IITL Projects Ltd Management Discussions

The global economy demonstrated resilience and adaptability in 2024, though growth rates and patterns varied across regions due to distinct local challenges. While economic activity remained sluggish in parts of Asia and Europe, steady expansion in the United States helped balance overall performance. In several cases, government and private spending contributed to the upswing, with real disposable income gains supporting consumption amid still-tight though easing labor markets and households drawing down on their accumulated pandemic-era savings. A supply-side expansion also took hold, with a broad-based increase in labor force participation, resolution of pandemic-era supply chain problems, and declining delivery times.

15% growth in investments. This

In 2025, advanced economies are expected to experience diverse growth on the basis of domestic demand and differing policy responses. In contrast, emerging markets, including China and India, are expected to maintain a stable growth despite ongoing uncertainties in global markets. Advanced economies are forecasted to grow moderately at 1.9% in 2025 and 1.8% in

2026. Although inflationary pressures have eased, there are still ongoing risks, including uncertainty surrounding policy decisions growth across its and heightened geopolitical tensions. Despite global economic headwinds, residential real estate marketIndias growth trajectory remains robust, driven by strong domestic demand, sustained public infrastructure investment, and a resilient services sector. The Reserve Bank of India with its exceptional handling of the monetary policy has successfully steered the economy through an inflationary environment that still plagues most of the developed world.

INDIAN ECONOMY:

Indias economy continues to demonstrate strong momentum and is projected to remain one of the fastest-growing major economies in 2025 and 2026. However, the recent U.S. tariffs on Indian imports may slow GDP growth, impact key industries and prompt policy adjustments, while pushing India to strengthen trade ties with other partners. Due to global economic uncertainties, rising geopolitical tensions, tariff issues and ongoing inflationary pressures, Indias growth slowed to 6.5% in FY 2024-25, down from 9.2% in FY 2023-24. Despite this moderation, India maintained steady growth, supported by strong manufacturing, expanding services and increased infrastructure investments. Government initiatives, including those promoting digital transformation, financial inclusion and ease of doing business, further strengthened the economy.

Looking ahead, Indias growth trajectory remains the envy of most major economies. Yet, sustaining this momentum will require navigating a delicate balance reviving private investment, addressing persistent structural challenges and ensuring that the benefits of growth percolate beyond urban centres. For now, the economy remains in a sweet spot: slowing, perhaps, but still outpacing its peers.

INDUSTRY OVERVIEW:

The real estate industry has experienced a broad-based recovery across all segments since the pandemic, but the residential market has arguably seen the swiftest and steepest resurgence among all real estate segments. According to Report by Knight Frank, sales volumes in the primary market have grown at an extremely healthy annualized rate of 29% since 2020 and culminated in a 10-year high in 2023. Market sentiments have been very positive largely due to an upbeat economic outlook with GDP growth rates at the highest levels in the world. India continues to stand out as a shining example of growth in an otherwise inflationary environment in the backdrop of a volatile global geopolitical scenario caused by the Israel-Palestine and

Russia-Ukraine wars.

In FY 2024-25, the Indian real estate sector experienced awas significant particularly noticeable in the first quarter of FY 2024-25, with foreign investors contributing 55% of the total inflows, indicating their growing confidence in the Indian real estate market and its potential to deliver substantial returns.

OVERVIEW OF REAL ESTATE INDUSTRY IN INDIA: n FY 2024-25, Indias real estate market has showcased robustI residential, momentum, witnessing significant commercial, and premium sectors. According to a report by a real experienced estatebrokerage firm, strong growth, with sales reaching a record high of 3.03 lakh units. This signifies an 11% increase compared to the previous year. Major cities like Mumbai, Pune, Bengaluru, Hyderabad, and NCR contributed significantly to this growth, accounting for a large portion of total sales. Driven by changing consumer preferences, the swift growth of organized retail real estate sees shoppers gravitating towards experiential environments that prioritize convenience, personalization, and digital integration. To align with these evolving expectations, retailers are embracing technological advancements, including e-commerce platforms, omnichannel strategies, and enhanced in-store digital experiences.

Furthermore, sustainability and energy transitioned from being mere options to essential mandates, as businesses address environmental concerns, adhere to regulatory standards, and cater to the rising consumer demand for eco-conscious spaces. In July 2024-25 Union Budget, the central government has rolled out the Pradhan Mantri Awas Yojana Urban 2.0 (PMAY), catering to the housing demands of 1 crore urban poor and middle-class families. This ambitious endeavor, underpinned by a substantial investment of Rs. 10 lakh crore (USD 120.16 billion), is instrumental in invigorating Indias real estate sector, particularly by amplifying the demand for affordable and mid-segment housing. Pradhan Mantri Awas Yojana Urban 2.0 marks the latest iteration of the governments flagship housing initiative. Its primary goal is to ensure affordable housing for economically weaker sections (EWS), low-income groups (LIG), and middle-income groups (MIG) in urban locales. This initiative emphasizes the vision of ‘housing for all, leveraging subsidies, fostering public-private partnerships, and prioritizing the construction of sustainable, energy-efficient housing units.

As urbanization accelerates, bolstered by infrastructure advancements and job opportunities, the real estate landscape is set to shift. Beyond just tier I cities, smaller towns and cities are emerging as new growth centers. Notably, the peripheries of established cities, along with tier II and III locales, are poised for a surge in real estate development across various asset classes.

BUSINESS PERFORMANCE:

The Company is engaged in construction of Residential and

Commercial complex in the National Capital Region (NCR). It has acquired a plot of land on long term lease, under Builders

Residential Scheme (BRS) of the Greater Noida Industrial Development Authority (GNIDA). The construction has been completed and the flats are handed over to the purchasers.

