Praveg Communications (India) Ltd (PRAVEG) Q3 FY23 Earnings Concall Transcript

Praveg Communications (India) Ltd (NSE:PRAVEG) Q3 FY23 Earnings Concall dated Feb. 14, 2023.

Corporate Participants:

Prolina Barada — Woman Director (Executive)

Unidentified Speaker —

Vishnu Patel — Non-Executive Chairman

Analysts:

Sumit Maru — Kirin Advisors Private Limited — Analyst

Jay — Capital PMS — Analyst

Avinash Gorakshakar — Profitmart Securities — Analyst

Shashank Mahajan — Value Educator — Analyst

Unidentified Participant — — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to the Q3 FY ’23 Results Conference of Praveg Limited hosted by Kirin Advisors Private Limited. [Operator Instructions]

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

Sumit Maru — Kirin Advisors Private Limited — Analyst

Thank you. Good evening, everyone. I would like to welcome Mr. Vishnu Patel, Chairman of Praveg Limited; Ms. Prolina Barada, Executive Director; Mr. Keyoor Bakshi, Director; and Mr. Mukesh Chaudhary, Company Secretary. As this is the first call from the company, we will have brief introduction about the business model of the company, then Q3 result highlights, and followed by Q&A.

Now I hand over the call to Ms. Prolina Barada for a brief introduction about the company. Over to you, ma’am.

Prolina Barada — Woman Director (Executive)

Yeah. Good evening, everyone. We welcome you all to the first conference call of Praveg Limited to discuss the quarter three ending — and nine-month ending of financial year 2023 performance. As we are presenting first time, I would like to start by giving you a brief introduction about the company. Praveg Limited was founded in 2005 and today, it is a leading company, having presence in diverse business segments like evolution, event management, tourism, hospitality, and publication. [Indecipherable] lies in independent and sophisticated infrastructure, expert and experienced manpower, and in-house creative design studio. Company’s diverse clientele includes the State Government of Gujarat, Government of Uttar Pradesh, the Government of Odisha, and many more government organizations, the large-scale corporates and renowned entrepreneurs. Praveg’s wide range of portfolio includes exhibition of large-scale projects in India and in international markets. We have successfully executed quite a few projects in the U.S.A., China, South Korea, Europe, Africa, and in the Middle East.

Praveg has been an industry-leader in events and exhibition recent management for over 20 years and has successfully completed over 3,000 large- and medium-scale events and exhibitions till date. The company has handled various strategic projects like Tent City Narmada at Statue of Unity, Kevadia, Gujarat, Tent City Varanasi in Varanasi, Uttar Pradesh, White Rann Resort in Rann Utsav Kutch, Gujarat, and there are many among them. Our current projects are split over 3 lakh square meters area with over 450 rooms capacity. Till date, we have sold over and above 50,000 rooms with satisfying client services.

While coming to our future expansion plans, we have got the development operation and maintenance and management contracts for building of a tent city at Chakratirth Beach at Diu, a tent city at Jampore Beach, Daman, another tent city at Lighthouse Beach, Daman. Here, all together, Praveg will set up 95 tents with one convention hall and a restaurant facility in each resort. The contract period will be initially for three years and which may extent by another two years. Praveg will be starting all these resorts by April 2023. Praveg has acquired lands at four locations: Jawai, Rajasthan; Velavadar, Gujarat; Ranthambore, Rajasthan; and Udaipur, Rajasthan for developing high-end hospitality projects. All these projects are expected to be operationalized by December 2023.

Additionally, Praveg has also received LoA for the Adalaj [Indecipherable] site, Ahmedabad, and has all the planned another three resorts in Gujarat in Kevadia, Sasan Gir and Shivrajpur, and another resort in Kumbhalgarh, Rajasthan. All these projects are scheduled to start from April 2024. These projects are expected to cost around INR90 crores, for which the company has funded this by a presidential offer of INR63.87 crores, while the balance will be funded by the internal accruals.

With aggressive expansion plans, we are strongly marching towards the future. So, now let me take you through the financial performance of the company during the reported quarter and nine months of financial year 2023.

