AGI Infra Ltd Management Discussions

Our Company is a reputed Punjab based company having its presence in the construction industry for more than one decade. Company has delivered a number of high-rise building Projects in Punjab which includes Residential Housing Projects and Commercial Building Projects. Our residential portfolio currently covers projects catering to customers across all income groups. We have established a successful track record in the real estate industry in Punjab by developing versatile projects through our focus on innovative architecture, strong project execution and quality construction.

Global Economy

World economic outlook is uncertain as growth slows, inflationary pressures persist and trade policies cloud future outlook. Global growth is projected to 3.0 % in 2025 and 3.1 % in 2026, with important differences across countries and regions. The global economy has shown some real resilience, with growth remaining steady and inflation moving downwards. However, some signs of weakness have emerged, driven by heightened policy uncertainty. Increasing trade restrictions are likely to contribute to higher costs both for production and consumption. This is imbued with risk that further trade fragmentation could harm global growth prospects It remains essential to ensure a well-functioning, rule-based international trading system and to keep markets open and free for trade. An unexpected downturn, policy change or deviation from the projected disinflation path could trigger market corrections, significant capital outflows and exchange rate fluctuations, particularly in emerging markets. High public debt levels and elevated asset valuations further heighten these risks.

Indian economy

In an era marked by escalating global trade tensions and persistent geopolitical uncertainties, the Indian economy has demonstrated remarkable resilience and robust growth. Despite global economic headwinds, Indias growth remains stable at 6.5%, supported by strong domestic demand. Inflation is under control, though core inflation remains sticky, necessitating careful monetary management. Trade challenges persist due to weak global demand. While foreign investor outflows pose risks, robust domestic investment provides resilience. The RBIs proactive policies have played a crucial role in stabilizing liquidity and inflation expectations. Overall, Indias economy is well-positioned for growth, but uncertainties in global markets, financial volatility and trade disruptions remain key risks. Sustained policy support from Govt. and regulator and will be essential in maintaining economic momentum. The RBI and the IMF have projected that Indias consumer price inflation will progressively align towards the inflation target in FY 2025-26. In December 2024, RBIs Monetary Policy Committee report revised its inflation projection from 4.5% to 4.8% in FY 2024-25. Assuming a normal monsoon and no further external or policy shocks, the RBI expects headline inflation to be 4.2% in FY 2025-26. IMF has projected an inflation rate of 4.4% in FY 2024-25 and 4.1% in FY 2025- 26 for India. In brief, there are many upsides to domestic investment, output growth and disinflation in FY 2025-26. There are equally strong, prominently extraneous, downsides too.

Industry Overview in India

In India, the real estate sector is the second-highest employment generator, after the agriculture sector. The real estate sector in India is expected to reach US$ 237 billion in market size by 2030, up from US$ 200 billion in 2021. The emergence of nuclear families, rapid urbanisation and rising household income are likely to remain the key drivers for growth in all spheres of real estate, including residential, commercial and retail. Rapid urbanisation in the country is pushing the growth of real estate.

Punjab Real Estate

The real estate landscape in Punjab, known for its culture and history, has also been undergoing tremendous changes in recent times. In Punjab, cities like Barnala, Bathinda, Fatehgarh Sahib, Fazilka, Ferozepur and Gurdaspur are driving huge development. The suburban side of the state has thus become a favorite arena for the residential colonies and commercial development and is attracting investors, homebuyers and developers alike. The urban centers in Punjab like Jalandhar, Amritsar, Ludhiana and S.A.S Nagar too are witnessing an exponential growth in residential, commercial, and shopping malls with eateries / fast food joints. These developments cater to a huge demand for integrated lifestyles where convenience is key. The development is happening in Affordable housing (Catering to first-time home buyers), Mid segment (Shift from joint families to nuclear families) and Spacious Luxurious living (Pent Houses). The selling factors can be attributed to higher multi-level security, playgrounds for children, gym and club facilities, 24-hour availability of water and electricity and a lot of open space for hassle free long walks in the vicinity of ones home. The concept of Smart Homes is also gaining popularity. With technology becoming an integral part of daily life, smart homes are gaining traction in Punjab. Homebuyers are looking for properties equipped with advanced automation and connectivity features that offer enhanced convenience, security, and energy efficiency. Builders are therefore now focusing on crafting homes that cater to the safety and security needs of customers. Our Company is also improving its financial performance with each passing year as witnessed from key parameter given below:

Financial Highlights of the Company: (Rs. in Lakhs)

Gross Income	33744.86	30139.03	11.96
Profit Before Interest and Depreciation	10511.55	8460.11	24.24
Finance Charges	1266.03	728.08	73.88
Profit Before Depreciation	9245.52	7732.03	19.57
Depreciation	1830.20	1163.75	57.26
Net Profit Before Tax	7415.32	6568.28	12.89
Provision for Tax	748.38	1358.6	(44.91)
Net Profit After Tax	6666.94	5209.68	27.97

Projects Completed

NAME OF PROJECT	Area of the Project	NO. OF FLATS/SHOP S	FLATS Booked/ SOLD	OCCUPIED	% OF OCCUPATION
JALANDHAR HEIGHTS-1	19.00 Acres	926	907	907	100%
JALANDHAR HEIGHTS-2	10.385 Acres	625	614	614	100%
AGI Palace	2.1875 Acres	106	104	104	100%
AGI SMART HOMES	7.691 Acres	560	540	540	100%
AGI Pride	3018.33 Yds	8517 Sq. Yds	5333.33	5333.33	100%
		(Rental)
AGI Business Centre	1877.05 Sq. Yds.	69	69	66	95.65%
AGI Maxima	2.557 Acres	392+40	364+22	364+22	100%
AGI SKY GARDEN	12.50 Acres	1274	1240	1240	100%
Urbana by AGI	24.77 Acres	89	89	89	100%
Jalandhar	8.562 Acres	483	482	482	100%
Heights-2 Extension

Projects under Construction: -

NAME OFPROJECT	Area of the Project	NO. OF FLATS/PLOTS	FLATS/PLOTS SOLD	Unsold	% Sales
AGI SKY VILLAS	12.306 Acres	815	406	409	49.82%
JALANDHAR HEIGHTS-III	6.132 Acres	356	328	28	92.13%
JALANDHAR HEIGHTS III EXTENSION	7.406 Acres	396	0	0	0%
URBANA Township	94.93 Acres	414	325	89	78.50%
URBANA SQUARE	4.08 Acres	188 Shops +	0	0	0%
		376 Unis
AGI SKY GARDEN II	6.325 Acres	572	497	75	86.88%
AGI SKY GARDEN III	2.44 Acres	240	130	110	54.16%
JALANDHAR HEIGHTS IV	18.360 Acres	1052	132	920	12.55%
AGI Smart Home II	9.946 Acres	1150	751	399	65.31%
AGI Smart Home II Extension	4.3235 Acres	368	0	0	0
Prestige by AGI	8.025 Acres	713	0	0	0

OPPORTUNITIES AND CHALLENGES Opportunities

As India awaits policy reforms to pick up speed, your Company firmly believes that the demand for Real Estate in a country like India should remain strong in the medium to long term. Your Companys well accepted brand, contemporary architecture, well designed projects in strategic locations, strong balance sheet and stable financial performance even in testing times make it a preferred choice for customers and shareholders. Your Company is ideally placed to further strengthen its development potential by acquiring new land parcels. Your company has also broken the geographical barrier by launching project in Ludhiana City. Proposal to start projects in Mohali and New Chandigarh is also on the anvil

Challenges

While the management of your Company is confident of creating and exploiting the opportunities, it also finds the following challenges: Unanticipated delays in project approvals; Availability of accomplished and trained labour force; Increased cost of manpower; Rising cost of construction; Growth in auxiliary infrastructure facilities; and Over regulated environment.

