Martin Burn Ltd Management Discussions

ECONOMIC REVIEW Global Economy

The global economy continued to display resilience in FY 2024-25, even as growth showed signs of moderation amid persistent uncertainties. Global GDP growth for 2025 is projected at around 3.0%, slightly below earlier forecasts and the historical trend. Advanced economies are experiencing slower expansion (in the ~1.5% range) as the effects of tighter monetary policy and geopolitical tensions temper demand, whereas emerging markets and developing economies are maintaining a relatively robust growth of about 4%. Importantly, worldwide inflation is on a downward trajectory - global headline inflation is expected to ease to roughly 4.2% in 2025, inching closer to central bank targets. Major central banks have paused the aggressive interest rate hikes of the prior year, and while financial conditions remain somewhat tight, they have stabilized. Downside risks persist in the form of trade disruptions, elevated tariffs, and geopolitical conflicts, but there is cautious optimism that policy predictability and global cooperation can help sustain economic momentum. Overall, despite headwinds, the world economy has demonstrated a tenuous resilience, supported by steady consumer spending and labor market strength in many key economies.

Indian Economy

Indias economic performance in FY 2024-25 remained a standout, reinforcing its status as the fastest-growing major economy. GDP growth for the year is estimated at around 6.4-6.5%, marking a slight moderation from the 8.2% expansion recorded in the previous fiscal. This deceleration was anticipated following last years high base, yet growth has been broad-based and solid, underpinned by robust domestic demand and sustained public and private investment. Notably, strong government capital expenditure in infrastructure and resilient services sector activity helped offset softer external demand. International agencies have consistently affirmed Indias leading growth position, with the IMF and World Bank projecting growth around 6.5-7% and recognizing India as a key driver of global economic momentum.

Crucially, inflation has been brought under control, providing a stable macroeconomic backdrop. Retail inflation averaged 4.6% in FY 2024-25, the lowest in six years, with the year-on-year CPI inflation falling to 3.34% in March 2025. This success in reining in price rises can be attributed to effective monetary policy management by the Reserve Bank of India (RBI) and proactive government measures. The RBIs calibrated approach - maintaining policy rates after earlier hikes - alongside government interventions (such as building food buffer stocks and releasing supplies of key commodities) helped balance economic expansion with price stability. A supportive factor was the above-normal monsoon in 2024, which yielded a robust harvest and improved rural consumption. India received about 107.6% of long-period average rainfall in the June-Sept 2024 monsoon season, boosting agricultural output and easing pressure on food prices. This strong agricultural performance, after the prior years shortfall, not only moderated food inflation but also bolstered rural incomes.

Sector Overview

The Indian real estate industry has undergone significant shifts over the past few years, adapting to new realities and regulatory regimes. On the regulatory front, the implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA) has markedly improved transparency and accountability in the sector, boosting investor and homebuyer confidence. Developers are increasingly adhering to compliance and timely project delivery standards mandated by RERA, which has helped restore credibility. Additionally, there is a greater emphasis on corporate governance and ethical practices in real estate - an area where your Companys legacy of trust and transparency provides a competitive advantage.

Changing consumer preferences and technological advancements continue to reshape industry dynamics. The pandemic catalyzed a shift in homebuyer priorities, with heightened demand for larger homes with better amenities as work-from- home and hybrid work arrangements became common. Even as offices have reopened, many families now prioritize extra space for home offices or study areas, sustaining demand for spacious residences. Technology adoption in real estate marketing and sales has accelerated - digital sales platforms, virtual reality walkthroughs, and AI-driven customer engagement have made the home-buying process more accessible and convenient for consumers. Developers are leveraging data analytics and online platforms to reach buyers and customize offerings, reflecting a broader prop-tech revolution in the sector. There is also a nascent but growing focus on sustainable and smart buildings, as environmental consciousness rises; features like energy-efficient designs and green certifications are gradually becoming selling points for new projects.

