Hubtown Ltd Management Discussions

LEADERSHIP AND VISION

Global growth is projected at 3.0 percent for 2025 and 3.1 percent in 2026. The forecast for 2025 is 0.2 percentage point higher than that in the reference forecast of the April 2025 World Economic Outlook (WEO) and 0.1 percentage point higher for 2026. This reflects stronger-than-expected front-loading in anticipation of higher tariffs; lower average effective US tariff rates than announced in April; an improvement in financial conditions, including due to a weaker US dollar; and fiscal expansion in some major jurisdictions. Global headline inflation is expected to fall to 4.2 percent in 2025 and 3.6 percent in 2026, a path similar to the one projected in April. The overall picture hides notable cross-country differences, with forecasts predicting inflation will remain above target in the large economies.

Geopolitical tensions could disrupt global supply chains and push commodity prices up. Larger fiscal deficits or increased risk aversion could raise long-term interest rates and tighten global financial conditions. Combined with fragmentation concerns, this could reignite volatility in financial markets. Policies need to bring confidence, predictability, and sustainability by calming tensions, preserving price and financial stability, restoring fiscal buffers, and implementing much-needed structural reforms.

INDIAN REAL ESTATE SECTOR

The Indian real estate sector is experiencing robust growth, driven by factors like urbanization, rising income levels, and government initiatives. By 2030, the market is projected to reach US$ 1 trillion, contributing significantly to the nations GDP. However, the sector also faces challenges such as land acquisition and regulatory hurdles.

The residential segment, particularly in the premium and luxury categories, is experiencing strong demand. Even in the mid-income and affordable segment, demand is resilient at "value" price points. The rapid urbanization continues to fuel the demand for both residential and commercial properties and also increasing household incomes are boosting purchasing power and driving demand for better quality housing. Government initiatives and policy reforms are also playing a crucial role in the sectors growth.

MUMBAI REAL ESTATE SECTOR

FY 2024-25 recorded registrations of 143,948 properties as against 13,22,723 for the corresponding period last year. The strong growth in the revenue from stamp duty in FY 2024 -25 further strengthens the argument that higher value properties in Mumbai have continued in sales momentum.

Despite prevailing global economic uncertainty, the Indian real estate sector has demonstrated sustained momentum over the past year, emerging as a key pillar of the nations economic revival. It continues attracting strong interest from domestic and international investors, driven by structural reforms, urbanisation and evolving consumer aspirations.

COMPANY OVERVIEW

Hubtown Limited ("Hubtown"), established in 1989, is a public listed entity revered as one of the most reliable real estate developers in India, Hubtown was conceived with the intent of dramatically transforming the real estate landscape of the country, introducing world-class residential and commercial spaces and making the premium lifestyle accessible to all. Hubtowns portfolio spans across high-end residential developments, built-to-suit office spaces and IT Parks. Trusted by generations of property owners Hubtown has over the years created its own niche and has become a formidable force in the countrys growing real estate market. Known for timely deliveries, customer relations and modern infrastructure, Hubtown takes pride in understanding the needs of the market and catering to it in our own trademark style.

Since its inception, the Company has demonstrated significant growth and project execution capabilities. Hubtown has completed forty-seven (47) projects with a developed area of more than 14 Million square feet. Currently, the Companys portfolio includes a developable area of 31 Million square feet of area, primarily in the MMR region.

Hubtown is strategically expanding into the Mumbai, Thane, MMR, Pune and Gujarat real estate market. The Company is well-positioned for growth. Its strong project portfolio, including prime land reserves, ensures high cash flow visibility and potential for value appreciation. This blend of operational expertise, market expansion, and solid financials establishes Hubtown as a key player in Mumbais evolving real estate landscape.

COMPETITIVE STRENGTHS

Diversified Portfolio Across Value and Luxury Segments

Hubtown consists of a diversified portfolio that caters comprehensively to the value, luxury, and super luxury segments. The Company offers a wide range of properties across different price points, unit sizes, and sub-markets in Mumbai, Thane and MMR market, ensuring they meet diverse market demands. The company also has limited presence in the Pune market, which is experiencing strong volume growth, and in select pockets in the state of Gujarat.

Marketing & Sales Strategy

Hubtown excels in marketing and sales, engaging customers effectively throughout their lifecycle to create a strong network effect. As an established real estate brand in Mumbai, Thane and MMR Market, the Company enjoys high market visibility and customer loyalty.

Established Real Estate Brand in Mumbai, Thane and MMR Market

Hubtown is a renowned real estate brand in Mumbai, Thane and MMR Market, known for its established presence and trusted reputation. The Company holds a leading market position, adept at selling properties during the construction phase, which ensures proactive market engagement and sustained growth in the competitive Mumbai, Thane and MMR real estate market.

Experienced Board of Directors

The Companys experienced board of directors and proficient team are committed to upholding the brands core values and philosophy, ensuring continued success in the real estate sector.

Financial Performance

In 2024-25, Hubtown Limited demonstrated robust financial growth. During the year under review, your Companys consolidated total revenue stood at 52,635 Lakhs as compared to 36,203 Lakhs for the previous year, representing an increase of 45.39%; Profit before tax stood at 9,652 Lakhs for the year under review as compared to loss of (7,527) Lakhs for the previous year representing an increase of 228.23%; and the total comprehensive income stood at 4,595 Lakhs as compared to loss of (8,492) Lakhs for the previous year representing an increase 154.10%.

