Oberoi Realty Ltd Management Discussions

ECONOMIC REVIEW Global economy

World economy is expected to continue growing at 3.2% during 2024 and 2025, at the same pace as in 2023. A slight acceleration for advanced economies—where growth is expected to rise from 1.6% in 2023 to 1.7% in 2024 and 1.8% in 2025—will be offset by a modest slowdown in emerging market and developing economies from 4.3% in 2023 to 4.2% in both 2024 and 2025.

Inflation is forecast to decline steadily, from 6.8% in 2023 to 5.9% in 2024 and 4.5% in 2025, with advanced economies returning to their inflation targets sooner than emerging markets and developing economies. Core inflation is generally projected to decline more gradually. The global economy has been surprisingly resilient, despite significant central bank interest rate hikes to restore price stability.

Indian economy

IndiaRss economic performance has remained robust despite global challenges and geopolitical concerns. This can be attributed to strong domestic demand, rural demand pickup, robust investment and sustained manufacturing momentum. Despite the global challenges, India stands out with its strong economic performance, highlighting broad based growth across sectors and asserting its pivotal role in supporting the global growth trajectory.

The government and the RBIRss efforts to combat inflation, including calibrated policy rates, strengthening food buffers and easing imports, have ensured effective inflation management. Consequently, retail inflation in FY 2023-24 witnessed a significant decline, reaching its lowest level since the Covid-19 pandemic, with core inflation dropping to 3.3% in March 2024. Further, a predicted above-normal monsoon in 2024 bodes well for a good harvest, easing inflation concerns.

Slowing global trade, presents a challenging landscape for economies worldwide. Despite these headwinds, IndiaRss trade deficit is expected to decline in the coming years as the PLI scheme deepens its coverage and extends to other sectors. Driven by strong exports and resilient remittances, various international agencies and RBI expect the CAD to GDP ratio to have moderated below 1% in FY 2023-24.

Overall, India continues to be the fastest-growing major economy with positive assessments of the growth outlook for the current financial year, for India by international organisations and RBI.

INDUSTRY REVIEW

The Indian real estate sector is a key player in the nationRss economic development. With promising projections in market size, GDP contribution and employment generation, the sector stands as a beacon of growth and opportunity. Nurturing this growth requires a balanced approach, addressing challenges while embracing innovation, ultimately shaping a real estate landscape that is not just expansive but also sustainable.

MUMBAI REAL ESTATE

Mumbai emerged as the top performer in the luxury segment, witnessing a 15% year-on-year surge in sales. The city boasts over 40% of the countryRss total luxury housing inventory, attracting high- net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) with its premium locations like Altamount Road, Nepean Sea Road, Bandra and Worli. These areas command high prices, with average property values ranging from Rs 20 crore to over Rs 60 crore. Occasionally, apartments priced above Rs 100 crore are also recorded.

The enduring confidence of homebuyers in the Mumbai market has maintained a positive outlook. This optimism has driven MumbaiRss property registrations consistently exceeding 10,000 mark for the fourth consecutive month in 2024.

OPPORTUNITIES AND CHALLENGES

Opportunities

As India awaits policy reforms to pick up speed, your Company firmly believes that the demand for Real Estate in a country like India will remain strong in the medium to long term. Your CompanyRss well accepted brand, contemporary architecture, well designed projects in strategic locations, strong balance sheet and stable financial performance even in testing times make it a preferred choice for customers and shareholders. Your Company is ideally placed to further strengthen its development potential by acquiring new land parcels.

Challenges

While the management of your Company is confident of creating and exploiting the opportunities, it also finds the following challenges:

• Unanticipated delays in project approvals;

• Availability of accomplished and trained labour force;

• Increased cost of manpower;

• Rising cost of construction lead by increase in commodity prices;

• Growth in auxiliary infrastructure facilities; and

• Over regulated environment.

COMPANY STRENGTHS

Your Company continues to capitalize on the market opportunities by leveraging its key strengths.

These include:

1. Brand Reputation: Enjoys higher recall and influences the buying decision of the customer. Strong customer connects further results in higher premium realizations.