While opportunities abound, the industry has also faced formidable challenges in recent years. A major hurdle has been the liquidity and credit crunch that impacted many developers, especially smaller ones. The sectors funding ecosystem was hit hard by the 2018 NBFC (Non-Banking Financial Company) crisis - according to a JLL report, lending to real estate developers by NBFCs and housing finance companies fell by almost half to about 27,000 crore in FY 2018-19 due to the IL&FS default-driven liquidity crisis. This legacy of constrained funding persisted, as large NBFCs/HFCs grew cautious and banks remained selective in extending credit to real estate. Consequently, project financing became scarce for less- established developers, leading to construction delays and a slowdown in new project launches over the past few years. Even today, while well-capitalized and reputed developers can access funding at reasonable costs, many others face significant liquidity pressures and have had to explore joint ventures, asset monetization, or alternative financing routes to sustain operations.

Another challenge impacting developers has been rising construction costs. Input costs - from cement and steel to labor

- have escalated steadily. Shortages of skilled labor and disruptions in global supply chains (exacerbated by geopolitical events and the pandemic) drove up raw material prices. These rising costs, combined with high land prices in urban centers, squeezed profit margins for developers and sometimes necessitated property price increases. Managing costs without compromising on quality or timelines has required innovation; developers have responded by adopting newer construction technologies (such as prefab and modular construction, and other productivity-enhancing methods) and value-engineering their projects to remain viable. The industry is also exploring modern construction techniques like pre-engineered buildings and formwork technologies to speed up delivery and reduce labor dependence, though widespread adoption is still evolving.

The aftermath of the COVID-19 pandemic also presented short-term hurdles: lockdowns and mobility restrictions in 202021 brought sales and construction activity to a halt, and even though the sector rebounded strongly in 2022-23, some effects lingered in terms of project backlogs and altered market dynamics. However, it is important to note that the Indian real estate sector has shown remarkable resilience in the face of these challenges. Industry players have adapted through strategies such as project phasing, prudent cash flow management, and asset-light models (e.g., joint developments) to reduce risk. The industry is undergoing a consolidation phase - weaker, unorganized developers have been increasingly edged out or absorbed by stronger ones. In fact, the number of developers in major cities has shrunk substantially in the last decade, a trend accelerated by regulatory requirements and customer preference for credible brands. For companies like Martin Burn Ltd. that enjoy a legacy of trust, this industry evolution presents an opportunity to emerge stronger.

Residential Real Estate Market

Segment Overview

After a prolonged period of strong growth, Indias residential real estate market saw signs of cooling in early 2025, reflecting a mix of high base effects and emerging affordability pressures. The first quarter of calendar 2025 witnessed a notable moderation in housing demand across the top cities. According to industry data, approximately 93,280 housing units were sold in Q1 2025 across the top 7 cities, which is a sharp 28% decline from the record 130,000+ units sold in the same quarter of the previous year. This dip follows an exceptional bull run in 2024 when sales volumes hit all-time highs, and indicates that skyrocketing residential prices and global headwinds have started to weigh on buyer decisions. Home purchase affordability was challenged during FY 2024-25 by a combination of elevated property prices (which rose significantly over the past year) and unchanged but higher interest rates on home loans. While the RBIs stance to hold the repo rate steady provided stability, mortgage rates remained materially above their 2020-21 lows, and coupled with increased home prices, monthly installment burdens for buyers grew. Additionally, a degree of caution seeped into buyer sentiment due to global economic uncertainties and geopolitical tensions during the year.

It is important to underscore, however, that the underlying demand drivers for housing in India remain intact. The recent slowdown in sales is viewed as a temporary correction from unsustainably high growth levels, rather than a structural downtrend. End-user interest - especially from first-time homebuyers and those looking to upgrade for larger homes

- continues to be strong. Many prospective buyers temporarily deferred purchases in early 2025 in hopes of price corrections or better deals, but the aspiration for home ownership remains very high. Moreover, consumer confidence has been reinforced by a stable economic outlook and the post-election political stability. As inflation and interest rates trend downward, buyer sentiments are expected to improve in the latter half of 2025. Indeed, the overall economic scenario remains positive with Indias GDP growth and income rise, which should ultimately support housing demand.

