Oberoi Realty Ltd Management Discussions.

ECONOMIC REVIEW Global economy

In response to disruptions from the global pandemic, many central banks in emerging market and developing economies employed asset purchase programs for the first time in their history. These programs were successful in lowering bond yields without triggering currency depreciations.

Despite the pandemic, the global economy is set to expand by 5.6% in 2021, its strongest growth in 80 years. This recovery is uneven and largely reflects sharp rebounds in some major economies. The global outlook is subject to significant downside risks, including the possibility of additional COVID-19 waves and financial stress amid high debt levels of Emerging Market and Developing Economies (EMDEs). Policy makers will need to support the recovery while safeguarding price stability, fiscal sustainability and to continue efforts towards promoting growth-enhancing reforms.

Indian economy

India has emerged as the fastest growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years, backed by its robust democracy and strong partnerships.

Indias GDP (at constant 2011-12 prices) was estimated at Rs 33.14 trillion (US$ 452.74 billion) for the second quarter of FY 2020-21, against Rs 35.84 trillion (US$ 489.62 billion) in the second quarter of FY 2019-20. With an improvement in the economic scenario, there have been investments across various sectors of the economy. In 2020, the total deal value in India stood at approximately US$ 80 billion. Of this, M&A activity contributed approximately 50% to the total transaction value. Private Equity–Venture Capital (PE-VC) companies expanded from US$ 36.3 billion in 2019 to US$ 39.2 billion in 2020.

Government data showed that Indias Foreign Direct Investment (FDI) equity inflows during the period from April 2020 to March 2021 stood at $59.64 billion which corresponds to a growth of 19%.

In November 2020, the Government of India announced Rs 2.65 lakh crore (US$ 36 billion) stimulus package to generate job opportunities and provide liquidity support to various sectors such as tourism, aviation, construction and housing. Also, Indias cabinet approved the production-linked incentives (PLI) scheme to provide approximately Rs 2 trillion (US$ 27 billion) over five years to create jobs and boost production in the country.

The first Union Budget of the third decade of 21st century was presented by Minister for Finance & Corporate Affairs, Ms Nirmala Sitharaman in the Parliament on February 1, 2020. The budget aimed at energising the Indian economy through a combination of short-term, medium-term and long-term measures.

Numerous foreign companies are setting up their facilities in India on account of various Government initiatives like Make in India and Digital India. Mr Narendra Modi, Prime Minister of India, launched Make in India initiative with an aim to boost countrys manufacturing sector and increase purchasing power of an average Indian consumer, which would further drive demand and spur development, thus benefiting investors. The Government of India, under its Make in India initiative, is trying to boost the contribution made by the manufacturing sector with an aim to take it to 25% of the GDP from the current 17%. Besides, the Government has also come up with Digital India initiative, which focuses on three core components: creation of digital infrastructure, delivering services digitally and to increase the digital literacy.

Indias GDP is expected to reach US$ 5 trillion by FY25 and achieve upper-middle income status on the back of digitization, globalization, favourable demographics and reforms.

India is also focusing on renewable sources to generate energy. It is planning to achieve 40% of its energy from non-fossil sources by 2030, which is currently 30%, and have plans to increase its renewable energy capacity to 175 gigawatts (GW) by 2022.

India is expected to be the third largest consumer economy as its consumption may triple to US$ 4 trillion by 2025, owing to shift in consumer behaviour and expenditure pattern, according to a Boston Consulting Group (BCG) report. It is estimated to surpass USA to become the second largest economy in terms of purchasing power parity (PPP) by 2040 as per a report by Pricewaterhouse Coopers.


The real estate sector is one of the most globally recognized sectors. The real estate sector comprises four sub sectors - housing, retail, hospitality and commercial. The growth of this sector is well complemented by the growth of the corporate environment and the demand for office space as well as urban and semi-urban accommodations. The construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy. By 2040, real estate market will grow to Rs 65,000 crore from Rs 12,000 crore in 2019. Real estate sector in India is expected to reach a market size of US$ 1 trillion by 2030 from US$ 120 billion in 2017 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. Indian real estate is expected to increase by 19.5% CAGR from 2017 to 2028.

After the unlocking process was initiated in the third quarter of 2020, both the residential and office markets started showing promising signs of revival. As business activities resumed with the gradual opening of the economy in the third quarter of 2020, the office market witnessed green shoots of recovery. Sentiments improved further in the last quarter of 2020 with the news of potential vaccine development and the office market continued its recovery momentum. Net absorption increased by 52%, while new completions grew by 39% when compared to the preceding quarter.

