oberoi realty ltd Management discussions

*Includes Revenue from Projects and Hospitality

2. Balance sheet analysis

3. Profit and loss analysis

4. Cash flow analysis

Leadership Development Program

Your Company had initiated the Leadership Development Program for senior leaders in partnership with People Business Consulting. The vision of this one of a kind management program is to build an ecosystem of Great Leaders and create real competitive advantage through them.

As part of this program, a cohort of select Senior Leaders were identified to undergo a structured 3 month intervention entailing curated workshops and simulations, byte size learning, application of learnings at workplace and reflections. The learning journey was focused on the R-OPTI model^?. This program allowed the organization to gauge the effectiveness of Senior Leaders and plan their development journey and interventions accordingly.

Succession & Career Development Planning

Your Company considers critical talent as their major competitive advantage. Therefore, we have a robust

Succession Planning & Talent Review process in place which helps us in identifying and developing high potential employees. As part of Succession Planning, your Company identifies Critical Roles within the organization and a pool of Successors and High Potential employees basis talent assessment exercise. Through the assessment, your Company evaluates role readiness, potential versus performance and risk assessment of key internal talent. This ensures that the organization has an internal capability and bench strength to meet current and future business requirements.

Career Development Program

Your Company has a Career Development Program (CDP) that lets its people take charge of their growth and empowers them to take complete ownership of their career journey. It enables them to choose their career paths aligned with their interests, abilities and competencies. The key aspects of CDP include creation of development plan where an employee can add the goals, development plan and craft career journey. It outlines the competencies and behaviors required for a position, enabling it to create, development objectives critically to succeed in current or aspired positions.

Mentor-Mentee Program

As an organisation, your Company believes in supporting and enhancing leadership and professional development of the workforce. With an aim to build a strong talent pipeline within the organisation, your Company has launched the "Mentor-Mentee Program". The program is designed to formalize relationship between the Mentors (senior management) and the Mentees (team members) that will help further their career. This intervention will also ensure strong cross team network within the organization which will focus on a Mentor-Mentee engagement to provide an enhanced career development for the mentees.

Performance Management

As part of the Annual Performance Management System, your Company follows a structured process entailing Annual Goal Setting exercise that provides clarity to all employees about their targets and alignment to the organizations goals. The process is followed by a formal Mid-Year Review and the Annual Review. Your Company also encourages continuous check-ins which help create an environment of trust, strengthen relationships, build communication and provide remedial coaching to the employees thereby assisting them to realize their full potential.

Learning & Development

Your Company believes that capability building and empowering employees is a key step in aligning our people to achieve our vision. Our blended learning approach entails our Learning Management System (LMS) and Classroom Trainings which help in the development of Technical, Behavioural as well as Leadership skills.

Your Company continues to leverage the LMS platform and has clocked over 6,500 hours of learning, which includes a count of over 5,000 e-learnings. This milestone was achieved through our SMEs who regularly conduct technical and function specific training for skill upgradation, soft skills training based on concepts from best sellers like Fish! Philosophy and Who Moved My Cheese. Your Company also has various classroom interventions to strengthen the capability of all employees and ensure that they always stay ahead of the curve. As a part of the organization, every employee has completed the mandatory learning modules which include Health & Safety, Code of Conduct, Insider Training, POSH, Diversity & Inclusion.

In a continuous effort to build a human centric organization, your Company believes that the People Managers form an integral part of building the organization culture. With this objective an Appreciative Leadership Workshop was exclusively organized for the People Managers which equipped them to seek a deeper understanding of appreciation as a critical component of great leadership and strengthen their influence as a leader.

Rooted in Values

As an organization, values are a critical part of the company culture. To ensure continuous alignment with the values, your Company has launched a value reinforcement drive which includes a series of Value Workshops twice a week and other interventions for all employees across locations. These workshops are the guiding force that support alignment in all our regular activities. Furthermore, your Companys Employee Recognition Program acts as an engagement tool that encourages and recognizes company values in action. It is a platform to showcase and reinforce values like innovation, effective problem solving, achieving process and operational efficiency, going above and beyond the call of duty to achieve organizational objectives.

Women Leadership Development Intervention

A balanced and inclusive workplace engages people, generates positivity, fosters innovation and helps attract talent by developing a reputation of a great place to work. With an aim to broaden and strengthen the Women Leadership pipeline, your Company launched Women Leadership Development Program titled Flying Lessons for a select Hi-Potential cohort in partnership with Interweave Consulting Pvt Ltd.

This program is specially curated for women in senior managerial roles across cross-functional teams to help them prepare for future leadership roles and craft their career development strategies. The learning journey is well planned and organized across span of 4 months with intensive classroom training sessions, nudge calls, self-reflection and pre-post assignments.

Using a unique and holistic approach, this intervention will empower ascending women and offer variety of interactive and immersive learning opportunities to strengthen their leadership acumen.