Looking at supply-side dynamics, new residential project launches also moderated slightly in early 2025. Developers, cognizant of the sales slowdown, were measured in bringing new inventory to the market. In Q1 2025, new launches across the top 7 cities were around 100,020 units, a 10% decline year-on-year from roughly 110,865 units in Q1 2024.

Despite this dip, its notable that new supply still exceeded the one-lakh (100,000) units mark for the quarter, indicating developerscontinued confidence in medium-term demand. A significant share of this new supply is being driven by large, reputed developers (including listed realty companies), who have gained market share in recent years. These financially stronger and execution-capable developers have been quick to launch projects in preferred locations, and homebuyers have shown a clear preference for branded projects by established players. This is evidenced by the fact that the bulk of new launch activity was concentrated among the top developers, and they continue to account for a growing portion of sales as well. Geographic distribution of new supply remained similar to recent trends - the Mumbai Metropolitan Region (MMR) and Bengaluru together contributed over 50% of the new launches in Q1 2025[19], with MMR alone adding around 30,700 units and Bengaluru about 20,800 units during the quarter. Some cities like NCR (Delhi) bucked the overall trend with a surge in new launches (NCR saw a 53% YoY jump in Q1 2025 supply) as developers anticipated future demand, whereas markets like Hyderabad and Chennai saw a pullback in new project additions.

Despite the surge in supply over the past year, inventory levels have remained under control, thanks to the strong sales of 2024. As of the end of Q1 2025, the total unsold housing inventory across the top 7 cities stood at approximately 559,800 units, which is about 4% lower than a year ago[21]. The reduction in available stock on a year-on-year basis indicates that the market had absorbed a significant amount of inventory during the 2024 boom. However, with the recent deceleration in sales, the inventory clearance rate has slowed, and unsold stock has inched up in some markets quarter-on-quarter. Still, overall inventory overhang (the estimated time to sell current unsold units at the prevailing absorption pace) remains moderate for most cities, generally in the range of 1 to 1.5 years, which is a reasonable level for a healthy market. Notably, cities like Pune saw the largest annual decline in unsold stock (down 16% YOY), reflecting strong absorption, whereas a city like Bengaluru saw an increase in unsold units as new supply outpaced sales in the premium segment.

Residential property prices continued on an upward trajectory in FY 2024-25, reflecting both robust demand (in earlier quarters) and higher input costs. Across the top seven cities, average housing prices were higher by about 10-34% in Q1 2025 compared to Q1 2024 - a significant jump in just one year. Markets such as the National Capital Region (NCR) and Bengaluru led with the steepest price increases (NCR saw over 30% YOY price appreciation, and Bengaluru around 20%[25]). These price gains were amplified by the larger share of luxury and ultra-luxury projects launched recently, which naturally carry higher price points, as well as the pass-through of increased construction costs to buyers. In the face of these rising prices, buyers in the affordable and mid-income segments have become more price-sensitive, and developers are responding by offering flexible payment plans, discounts on early bookings, or smaller unit sizes to align with affordability constraints. On the other hand, the luxury segment has remained relatively resilient; high-net-worth and upper-income buyers have been less deterred by price hikes, and this segment even saw new project launches and decent sales momentum.

In summary, while Indias residential real estate sector paused for breath in early 2025, the medium-to-long term outlook remains constructive. The fundamental demand for housing - driven by end-user purchases, urbanization, and the rise of nuclear families - is expected to keep the market growing. The recent corrections are likely to instill greater financial discipline and realistic pricing in the sector, which should improve its sustainability. Mortgage interest rates are expected to gradually soften if inflation remains under control, which would improve affordability. Moreover, the governments continued support for housing (such as subsidies for affordable housing and tax incentives for home loans) provides a policy cushion. We remain cautiously optimistic that residential real estate demand will regain momentum in the coming quarters, especially as developers recalibrate strategies and the broader economy stays on its strong growth path.