Home sales volume across eight major cities in India jumped by 2.5x to 33,403 units from July 2020 to September 2020, compared with 9,632 units in the previous quarter, signifying healthy recovery post the strict lockdown imposed in the second quarter due to the spread of COVID-19 in the country. Government of India along with the governments of respective States has taken several initiatives to encourage development in the sector. The Smart City Project, with a plan to build 100 smart cities, is a prime opportunity for real estate companies. Below are some of the other major Government initiatives:

The Atmanirbhar Bharat 3.0 package announced by Finance Minister Ms. Nirmala Sitharaman in November 2020 included income tax relief measures for real estate developers and homebuyers for primary purchase/sale of residential units of value (up to Rs 2 crore from November 12, 2020 to June 30, 2021).

In October 2020, the Ministry of Housing and Urban Affairs (MoHUA) launched an affordable rental housing complex portal.

In order to revive around 1,600 stalled housing projects across top cities in the country, the Union Cabinet has approved the setting up of Rs 25,000 crore alternative investment fund (AIF).

Under Pradhan Mantri Awas Yojana (Urban) (PMAY (U)), 1.12 crore houses have been sanctioned in urban areas, creating 1.20 crore jobs.

Government has created an Affordable Housing Fund (AHF) in the National Housing Bank (NHB) with an initial corpus of Rs 10,000 crore (US$ 1.43 billion) using priority sector lending short fall of banks/financial institutions for micro financing of the HFCs.

In 2014, the Securities and Exchange Board of India (SEBI) has given its approval for the Real Estate Investment Trust (REIT) platform, which has allowed all kind of investors to invest in the Indian real estate market. It would create an opportunity worth Rs 1.25 trillion (US$ 19.65 billion) in the Indian market in the coming years. Responding to an increasingly well-informed consumer base and bearing in mind the aspect of globalisation, Indian real estate developers have shifted gears and accepted fresh challenges. The most marked change has been the shift from family-owned businesses to that of professionally managed ones. Real estate developers, in meeting the growing need for managing multiple projects across cities, are also investing in centralised processes to source material and organise manpower and hiring qualified professionals in areas like project management, architecture and engineering. The growing flow of FDI in Indian real estate is encouraging increased transparency. Developers, in order to attract funding, have revamped their accounting and management systems to meet due diligence standards. Indian real estate is expected to attract a substantial amount of FDI in the next two years with US$ 8 billion capital infusion by FY22.

Residential real estate in the countrys top seven property markets has staged a comeback with sales exceeding pre-pandemic levels, driven by record-low interest rates, discounts offered by developers, lower prices and stamp duty cuts in key areas.

The improved sales momentum has lifted confidence among realty developers, pushing them to launch more projects as indicated by the rise in new offerings across markets.


Home sales in Indias eight prime residential markets increased by 12% in the January-March quarter compared to October-December quarter of 2020. Average value of property sold also rose 14% to Rs 66 lakh. The past few months have re-laid the foundation of the real estate sector, not just in the Mumbai Metropolitan Region but entire Maharashtra, largely owing to measures taken by the state to boost demand during the pandemic. MMR and Pune accounted for 53% of total sales in top seven Indian cities in the fourth quarter of 2020-21. Property markets of Mumbai Metropolitan Region (MMR) and Pune are driving the most housing sales among the countrys top seven cities as indicated by the rising contribution of these markets in total sales led by reduction in stamp duty, discounts and appropriate product strategies of developers. The stamp duty cut is effective till March and while it rose from 2% to 3% starting January, it is still lower than 5% prior to the pandemic. The state had slashed the levy to aid the housing sector that was grappling with a prolonged slump even prior to the pandemic. That, coupled with record-low lending rates, aided demand as the citys wealthy, including Bollywood stars to bankers buying homes.

The citys real estate market has bounced back from the brief slump with a roar owing to sharp sales jumps and affordability showing an improvement by 32% since 2010.

Registration of property transactions in Mumbai, the countrys biggest and costliest realty market, continued to grow at a rapid pace for the seventh successive month in March driven by record-low home loan rates, discounts and reduction in stamp duty charges.

Mumbai Metropolitan Region (MMR) has emerged as one of the most buoyant residential property markets in the country in the first quarter of 2021 with seven-year high decline in unsold units led by sales momentum despite new launches.

Maharashtra governments decision to reduce real estate premiums by 50% is expected to generate economic activity worth Rs 10 lakh crores in the Mumbai Metropolitan Region (MMR), said the realty developers body CREDAI MCHI. This is primarily owing to the significant multiplier effect of the real estate industry on the economy, with over 250 allied industries directly or indirectly dependent on the sector.


As India awaits policy reforms to pick up speed, your Company firmly believes that the demand for Real Estate in a country like India should remain strong in the medium to long term. Your Companys 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.