Praveg Limited had achieved a remarkable growth in the first nine-month ending of financial year 2023 outperforming the whole financial year 2020. While we come to quarter three of financial year ’23, the total revenue that we have generated is INR28.47 crores, up by 79.85%. EBITDA stands at INR17.19 crores, up one 107.36%. EBITDA margin stands at 60.38%, which was earlier 52.37%. Profit-after-tax stands at INR11.56 crores. The [Indecipherable] EPS stands at INR6.01, up by 103.04%. And while I go through the nine months ending of financial year 2023, the total revenue stands at INR65.81 crores, EBITDA stands at INR35.37 crores, the EBITDA margin stands at 53.75%, the profit-after-tax stands at INR23.2 crores, and the EPS stands at INR12.09.

So, now I open the floor for the question-and-answer session. Thank you.

Questions and Answers:

Operator

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] The first question is from the line of Jay from Capital PMS [Phonetic] Please, go ahead.

Jay — Capital PMS — Analyst

Hello? Can you hear me?

Operator

Yes, Mr. Jay. Please proceed with your question.

Jay — Capital PMS — Analyst

Hi. Congratulations to the management. Very good set of numbers for the entirety. Ma’am, I had a few questions on even when you said that the business model and about the new properties that are coming up. I just want to know how does the management zero down on the property and what is our right to win when we are looking at a specific property, because we are relatively new compared to the other hospitality players that are established in the country. So, how does the management get access to prime properties at prime areas? That was question one. And second is, how does the seasonality of the business that affects us, then what is the management’s plan of action to counter the seasonality of hospitality and the event industry? What will the management do in terms of downsizing?

Operator

Hello, members of the management team?

Unidentified Speaker —

Yes.

Operator

Yes, sir. Sir, we have questions. [Technical Issues] Please proceed.

Prolina Barada — Woman Director (Executive)

Yeah. This is Prolina. Hi. Thank you for the question, Mr. Jay. I guess I pronounced your name properly.

Jay — Capital PMS — Analyst

Yes.

Prolina Barada — Woman Director (Executive)

Yeah. You have a question that how we get access to these good location properties, right?

Jay — Capital PMS — Analyst

Yes, that’s right.

Prolina Barada — Woman Director (Executive)

Yeah. We — while I mentioned the future expansion plans, I said that one part was the the Daman and Diu project that we got through the government’s PPP rule like we apply for the tender and we get it through tendering process only and we develop in a PPP mode. And while we are coming to the other properties, that I said about the four locations in Rajasthan and Ahmedabad and Gujarat, those properties we have acquired through our own [Indecipherable] there. We have invested there. Hello?

Jay — Capital PMS — Analyst

Yes. Okay.

Prolina Barada — Woman Director (Executive)

I think that it suffices to your question or anything else you want to know?

Jay — Capital PMS — Analyst

No, second question was because we have this seasonality in the business, like because we are in the events division also along with hospitality, so my question was, what does the management have in plan or any plan in place to counter the cyclicality or the seasonality of the business, because events industry is not something where we have a lot of visibility compared to what you have in hospitality [Indecipherable]

Prolina Barada — Woman Director (Executive)

Okay. So, when it comes to seasonality, like I say about the Rann Utsav project, if you see that Rann Utsav runs for four months in a year, and if you see this Varanasi project, because of the seasons, the rainy season causes Varanasi to shut its business for four months, right? We will be operational therefore eight months. And while it comes to the event management segment, I hope there is no season for doing the event management business.

Jay — Capital PMS — Analyst

Okay. So [Speech Overlap]

Prolina Barada — Woman Director (Executive)

Because event management also — yeah, please.

Jay — Capital PMS — Analyst

So, ma’am, I just wanted to know that when you said that your business is on for eight months at Varanasi or four months in Kutch Utsav, what is happening in the property for the remaining eight months? Do we have like a tangible setup, like a foldable setup or a movable setup that we kind of have or is it a proper brick and mortar. Hotel that is being made, like [Indecipherable] like what is happening at the property for the four months or the eight months that it is shut?

Prolina Barada — Woman Director (Executive)

For this Rann Utsav actually, we have created a setup over there in Rann Utsav where for the other eight months, we shut down the property and we have that setup over there, we have warehouses there, so that we can remove those tented accommodations and store it in the tourism area. The same will be applicable for Varanasi as well.

Jay — Capital PMS — Analyst

Okay. So, these are tents are which are bought by, it is the property of the company, like they are not on lease?

Prolina Barada — Woman Director (Executive)

Sorry, I didn’t get you.

Jay — Capital PMS — Analyst

Does the company own the tents as a property, as an asset, or I was under the understanding that [Speech Overlap]

Prolina Barada — Woman Director (Executive)

Yeah. These are all our assets only.