2. Execution: Possesses a successful track record of quality execution of projects with contemporary architecture.

3. Strong cash flows: Has built a business model that ensures continuous cash flows from their investment and development properties ensuring a steady cash flow even during the adverse business cycles.

4. Significant leveraging opportunity: Follows conservative debt practice coupled with enough cash balance which provides a significant leveraging opportunity for further expansions.

5. Outsourcing: Operates an outsourcing model of appointing globally renowned architects/contractors that allows scalability and emphasizes contemporary design and quality construction - a key factor of success.

6. Transparency: F ollows a strong culture of corporate governance and ensures transparency and high levels of business ethics.

7. High xecution team: Employs experienced, capable

and highly qualified design and project management teams who oversee and execute all aspects of project development.

KEY DEVELOPMENTS IN FY 2023-24

During the year FY 2023-24, your Company launched Tower C in Elysian project at Oberoi Garden City, Goregaon (East), Mumbai. Further, your Company has launched a new project Forestville Phase 1 at Kolshet, Thane.

BUSINESS OVERVIEW

In FY 2023-24 your Company was able to sell nearly 10.76 lakhs sq.ft. RERA carpet area as compared to approximately 16.75 lakhs sq.ft. of RERA carpet area in FY 2022-23.

OBEROI GARDEN CITY GOREGAON EAST

Oberoi Garden City is the flagship mixed-use development of your Company. It is an integrated development on approximately 83 acres of land in Goregaon (East), in the western suburbs of Mumbai, adjacent to the arterial Western Express Highway and overlooking Aarey Milk Colony. The development is approximately 5 kilometers from the international airport.

ETERNIA AND ENIGMA MULUND WEST

Your Company is developing 2 land parcels (adjacent to each other) of approximately 9 acres each situated at Mulund (West), central suburbs, Mumbai.

The project comprises of 2 premium high storey residential towers namely, Eternia and Enigma. The project site is situated on LBS Marg, overlooking Yeoor Hills and Borivali National Park to the west and Eastern Express Highway to the east. The project is your CompanyRss first development in the eastern suburbs of Mumbai and it offers configurations in various sizes of 3 BHK and 4 BHK. Part occupancy certificate was received in December 2022.

SKY CITY BORIVALI EAST

Your Company is developing approximately 25 acre land parcel at Borivali East with an estimated total carpet area of about 4.5 million sq.ft. The project site is situated at Borivali East, Off Western Express Highway overlooking Borivali National Park to the east. The surrounding infrastructure allows the site to be well connected to the rest of Mumbai. Your Company has received occupancy certificate for Tower A to E.

JVLR ANDHERI EAST

Your Company has developed Maxima, a residential building with an estimated total carpet area of about 0.18 million sq.ft. which is a part of the Oberoi Splendor Complex. Maxima is conveniently located on the arterial Jogeshwari Vikhroli Link Road in the Western suburbs of Mumbai.

FORESTVILLE KOLSHET, THANE

Your Company is developing an approximately 18 acre land parcel at Kolshet, Thane with an estimated total carpet area of about 1.8 million sq.ft. The project is inspired by the principles of Biophilia that highlight the elements of nature, air, water and sunlight offering a boost in physical, mental and cognitive health.

THREE SIXTY WESTworli

Three Sixty West has been developed by a joint venture entity carrying out development of a mix- use project in Worli, located on the arterial Annie Besant Road,

consisting of 2 high-rise towers. This development aims to be a global icon for Mumbai.

Your Company has retired as a member and constituent of Oasis Realty, an unincorporated

association of persons, on March 3, 2023. Your Company currently owns apartments in the project.

