shantnu investments india ltd Management discussions

DISCUSSION OF FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the year under review, your Company has generated net profit of Rs. 6,294.35 Thousands as compared to previous year net profit of Rs. 2057.19 Thousands. Your Directors are continuously looking for the avenues for future growth of the Company in its business operations and necessarily measures are taken by directors to make the companys growth to higher level. Your directors ensure you to the best of their ability that coming years will be boon to the Company as well as you, being stakeholders.

The Financial statements are prepared in compliance with the requirements of Companies Act, 2013 and the Indian Accounting Standards prescribed by the Ministry of Corporate Affairs pursuant to section 133 of the Companies Act, 2013 (Act) read with Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act and rules made thereunder.

Review of Indian Economy

In 2023, India faced challenges due to the Russia-Ukraine conflict and energy price inflation, but managed to weather the storms. The Indian economy grew by 7.2% in FY23, showcasing its structural growth. However, three key challenges remain: elevated inflation, aggressive monetary policy tightening, and higher energy prices. The governments focus on infrastructure, construction, and manufacturing sectors has helped diversify growth drivers. Growth is expected to be brisk in FY24, driven by robust credit growth, positive capital investment cycles, and strengthening corporate and banking balance sheets. Further support for economic growth will come from the expansion of public digital infrastructure.

Indian Real Estate Industry Overview

The real estate sector, particularly the housing sector, significantly impacts global economies through direct and indirect effects on GDP and employment generation. The inter-linkages among all sectors of the economy make the overall economic impact of real estate far exceeds direct impact, especially in employment generation. Indias demand for quality urban housing is immense, and the industry is expected to create 100 million new households by the end of the decade, creating a unique opportunity for the Indian real estate sector. Despite uncertainties and steep interest rate hikes, the sectors robust performance, particularly in the housing segment, demonstrates the strength of underlying property demand.

Opportunities & Threats

India has strong structural drivers in place for housing demand and it is at an early stage of a multi-year upcycle. Impact of cyclical factors such as interest rates etc. will be felt from time to time, however the structural nature of demand will overpower them to a large degree similar to the way industry has performed this year in spite of the steep mortgage rate hikes.

We monitor challenges to ensure industry growth and potential upward trajectory, capturing opportunities and addressing potential impacts in the near term.

While we remain well placed to capture the opportunities, few challenges may have an impact on the industry in the near term. We always keep a watchful eye for any of challenges which, if they fructify, can impact the upward trajectory of the industry. Our strong management team in consultation with the board takes mitigating actions in light of such challenges i.e. increased interest rates, geo-political tensions, supply chain disruptions, Indias slowdown, job sentiment, and home price increases, affecting affordability.

RISK AND CONCERN

While risk is an inherent aspect of any business, the Company is conscious of the need to have an effective monitoring mechanism and has put in place appropriate measures for the same. Economic slowdown and changes in regulatory environment may impact the construction industry or real estate market adversely affecting the Companys operations.

Indias housing demand is closely linked to job sentiments which in turn is related to overall health of the economy. On account of the steep increase in policy rates, we have seen global growth come down with talks of some of the developed economies getting into a recessionary zone. Slowing global growth coupled with RBIs policy rate hikes, have seen slowing down of the Indian economy. Any worsening of job sentiments in a slowing economy either due to loss of white collar jobs or inadequate salary growth could lead to slower housing demand.

Our company is one of the real estate companies by pre-sales with over more than two decades of experience of delivering high quality homes with world class lifestyle. Over time we have built a consumer brand which is perceived as luxury by consumers in all the segments. We are mainly focused on the housing segment with expanding presence in logistics and warehousing as well. We also develop commercial real estate, as part of mixed-use developments in and around our larger residential projects to bring vibrancy to our residential developments and provide ‘walk-to-work options for our residential customers.

Over time we have built unique strengths which have helped us grow to become the largest residential real estate company and will enable us to continue our growth trajectory.

The Company is positioned to capitalise on the growing market opportunities. In such situations, the Company reviews its policy every quarter with focus on achieving its key business objectives in the given policy framework covering growth, profitability and actions taken to address these risks.

FUTURE OUTLOOK

While the FY20-22 period saw unprecedented disruption on account of the pandemic, FY23 was largely a normal year in terms of operating environment. However, it saw the fastest ever monetary tightening seen in the last two decades. The demand has remained robust and intent of Indian consumers to own a home remains strong as ever. This consolidation is expected to continue even going forward especially in context of rising interest rates. Early read through of FY24 demand suggest continuation of the strength seen in the housing demand in FY23.

We also have a robust business development pipeline for the FY24 which will serve us well to deliver growth beyond FY24 as well. On the back of robust demand and easing of interest rates in the latter half of the year, we expect pricing growth to remain in 6%-8% range for the year which will further boost sentiments towards owning a home.

Advanced technologies are being widely explored and incorporated into construction standard methods of working. The importance of time translating to costs and a good and quick return of investment has been the prime focus always, which now has only strengthened in the circumstances.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The company has a proper and adequate internal control system to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and those transactions authorized, recorded and reported correctly. The internal control is supplemented by extensive program of internal audits, review by management and documented policies, guidelines and procedures.

INDUSTRIAL RELATIONS AND HUMAN RESOURCES DEVELOPMENT

The industrial relations have been cordial and satisfactory. We recognize the importance of Human resources and give full respect for its development and are committed to the development for human resource. There are continuous efforts to make the organization a great place to work.

DISCLOSURES

During the year, the Company has not entered into any transaction of material nature which affects the Financials of the Company.

CAUTIONARY FORWARD LOOKING STATEMENTS

Statements in annual report, particularly those which relate to Management Discussion and Analysis, describing the Companys objectives, projections, estimates and expectations, may constitute "forward looking statements" within the meaning of applicable laws and regulations. Although the expectations are based on assumptions, the actual results might differ.

		By the order of the Board
	For Ayushman Infratech Limited
Place: New Delhi
Date: 31st August, 2023
	Sd/-	Sd/-
	Pragya Agarwal	Mayank Agarwal
	(Managing Director)	(Director & CFO)
	DIN:-00093526	DIN:-00949052