Jay — Capital PMS — Analyst

Okay. [Indecipherable]

Vishnu Patel — Non-Executive Chairman

[Indecipherable] land all their furniture, fixtures, tents, all the structures, whatever is lying on that land is being transferred to warehouse after dismantling it, which we again use in the next season. So, certain resorts are of the nature where it’s work for the seasonal basis and certain resorts is for full year of operation. Same way in the even industry also. In second quarter, like June to September, event business is normally at lower tune than third and fourth quarter. So, event business is always [Foreign Speech] again we are dependent on the government the kind of business [Foreign Speech] So, that is the normal seasonality. And now we are mitigating the seasonality by way of starting new resorts. [Foreign Speech] So, major resorts now we are going ahead with full years of operations.

Jay — Capital PMS — Analyst

Okay. Sir, can you give a breakup, please, [Foreign Speech]

Vishnu Patel — Non-Executive Chairman

Yeah [Speech Overlap]

Prolina Barada — Woman Director (Executive)

Yeah. Please, continue.

Vishnu Patel — Non-Executive Chairman

Yeah. There is two resorts only which is on — which we work on a seasonal basis, that is the Kutch and Varanasi. Remaining all resorts including Kevadia as well as Daman, Diu [Foreign Speech] it is under development. [Foreign Speech]

Jay — Capital PMS — Analyst

Okay. [Foreign Speech] this will be medium to luxury or this will be majorly for the affordable and middle income class is what we are targeting?

Vishnu Patel — Non-Executive Chairman

There is a two segments which we can define. [Foreign Speech] last year ARR was the INR8,400 against our industrial INR4,200 per room, just for your knowledge.

Jay — Capital PMS — Analyst

Okay. Sir, thank you. Sir, just one last question. When you say that you keep the tents and everything as a property, so what is the payback period for a non-seasonal resort versus a full-year resort, like say Rann of Kutch, how much…

Vishnu Patel — Non-Executive Chairman

Very interesting question. While we’re deciding to open new sites for resort, we first make a feasibility study how much purity is coming, how is the future scope for that particular location. [Foreign Speech]

Jay — Capital PMS — Analyst

Okay. So, basically you’re saying that on the feasibility study, you will decide whether to put a tented structure or to build a permanent structure?

Vishnu Patel — Non-Executive Chairman

That’s right. Exactly. So, if it is a payback period of 1.5 years maximum, then only we open resorts or we bid for the same.

Jay — Capital PMS — Analyst

Okay. So, 1.5 years is threshold for profit as a company about everyone who generally looks to open any property unless…

Vishnu Patel — Non-Executive Chairman

Yes, exactly. That’s the threshold limits where we consider it as feasible it is a — if the payback period is below 1.5 years.

Jay — Capital PMS — Analyst

Okay. So, that is very good as a financially discipline. Thank you. Thank you so much, sir, for answering all the questions. And all the best for the future.

Vishnu Patel — Non-Executive Chairman

Thank you.

Operator

Thank you. The next question is from the line of Avinash Gorakshakar from Profitmart Securities. Please, go ahead.

Avinash Gorakshakar — Profitmart Securities — Analyst

First of all, congratulations for the entire project. The numbers have been extremely excellent in any which way. I have two, three questions. Just to understand, for the first nine months, we made INR65 crores of revenue. Can we come to know what is the percentage of hospitality and exhibition in this INR65 crores? [Foreign Speech] Another question which I have is basically, we saw the company’s EBITDA margins improving significantly. In fact, I was seeing the third quarter numbers, the EBITDA margin is almost 60% compared to the second quarter where it was 55%. So, has the company taken any price increases in Quarter Three, if you can please tell us?

Vishnu Patel — Non-Executive Chairman

Revenue breakup will be given by Prolina. Prolina, can you say that revenue breakup?

Prolina Barada — Woman Director (Executive)

Sure, sir. So, good evening, Avinash, sir. While it comes to the business [Indecipherable] pretty much right now having two source of incomes. One is from events and exhibitions, and other one from hospitality. So — and coming to this nine-month end INR65.81 crores turnover, we [Indecipherable] 40% from the event and exhibition segment and 60% from hospitality.

Avinash Gorakshakar — Profitmart Securities — Analyst

Okay. And madam, on the second question, if you could please tell. EBITDA margin [Technical Issues]

Prolina Barada — Woman Director (Executive)

Yeah, please.