Kolkata

Launches

Kolkatas residential market saw a rebound in new launches during the year, signaling renewed developer focus on the city. In Q1 2025, approximately 5,400 new residential units were launched in Kolkata, accounting for roughly 5% of the total new launches across Indias top 7 cities. This represented a healthy 26% increase over the new supply in the same quarter of the previous year, which is notable given that most other major cities saw declines in new launches. The uptick in Kolkatas project launches suggests that developers - including local players - are optimistic about future housing demand in the city, possibly banking on its stable end-user driven market and improved liquidity conditions. Consistent with recent trends, the majority of new launches in Kolkata were in the affordable and mid-range segments. About 59% of the units launched in Q1 2025 were priced within the affordable-to-mid category (defined as homes up to 80 lakh). Developers continued to focus on these price segments, which have the deepest demand pool in Kolkata, thanks to the citys price-sensitive middle-class population. The remaining new supply tilted toward premium and higher-end offerings, but developers remain cautious about luxury projects, launching them only in pockets of proven demand.

In terms of geographical distribution, South Kolkata once again emerged as a preferred zone for new developments. Historically the South zone (encompassing areas like Joka, Behala, Narendrapur, etc.) has led in new supply, and it continued to contribute a significant portion of launches, benefiting from available land parcels and infrastructure improvements (such as metro extensions). West Kolkata (including areas around Howrah and Maheshtala) also saw a fair share of new projects, leveraging connectivity upgrades and relatively lower land costs. The North and East zones, while more congested, did witness some new project additions, particularly in redevelopment projects or smaller infill developments. Overall, developers are aligning new launches with pockets of demand - townships and gated communities in peripheral areas with good connectivity (like along EM Bypass or near upcoming metro routes) have been the focus. By concentrating on affordable and mid-segment housing, and launching projects in phases, developers in Kolkata are strategically catering to the citys end-user driven market, aiming to minimize unsold inventory build-up.

Sales Trend

The housing sales trend in Kolkata mirrored the nationwide moderation, with the city experiencing a year-on-year decline in residential unit absorption during FY 2024-25. In Q1 2025, approximately 3,900 units were sold in Kolkata, which is about 31% lower than the ~5,650 units sold in Q1 2024. This dip in sales volume brought Kolkatas contribution to around 4% of the total sales in the top 7 cities, maintaining roughly the same share as the previous year (Kolkata traditionally accounts for a mid-single-digit percentage of pan-India urban housing sales). The slowdown can be attributed to the factors discussed earlier - chiefly, higher prices impacting affordability and a general wait-and-watch approach adopted by buyers after a period of rapid price increases. Kolkatas buyer base is dominated by end-users (as opposed to investors), and many potential buyers took a cautious approach in early 2025, possibly postponing purchase decisions in anticipation of price corrections or festival season deals later in the year.

Despite the short-term dip, housing demand in Kolkata remains fundamentally resilient. The slight pullback in sales is considered more of a cyclical adjustment rather than a reflection of any structural weakness in the market. The citys real estate demand is driven by end-users who typically buy for self-use rather than speculation, which means that genuine requirements (marriage, growing families, job relocations) will continue to generate steady inquiries and transactions. Indeed, anecdotal evidence from developers and channel partners in Kolkata suggests that footfalls at project sites and conversion inquiries have picked up towards the end of Q1 and into Q2 2025, as buyers adjust to the new price reality or negotiate deals. We anticipate that as developers become more flexible on pricing and offer attractive schemes, sales momentum could improve.

