction and that the team is standalone and very expert team, very experienced team. They added our capacity to expand. That is the main strategical decision. So you will find also in Uttar Pradesh, Delhi, Gurgaon, Goa. Maybe Rastan maybe smart toilet government. So coffee or a smart X smart toilet key costed 25 lakh. So we get revenue from that development also as well as after operation we get monthly 1 lakh 2 lakh rupees advertising holding rent for that road. So that will also contribute very zero investment. Zero capex and 12 lakh rupees potential revenue from that one holding.
So if we multiply this to 1500 in over a period of 10 years or 5 years you get good zero cost. Operating cost is very minimal. So this is a very smart model. That’s why we have. We are expanding that model too.
Avinash Gorakshaker:
I take your point. Profitability. I was seeing you know almost 30% net profit margin because of my development. So basically you know this is definitely a very profitable business. So just one last question. Vishnu Baiki. Can the next two years. Can we see a significant amount of revenue growth coming from this vertical Also for Prave. If you can just give us a descriptive answer. If you don’t want to share any numbers.
Vishnukumar Patel
Sir, you can see my. This first year of revenue that incremental around 80, 90% of the last year revenue. That journey will be continued until. Until we get a good acquisition. Until we get good market support. We will do it.
Avinash Gorakshaker:
Mr. Bhai, thank you very much. All the best.
Vishnukumar Patel
Thank you.
operator
Thank you. The next question is from the line of Manan Shah from Moneybee investment. Please proceed.
Manan Shah
Yeah. Hi sir. Thank you for the opportunity. Sir, I wanted to understand what is the capex budget for the current year.
Vishnukumar Patel
Already major way we have invested our capex in Thinakara. There is very 200 rooms. So this year around total our work in progress will convert into development is around 100 crore. Approximately 100 crore.
Manan Shah
Okay. So we don’t have to invest.
Vishnukumar Patel
Working progress goes to the fixed assets. Yeah right.
Manan Shah
But so we don’t have to invest any further capital is what you are saying. This will just get converted from work in progress to.
Vishnukumar Patel
No, no no no no no. Land and investment they will do. We will do a development plus operation. In that case we need not to invest anything approximately. But it’s a 30 to 40, you know to finish present six. Five. Six resorts or five.
Manan Shah
Understood.
Vishnukumar Patel
Apart from that investor model also this year we are starting.
Manan Shah
Understood Sir. Indian hotels this is only for the existing 50 rooms pipeline included contract.
Vishnukumar Patel
Sir, right now it’s a 50 room and Jalandhar it’s around 35 rooms. But this alliance you can understand that may further expand on strategical location based upon what companies consent to work on that direction.
Manan Shah
Okay.
Vishnukumar Patel
It’s an alliance. It’s a. It’s a kind of corporate alliance whereby we can expand our this strategy further also so that I can’t deny both side or sf.
Manan Shah
Understood.
Vishnukumar Patel
Either way possible.
Manan Shah
Currently since the airstrip is small I think direct flights from major metros and also to visit the island there is some permit that is required which is to be taken before you know you can go there. So is that hindering you in you know achieving the desired occupancy or you know to attracting the tourists or if you can throw some light or government site say. Yeah.
Vishnukumar Patel
Good question. Good question. Flight in total we cable for flight already in operation for flight apart from that another two or three property three flights is adding by the government of India. So total government. So they are also aware of that thing. So seventh light will suffice the purpose of the tourist mobilization Number one. Number two license entry permit. They have issued our direction to the prave and then private guest voucher and prave kyc become the entry voucher and prave will do the back back work with that government authority to issuing the permit. So right now the problem of permit issue is solved.
So private can invite and give coordination to issue permit.
Manan Shah
Okay. So basically number of flights to Lakshadi has increased from one flight to fourth flight with two more flights for potentially or permit back end pay will handle.