Vishnu Patel — Non-Executive Chairman

EBITDA margin is dependent upon the volume of the business always. So, in the third quarter, we have done around 50% more business than the second quarter. And that’s why the — there is a shift of EBITDA margin from 53% of the second quarter to 60% to the third quarter. That is mainly the reason for the same. Because our overhead will be — will recover more in case of volume of sales is increasing. That’s why.

Avinash Gorakshakar — Profitmart Securities — Analyst

Okay. So, basically the prices, the sale price has not increased [Speech Overlap]

Vishnu Patel — Non-Executive Chairman

Sale price has not increased, definitely not.

Avinash Gorakshakar — Profitmart Securities — Analyst

Okay. I have one more question before I conclude. I would like to say on the exhibition business, now what is the kind of outlook the management would like to share for FY ’24, because in the last one or two years, hospitality business has increased the contribution significantly, but exhibition is also one of the strengths of Praveg. So, going forward, can we expect some more traction even on the exhibition and events side in the coming financial year? If you could share some thoughts.

Vishnu Patel — Non-Executive Chairman

Yeah. I can share one interesting thing is that due to last two years corona effect, the event, exhibition was at a very lower tune in last 20 years through our history, number one. So, you’ll find lower volume of sales in event and exhibitions. Number two, the events and exhibition business is dependent upon government [Foreign Speech] For right now, we have balanced focus with the [Foreign Speech] So, we get a good opportunity, we will catch that business also.

Avinash Gorakshakar — Profitmart Securities — Analyst

Vishnu bhai, my one last question. [Foreign Speech] that is for next full year, what is the kind of targeted capacity utilization? [Foreign Speech].

Vishnu Patel — Non-Executive Chairman

Number one. Number two, we have done there around 140 tents [Foreign Speech] we are expecting good business in the future [Foreign Speech] And we will further expanding our business development teams to have a business of conference and varying kind of business in Varanasi also. [Foreign Speech]

Avinash Gorakshakar — Profitmart Securities — Analyst

Thank you for the answers, Vishnu bhai, all the best to you and your company. Thank you.

Vishnu Patel — Non-Executive Chairman

Thank you.

Operator

Thank you. The next question is from the line of Shashank from Value Educator. Please, go ahead.

Shashank Mahajan — Value Educator — Analyst

Am I audible?

Vishnu Patel — Non-Executive Chairman

Yes.

Shashank Mahajan — Value Educator — Analyst

Yeah. Firstly, many congratulations for the — Praveg team for the excellent set of numbers. So, my question is related to — yeah, my question was related our upcoming projects, if you can elaborate a bit about the Daman and Diu, I think you had mentioned that you have about 95 upcoming tents. So, what about Velavadar, Ranthambore, Udaipur, how many tents are we planning over there? And what is the nature of Adalaj [Indecipherable] project? I think it is an area development. So, can you give us some briefs about these three, four projects? And other, I think, like some projects which you said will be coming in April 2024, like Sasan Gir, Kevadia and Kumbhalgarh and all. So, like just to get clarity about how many tents will be there, what is the seasonality over there, and if possible, what would be the revenues or something which we are expecting? That would be really helpful.

Vishnu Patel — Non-Executive Chairman

Prolina will explain this in detail. Prolina, please.

Prolina Barada — Woman Director (Executive)

Yeah. Sure, sir. First of all, while I was talking about the upcoming projects of Daman and Diu, as I said, 95 tents will be there. And that includes the 30, 35 numbers in Daman and 30 tents in Diu.

Shashank Mahajan — Value Educator — Analyst

Okay.

Prolina Barada — Woman Director (Executive)

Okay? And for Jawai, we have — initially, we are planning for 20 units over there in Jawai.

Shashank Mahajan — Value Educator — Analyst

Okay.

Prolina Barada — Woman Director (Executive)

This will again go in two phases, 12 first phase and another 8 in the second phase. And for Velavadar, we are planning for 12 rooms.

Shashank Mahajan — Value Educator — Analyst

Okay.

Prolina Barada — Woman Director (Executive)

For Ranthambore, we are planning for 15 rooms. For Udaipur, we are planning for 35 rooms.

Shashank Mahajan — Value Educator — Analyst

So, typically, ma’am, same setup of the tented stay?

Prolina Barada — Woman Director (Executive)

No. We are — while I talk about the Daman and Diu, it is called the Tent City, but it will be operational throughout the year. So, these are all cottages, that is, permanent structures will be there.

