HB Estate Developers Ltd Management Discussions

1. OPERATING RESULTS

During the year under review, the Companys total Revenue was Rs. 12,006.66 Lakhs as compared to Rs. 11,143.82 Lakhs in the previous year. The Company incurred total expenses amounted to Rs. 10,406.12 Lakhs as compared to Rs. 10,410.86 Lakhs during the previous year.

The total revenue of the hotel unit of the Company, Taj City Centre Gurugram, for the financial year under review was Rs. 11713.06 Lakhs as compared to Rs. 10883.82 Lakhs during the previous year. During the year under review, the Company incurred a cash profit amounting to Rs. 2,361.04 Lakhs compared to Rs. 1477.02 Lakhs incurred in the previous financial year. tax stood at Rs. 1,079.45 Lakhs as compared to profit of Rs. 388.89 Lakhs in Profit the previous year.

2. INDUSTRY STRUCTURE AND DEVELOPMENTS

As per United Nations World Tourism Organisation (UNWTO) International tourism virtually recovered (99%) pre-pandemic levels in 2024, with most destinations exceeding 2019 numbers. 2024 marks the recovery of international tourism from its worst crisis on recorded history, four years after the outbreak of the COVID-19 pandemic. An estimated 1.4 billion international tourists (overnight visitors) were recorded around the world in 2024, an increase of 11% over 2023, or 140 million more. Results were driven by strong post-pandemic demand, robust performance from large source markets and the ongoing recovery of destinations in Asia and the

Pacific. The Middle East remained the strongest-performing region when compared to 2019, with international arrivals climbing 32% above pre-pandemic levels in 2024, though 1% compared to 2023. Europe welcomed 1% more arrivals than in 2019 and 5% over 2023, while Africa saw a 7% increase in arrivals compared to 2019 and 12% more than in 2023. According to preliminary estimates, international tourism receipts reached USD 1.6 trillion in 2024, about 3% more than in 2023 and 4% more than in 2019 (real terms). Receipts had already recovered pre-pandemic levels in 2023. Total export revenues from tourism (receipts and passenger transport) are estimated at a record USD 1.9 trillion in 2024, about 3% higher than 2019. According to preliminary estimates, international tourism receipts reached USD 1.6 trillion in 2024, about 3% more than in 2023 and 4% more than in 2019 (real terms). Receipts had already recovered pre-pandemic levels in 2023. Total export revenues from tourism (receipts and passenger transport) are estimated at a record USD 1.9 trillion in 2024, about 3% higher than 2019. International tourist arrivals are expected to grow 3% to 5% in 2025 compared to 2024.

(Source: UNWTO, Barometer January 2025)

The Indian hospitality sector sustained strong growth in 2024, underpinned by a buoyant domestic market and a revival in international travel. Total air traffic surged to 400.8 million passengers, registering 8% annual growth, while international traffic saw a sharper rise of 13%. Foreign tourist arrivals increased to 9.65 million. Hotel performance remained positive, with national occupancy rising to 65%, a slight improvement over 2023, though still shy of prepandemic levels. Average Room

Rates (ARR) rose by 9% to 8,000, while RevPAR grew 12% to reach 5,200, driven primarily by ARR gains Indias tourism industry is projected to continue its upward trajectory in 2025, despite emerging challenges. International tourist arrivals are expected to grow from 17.7 million in 2024 to 19.2 million, reflecting an 8.6% increase. Correspondingly, tourism revenue is forecasted to rise by 9.5%, reaching $43.7 billion, up from $39.9 billion last year. Indias domestic travel market, projected to cross 2.1 billion trips in 2025, continues to anchor the industry.

3. OPPORTUNITIES AND THREATS

In FY 2024-25, Indias tourism sector was fueled by strong domestic and international travel recovery, but faces challenges like infrastructure gaps, skilled manpower shortages, and the impact of global economic factors. Opportunities lie in the sectors potential to contribute significantly to GDP and employment, with strategic focus areas including religious tourism, sustainable tourism, and leveraging technology.

