Medi Caps Ltd Management Discussions

BUSINESS

Medicaps Limited is working in real estate industry with a commitment to quality, transparency and customer satisfaction. The Company has built a reputation for delivering projects that combine modern design and sustainable practices. Medicaps aims to create lasting values for clients, investors and communities, shaping skylines and lifestyles for the future. INDUSTRY STRUCTURE AND DEVELOPMENTS

The real estate sector is one of the most globally recognized sectors. It comprises four sub-sectors - housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth in the corporate environment and the demand for office space as well as urban and semi-urban accommodation. In India, the real estate sector is the second- highest employment generator, after the agriculture sector. It is also expected that this sector will incur more non-resident Indian (NRI) investment, both in the short term and the long term. Real estate sector in India is expected to reach US$ 1 trillion in market size by 2030, up from US$ 200 billion in 2021 and contribute 13% to the countrys GDP by 2025. Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for Indias growing needs.

The Indian real estate market is projected to experience a substantial increase, potentially reaching a value of US$ 5-7 trillion by the year 2047, with the possibility of surpassing US$ 10 trillion.

OPPORTUNITIES AND THREATS

The real estate market in Madhya Pradesh presents various opportunities, including residential, commercial, and industrial property development, driven by factors like urbanization, infrastructure growth, and a growing population. Specific opportunities exist in Indore, Bhopal, Jabalpur, and Gwalior, with increasing demand for affordable housing, commercial spaces, and plotted developments. As a major commercial and educational hub, Indore experiences high demand for residential and commercial properties. The growth of various sectors, including manufacturing, IT, and tourism, is driving the demand for commercial and residential properties & The state governments supportive policies and initiatives for the real estate sector are encouraging investment and development. On the other hand, the real estate industry in Madhya Pradesh is also having few threats like Uneven Development, need of Streamlining Processes, stability etc.

RISKS AND CONCERNS

The real estate industry in Madhya Pradesh faces several risks and concerns, including financial challenges, regulatory hurdles, and market volatility. These challenges can impact both developers and investors, potentially leading to project delays, increased costs, and decreased property values. Various factors such as a sharp increase in stamp duty charges, Oversupply, Market Volatility, Shifting Demographics and Work Patterns & Competition, may have an adverse effect on the industry.

FUTURE OUTLOOK: PROJECT STATUS AND PLANNING

After entering in the real estate industry, the company has also completed its first project but due to Market Volatility and few other factors, it did not gain the expected response in this financial year. Further despite the anticipated challenges, the management is looking forward to leveraging valuable opportunities by prioritizing Customer needs and cost effectiveness.

SEGMENT WISE PERFORMANCE

On standalone basis company is having real estate segment only while, on consolidated basis Company have two reportable segments i.e. real estate in parent company and pharma division in wholly owned subsidiary. Further segment performance is given in note no. 25 of consolidated financial statement.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has an adequate internal control system in place. Sufficient controls, processes, and policies have been framed to ensure the proper handling and management of its assets & compliance with all applicable laws and regulations. The Company has also in place the Internal Financial Control (IFC) framework, as per Companies Act, 2013.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

Efforts are made to improve performance, providing work satisfaction and performance-based increments, safety and social status. Industrial relations remained cordial at all organizational levels and workplaces. The Company makes regular efforts to maintain relation with Stakeholders by transparency, good governance, regular communication and effective transactions. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE Financial and Operational performance forms are part of the Board Report separately.

DETAILS OF SIGNIFICANT CHANGES IN THE KEY FINANCIAL RATIOS:

ENVIRONMENT AND SAFETY

The Company is committed to complying with the statutory requirements related to environment, health, safety and to preventing pollution through continuous improvement in processes, practices and EHS awareness. Your Company not only cares for compliances aspect but also contributes towards society health, safety and green environment.

CAUTIONARY STATEMENT

Statement in this Management Discussion and Analysis Report, describing the Companys objectives, estimates and expectations, may constitute ‘Forward Looking Statements within the meaning of applicable laws or regulations. Actual results might differ materially from those either expressed or implied.