Apart from constructing its own project, the Company was also engaged in construction of residential flats through Joint Venture Partnership Firms and these firms were allotted plots long term lease basis, under Builders Residential Scheme (BRS) of the New Okhla Industrial Development Authority (NOIDA), Greater Noida Industrial Development Authority (GNIDA) and Yamuna Expressway Industrial Development Authority (YEIDA).

However, in the FY 2023-2024, the Company exited from all its

Joint Venture Partnership Firms except for Capital Infraprojects Private Limited.

The Company also exited from its Associate Company, Capital

Infraprojects Private Limited (CIPL) with effect from January 31,

2025.

KEY FINANCIAL RATIOS :

RISKS AND CONCERNS:

The Company is in the business of Real Estate. The real estate industry like any other industry is exposed to certain risks that are particular to the business and the environment. Demand for residential units is driven by combination of factors like location of the project, property price, interest rate, economic condition, income levels, rise in nuclear families, greater access to credit/ housing loans. The sector is also prone to competition.

Competitors with different schemes for the buyers are emerging in the industry. The Company has formulated a Risk Management

Policy. The Company tries to identify, evaluate, analyze and prioritize risks in order to address and minimize such risks. This exercise facilitates identifying high level risks and implement appropriate solutions for minimizing the impact of such risks on the business of the Company. The real estate sector is a regulated sector and any unfavourable changes in government policies and the regulatory environment can adversely impact the performance of the sector. There are procedural delays with regards to land acquisition, land use, project launches and construction approvals. Any policy changes landon and regulatory bottlenecks may impact profitability and affect the attractiveness of the sector and companies operating within the sector.

RESULTS OF OPERATIONS AND STATE OF COMPANYS AFFAIRS:

The total Income of the Company on a Standalone basis for the financial year ended March 31, 2025 is Rs. 235.00 lakhs as compared to Rs. 582.14 lakhs in the previous year.

*Capital Infraprojects Private Limited (CIPL) ceased to be the associate of the Company with effect from January 31, 2025, so Consolidated Financial Statements are not applicable to the Company.

Ratios	2024-25	2023-24	Variance (%) Reason for significant
			or more as compared to the immediately
			previous financial year)
Debtors Turnover	2.50	12.46	(79.93) Due to decrease in Revenue from
			Operations
Inventory Turnover	0.07	1.18	(94.26) Due to decrease in Cost of goods sold
Interest Coverage Ratio (%)	33	138	(76) Due to decrease in Profit before Interest
			and Tax
Current Ratio (%)	85	166	(48.38) Due to increase in Current Liabilities
Debt Equity Ratio (%)	(2413)	(201)	1103.17 Due to increase in other Equity
Operating Profit Margin (%)	769	321	139.44 Due to decrease in Revenue from
			Operations
Net Profit Margin (%)	(153.08)	38.08	(191) Due to decrease in Revenue
Price Earnings ratio	0.98	1.30	- Due to change in Earning Per Share
Earnings Per Share	63.06	45.11	- Due to change in Profit after Tax
Details of any change in Return on Net Worth as	NA	NA	- Net worth of the Company is negative
compared to the immediately previous financial
year along with a detailed explanation thereof.

NTERNAL CONTROL: I

A system of internal control is in place to ensure proper checks and balances in the operations of the Company and to safeguard its assets and interests. There are clear demarcation of roles and responsibilities at various levels of operations. An internal audit firm has been engaged to conduct internal audit of transactions regularly and submit their reports to the management. All audit observations are discussed by the Management with the Auditors for follow-up action and for improvement in the process. The Audit Committee and the Board regularly review the same. Adequate care has been taken to ensure due adherence to the Internal Financial Control over Financial Reporting under Section

143 (3) of Companies Act, 2013.

HUMAN RESOURCES:

The Company considers Human Resource as key drivers to the growth of the Company. The Company has performance-based appraisal system.

OUTLOOK:

According to International Monetary Fund (IMF), the global difference to the Companys economic outlook for 2025 and into 2026 presents a landscape of modest growth, declining inflation and persistent challenges. Global growth is projected at 3.3% for both 2025 and 2026 by the IMF, slightly below the historical average of 3.7% observed between 2000 and 2019. Similarly, the World Bank forecasts global growth to stabilise at 2.7% during the same period, consistent with the rate in 2024.

Global headline inflation is forecasted to decline to 4.2% in 2025 and further to 3.5% in 2026, converging back to target levels earlier in advanced economies than in emerging markets and developing economies. This downward trend is supported by easing commodity prices and the effects of previous monetary tightening measures.

India is expected to sustain steady growth, supported by strong investment, domestic demand, and policy-driven industrial expansion. However, ongoing act of War between India and

Pakistan, global geopolitical tensions, commodity price volatility, and external trade softness could pose risks. Easing inflation should create space for gradual monetary support, ensuring a balance between growth and price stability.

Indias economy is expected to expand by 6.2% in 2025 and 6.3% in 2026, outpacing many of its global counterparts. In contrast, global growth is expected to average around 3.2% over the next five years. Currency depreciation in the last 2 quarters has created a ripple effect throughout the economy, adversely affecting trade volumes across various sectors.

CAUTIONARY STATEMENT:

The Statements made in ‘Management Discussion and Analysis Report relating to the Companys objectives, projections, outlook, expectations, estimates and others may constitute ‘forward looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, projections and so on whether express or implied. Several factors operations thatcould make significant would include demand and supply, government regulations and taxation, natural calamities and such factors beyond the Companys control. The Company and the Management shall not be held liable for any loss, which may arise as a result of any action taken on the basis of the information contained herein.

For and on behalf of the Board

IITL Projects Limited

Dr. Bidhubhusan Samal Chairman

(DIN: 00007256)

Date : August 06, 2025 Place : Mumbai

IITL PROJECTS LIMITED