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;

Concern due to ongoing pandemic situation;

Increased cost of manpower;

Rising cost of construction;

Growth in auxiliary infrastructure facilities; and

Over regulated environment.


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: Follows a strong culture of corporate governance and ensures transparency and high levels of business ethics.

7. Highly qualified execution team: Employs experienced, capable and highly qualified design and project management teams who oversee and execute all aspects of project development.


During the year FY 2020-21, your Company launched two new projects - Elysian at Oberoi Garden City, Goregaon East, Mumbai and Sky City, Tower F at Borivali East, Mumbai.


Despite the subdued performance of overall sector, your Company was able to sell nearly 10,64,563 sq.ft. RERA carpet area in FY 2020-21 as compared to approximately 4,01,914 sq.ft. of RERA carpet area in FY 2019-20. A brief description of the update across each project is given below:

1. Oberoi Garden City (Goregaon)

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 8 kilometers from Mumbais domestic airport and approximately 5 kilometers from the international airport.

Revenues Occupancy Revenues Occupancy
Rs 11,659.31 lakh 93.88% Rs 2,277.50 lakh 38.58%
(Rs 16,050.06 lakh in FY 2019-20) (96.25% in FY 2019-20) (Rs 3,175.88 lakh in FY 2019-20) (57.65% in FY 2019-20)
Revenues Occupancy Revenues Occupancy
Rs 12,851.41 lakh 98.04% Rs 3,253.18 lakh 32.21%
(Rs 12,353.81 lakh in FY 2019-20) (98.17% in FY 2019-20) (Rs 13,148.51 lakh in FY 2019-20) (74.93% in FY 2019-20)
Cumulative units sold 794 units with Cumulative units sold 797 units with Cumulative units sold 154 units with
Total sales value of Rs 2,53,033.01 lakh, 100% of which has been recognized as revenue till FY 2020-21 Total sales value of Rs 3,24,996.07 lakh, 100% of which has been recognized as revenue till FY 2020-21 Total sales value of Rs 99,101.63 lakh, of which Rs 5,174.33 lakh has been recognized as revenue till FY 2020-21

2. 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 Companys first development in the eastern suburbs of Mumbai and it offers configurations in various sizes of 3 BHK and 4 BHK. The pricing sets the target audience to include Upper Middle class and NRIs.

Cumulative units sold Total sales value Cumulative units sold Total sales value
473 units Rs 1,12,191.60 lakh, of which Rs 71,983.29 lakh has been recognized as revenue till FY 2020-21 255 units Rs 1,03,686.62 lakh, of which Rs 62,480.72 lakh has been recognized as revenue till FY 2020-21

3. Sky City (Borivali East)

Your Company is developing approximately 25 acre land parcel at Borivali East with an estimated total carpet area of about 3.4 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.

Cumulative units sold Total sales value
1,525 units Rs 3,79,442.65 lakh, of which Rs 2,64,920.43 lakh has been recognized as revenue till FY 2020-21

4. JVLR (Andheri East)

Your Company has developed Prisma, a residential building with an estimated total carpet area of about 1,78,395 sq. ft., and Maxima, a residential building with an estimated total carpet area of about 2,38,623 sq. ft. which is a part of the ongoing projects within the Oberoi Splendor Complex. Both Prisma and Maxima are conveniently located on the arterial Jogeshwari Vikhroli Link Road in the Western suburbs of Mumbai and overlooking Aarey Milk Colony.

Cumulative units sold Total sales value Cumulative units sold Total sales value
88 units Rs 46,460.94 lakh, 100% of which has been recognized as revenue till FY 2020-21 45 units Rs 16,446.12 lakh, of which Rs 8,508.06 lakh has been recognized as revenue till FY 2020-21

5. Three Sixty West (Worli)

Three Sixty West is being 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; The Ritz-Carlton, Mumbai and a residential tower, by the name Three Sixty West, to be managed by The Ritz-Carlton. This development which aims to be a global icon for Mumbai will mark the entry of The Ritz-Carlton into Indias financial capital. Strategically located in Worli, less than a kilometer from the prominent Bandra-Worli sea link, the development has been designed to be a luxury landmark adorning the Arabian Sea.