Analysing the zonal preference of buyers: South Kolkata remained the most sought-after region for homebuyers in the city. In the quarter, a significant portion of the 3,900 units sold were concentrated in the southern micro-markets (such as Jadavpur, Tollygunge, Garia, Narendrapur, etc.), owing to their better social infrastructure and new project supply. East Kolkata (areas like Rajarhat-New Town and EM Bypass belt) also continued to attract buyers, contributing a healthy share of transactions, especially for mid-range and premium apartments in integrated townships. North Kolkata, known for its older housing stock, saw comparatively fewer sales, mostly driven by redevelopment projects or affordable housing in the outskirts (like Madhyamgram, Barasat). West Kolkata (including Howrah, Dumurjola) had a smaller share, but ongoing infrastructure projects like the second Hooghly bridge connectivity and new industrial developments are gradually spurring interest there. This geographical sales mix underscores that homebuyers in Kolkata prefer locations with established connectivity and daily conveniences, even if it means slightly higher prices, while purely price-driven demand gravitates to the suburbs.

Available Inventory

Kolkatas available housing inventory saw a modest increase in early 2025 due to the combination of new launches and slower sales, but overall inventory levels remain manageable. At the end of Q1 2025, the citys unsold inventory is estimated to be in the range of 28,000-30,000 units, which is roughly flat compared to the inventory level a year ago (around 29,300 units in Q1 2024). The surge of new launches in the affordable and mid segments added to the stock, while the dip in sales meant absorption did not keep pace in the short term. Consequently, Kolkatas inventory overhang - the number of months required to clear the current stock at the prevailing sales velocity - has inched up slightly. We estimate the overhang at roughly 18-20 months as of Q1 2025, compared to about 16 months a year prior. This uptick reflects the slower sales tempo; however, an 18-month inventory overhang is still considered comfortable and healthier than many larger markets in India. It suggests that supply and demand are relatively balanced in Kolkata, with no severe oversupply scenario.

Diving into the composition of unsold inventory: the affordable segment (homes priced below 40 lakh) continues to form the largest chunk of Kolkatas available stock. Approximately half of the unsold units are in this budget category, as

the citys developers have traditionally built a high volume of budget housing to cater to middle-income households. The mid-end segment ( 40-80 lakh) constitutes the next significant share of inventory - together, affordable and mid segments account for the vast majority of unsold homes. This is in line with the profile of new supply added in recent years, which was heavily skewed towards these price brackets. The premium and luxury segments (above 80 lakh) form a smaller portion of the inventory, and while these higher-priced units take longer on average to sell, their absolute numbers remain limited in Kolkatas context.

Zone-wise, South Kolkata holds the largest share of unsold inventory, which is expected given it also has the highest concentration of ongoing projects and new supply. East Kolkata follows, with significant inventory in township projects around New Town and along the EM Bypass. North and West Kolkata have comparatively lower unsold stock, partly due to fewer new project launches historically and also because many projects in those areas are smaller in scale. The steady infrastructure improvements (new metro lines, flyovers) are gradually improving the attractiveness of some of these areas, which should help work down the inventory over time.

Opportunities

In the evolving real estate landscape, your Company perceives several opportunities to drive growth and value:

• Economic Dislocation: Periods of economic uncertainty often present attractive investment opportunities in real estate on a risk-adjusted basis. Globally, even as interest rates have risen from historic lows, returns on traditional safe assets remain moderate. Investors - both domestic and international - are actively seeking avenues to deploy capital for higher yields. Real estate, especially in emerging markets like India, continues to be viewed as an alluring asset class for those aiming to generate alpha in their portfolios.

• India Opportunity: India remains a compelling long-term story for the real estate sector. The countrys 1.4+ billion population, favorable demographics (with an average age in the late 20s), and increasing urbanization rate translate into a bottomless demand for housing and commercial spaces. There is a vast unmet need for quality housing, and rising income levels are enabling more families to pursue homeownership. Moreover, the governments continued push on reforms and ease of doing business has made the investment climate more attractive. Landmark reforms like RERA, the Insolvency and Bankruptcy Code (IBC), and the nationwide Goods and Services Tax (GST) have improved transparency and efficiency in the economy, instilling confidence in institutional investors that their capital is protected in India.