COMPANY STRENGTHS

Your Company continues to capitalize on the market opportunities by leveraging its key strengths. These include:

1. Brand Reputation: Enjoys higher recall and influences the buying decision of the customer. Strong customer connects further results in higher premium realizations.

2. Execution: Possesses a successful track record of quality execution of projects with contemporary architecture.

3. Strong cash flows: Has built a business model that ensures continuous cash flows from their investment and development properties ensuring a steady cash flow even during the adverse business cycles.

4. Significant leveraging opportunity: Follows conservative debt practice coupled with enough cash balance which provides a significant leveraging opportunity for further expansions.

5. Outsourcing: Operates an outsourcing model of appointing renowned architects/contractors that allows scalability and emphasizes contemporary design and quality construction a key factor of success.

6. Transparency: Follows a strong culture of corporate governance and ensures transparency and high levels of business ethics.

7. Highly qualified execution team: Employs experienced, capable and highly qualified design and project management teams who oversee and execute all aspects of project development.

RISKS AND CONCERNS 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 and 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 handing over the 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

38 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. It includes amounts paid for freehold rights, leasehold rights, eligible FSI, construction cost of area given to landlords in consideration for development rights, registration and stamp duty. Your Company may acquire 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.

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.

Strengthen relationships with key service providers and develop multiple vendors

In order to continue delivering landmark offerings to our customer, we shall further strengthen our relationship with our 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.

Outlook

In 2025, Indias economy is projected to be the fastest-growing major economy despite global headwinds, with a growth rate of 6.5%. This projection is supported by robust public spending and monetary policy stimulus. The real estate sector is likely to continue 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.

Human Resources

Your Company considers its human resource a vital asset. The Company prioritizes the professional as well as personal development of each employee, encouraging them to remain motivated and achieve organizational objectives. Company aims to create a conducive working environment, upholding the values of diversity, openness and transparent communications across organizational hierarchies.

The company strongly believes that its Human Resources are one of its most valuable resource and it is the quality and dynamism of its human resources that enables it to make a significant contribution to enhance stakeholders value. Company places employee engagement, development and retention of talent as one of its key priority, to enable achievement of organizational goals. The Company continuously provides Technical, Behaviour and Leadership trainings to employees, so that they become competent enough to advance in their careers. The company maintains a good work culture, ethics, values and attractive remuneration to keep its staff highly motivated. The Company creates employee engagement program at regular intervals that makes learning activities fun by indulging in various programmes like festive celebrations, health care activities, cultural nights with family events, etc. to create an overall healthy work environment. Your Company believes that human resource is its most valuable resource and it is the quality and dynamism of human resources that enables it to make a significant contribution to enhance stakeholders value.

Internal Control Systems

The 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.

KEY FINANCIAL RATIO ANALYSIS

S. NO RATIOS	2024-25	2023-24	Variance (in %)
1 Debtor Turnover	160	168	4.76
2 Inventory Turnover	160.37 Days	183.60 Days	12.65
3 Interest Coverage Ratio	0.58	1.16	50
4 Current Ratio	1.13	1.03	9.71
5 DEBT-EQUITY RATIO	0.33	0.23	43.48
6 Operating Profit Margin	25.72	24.21	1.51
7 Net profit Margin	20.52%	17.28%	15.15
8 Return on Networth	24.23%	30.33%	20.11

CAUTIONARY STATEMENT

Statement in this Managements Discussion and Analysis detailing the Companys objectives, projections, estimates, expectations or predictions are "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied due to various risk factors and uncertainties. We are under no obligation to publicly amend, modify or revise any forward looking statements on the basis of any subsequent developments, information or events and assume no liability for any action taken by anyone on the basis of any information contained herein.

Sd/-	Sd/-
Sukhdev Singh Khinda	Salwinderjit Kaur
Managing Director	Whole Time Director
DIN: 01202727	DIN: 00798804
Date: 28.08.2025
Place: Jalandhar