Total Sales Value of T 84,915.03 lakh,

of which T 84,915.03 lakh has been recognized as revenue till FY 2023-24

Financial performance overview

Analysis of consolidated financial statements for FY 2023-24 is provided below:

1. Key financial ratio analysis

A comparative table showing synopsis of FY 2023-24 versus FY 2022-23 of Key Financial Ratio is provided below:

Ratio	Calculation	2024	2023	Remarks
Debtors Turnover	Net Sales	6.90	6.86	Better control on Debtors
	Average Debtors
Inventory Turnover	Sales*	0.43	0.56	Due to increase in inventories
	Inventory/Avg. Inventory
Interest Coverage Ratio	EBIT	8.73	7.60	Decrease in Interest expenses
	Interest Expense
Current Ratio	Current Assets	3.89	3.79	Due to increase in inventories
	Current Liabilities
Debt Equity Ratio	Total Debt	0.18	0.32	Decrease in Debt due to repayment
	Total ShareholderRss Equity
Operating Profit Margin (%)	EBITDA	53.60%	50.37%	Increase in EBITDA is due to higher
	Revenue from Operations			sales price
PBT Margin (%)	Profit Before Tax	51.38%	51.80%	Decrease in Share of Profit of joint
	Total Revenue			venture
Net Profit Margin (%)	Profit After Tax	39.98%	44.36%	In line with decrease in PBT Margin
	Total Revenue
Return on Net Worth	Net Income (PAT)	14.79%	16.83%	In line with decrease in PAT Margin
	Average ShareholderRss Equity
Cash and Bank Balances/ Net Worth	Cash and Bank Balance including Mutual Funds and Fixed Deposits	9.16%	6.86%	Due to increase in operating cash flow
	Total ShareholderRss Equity

*Includes Revenue from Projects and Hospitality

2. Balance sheet analysis

A comparative table showing synopsis of FY 2023-24 versus FY 2022-23 of Balance Sheet is provided below:

Consolidated Balance Sheet	As at March 31, 2024	As at March 31, 2023	INCREASE/ (DECREASE)	% INCREASE/ (DECREASE)
ASSETS
Non-current assets	6,88,748.81	6,16,937.97	71,810.84	11.64%
Current assets	12,74,592.32	12,45,636.78	28,955.54	2.32%
Total	19,63,341.13	18,62,574.75	1,00,766.38	5.41%
EQUITY AND LIABILITIES
Equity	13,84,441.20	12,21,011.98	1,63,429.22	13.38%
Non-current liabilities	2,51,569.15	3,12,779.37	(61,210.22)	(19.57%)
Current liabilities	3,27,330.78	3,28,783.40	(1,452.62)	(0.44%)
Total	19,63,341.13	18,62,574.75	1,00,766.38	5.41%

2.1 Non-current assets

Particulars	As at March 31, 2024	As at March 31,2023	INCREASE/ (DECREASE)	% INCREASE/ (DECREASE)
Property, plant and equipment	21,760.21	19,468.78	2,291.43	11.77%
Capital work in progress	2,70,475.03	4,03,116.81	(1,32,641.78)	(32.90%)
Investment properties	2,83,410.40	75,203.36	2,08,207.04	276.86%
Intangible assets	159.10	211.14	(52.04)	(24.65%)
Financial assets	35,436.59	46,168.11	(10,731.52)	(23.24%)
Deferred tax assets (net)	17,280.50	19,313.67	(2,033.17)	(10.53%)
Other non-current assets	60,226.98	53,456.10	6,770.88	12.67%
Total	6,88,748.81	6,16,937.97	71,810.84	11.64%

2.2 Current asset

Particulars	As at March 31, 2024	As at March 31, 2023	INCREASE/ (DECREASE)	% INCREASE/ (DECREASE)
Inventories	9,26,124.43	8,54,309.45	71,814.98	8.41%
Financial assets
(i) Investments
(a) Investments in mutual fund	48,259.81	28,141.77	20,118.04	71.49%
(b) Investments-others	-	223.85	(223.85)	(100.00%)
(ii) Trade receivables	20,420.10	1,09,830.92	(89,410.82)	(81.41%)
(iii) Cash and bank balances	76,717.37	51,291.50	25,425.87	49.57%
(iv) Loans	54,035.65	53,084.12	951.53	1.79%
(v) Other financial assets	5,758.93	606.34	5,152.59	849.78%
Current tax assets (net)	2,202.29	3,336.56	(1,134.27)	(34.00%)
Other current assets	1,41,073.74	1,44,812.27	(3,738.53)	(2.58%)
Total	12,74,592.32	12,45,636.78	28,955.54	2.32%