Mental Wellness

Your Company has an Employee Assistance Program (EAP) to ensure that the employees are healthy both mentally and emotionally. Whether it is a slight feeling of worry or a more serious problem, employees can reach out to the EAP counsellor over call, text and email. It is a confidential counselling program that help employees cope with stress, mental illness and other issues. The Employee Assistance Program (EAP) is available 24/7 to all employees and their family members.

With an aim to leverage the benefit of EAP, PlugH - the EAP partner regularly conducts sensitizing and mental wellbeing sessions facilitated by professional counsellors covering certain real life issues and topics like parenting, time management, work life balance, stress management and others.

Employee Resource Groups

Your Company fosters a diverse and inclusive environment aligned with organizational values. Hence, voluntary and Employee led Resource Groups have been created for recreational activities and meal facilities. These groups entail people from cross functional teams who work together towards a common goal representing their fellow colleagues.

Fun at Work Committee

The Fun at Work Committee focuses on innovative initiatives to engage the workforce as enjoying work and ensuring camaraderie is a key element of employee happiness. Celebrations around festivals and cultural activities break the monotony at work and help people to have a more positive mind set, higher levels of wellbeing and better mental health.

Canteen Committee

This Committee ensures that physical and mental well being is supported with healthy eating habits. The team prioritizes healthy yet delicious meal options along with hygiene, portion control and timely breaks at our cafeterias across locations. The cafeteria vendors are thoroughly examined and then jointly finalized followed by regular reviews to ensure consistency over a period of time.

Market price fluctuation

The performance of your Company may be affected by the sales and rental realizations of its projects. These prices are driven by prevailing market conditions, the nature and location of the projects and other factors such as brand, reputation and the design of the projects. Your Company follows a prudent business model and tries to ensure steady cash flow even during adverse pricing scenario.

Sales volume

The volume of bookings depends on the ability to design projects that will meet customer preferences, getting various approvals in time, general market factors, project launch and customer trust in entering into sale agreements well in advance of receiving possession of the projects. Your Company sells its projects in phases from the time it launches the project, based on the type and scale of the project and depending on market conditions.

Execution

Execution depends on several factors which include labour availability, raw material prices, receipt of approvals and regulatory clearances, access to utilities such as electricity and water, weather conditions and the absence of contingencies such as litigation. Your Company manages the adversities with cautious approach, meticulous planning and by engaging established and reputed contractors. As your Company imports various materials, at times execution is also dependent upon timely shipment and clearance of the material.

Rental realizations

The rental realizations on the space leased depends upon the project location, design, tenant mix (this is relevant in the case of shopping malls), prevailing economic conditions and competition. Your Company has set up its retail property in prime location and maintains a fresh ambience resulting in crowd pull and attracting first time kind of retailers. As far as the office space rentals are concerned, the same depends on demand and supply, general economic conditions, business confidence and competition.

Land/Development rights - costs and availability

The cost of land forms a substantial part of the project cost, particularly in Mumbai. It includes amounts paid for freehold rights, leasehold rights, fungible FSI, construction cost of area given to landlords in consideration for development rights, registration and stamp duty. Your Company acquires land/land development rights from the government and private parties. It ensures that the consideration paid for the land is as per the prevailing market conditions, reasonable and market timed. Your Company also enters into MOUs and makes advances for the land/land development rights prior to entering into definitive agreements. The ensuing negotiations may result in either a transaction for the acquisition of the land/land development rights or the Company getting a refund of the monies advanced.

Financing costs

The acquisition of land and development rights needs substantial capital outflow. Inadequate funding resources and high interest costs may impact regular business and operations. Your Company has always tried to build sufficient reserves resulting out of operating cash flows to take advantage of any land acquisition or development opportunity.

OUTLOOK

In 2023, we anticipate further downward trends in the global economy. This however, should be an opportunity for the Indian economy to become a world leader. The real estate sector is likely to continue on its journey of long term growth as we see a continuous rise in GDP per capita, larger disposable incomes, growing urbanization and most of all a larger focus of the world on us as the next big economy.

An increase in earning potential, a need for a better standard of living and the growing base of aspirational consumers and their lifestyle changes have led to substantial growth in the sector. With suited economic growth, the premium housing segment will also witness higher demand in the years to come.

Focus on Mumbai and beyond

Your Company shall continue to explore development opportunities in and around Mumbai and explore hubs in the nearby regions on a case by case basis.

Strengthen relationships with key service providers and develop multiple vendors

In order to continue delivering landmark offerings to our customer, your Company shall further strengthen its relationship with key service providers, i.e. architects, designer and contractors. Your Company is also working on strategy to develop more and more vendors who can deliver product and services in line with Companys philosophy and product offerings.

Internal Control Systems

Your Company has also focused on upgrading the IT infrastructure - both in terms of hardware and software. In addition to the existing ERP platform, the Company is presently reviewing the process documentation to ensure effectiveness of the controls in all the critical functional areas of the Company.

CAUTIONARY STATEMENT

This management discussion and analysis contain forward looking statements that reflects your Companys current views with respect to future events and financial performance. The actual results may differ materially from those anticipated in the forwardlooking statements as a result of many factors.