Vishnukumar Patel
So it’s not a subject now of tourists. Even police clearance is also not needed. I would like to invite my all this guest on Concol that you must visit India’s heritage like Lakshdeep. It’s very unique location. If you visit you get good idea about this property. And Taj is going to promote internationally. Prairie will going to market it across India. So first resort operate police clearance kyc documents or login a process or a B. No police clearance required. He should be a citizen of India and he should be foreigner with having valid visa that need to submit to the pr.
Simply issue the guest voucher that will register by the private to the government department whatever it may be. So it’s Not a headache of the government. Please come enjoy luxury.
Manan Shah
Understood. Occupancy commitments.
Vishnukumar Patel
Is always not a commercial commitment. It all is a moral commitment. And there is a. There is joint discussion on that margin and sell strategy. So there is some internal in discussion to make a big projection and target for the Indian hotels that we give to them. They accept to deliver. There’s always work on that direction. Then only management contract will work that same strategy work over here also. It’s not unique. Thank you.
Manan Shah
Okay sir. Answer. In Daman across various properties. We have close to around 200 odd rooms across these various properties.
Vishnukumar Patel
So.
Manan Shah
And most of these properties have now been in operation for almost a year or so. So overall sir how is the response? Or in this area or this. You know micro market. And overall what sort of occupancies have we been able to reach in this area?
Vishnukumar Patel
Sir, I would like to tell my all this analyst and investor and investor representative. The month we got award from trip advisory Very authentic report. Authentic awards. That’s highest ratings Trip advisory Travelers Choice Award 2025. That’s the top number one guest satisfaction sites and locations and hotel chain. In the month that award we got from trip advisory. It’s a professional body that you know.
Manan Shah
Yes sir. Many congratulations for that. But my question was. Occupancies achieved.
Vishnukumar Patel
It’s amazing. It’s. It’s more than our expectation. After our own. Our own guest as well as Mahindra group guest is making him almost full status of occupancy. But you have to always consider in hospitality. Never hundred percent achievement possible because of seasonal variation. Seasonal variation. So it’s. It’s. I think the month highest occupancy property. And we have. We have launched property. I would like also market to my investor also because I’m. I am. My company is always market everywhere. So Kachigam we have launched Launch in this May 15th something date. That’s a wedding exclusive property across 89,000 square meter Lake Lakeview property is just launched by the Prave.
And we get tremendous good response in the month for that wedding inquiry as well as guest response. So you must visit Kachigam property of Prave. You get what the private development model is to get good idea.
Manan Shah
Understood.
Vishnukumar Patel
For wedding my all analyst. I market that you also inquiry for wedding. Because it is very nearby to Mumbai. So Mumbai people are booking wedding inquiry reading for in the month last three.
Manan Shah
Years total 88,400 rooms roughly room nights or just a ballpark calculation capacity case after roughly room nights. So that translates to roughly 35% short of an occupancy. So what sort of occupancy? On a practical basis based on the properties and the geographies that we are serving company level 50 sort of an occupancy or end over what time frame?
Vishnukumar Patel
Information work, Operational IP operationalize mre. October maybe November may be December. So you get a good occupancy level result. That’s why I am telling you this year will perform 18 property full years. Your calculator you can calculate accordingly. But last year, last year room night inventory maybe, Maybe, maybe calculation 1.6 to 1.7 lakh night will be there.
Manan Shah
50% occupancy.
Vishnukumar Patel
Is the average beyond beyond that we have achieved.
Manan Shah
Okay, wonderful. Thank you sir. I’ll get back in with you.
Vishnukumar Patel
Thank you so much.
operator
Thank you. Due to time constraints. That was the last question. I now hand the conference over to Mr. Ganesh for the closing comments. Over to you sir.
Ganesh
Thank you everyone for joining the conference call of TRAWAG Limited. If you have any further queries you can write us at Researched. Once again, thank you everyone for joining the conference.
Vishnukumar Patel
Thank you so much. Thank you for.
operator
On behalf of Kirin Advisors. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.