Shashank Mahajan — Value Educator — Analyst

Okay.

Prolina Barada — Woman Director (Executive)

And while I talk about our own property for Jawai, Velavadar, Ranthambore and Udaipur, these will be the permanent structures, building structures [Technical Issues] somewhere and somewhere glasshouses we are planning. Like we plan USP-based [Phonetic] projects in all of our properties. And those will be operational throughout the year. And while talking about the Kumbhalgarh, Kevadia, Sasan Gir and Shivrajpur, these projects also, those will be, again, permanent structures operating throughout the year.

Shashank Mahajan — Value Educator — Analyst

So, it will be, ma’am, RCC structure because right now, I think our ROC is very efficient, probably more than 50%, because, firstly, I think the land which you get is from the government, and another thing is, like these [Technical Issues] structures are — is much — I think, is much cheaper compared to our RCC or any hotel type of a structure. So, are we planning to have a similar feedback or similar ROC in future when we are going for the land acquisition and the permanent kind of structure. So, can you give any idea on that?

Vishnu Patel — Non-Executive Chairman

I would like to answer for that. Our major tent city is normally a temporary structure base. Only where we own the land, that is a semi-temporary structure. For Udaipur, Jawai, Ranthambore and Velavadar, that will be a semi-structure kind of a structure will be lying on the our — that’s our own land. [Foreign Speech] so our ROC, we can maintain. [Foreign Speech]

Shashank Mahajan — Value Educator — Analyst

Ma’am, can you give the number for the, like the land which we acquired, what is the amount which we spent, if possible? [Indecipherable] Ma’am, I’m asking about the land which you acquired for these projects, what is the amount for the same? How much we spent? I think in annual report, you had mentioned that Ranthambore, Udaipur, Jawai, and Velavadar land are already acquired. So, can you give me the amount which you spent to acquire the land?

Prolina Barada — Woman Director (Executive)

Okay. Sir, can I have the answer on this?

Vishnu Patel — Non-Executive Chairman

Yeah. [Foreign Speech] land and land development cost will be INR1.5 crores of that land [Foreign Speech] acquisition is far lower than normal land cost. So, that is INR1.5 crores. For Udaipur, land and land development cost will be INR1.6 crores. Same way, for this Jawai, it’s around INR1crore rupees. In that way, Ranthambore, it will be INR2 crores, INR2.5 crores around, land and land development cost, including stamp duties and some alignment and balancing that we are needed to do before doing development work. So, we include that — land cost include land development cost.

Shashank Mahajan — Value Educator — Analyst

Right, sir. [Speech Overlap] tented accommodations, as far as my understanding. [Foreign Speech] Any details you can share?

Vishnu Patel — Non-Executive Chairman

That’s also under development right now. That project is particularly awarded to us by Government of Gujarat for 30 years lease. And that project is very unique project. This is exactly adjoining to the Stepwell of Adalaj, which is one of the historical monuments and archeological monuments of the — particularly, base at — between Ahmedabad and Gandhinagar. So, that project is somewhat unique project of Praveg than other resort kind of projects. In that project [Foreign Speech] underwater room as well as underwater restaurant. [Foreign Speech] So we want to catch that mass [Foreign Speech]

Shashank Mahajan — Value Educator — Analyst

[Foreign Speech]

Vishnu Patel — Non-Executive Chairman

Exactly it is a PPP model which is awarded to us for 30 years. We have to pay rent on it. [Indecipherable]. We are planning to offer smelters before March ’24. In December, maybe, but certain plus-minus has been kept there.

Shashank Mahajan — Value Educator — Analyst

[Foreign Speech]

Vishnu Patel — Non-Executive Chairman

[Foreign Speech] In next year before we are we are planning for 200 tons per day at Varanasi, along with the big 900 pupil. [Foreign Speech].

Shashank Mahajan — Value Educator — Analyst

[Foreign Speech]

Prolina Barada — Woman Director (Executive)

[Foreign Speech] We got 2 plots. And we can develop more than 310 also. There is no limit for that particular area because it’s a huge space. Maybe for first year, we develop only one position. 82 are operational now and [Foreign Speech] rest and those will be operational from 20th of February. So for next year we are planning for more 10.

Shashank Mahajan — Value Educator — Analyst

Okay, understood. Question next is like the receivable amount, I was checking in the balance sheet. The first-half [Foreign Speech] INR23.47 crores receivables. So what is this nature of receivables and nine months number, if you can share with me. And the hospitality business by January other receivables maybe, generally occur. But I think it might be due to the exhibition of the reason which is dependent on government.