4. FUTURE PROSPECTS AND OUTLOOK

The industry is set for strong growth in 2025, riding the wave of strong domestic tourism and a steady revival in inbound arrivals. Infrastructure upgrades are further boosting the sectors performance. In a significant crore for tourism, with plans to develop 50 new destinations. Parallelly, the commercialMargin office space market is fueling hospitality growth, with 2024 gross leasing hitting 89 million sq. ft. and net absorption at 50 million sq. ft. across key cities. A 16% uptick is expected in 2025, driven by Global Capability Centres (GCCs), IT/ITeS and tech startups.

This commercial momentum is sparking business and MICE travel demand, paving the way for mixed-use developments of offices, hotels and retail. While global trade shifts could impact cross-border travel, continued public-private collaboration will be vital in cementing Indias rise as a premier global hospitality hub.

5. RISKS AND CONCERNS

Your Company aims to understand measure and monitor the various risks to which it is exposed and to ensure that it adheres, as far as reasonably and practically possible, to the policies and procedures established by it to mitigate these risks. The Company has taken adequate preventive and precautionary measures to overcome all negative factors responsible for low trend to ensure steady growth.

(i) The Senior Management is responsible for identification of new risks, changes to existing risks and retirement of previously identified risks through a formal decision making process.

(ii) To ensure key risks are identified and analysed, the Senior Management: (a) defines risks in the context of the Companys strategy; (b) prepares risk profiles including a description of the material risks, the risk level and action plans used to mitigate the risk; and

(c) regularly reviews and updates the risk profiles.

(iii) The Company has implemented a systematic process to assist in the identification, assessment, treatment and monitoring of risks and provides the necessary tools and resources to management and staff to support the effective management of risks. (iv) Risks faced by the Company in its business principally arise from Real Estate and

Tourism industry. This includes macroeconomic risks, investee company specific risks, market wide liquidity risks and execution risks relating to the company/ its intermediaries. The macroeconomic risks, investee company specific risks are covered by investment decisions based on third party research and internal assessment. Market wide risks are assessed and managed by investment timing decisions. The execution risk is managed by dealing with reputed intermediaries and through own back office discipline re accounting and follow up f trades.

(v) The Company assesses the effectiveness of its risk management plan through structured continuous improvement processes to ensure risks and controls are continually monitored and reviewed.

6. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

Your Company has adequate internal controls commensurate with its size to ensure protection of assets against loss from unauthorized use and all the transactions are authorised, recorded and reported correctly. The internal control is also supplemented by internal audit conducted by an external and independent firm of Chartered Accountants on an ongoing basis. The Internal Audit Reports along with management comments thereon are reviewed by the Audit Committee of the Board. Besides, the Audit Committee reviews the internal controls at periodic intervals in close coordination with the Internal Auditors.

7. FINANCIAL PERFORMANCE a) Share Capital: The Companys issued and subscribed share capital consists of Equity and Redeemable Preference Share capital. The paid-up share capital of the company as at March 31, 2025, stood at Rs. 126,45,99,470/- comprising of 21459947 Equity Shares of Rs. 10/- each and 1,05,00,000 Redeemable Non-Convertible Non-Cumulative Preference Shares of Rs. 100/- each.

b) Non-Current Assets & Non- Current Liabilities: During the year under review, the Non-Current Assets and Non-Current Liabilities stood at Rs. 44,757.07 Lakhs and Rs. 25,295.28 Lakhs respectively against Rs. 45,399.79 Lakhs and Rs. 22,886.18 Lakhs respectively in the last year.

c) Current Assets & Current Liabilities: During the year under review, the Current Assets and Current Liabilities stood at Rs. 4,878.91 Lakhs and Rs. 6,888.00 Lakhs respectively against Rs. 4,016.64 Lakhs and Rs. 11,615.05 Lakhs respectively in the last year.

d) Key Financial Ratio (Standalone):

8. HUMAN RESOURCES

Your Company has adequate human resources which is commensurate with the current volume of activity and is reviewed by the management periodically and the Company would induct competent personnel on increase / expansion of the activity.

9. CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis, describing the Companys objective, projections, estimates and expectations may be ‘forward looking statements within the meaning of applicable laws and regulations. Actual results might differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include interest rates and changes in the Government Regulations, tax regimes, economic developments and other factors such as litigations etc.