Threats & Challenges

While the outlook is positive, we remain cognizant of various risks and challenges that could impact our industry and business:

• Regulatory Hurdles: The real estate sector is highly sensitive to government policies and regulatory frameworks. Unfavorable changes in regulations, or even delayed approvals and procedural bottlenecks, can adversely impact project timelines and costs. Issues such as lengthy land acquisition processes, zoning restrictions, and slow sanctioning of building plans continue to pose challenges. Retrospective policy changes - for instance, alterations in development control rules or tax policies - can affect project feasibility after investments have been made. Moreover, compliance with an evolving set of regulations (RERA, environmental clearances, etc.) requires significant management attention and costs. Your Company mitigates this risk by maintaining robust legal and liaison teams to navigate regulatory requirements and by choosing to operate in segments and geographies where policy frameworks are stable.

• Manpower Shortage & Technology Constraints: Despite being one of the largest employers in India, the construction industry faces a persistent shortage of skilled manpower. There is a dearth of trained engineers, supervisors, and specialized workers, which can lead to execution delays and quality issues. Additionally, the sectors traditional reliance on manual labor over mechanization means that productivity can be low and project schedules longer than global benchmarks. Adopting modern construction technology is imperative, yet industry-wide progress has been slow. Challenges include limited availability of vendors for prefab or modular construction, high initial costs for new technology adoption, and the need for trained personnel to operate advanced equipment.

• Funding Constraints: Access to funding is the lifeblood of real estate development. The sector has already weathered a tight financing environment in recent years following the NBFC crisis. Traditional lenders like banks have been cautious due to high perceived risks and regulatory caps on real estate exposure. While the situation improved marginally in 2024-25 for top developers, smaller developers still face an acute credit crunch. As noted, NBFCs and housing finance companies drastically reduced their lending to real estate after 2018, and they have not returned to prior volumes. This has forced developers to seek alternate financing like private equity, expensive mezzanine debt, or customer advances - all of which have limitations. Any further deterioration in credit availability (for example, due to rising bad loans, tightening of RBI norms, or economic stress) could significantly impact project execution for the industry. For your Company, we maintain a lean balance sheet and prudent financial ratios, which has helped us retain access to funding from banks and institutions. We also strategically timed the sale of certain commercial assets during FY 2024-25 to strengthen our liquidity (as discussed later), thereby reducing reliance on debt.

• Market Cyclicality: Real estate is inherently a cyclical sector, influenced by broader macroeconomic conditions and market sentiment. Factors such as GDP growth rates, employment trends, interest rate cycles, and inflation can significantly sway real estate demand. After a period of robust growth, the sector can face slowdowns - as witnessed in the early part of 2025 - which can lead to inventory build-up and pricing pressures. Additionally, any major economic downturn or black swan event (like a geopolitical crisis or a pandemic) can dampen buyer confidence and reduce transaction volumes. Your Company operates largely in the residential segment, which, while more stable than the speculative investor-driven markets, is not immune to these cycles. A prolonged downturn could impact new sales, project cash flows, and pricing power.

Company Strengths

Martin Burn Ltd. (MBL) is a heritage real estate development firm established in 1946. Over the decades, the Company has cultivated a strong brand and a track record of excellence in Kolkatas real estate landscape. Our enduring presence and success are built upon a set of core strengths that we continually leverage:

• Brand Reputation: MBLs legacy in Kolkata is unparalleled. We have been associated with some of the citys most iconic landmarks - projects entwined with the historical and cultural fabric of Kolkata. Notably, structures like Victoria Memorial, Esplanade Mansion, and Shahid Minar bear the hallmark of our groups engineering and construction excellence, cementing our reputation over generations. This rich heritage and brand affinity give us a unique emotional connect with the local populace. Homebuyers and stakeholders trust the Martin Burn name, which often allows your Company to command a premium and achieve better market traction relative to peers. Our brand stands for quality, reliability, and architectural finesse, and that recognition significantly lowers the marketing risk whenever we launch new projects. We consider this hard-earned reputation a key asset - one that we nurture by consistently delivering on promises and maintaining honest communication with our customers.