Vishnu Patel — Non-Executive Chairman

[Foreign Speech]

Shashank Mahajan — Value Educator — Analyst

[Foreign Speech]

Prolina Barada — Woman Director (Executive)

I can say you separately, because. I don’t have it handy.

Shashank Mahajan — Value Educator — Analyst

Okay. Yes, sure. But not a major debt that is happening from government side, normally, but there may be the declaring of discount our pricing and their pricing, there may be some discount kind of things happening. There is no traction of major any bad debt to commit into 20 years history. Wherein, total 20 year history, I can say that the total therefore discount after billing not exceeding INR2 crore to us in total history of Praveg. Understood. I have some more questions.

Prolina Barada — Woman Director (Executive)

Please proceed.

Shashank Mahajan — Value Educator — Analyst

Yes, thank you, ma’am. Thank you for the opportunity. So sir, before I think one or two months [Foreign Speech] Safari related. We are going to open over there. [Foreign Speech] like what will be the nature of that plan [Foreign Speech] and what is the potential.

Vishnu Patel — Non-Executive Chairman

[Foreign Speech]

Shashank Mahajan — Value Educator — Analyst

I think in Kenya, I am saying, you have updated two exchanges about starting one subsidiary.

Vishnu Patel — Non-Executive Chairman

Yes, we have incorporated one subsidiary at Kenya. We are planning in future — still there is — not any perfectly, I mean, land is acquired, but we are deciding in future we will start one resort at Masai Mara forest. Others are that subsidiaries we have acquired directly before some dues.

Shashank Mahajan — Value Educator — Analyst

Okay, so any like rough timelines [Foreign Speech].

Vishnu Patel — Non-Executive Chairman

Still the management has not decided. But we are strategically, we are open our bank accounts and opened a bank company. Once we get good opportunity there in terms of accretion of the land in the between forest and our plan is to [Indecipherable] to buy them and for making this kind of resort. In that case we will get that opportunity. That’s why we make our company ready — structure ready, so we can speed-up that process at the appropriate time.

Shashank Mahajan — Value Educator — Analyst

Okay, sir. [Foreign Speech]. So what are the other cities which are planned in future already or which cities [Foreign Speech] and like any understanding, which you can share to investors like, how many are operational or upcoming?

Vishnu Patel — Non-Executive Chairman

Basically do not want to start hotels, like in metro or city — big city. That is our fundamental difference between hospitality company. So you can’t compare that hospitality companies. The ROCE and all of those [Indecipherable] with company like Praveg. We are basically, we have a focus to start some good eco-tourism system in India, and that’s why we are selecting natural places, seashore, rivers as well as special place in swaps is important, like a sketchy ability in the big city of the India. [Foreign Speech]. Whereas we’re eager to start these kind of resorts and Tent City kind of project which we are seeing like in Udaipur, we have glass houses. So we have purchased mountains entire mountain. On top of mountains, we are planning glass resort where you can on the top of that you can find resorts in a driving area.

And in surrounding of that mountain, there will be a glass structure, our guests can enjoy entire star during night and with all the — hobby to star regime. [Foreign Speech].

Shashank Mahajan — Value Educator — Analyst

Great. I think you all are doing fantastic. It is a very unique model. Keeping in mind on the financial parameters of ROCE and what the returns are we getting from the invested capital. So that is a like a fantastic I think within the love. [Foreign Speech]. Many congratulations for that. [Foreign Speech]. So can you share about the revenue occupancy and average room rate?

Operator

Mr. Shashank, can you speak a little closer to the phone.

Shashank Mahajan — Value Educator — Analyst

Am I audible now, ma’am?

Operator

Yes, please.

Shashank Mahajan — Value Educator — Analyst

Probably I wanted some numbers for this quarter and historical numbers, if you have them handy or otherwise we’ll get back to you later. The Narmada city and like Rann of Kutch Q3 revenue occupancy and average room rate, if you can share.

Vishnu Patel — Non-Executive Chairman

[Foreign Speech].

Shashank Mahajan — Value Educator — Analyst

[Foreign Speech]

Vishnu Patel — Non-Executive Chairman

[Foreign Speech]

Shashank Mahajan — Value Educator — Analyst

Okay, sir. Thank you very much for your time. If I have any query, I will join the queue.

