alpine housing development corporation ltd Management discussions

I. Economy overview

a) Global Economy

After the Covid -19 issues the world economy was showing signs of normally but the Ukraine war and the inflation have affected the economies of many countries all over the world

The world GDP growth which was 6% in 2021 has come down to 3.4% in 2022 and as per IMF the economy is expected to be only 2.8% in 2023.

The global economy still remains uncertain in view of ongoing Ukraine war and also the inflation all over the world and increase of Fed rates from 0.25 to 5.25% in the U.S.

b) Indian Economy:

After the negative impact of Covid -19 the Indian economy has been doing well. The war of Ukraine has not affected much because India bought cheaper oil and in Indian Rupees from Russia. However the other imports and domestic products have been caught under inflation.

The Indian economy grew in the year 2022-2023 by 6.9% which is the highest growth in large economies of the world. However the inflation is affecting the economy. RBI has increased repo rate to contain inflation. Keeping all this in mindthe RBI forecastof GDP growth in the year 2023-24 is6.5%.

II. Industry Overview:

The real estate sector in India contributed 11.7% to GDP in 2022 and that is expected to go up to 13% by 2025.

Real estate sector is the second largest employer in India. The market size of teal estate which was S180 Billion in 2020 is expected to teach to S1 trillion by 2030.

After a lull period of 2 years due to pandemic the teal estate market has taken off in real positive way with huge consumption and the stock in hand is going down and new launches happening.

III. Performance

Alpine Housing Development Corporation Limited is basically into the development of residential projects.

We have completed and got the O/C for all our ongoing projects i.e., Alpine Vistula & Alpine Fiesta. In Alpine Pyramid we have provision for construction of one more block through revised plan which we are undertaking development in this year.

We have entered into an Joint Development Agreement for development of 6.50 acres of land in Horamavu area of Bangalore in which some issues cropped up and we are trying to resolve them with Land Lords. Once that is done we shall take that up for development.

As communicated last year to all the share holders, we have entered into Joint Development Agreement with M/s.Milestone buildcon(P) Ltd., for development of our 15 acres of land on a revenue sharing basis.

Also we communicated in the last year report that this land need government clearances. The clearances required are NOC from Karnataka Industrial Development Board, change of land use from industrial to residential, conversion to residential development and then plan sanction before the project can takeoff. We are in the process to get these clearances and once we obtain the clearance M/s.Milestone buildcon(P) Ltd., will take it up for development.

Our manufacturing unit at Wadi in Gulbarga District is in the business of manufacturing Concrete Railway Sleepers which we supply to Central Railways in Bombay.

Presently we have orders of more than Rs.75.00 crores to be executed in the next two years.

FINANCIAL REVIEW Equity including reserves

The equity of the company as on31.03.2023 is Rs.75.93 Crores as compared with Rs.73.56 Crores on 31.03.2022.

Debt Equity

The debt equity ratio of the company for FY 22-23 was 1:0.28 as compared with 1:0.60 in the previous year.

Revenue

The total revenue of the Company increased by 7.27% to Rs.48.80 Cr. in the financial year 2022-23 as compared with Rs.45.49 in 2021-21.

EBIDTA

EBIDTA increased from 563.73 in FY 2021-22 to 570.33 in 2022-23.

Finance Costs

Interest and Finance costs during the year FY 2022-23 stood at Rs.2.17 Cr. compared to Rs.2.55 Cr. in the previous financial year. Net Profit

Net Profit in 2022-23 was Rs.2.38 Cr. as compared to 2.08Cr. in 2021-22.

Earnings per share

The companys EPS in 2022-23 was Rs.1.37 as compared with Rs.1.30 in the previous year.

Market Risk

The 15 acres of land that has been given on Joint Development to M/s.Milestone Buildcon (P) Ltd., is presently in an industrial zone. It has to be changed for residential use, the approval of which has to come from the Government of Karnataka. If that does not happen then the agreement will get cancelled and the land will come back to the company.

Environment and safety

Alpine Housing gives utmost importance to environment and the safety of the employees and the workers.

We ensure adherence to all the requited compliances and regular review of all government approvals and requirements and followall type of protocols.

We scrutinize all safety measure and ensure that all safety measures are followed and thatthere is no scope for any accidents.