• Transparency & Governance: Ethical business conduct and transparency are deeply ingrained in MBLs corporate ethos. We believe that long-term success in real estate can only be achieved by upholding the highest standards of integrity in every transaction. Your Company has a zero-tolerance policy towards any malpractice or non-compliance. We have instituted rigorous systems and processes to ensure that our operations remain transparent - from adhering to RERA disclosure norms and timely project updates to maintaining clear financial reporting and audit trails.

• Execution Excellence: Timely and quality execution of projects is a hallmark of Martin Burn Ltd. We have always prided ourselves on delivering high-quality projects on or before schedule, a critical differentiator in an industry often plagued by delays. To achieve this, we adopt a collaborative approach: engaging best-in-class consultants, architects, structural engineers, MEP experts, and contractors for each project. By bringing together top-notch expertise in design and engineering, we ensure that our projects are planned meticulously and built to exacting standards. Internally, our project management teams are aligned with the Companys mission of producing the best product in line with market needs - this involves rigorous planning, risk assessment, and on-site management to preempt and mitigate execution challenges. and repeat customers - a virtuous cycle benefiting our brand and future sales.

Business Overview

During FY 2024-25, your Company remained steadfast in its strategy of sustainable and focused growth amid a changing market environment. Martin Burn Ltd. primarily operates in the Kolkata metropolitan region, and we have leveraged our deep local knowledge and brand trust to navigate the years challenges. A key strategic stance this year was to consolidate our position and strengthen our balance sheet rather than pursue aggressive expansion. In line with this approach - and reflecting the broader industry trend of prioritizing existing projects - your Company did not launch any major new development projects in FY 2024-25. This deliberate pause on new launches was aimed at concentrating our efforts on completing ongoing projects and selling remaining inventory, thereby reducing execution risk and improving cash flows.

Another significant step taken to improve the Companys financial resilience was the strategic monetization of select commercial real estate holdings. During the year, we identified certain non-core or low-yield commercial assets in our portfolio and proceeded to pare down these holdings through outright sales or stake dilution. This initiative was driven by our goal to bolster liquidity and sharpen our focus on the core residential development business. The proceeds from these asset sales have been utilized to reduce debt and strengthen our cash position, which not only lowers our interest costs but also positions us favorably to capitalize on new opportunities (such as land acquisitions or JDA partnerships) in the coming years. As a result of these actions, Martin Burn Ltd. ends the fiscal year with a healthier balance sheet and improved liquidity ratios, providing a cushion against market uncertainties.

Overall, FY 2024-25 can be characterized as a year of prudent management and groundwork-laying for Martin Burn Ltd. We chose long-term stability over short-term growth spurts, a decision we believe will yield sustainable returns for our stakeholders. By strengthening our financial fundamentals and internal systems this year, your Company is now better prepared to pursue growth opportunities in FY 2025-26 and beyond, with the confidence that we can weather risks and deliver value.

Financial Performance

During FY 2024-25, Martin Burn Ltd. reported a robust improvement in profitability, with profit before tax (PBT) rising nearly 5x to 712.03 lakh compared to 142.93 lakh in the previous year. This growth was driven by a sharp increase in operating income, as PBDIT surged to 824.73 lakh from 257.27 lakh, reflecting improved operating efficiency and monetization of commercial holdings. Net profit (PAT) also rose significantly to 599.24 lakh from 118.38 lakh. The Company maintained a strong balance sheet, with minimal leverage and healthy cash reserves, positioning it well for future growth.

Human Resources

At Martin Burn Ltd., we firmly believe that our people are our greatest asset. The performance and success of the Company are directly linked to the talent, passion, and dedication of our employees. In FY 2024-25, we continued to foster a work environment that attracts, develops, and retains the best talent in the industry.