Operator

[Operator Instructions] The next question is from the line of Yashwanti Kudkar [Phonetic] an Individual Investor. Please go ahead.

Unidentified Participant — — Analyst

This is Yashwanti Kudkar. Sir, most of my questions are answered. Just want to understand…

Operator

Sorry to interrupt ma’am. You sound very softly. Come little more closer to the mic.

Unidentified Participant — — Analyst

I just want to understand [Technical Issues] What is an approximate cost normally being set when demand is already given [Indecipherable].

Vishnu Patel — Non-Executive Chairman

For campaigning structure, our cost is benchmark cost is at INR15 lakh per tent, that include common facilities like swimming pool, dining area, or whatever [Indecipherable] basically required to be [Technical Issues]. And for any campaign structure which is not a perfectly affiliate structure perfectly a tent structure. That cost, benchmark cost [Technical Issues] per room.

Unidentified Participant — — Analyst

And then also [Technical Issues] I I believe [Technical Issues].

Prolina Barada — Woman Director (Executive)

Yes ma’am we have repaid royalty to the government.

Unidentified Participant — — Analyst

And what is the cost and what is the rate at which [Technical Issues] payment. Are we able to do and what kind of a royalty we need to pay?

Vishnu Patel — Non-Executive Chairman

Yearly just explained before by someone, our — Varanasi we are [Technical Issues] yearly, what are the [Technical Issues] then at Kutch we are paying INR1.25 crore yearly royalty to the government. That depend upon property and…

Unidentified Participant — — Analyst

It is basically a lump sum amount which we need to pay, right?

Vishnu Patel — Non-Executive Chairman

Yes, exactly. It is a lump sum royalty, decided at the time of tender.

Unidentified Participant — — Analyst

So, all this decided at the time of rent?

Vishnu Patel — Non-Executive Chairman

Yes.

Unidentified Participant — — Analyst

Okay, sir. Thank you so much.

Operator

Thank you. The next question is from the line of Udhaykumar, an Individual Investor. Please go ahead.

Unidentified Participant — — Analyst

Yes, good evening, sir. Can you hear me?

Vishnu Patel — Non-Executive Chairman

Yes.

Operator

Mr. Udhaykumar, may we request you to switch to the handset mode from speaker mode.

Unidentified Participant — — Analyst

Is it okay now?

Operator

Much better, sir. Thank you.

Unidentified Participant — — Analyst

So, [Indecipherable] superb numbers. What probably usually understand now accelerated growth. Right. That is the meaning of acceleration Gujarati projects. My question is, we are just leading our name. My question is, now by FY ’25 can you be reaching around INR200 crore turnover? I understand 60% EBITDA we will maintain from all the discussion that I’ve heard off so far.

Vishnu Patel — Non-Executive Chairman

Yes, EBITDA is always depend upon how much occupancy we get from different resort. So how at the end of the year product mix is there, it’s depend upon that. So there is one resort still performing above line, somewhat below line, but the average [Technical Issues] assumed to be at 50% EBITDA margin. Right now in Q3, we not always presume that we get always 60% or 61% EBITDA margin, because the quarter three was very high peak. So our overhead — absorption of overhead, leading to more EBITDA margin, but we may assume to be 50% EBITDA margin normal.

Unidentified Participant — — Analyst

And on the top-line growth, is it possible by FY ’25, we touch INR200 crore or more?

Vishnu Patel — Non-Executive Chairman

See, I can’t give you a number likely, but just explain before to some of — declined to this on there. We are planning our resorts with maximum payback period must not be more than 1.5 years. So accordingly, analyze and figure out the numbers of sales. This year we are doing capital investment of INR90 crore plus for these 9 resorts, upcoming resort. Among them, one we have completed in Varanasi. So, INR90 crores is our capex for this year. So to understand there must be at INR60 crore turnover. We reached by this 9 resorts in the next year. So past record with this INR60 crore you may analyze accordingly.

Unidentified Participant — — Analyst

And any breakup possible for food and beverages kind of revenue and margin understanding onto that.

Vishnu Patel — Non-Executive Chairman

I would like to say focus about food and beverages, exactly, our all resort are at [Foreign Speech] from other alternative available to our case. That’s why our room rent include, food and beverages charges to get kind of distribution. [Technical Issues] we are good at it. One is with the SMB and one is with the breakfast of some. So [Technical Issues] we may include — we are include SMB.

Unidentified Participant — — Analyst

Okay, fine. Thank you. Thank you very much.

