MPDL Ltd Management Discussions

The Management of MPDL LIMITED is pleased to present its analysis report on its performance and future outlook.

1. GLOBAL ECONOMY

The global economy has demonstrated resilience while facing numerous challenges during 2024. The International Monetary Fund (IMF) estimated a 3.3% growth in global economy for 2024, but projects a slower growth of 2.8% in 2025, followed by a slight recovery to 3.0% in 2026. The IMF has expressed concerns regarding recent trade and protectionist policies by major economies, which are anticipated to affect global growth. The volatile geopolitical environment and the uncertainty around the tariffs imposed by the US are fuelling risk to inflation and growth trajectory.

Advanced economies witnessed a modest growth of 1.8% during 2024. The growth rate in 2025 is expected to decrease to 1.4% in 2025 on account of tariff measures and countermeasures. Emerging markets are also expected to be impacted by the global economic uncertainties. Then IMF projected a slight slowdown in emerging markets economies, with growth expectations softening from 4.3% in 2024 to 3.7% in 2025 and 3.9% in 2026. However, amongst the major economies, India?s growth prospects are expected to be better. The IMF has forecasted India?s growth rate in 2025 and 2026 of more than 6%. This sustained expansion underscores India?s resilience and its pivotal role in driving global economic growth.

2. INDIAN ECONOMY

Currently the 4th largest economy in the world, India is one of the fastest growing economies. It is expected to be among the top three economic powers in the world by 2035, supported by its demographics and strong fundamentals. In FY25, economic activity faced certain hurdles due to general elections, unpredictable rainfalls and volatility in global trade in the last two quarters. Despite these hurdles, the Indian economy recorded a robust growth of 6.5% in FY25. It is remarkably ahead of the GDP growth rates recorded by other major economies. The Economic Survey forecasts India?s growth rate between 6.3% to 6.8% for FY26. The Reserve Bank of India also estimates a growth rate of 6.5% for the Indian economy during FY26.

Key economic indicators reported an encouraging trend about the Indian economy. Retail inflation fell to 4.6% during FY25. In FY26, two critical factors, the recently announced income tax cuts and uncertainty in global trade, are expected to be key monitorables that could have a meaningful impact on our economy.

3. INDUSTRY OVERVIEW

Industry Structure and Developments

In FY 2025, the Indian real estate sector sustained its growth momentum, driven by strong housing demand, increased capital inflows, and expanding development in tier 2 and 3 cities. Residential sales remained robust, with growing preference for integrated and sustainable living spaces. The commercial office segment saw a full recovery, while retail and warehousing continued to expand on the back of rising consumption and e-commerce. Supportive government policies and regulatory reforms further strengthened the sectors long-term outlook.

? OPPORTUNITIES AND THREATS Opportunities

The Indian real estate sector continues to offer robust growth potential, with the industry projected to reach US$ 1 trillion by 2030, contributing approximately 13% to India?s GDP by 2025. This growth is supported by rapid urbanization, increasing demand for residential and commercial spaces, and a rising working-age population.

The formal introduction and regulation of Real Estate Investment Trusts (REITs) by SEBI has further enhanced transparency and created a platform for both institutional and retail investors, unlocking an estimated investment opportunity of over ^1.25 trillion. Additionally, increased focus on infrastructure development, digital land reforms, and smart city initiatives is expected to accelerate organized growth in Tier 2 and Tier 3 cities.

Threats

The real estate sector continues to face several operational and external threats. Key risks include rising construction and financing costs, delays in regulatory approvals, and dependence on manual construction practices. In commercial and residential segments, shifting consumer preferences, evolving work patterns (e.g., hybrid models), and oversupply in some urban markets can impact occupancy and pricing. Additionally, macroeconomic factors such as inflation, interest rate fluctuations, and global geopolitical tensions pose risks to investor confidence and project execution timelines.

? SEGMENT WISE REPORTING

During the year under review, Company has received the income interest from banks. Financial performance with respect to operational performance is as follows:-

The financial highlights are as under: -

(Rs. in lakhs)

? RISKS AND CONCERNS

Through land regulations, land readjustment and land pooling policies, the Government should spare large shares of underutilized and vacant land parcels. By this, it will give some relief to the financially aggrieved developers and help the situation of the real estate sector improve. This calls for an urgent change or revision in the Land Acquisition Resettlement and Rehabilitation Act of 2013. There are a lot of impending projects in the Indian real estate market starting from public sector projects to private sector housing colonies. There is a delay happening in the completion of these projects and the reason for this is that the project does not get enough funding or there is a lack of technology to complete these projects on time. Another big challenge in the Indian real estate sector is the protracted approval process because project approvals in India take about days to years because there is no option of a single-window clearance and it often results in time and cost escalations.

? INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has adequate internal control system, commensurate with the size of its operations. Adequate records and documents are maintained as required by laws. The Companys audit Committee reviewed the internal control system. All efforts are being made to make the internal control systems more effective.

? DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The Company is engaged in the business of Real Estate. During the financial year under review, the Company recorded a revenue from operations of Rs.580.41 lakhs, as compared to Rs.424.70 lakhs in the previous year, primarily generated through the sale of commercial area, reflecting an improvement over the previous year. However, other income decreased to Rs.96.57 lakhs during the year, as against Rs.2684.44 lakhs in the previous financial year.

Despite an increase in operating revenue, the overall reduction in total income resulted in the Company incurring a net loss of Rs.295.54 lakhs for the year.

The management is closely monitoring the financial situation and is undertaking appropriate measures to optimize costs and enhance revenue streams, with a view to improving the Company?s financial performance in the upcoming year.

? MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company acknowledges that human capital is a key driver of success, particularly in the real estate sector. It is committed to fostering a work environment that promotes productivity, innovation, and employee well-being. The Company ensures that its employees are provided with a conducive working environment, along with competitive remuneration and opportunities for professional growth.

Employees are encouraged to take initiative, be innovative, and align their individual goals with the broader objectives of the Company.

As the scale of operations remains moderate, the total number of employees on the rolls of the Company as on March 31, 2025, stood at Eight (8).

? DETAILS OF SIGNIFICANT CHANGES (i.e. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR, INCLUDING

During the financial year 2024-25, there are some significant changes in key financial ratios as compared to previous financial year. The Key financial ratios have been shown below:

4. DISCLOSURE OF ACCOUNTING TREATMENT

The financial statement of the company is prepared as per the prescribed Indian Accounting Standards and reflects true & fair view of the business transactions and there is no division in following the treatment prescribed in any Indian Accounting Standard (Ind-AS) in the preparation of financial statements of the Company.

5. CAUTIONARY STATEMENT

Certain statements made in the management discussion and analysis report relating to the Company?s 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 whether expressed or implied. Several factors could make significant difference to the Company?s operations. These include climatic and economic conditions affecting demand and supply, government regulations and taxation, natural calamities over which the Company does not have any direct control.