Risks and Concerns

The Companys management maintains a comprehensive risk management framework to identify, assess, and mitigate various risks associated with our business. Key risks and concerns that require constant attention include:

• Market Price Fluctuation: Real estate sales realizations (the prices we can achieve for our projects) are subject to prevailing market conditions. Factors such as local demand-supply dynamics, economic growth, interest rates, and even competitor actions can cause price volatility. If property prices in our target segments or geographies were to decline due to a downturn or oversupply, it could adversely affect our revenue and margins. Conversely, rapidly rising prices could dampen sales velocity if affordability is compromised. Your Company follows a prudent business model to navigate price fluctuations - we conduct thorough market research before pricing our projects and aim for a balance where we offer value to customers while securing reasonable profitability.

• Sales Volume Variability: The volume of property sales is critical to our financial health, and it depends on multiple factors. These include our ability to design and deliver projects that meet customer preferences, obtaining necessary approvals on time to launch projects, overall consumer sentiment, and the availability of housing finance to buyers. There is an inherent risk that booking volumes may fluctuate due to factors beyond our control - for instance, an economic slowdown can make buyers more cautious, or delays in project approvals can push out launch dates and hence sales. Trust is also a major factor; customers may be hesitant to enter into purchase agreements for underconstruction properties if they lack confidence in the developers delivery record.

• Execution and Delivery: Real estate development involves complex execution risks. Construction delays can arise from a variety of causes - labor shortages, raw material price spikes or scarcity, issues in obtaining utilities (electricity, water connections) on time, adverse weather conditions, or unforeseen challenges such as litigation on land titles or local disturbances. Delays not only escalate costs but also impact our reputation and can trigger penalties under RERA or agreed terms with customers. Additionally, executing multiple projects simultaneously tests our managerial and logistical capabilities. Your Company mitigates execution risk through meticulous project planning and monitoring.

Outlook

The outlook for Martin Burn Ltd. in the coming year remains cautiously optimistic, guided by our strategic focus and the prevailing industry conditions. We anticipate that FY 2025-26 will offer a mix of challenges and opportunities, and your Company is prepared to navigate both. Key elements of our outlook and strategy include:

• Focus Mid-Market/Premium Housing in Kolkata: Real estate is fundamentally a local business, and our deep roots in the Kolkata region give us a home advantage. We will continue to focus on the mid-market/premium residential segment in and around Kolkata, as this is where we see consistent demand. The sheer volume of middle-income population aspiring to own homes in Kolkata provide a stable demand base. Your Companys past experience and unique understanding of local consumer preferences position us well to design and deliver the right products for this segment. For instance, we understand the amenity preferences, unit size configurations, and pricing sweet spots that work in micromarkets like North Kolkata versus South Kolkata.

• Strengthening Partnerships and Vendor Base: To continue delivering quality projects efficiently, your Company plans to further strengthen relationships with key service providers and expand our vendor network. This involves deepening our collaborations with top architects, structural and MEP consultants, and contractors - ensuring they are aligned with our values and timelines. We believe that early engagement with these partners during the project planning stage can lead to better design value-engineering and more accurate project scheduling. Additionally, we are developing a broader vendor base for materials and services. By empaneling multiple vendors for critical inputs (like cement, steel, fittings, etc.), we aim to foster healthy competition, which can improve pricing and reduce the risk of supply bottlenecks.

Your Company remains positive about the long-term prospects of the real estate sector and Martin Burns role within it. While we tread with caution in the short term - given global uncertainties and the need to preserve financial strength - we have a clear vision for growth. Kolkata and its surrounding regions continue to hold untapped potential for quality real estate development, and as a trusted local brand, Martin Burn Ltd. intends to be at the forefront of fulfilling that potential. We will pursue growth strategies that are scalable, sustainable, and in line with our core competencies, ensuring that we create value for our customers, shareholders, and the community.

To conclude, the coming years outlook for Martin Burn Ltd. can be encapsulated as one of measured optimism: we are ready to seize opportunities that arise, remain vigilant of risks, and are dedicated to strengthening our foundation. With an improving economy, supportive policies, and our internal preparedness, we believe FY 2025-26 will be a year where your Company consolidates gains and sets the stage for the next phase of growth.