2.3 Non-current liabilities

Particulars	As at March 31, 2024	As at March 31,2023	INCREASE/ (DECREASE)	% INCREASE/ (DECREASE)
Financial liabilities
(i) Borrowings	2,19,203.80	2,88,063.80	(68,860.00)	(23.90%)
(ii) Trade payables	6,085.51	6,912.90	(827.39)	(11.97%)
(iii) Others	20,698.62	14,242.10	6,456.52	45.33%
Provisions	205.10	165.18	39.92	24.17%
Deferred tax liabilities (net)	43.74	22.42	21.32	95.09%
Other non-current assets	5,332.38	3,372.97	1,959.41	58.09%
Total	2,51,569.15	3,12,779.37	(61,210.22)	(19.57%)

2.4 Current liabilities

Particulars	As at March 31, 2024	As at March 31, 2023	INCREASE/ (DECREASE)	% INCREASE/ (DECREASE)
Financial liabilities
(i) Borrowings	30,318.13	1,06,344.79	(76,026.66)	(71.49%)
(ii) Trade payables	50,871.57	17,317.92	33,553.65	193.75%
(iii) Others	60,056.73	58,916.61	1,140.12	1.94%
Other current liabilities
(i) Advance from customers	5,705.09	3,755.09	1,950.00	51.93%
(ii) Others	1,72,344.37	1,35,590.96	36,753.41	27.11%
Provisions	4,765.32	4,569.68	195.64	4.28%
Current tax liabilities (net)	3,269.57	2,288.35d>	981.22	42.88%
Total	3,27,330.78	3,28,783.40	(1,452.62)	(0.44%)

3. Profit and loss analysis

A comparative table showing synopsis of FY 2023-24 versus FY 2022-23 of statement of Profit and Loss is provided below:

Consolidated Profit and Loss	FOR THE YEAR ENDED MARCH 31,		INCREASE/ (DECREASE)	% INCREASE/ (DECREASE)
	2024	2023
Revenue from operations	4,49,578.53	4,19,258.18	30,320.35	7.23%
Other income	32,298.42	10,062.18	22,236.24	220.99%
Total revenue	4,81,876.95	4,29,320.36	52,556.59	12.24%
Expenses	2,08,592.20	2,08,092.24	499.96	0.24%
Depreciation and amortisation expense	4,751.87	3,975.12	776.75	19.54%
Finance costs	21,844.41	16,905.49	4,938.92	29.21%
Profit before share of profit of joint ventures (net)	2,46,688.47	2,00,347.51	46,340.96	23.13%
Share of Profit of joint venture (net)	885.06	22,040.57	(21,155.51)	(95.98%)
Profit before tax	2,47,573.53	2,22,388.08	25,185.45	11.33%
Profit after tax	1,92,660.37	1,90,454.71	2,205.66	1.16%
Basic and diluted EPS (Rs)	52.99	52.38	0.61	1.16%

3.1. Revenue from operations

Particulars	FOR THE YEAR ENDED MARCH 31,		INCREASE/ (DECREASE)	% INCREASE/ (DECREASE)
	2024	2023
Revenue from projects	3,66,627.16	3,61,243.40	5,383.76	1.49%
Revenue from hospitality	17,633.68	15,601.70	2,031.98	13.02%
Other operating revenue	1,630.16	1,879.67	(249.51)	(13.27%)
Project management revenue	4,946.77	4,650.01	296.76	6.38%
Rental and other related revenues	58,740.76	35,883.40	22,857.36	63.70%
Total	4,49,578.53	4,19,258.18	30,320.35	7.23%

3.2. Expenses

Particulars	FOR THE YEAR ENDED MARCH 31,		INCREASE/ (DECREASE)	% INCREASE/ (DECREASE)
	2024	2023
Operating costs	1,79,363.52	1,86,686.78	(7,323.26)	(3.92%)
Employee benefits expense	10,239.80	7,779.47	2,460.33	31.63%
Other expenses	18,988.88	13,625.99	5,362.89	39.36%
Total	2,08,592.20	2,08,092.24	499.96	0.24%

4. Cash flow analysis

A comparative table of FY 2023-24 versus FY 2022-23 of Cash Flow is provided below:

Consolidated Cash Flow	FOR THE YEAR ENDED ON MARCH 31,
	2024	2023
Opening cash and cash equivalents	18,814.66	12,382.58
Net cash inflow/(outflow) from operating activities	2,80,985.47	(2,38,304.21)
Net cash inflow/(outflow) from investing activities	(64,429.89)	1,73,852.75
Net cash inflow/(outflow) from financing activities	(2,03,446.77)	70,883.54
Closing cash and cash equivalents	31,923.47	18,814.66
Closing cash and cash equivalents including fixed deposits with banks, having remaining maturity of less than 12 months	76,717.37	51,291.50
Closing cash and cash equivalents including fixed deposits with banks, having remaining maturity of more than 12 months classified under non-current financial assets	1,896.93	4,269.02

HUMAN RESOURCES

Diversity, Equity & Inclusion (DEI) Journey

As part of your CompanyRss Diversity & Inclusion commitment towards building a future that is more diverse, equitable and inclusive for all, it has chartered a structured long-term strategy. In line with the plan, your Company has implemented various initiatives starting with the Leaders coming together over an immersion workshop RsDEI Conversation with LeadersRs. The session focused on embracing equity, Gender Sensitization, reducing Unconscious Bias and creating a culture of inclusivity right from hiring to onboarding and the following stages.

Your Company initiated Inclusive Hiring workshops for Hiring Managers focusing on Diversity & Inclusion, overcoming bias while hiring and best practices contributing towards a more equitable and dynamic workplace. Complementing this, it also strives to create an inclusive environment by giving an opportunity for professionals who want to re-join the workforce after a career break and reignite their professional journey.

Furthermore, to drive the key message towards creating an inclusive culture your Company organized a "DEI street play" by an NGO dedicated towards creating inclusive workplace. The street play performance used theatre-based tools to drive key messages like emphasizing the importance of acknowledging and embracing oneRss authentic self.

These efforts are supported by ongoing topic focused reinforcement communication drive. Your Company has been an active functioning voluntary and Employee-led Resource Groups: RsFun at WorkRs and RsCanteen CommitteeRs fostering a diverse and inclusive environment aligned with organizational values. These groups entail people from cross functional teams who work together towards a common goal representing their fellow colleagues.

As part of the employee benefits, your Company introduced Optional Holidays over and above the published Public Holidays. It lets the employees from different religious backgrounds celebrate and observe occasions with personal significance.

Internal mobility

Your Company has a well-defined Internal Mobility Policy which enables enrichment of its talent pool and significantly contributes to the companyRss overall success by leveraging diverse skills and experiences within the organization. The policy is designed to empower all employees to explore new opportunities, contribute to various aspects of our business and elevate their professional journey within the company. It offers them the freedom to apply for available positions within the organization without the need for prior approval from their supervisors. It thus highlights the companyRss commitment to fostering growth, nurturing talent and cultivating a dynamic work environment at Oberoi Realty.

ESG & iSafe e-learning

This year, your Company added two major courses to its E-Learning library; ESG and iSafe which received a phenomenal response.

As your Company aims to build sustainability into the business at every level, it engages all employees to enhance their awareness and encourage them to adopt sustainable lifestyles. The ESG course helped them to understand business sustainability, its importance, ESG reporting, employeeRss contribution to ESG and sustainability best practices. This positively contributes to our operational excellence, driving and delivering long-term shared value creation.

In an increasingly digitized world, your Company is aware of the pivotal role cybersecurity plays in mitigating risks and follows robust IT Security/Cybersecurity governance practices. One of the initiatives includes the iSafe course, aimed at creating awareness regarding threats, attacks and vulnerabilities that the organizational data is exposed to, for securing your CompanyRss confidential information.

ESG Lego serious play

As part of your CompanyRss commitment towards creating a sustainable future, the cross functional team members engaged in a deep dive session on ESG, using the unique methodology of Lego Serious Play (LSP). Through LSP, a powerful tool based on the concept of hand knowledge, the workshop sparked ideation and fueled action planning, enabling us to chart a clear path towards achieving your CompanyRss identified ESG objectives.

