Sri Havisha Hospital , formerly known as Shri Matre Power and Infrastructure Limited and Shri Shakti LPG Limited, has reported a significant increase in net loss for the second quarter. The company's financial performance reflects challenges in the hospitality sector and ongoing efforts to manage costs.

Financial Highlights

Sri Havisha Hospitality reported a net loss of ₹329.35 lakhs for the quarter, more than doubling from a loss of ₹160.07 lakhs in the same quarter last year. The company's revenue from operations declined to ₹312.30 lakhs from ₹423.50 lakhs year-over-year, indicating a challenging business environment.

For the half-year period, the company posted a reduced loss of ₹645.08 lakhs compared to ₹781.61 lakhs in the previous year, suggesting some improvement in overall performance despite the quarterly setback.

Balance Sheet and Cash Flow

As of the end of the quarter, Sri Havisha Hospitality's total assets stood at ₹7,468.82 lakhs. The company experienced a significant decrease in cash and cash equivalents, which fell to ₹8.02 lakhs from ₹47.96 lakhs at the end of the previous financial year, indicating potential liquidity pressures.

Segment Performance

The company's financial results are primarily driven by its hotel business segment, which reported a loss of ₹329.35 lakhs for the half-year. The infrastructure business segment did not contribute to the revenue during this period.

Legal Challenges

Sri Havisha Hospitality made a payment of ₹89.99 lakhs to Telangana State Power Distribution Company towards cross subsidy surcharge for electricity from grid power generators dating back 25-30 years. This payment is currently under legal challenge, and the company has disclosed this amount under "Other Current Asset" / "Deposit" pending final adjudication. Management believes, based on legal opinion, that it has a strong case, and the likelihood of any liability crystallizing is remote.

Outlook

While the company continues to face challenges, particularly in its core hotel business, the reduction in half-yearly losses suggests that cost management efforts may be yielding some results. However, the decline in revenue and increased quarterly losses indicate that Sri Havisha Hospitality is still navigating a difficult market environment.

Investors and stakeholders will be watching closely to see how the company addresses its cash flow challenges and works towards improving its operational performance in the coming quarters.

Sri Havisha Hospital And Infrastructure Limited has successfully renewed its land lease agreement with the Airports Authority of India (AAI) for its operations at Begumpet Airport, Hyderabad. The company announced this significant development through a regulatory disclosure to the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on July 27, 2023.

Key Details of the Lease Renewal

• Duration: The lease has been renewed for a period of 30 years.
• Effective Date: The new lease term commenced on January 1, 2023.
• Location: The leased land is situated at Begumpet Airport, Hyderabad.
• Parties Involved: Sri Havisha Hospitality And Infrastructure Limited and the Airports Authority of India.

Implications for Sri Havisha Hospitality

This long-term lease renewal is a crucial development for Sri Havisha Hospitality And Infrastructure Limited. It ensures the company's continued presence and operations at the strategically important Begumpet Airport location for the next three decades. The extended lease period provides stability and allows the company to plan and execute long-term strategies related to its hospitality and infrastructure projects at the site.

About Begumpet Airport

Begumpet Airport, located in Hyderabad, was once the primary airport serving the city. While it no longer operates as a commercial airport following the opening of Rajiv Gandhi International Airport, it continues to be used for various purposes, including general aviation and as a training facility for aspiring pilots.

The renewal of this lease agreement suggests that Sri Havisha Hospitality And Infrastructure Limited sees ongoing value in maintaining its presence at this location, potentially capitalizing on the site's historical significance and strategic positioning within Hyderabad.

As the hospitality and infrastructure sectors continue to evolve, particularly in rapidly developing urban centers like Hyderabad, this lease renewal positions Sri Havisha Hospitality to potentially benefit from future development opportunities in the area surrounding Begumpet Airport.

Investors and stakeholders will likely be keen to observe how the company leverages this renewed long-term lease to enhance its operations and create value in the coming years.