Operator

Thank you. The next question is from the line of Dharmesh Shah [Phonetic], an Individual Investor. Please go-ahead.

Unidentified Participant — — Analyst

Yes, hi. One of my question is already answered on the [Indecipherable]. Second question I wanted to ask was, [Indecipherable] G20 Summit event which is up later this year, that’s very nice. I had two questions, one was on achieving but I think that was already answered. Secondly, the government G20 Conference, which is coming up in later this year. And so that will be a good on-market this platform for private. So is there a private bidding for this G20 summit event management.

Prolina Barada — Woman Director (Executive)

G20, they didn’t choose us. I think it was — if you talk about the event management pass, event management part we had not participant because it came early I think six month early only. But yes, we have two G20 Summit. That are in stock with our property which has not conformed yet, one is conformed and another is in process like conference management. While I speak about the Tent City Narmada and Varanasi projects, we are yet to get confirmation from the G20 team.

Vishnu Patel — Non-Executive Chairman

Actually we had two G20, one at Kevadia and one at Varanasi. So it’s under — we right now not got conformation but it will be.

Unidentified Participant — — Analyst

Okay. On the Kenya, you already answered, actually. But as — how aggressive is the company looking to expand into this Africa like Kenya is just one country, and let me just speak out the remaining specialize in wild life and closer to in nature kind of projects. So Africa continent will we thought the opportunity for the company going-forward. [Foreign Speech].

Vishnu Patel — Non-Executive Chairman

[Foreign Speech] 9 resort is already conformed reaching under development. And maybe we will reach your — we get a more two, three assignment because we get a tender government part, [Foreign Speech]. So, presently, this year we are focusing for this India 9 to 12 resorts. From next year maybe we are very aggressive for the projects like Masai also. So we will be one resort over three. To study how we are experience overseas also. [Foreign Speech]. Right now, with the project available in India, [Foreign Speech]. We are also eager to get that opportunity.

Unidentified Participant — — Analyst

Thank you.

Operator

Thank you. The next question is from the line of Shashank from Value Educator. Please go-ahead.

Shashank Mahajan — Value Educator — Analyst

Yes, thank you for the opportunity. [Foreign Speech].

Vishnu Patel — Non-Executive Chairman

[Foreign Speech]. This procedure to incorporate company opening up the bank account like that. So that’s only we calculate.

Shashank Mahajan — Value Educator — Analyst

[Foreign Speech]. Are you participating in any future tenders where this temporary structures are there from the government side apart from whatever you have mentioned.

Vishnu Patel — Non-Executive Chairman

[Foreign Speech].

Shashank Mahajan — Value Educator — Analyst

[Foreign Speech].

Vishnu Patel — Non-Executive Chairman

[Foreign Speech] strategical between India. We will not be a one state strategy. We are present in all state wherever possible. And one — our total resort will not be in the one state. So 20% [Foreign Speech].

Shashank Mahajan — Value Educator — Analyst

[Foreign Speech].

Vishnu Patel — Non-Executive Chairman

[Foreign Speech].

Shashank Mahajan — Value Educator — Analyst

Right, sir. Any asset which is getting payback of two to three years is a excellent business because it will throw lot of cash if you think in next four, five years.

Vishnu Patel — Non-Executive Chairman

Yes. That’s why our management is very eager to catch good business first and it’s the question of opportunity, to get the opportunity internally [Foreign Speech].

Shashank Mahajan — Value Educator — Analyst

[Foreign Speech].

Vishnu Patel — Non-Executive Chairman

[Foreign Speech] then that our tampering structure, that would be for room budget and for temporary structure, that is helping budget. In ’24, ’25 also, that is our Board benchmark budget. That if in future also [Foreign Speech]. I’m making clarity now. So we are not going to acquire any land or are we going to acquire land over there. Already stated, as of that total projection of our resort, number of resort which we are telling is now 40% resort [Foreign Speech]. And 60% will be leased or the government lease.

Shashank Mahajan — Value Educator — Analyst

Okay, sir. Okay. Thank you very much.

Operator

Thank you. [Operator Instructions] As there are no further questions, I now hand the conference over to Mr. Sumit Maru for his closing comments.

Sumit Maru — Kirin Advisors Private Limited — Analyst

Thank you everyone for joining the conference call of Praveg Limited. If you have any queries, you can write us at [Indecipherable]. Once more, thank you everyone for joining the conference.

Operator

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