The great people manager study 2023-24

In a continuous effort to build a human-centric organization, your Company believes that the People Managers form an integral part of building the organization culture. With this objective, your Company participated in The Great People Manager Study, one of the largest studies on people management by Great Manager Institute?. The aim of the Study is to recognize individual RsGreatRs People Managers within the participating organizations. A total of 28 People Managers participated in the study, out of which six successfully qualified for Round 2 bagging RsGreat Manager to Work WithRs title. And out of these, two were shortlisted for the following rounds becoming a part of RsIndiaRss Top 100 Great People ManagersRs 2023-24!

Learning & development

Your Company believes in capability building and empowering employees ensuring alignment of its people to achieve the organizationRss vision. Through a blended learning approach entailing Learning Management System (IMS) and Classroom Trainings, your Company helps aid development of Technical, Behavioral as well as Leadership skills.

Overall, your Company has observed an increased commitment towards learning & development by clocking over 13,000 hours of learning i.e. an upsurge of 110% as compared to last year. This milestone was achieved through focused interventions for various groups including Leadership team, High-Potential, Women employees, People Managers and rest of the organization. These interventions include our SMEs who regularly conduct technical

and function-specific training for skill-upgradation and soft skills training. Your Company also has various classroom training courses including Mastering Communication, Microsoft Excel and PowerPoint and more. These courses are aimed at upskilling all employees, ensuring that they always stay ahead of the curve. Additionally, as a part of the organization, every employee has completed the mandatory learning modules which include Code of Conduct, Insider Training, POSH, iSafe, Diversity & Inclusion.

Women leadership development program 2.0

Committed to embedding equity and inclusivity in all aspects of the business, your Company launched Batch II of its flagship Women Leadership Development Program "Flying Lessons". It aims at strengthening the women leadership pipeline by enabling them to plan their personal growth and professional success and navigate through their leadership journey. The program started with an adventurous outbound where through experiential learning, the participants overcame their fears and broadened their perspective about their strengths. Based on the four elements of nature namely earth, water, fire and wind, the outbound transformed their mindsets by breaking through subconscious barriers and harnessing the power within.

The outbound was followed by classroom workshops filled with experiential moments aimed at empowering the ascending women and offering variety of interactive and immersive learning opportunities to strengthen their leadership acumen.

Personal effectiveness program

Your Company invested in the development of its High-Potential talent through Personal Effectiveness Program. Covering over 40 participants across two batches, multiple in-person workshops, self-reflection, byte sized learning and knowledge sharing assignments were conducted aiming to enhance competencies such as Emotional Intelligence, Time Management, Decision Making and Problem Solving. Furthermore, it also assisted participants on various personal development and communication skills.

Employee recognition program

Complementing the values reinforcement drive, your CompanyRss Employee Recognition Program acts as an engagement tool that encourages and recognizes company values in action. It is a platform to showcase and reinforce values like innovation, effective problem solving, achieving process and operational efficiency, going above and beyond the call of duty to achieve organizational objectives. This year, your Company received 41 nominations, out of which 13 were recognized across various departments.

Succession planning

Succession planning and Talent Review are two cornerstones of your CompanyRss talent management strategy. It helps in identifying and developing high potential employees. Following the launch in 2022, your Company executed the annual refresher exercise to identify Critical Roles within the organization and a pool of Successors and High Potential employees basis talent assessment exercise. Through the assessment, your Company evaluates role readiness, potential vs. performance and risk assessment of key internal talent. This ensures that the organization has an internal

capability and bench strength to meet current and future business requirements.

Performance management

As part of the Performance Management System, your Company continues to follow a structured process entailing Goal Setting exercise ensuring alignment to the organizationRss goals and providing clarity to all employees. The process is followed by a formal review and regular check-ins enabling opportunities for dialogue and creating an environment of trust, support and strengthened relationships.

Corporate travel

With an aim to enable hassle free travel for all employees, your Company has partnered with a multinational transport company for all business related domestic and international travel. With this business account, the employees can avail cash/card less commute for all their work-related needs as it gets directly billed to the organization.