	CONSOLIDATED		STANDALONE
PARTICULARS	2024-25	2023-24	2024-25	2023-24
Revenue from operations	40,847	25,772	27,279	21,058
Other income	11,788	10,431	11,440	2,658
Total revenue	52,635	36,203	38,719	23,716
Expenses	42,983	43,730	26,939	23,074
Profit before tax	9,652	(7,527)	11,780	642
Tax expenses	4,134	70	4,149	26
Profit after tax	5,518	(7,596)	7,631	616
Share of Profit / (Loss) of Associates and Joint Venture (net)	(927)	(1,021)	-	-
Other comprehensive income / (loss)	4	125	4	GN=RIGHT>85
Total comprehensive income for the year	4,595	(8,492)	7,635	701
Basic earnings per share	4.39	(11.17)	7.19	0.80
Diluted earnings per share	4.25	(11.17)	7.07	0.80

Key Financial Ratios (Consolidated)

Ratio	As of 31st March, 2025	As of 31st March, 2024	Variance	Explanation in case of variance is more than 25%
Debtor Turnover Ratio	1.98	1.29	98%	Change in ratio is due to a marginal increase in Revenue as compared to last year.
Inventory Turnover Ratio	0.36	0.21	-64%	Change in ratio is due to a marginal increase in Revenue and decrease in Inventory as compared to last year.
Interest Coverage Ratio	4.16	1.14	316%	Change in Ratio is consequent to increase in Profits and decrease in Finance cost as compared to last year.
Current Ratio	2.83	1.27	183%	Change in ratio is consequent to increase in current assets and decrease in current liabilities as compared to last year
Debt Equity Ratio	0.10	0.50	-90%	Change in ratio is due to Marginal decrease in debt as compared to last year
Operating Profit Margin	0.40	-0.10	-60%	Change in ratio is due to marginal increase in Revenue as compared to last year
Net Profit Margin	0.20	0.03	-80%	Change in ratio is due to marginal increase in Revenue as compared to last year
Return on Networth	0.04	0.00	-96%	Change in ratio is due to marginal increase in profit and Total Equity as compared to last year

Risk Management

Hubtown Limited acknowledges several inherent risks in its operations within the competitive real estate market of South-Central Mumbai. These risks include:

RISKS	IMPACT	MITIGATION
Competition Risk	Hubtown Limited might face competition from other well-established developers in Mumbais real estate sector.	Hubtown Limited leverages its competitive strengths, such as its established brand reputation, expertise in tenant settlement, and strategic location focus, to differentiate itself in the market.
	Competitors may offer similar properties or attract potential buyers with aggressive marketing strategies, posing a challenge to Hubtown market position.	This helps mitigate competition risk by maintaining customer loyalty and attracting new buyers.
Market-Related Risks	The Company is exposed to fluctuations in interest rates, which can impact project costs and financing. Economic downturns or shifts in market demand could also affect property sales and profitability.	The Company utilises hedging strategies to mitigate risks associated with fluctuations in interest rates. Maintaining a diversified funding base and employing prudent financial planning practices ensure resilience against economic uncertainties.
Regulatory & Policy Risks	Changes in government policies related to real estate, such as zoning regulations, taxation, or environmental laws, could impact project timelines and costs. Adapting to new regulations requires proactive monitoring and compliance.	The Company actively monitors regulatory changes and engages in proactive dialogue with authorities to influence policies favourably. Adherence to compliance standards and early engagement with stakeholders help mitigate regulatory risks and streamline project approvals. Most importantly, the company does not launch projects without approvals, and with full compliance in terms of RERA, and therefore, there is no policy risk for launched projects.
RISKS	IMPACT	MITIGATION
Project Approval Delay Risk	Unforeseen delays in obtaining necessary approvals from local authorities can disrupt project timelines and increase costs. This risk is particularly critical in redevelopment projects where adherence to timelines is crucial.	Hubtown Limited has adopted all possible mitigation methods to manage difficulties in project approvals, including but not limited to ensuring phase wise approvals for projects, legal recourse (where required), and /or ensuring knowledgeable teams at every level.

HUMAN RESOURCES

Hubtown Limited thrives on the strength of its competent and passionate employees who drive the Companys competitive edge. The organisation ensures its workforce is well-informed about shared goals, core values, and expected behaviours, recognising their crucial role in accelerating growth and transformation. Through a structured recruitment process, comprehensive training programs, and internal growth opportunities, Hubtown Limited fosters a cohesive environment where employees collaboratively work towards common objectives, developing functional, operational, and behavioural competencies to unlock their potential. This commitment to nurturing talent and fostering excellence, underpinned by the belief that "great people create great organisations," not only enhances individual growth but also reinforces Hubtown Limited position as a leading corporate entity in the real estate sector.

INTERNAL CONTROL SYSTEMS

Hubtown Limited has implemented an internal control system that is considered sufficient, effective, and efficient in mitigating fraudulent activities and irregularities in its operations. The Companys internal and statutory auditors conduct periodic evaluations to assess the effectiveness of these controls, which are reviewed by the Audit Committee. Based on the auditors findings, the Audit Committee advises Management on necessary corrective actions and adjustments that align with the Companys organisational requirements.

CAUTIONARY STATEMENT

The Management Discussion and Analysis report may include forward-looking statements detailing the Companys objectives, projections, estimates, and expectations, subject to relevant securities laws and regulations. Its important to note that actual results might substantially vary from both the expressed and implied statements. Several factors, such as economic conditions influencing demand/supply and pricing dynamics in domestic and international markets where the Company operates, changes in government regulations, tax laws, and other statutes, as well as unforeseen elements, could significantly impact the Companys operations.