Additionally, to simplify the daily commute in a city like Mumbai, your Company has partnered with an app based daily commute service provider for its workforce. Through this app, they can enjoy stress free rides and avail exclusive fares on their daily commute.

Flexi time

Your Company introduced Flexi time for its workforce allowing a buffer enabling them to manage any exigencies or unforeseen circumstances.

Health & well-being

The health & well-being of all the employees is of paramount importance for your Company. Your Company introduced complementary Annual Health Check-up for all employees along with special discount for their family members. Additionally, to support stress relief and mental peace, your Company regularly conducts meditation sessions ensuring overall wellbeing of its workforce.

Your Company also has an Employee Assistance Program (EAP) to ensure that the employees are healthy both mentally and emotionally. Employees can reach out to the EAP counsellor over call, text and email for even a slight feeling of worry or a more serious problem. The Employee Assistance Program (EAP) is a confidential counselling program available 24/7/365 to all employees and their family members to help them cope with stress, mental illness and other issues.

With an aim to leverage the benefit of EAP, the EAP partner regularly conducts sensitizing and mental wellbeing sessions facilitated by professional counsellors covering certain real-life issues and topics like parenting, time management, work life balance, stress management and others.

RISKS AND CONCERNS Market price fluctuation

The performance of your Company may be affected by the sales and rental realizations of its projects. These prices are driven

by prevailing market conditions, the nature and location of the projects and other factors such as brand, reputation and the design of the projects. Your Company follows a prudent business model and tries to ensure steady cash flow even during adverse pricing scenario.

Sales volume

The volume of bookings depends on the ability to design projects that will meet customer preferences, getting various approvals in time, general market factors, project launch and customer trust in entering into sale agreements well in advance of receiving possession of the projects. Your Company sells its projects in phases from the time it launches the project, based on the type and scale of the project and depending on market conditions.

Execution

Execution depends on several factors which include labour availability, raw material prices, receipt of approvals and regulatory clearances, access to utilities such as electricity and water, weather conditions and the absence of contingencies such as litigation. Your Company manages the adversities with cautious approach, meticulous planning and by engaging established and reputed contractors. As your Company imports various materials, at times execution is also dependent upon timely shipment and clearance of the material.

Rental realizations

The rental realizations on the space leased depends upon the project location, design, tenant mix (this is relevant in the case of shopping malls), prevailing economic conditions and competition. Your Company has set up its retail property in prime location and maintains a fresh ambience resulting in crowd pull and attracting first time kind of retailers. As far as the office space rentals are concerned, the same depends on demand and supply, general economic conditions, business confidence and competition.

Land / Development rights - costs and availability

The cost of land forms a substantial part of the project cost, particularly in Mumbai. It includes amounts paid for freehold rights, leasehold rights, fungible FSI, construction cost of area given to landlords in consideration for development rights, registration and stamp duty. Your Company acquires land / l and development rights from the government and private parties. It ensures that the consideration paid for the land is as per the prevailing market conditions, reasonable and market timed. Your Company also enters into MOUs and makes advances for the land / l and development rights prior to entering into definitive agreements. The ensuing negotiations may result in either a transaction for the acquisition of the land / l and development rights or the Company getting a refund of the moneys advanced.

Financing costs

The acquisition of land and development rights needs substantial capital outflow. Inadequate funding resources and high interest costs may impact regular business and operations. Your Company has always tried to build sufficient reserves resulting out of operating cash flows to take advantage of any land acquisition or development opportunity.

OUTLOOK

In 2024, we anticipate an opportunity for the Indian economy to become a world leader. The real estate sector is likely to continue on its journey of long term growth as we see a continuous rise in GDP per capita, larger disposable incomes, growing urbanization and most of all a larger focus of the world on us as the next big economy.

An increase in earning potential, a need for a better standard of living and the growing base of aspirational consumers and their lifestyle changes have led to substantial growth in the sector. With suited economic growth, the premium housing segment will also witness higher demand in the years to come.

CAUTIONARY STATEMENT

This management discussion and analysis contain forward looking statements that reflects your CompanyRss current views with respect to future events and financial performance. The actual results may differ materially from those anticipated in the forwardlooking statements as a result of many factors.