Cumulative units sold Total sales value
71 units Rs 2,77,071.22 lakh, of which Rs 59,435.49 lakh has been recognized as revenue till FY 2020-21

Financial performance overview

Analysis of consolidated financial statements for FY 2020-21 is provided below:

1. Key Financial Ratio Analysis

A comparative table showing synopsis of FY 2020-21 versus FY 2019-20 of Key Financial Ratio is provided below:

(Rs in Lakh)
Debtors Turnover Net Sales Average Debtors 16.88 19.92 Better control on Debtors
Inventory Turnover Sales/COGS Inventory/Avg. Inventory 0.34 0.38 Lower ratio due to FSI payments
Interest Coverage Ratio EBIT Interest Expense 6.93 6.33 Comfortable coverage ratio
Current Ratio Current Assets 3.25 2.87 Indicates better liquidity position
Current Liabilities
Debt Equity Ratio Total Debt Total Shareholders Equity 0.16 0.18 Comfortable debt levels
Operating Profit Margin (%) EBITDA* Total Revenue 49.67% 47.96% Higher EBITDA is due to change in sales mix
PBT Margin (%) Profit Before Tax Total Revenue 44.22% 42.38% Higher PBT margin is due to change in sales mix
Net Profit Margin (%) Profit After Tax Total Revenue 35.36% 30.15% Higher PAT margin is due to change in sales mix
Return on Net Worth Net Income (PAT) Average Shareholders Equity 8.21% 8.28% Due to faster increase in Equity as compared to increase in PAT
Cash and Bank Balances/ Net Worth Cash & Bank Balance including MF&FD Total Shareholders Equity 2.93% 3.32% Due to decline in Cash and Bank balance as it was utilized for operations
*Includes Non Operating Income

2. Balance Sheet Analysis

A comparative table showing synopsis of FY 2020-21 versus FY 2019-20 of Balance Sheet is provided below:

(Rs in Lakh)

Consolidated Balance Sheet as at As at March 31, 2021 As at March 31, 2020 INCREASE/ (DECREASE) % INCREASE/ (DECREASE)
Non-current assets 5,28,844.86 4,37,542.96 91,301.90 20.87%
Current assets 6,76,517.35 6,84,596.09 (8,078.74) (1.18%)
Total 12,05,362.21 11,22,139.05 83,223.16 7.42%
Equity 9,36,914.30 8,62,948.44 73,965.86 8.57%
Non-current liabilities 60,043.56 20,889.21 39,154.35 187.44%
Current liabilities 2,08,404.35 2,38,301.40 (29,897.05) (12.55%)
Total 12,05,362.21 11,22,139.05 83,223.16 7.42%
2.1 Non-Current Assets
(Rs in Lakh)
Particulars As at March 31, 2021 As at March 31, 2020 INCREASE/ (DECREASE) % INCREASE/ (DECREASE)
Property, plant and equipment 20,673.11 20,548.70 124.41 0.61%
Capital work in progress 1,97,973.16 30,493.90 LIGN=RIGHT>1,67,479.26 549.22%
Investment properties 80,490.56 83,914.12 (3,423.56) (4.08%)
Intangible assets 197.31 185.83 11.48 6.18%
Intangible assets under development 15.02 52.46 (37.44) (71.37%)
Financial assets 1,54,246.36 2,29,818.04 (75,571.68) (32.88%)
Deferred tax assets (net) 8,788.57 9,316.63 (528.06) (5.67%)
Other non-current assets 66,460.77 63,213.28 3,247.49 5.14%
Total 5,28,844.86 4,37,542.96 91,301.90 20.87%
2.2 Current Assets
(Rs in Lakh)
Particulars As at March 31, 2021 As at March 31, 2020 INCREASE/ (DECREASE) % INCREASE/ (DECREASE)
Inventories 4,66,260.80 5,31,727.54 (65,466.74) (12.31%)
Financial assets
(i) Investments
(a) Investments in mutual fund 10,822.77 14,229.50 (3,406.73) (23.94%)
(b) Investments - others 199.30 180.80 18.50 10.23%
(ii) Cash and bank balances 13,307.60 10,833.59 2,474.01 22.84%
(iii) Trade receivables 12,797.69 11,524.74 1,272.95 11.05%
(iv) Loans 37,127.81 30,994.22 6,133.59 19.79%
(v) Other financial assets 145.44 190.29 (44.85) (23.57%)
Current tax assets (net) 2,028.33 1,527.11 501.22 32.82%
Other current assets 1,33,827.61 83,388.30 50,439.31 60.49%
Total 6,76,517.35 6,84,596.09 (8,078.74) (1.18%)
2.3 Non-Current Liabilities
(Rs in Lakh)
Particulars As at March 31, 2021 As at March 31, 2020 INCREASE/ (DECREASE) % INCREASE/ (DECREASE)
(i) Borrowings 35,897.76 - 35,897.76 -
(ii) Trade payables 2,151.53 2,466.45 (314.92) (12.77%)
(iii) Others 14,386.09 12,259.80 2,126.29 17.34%
Provisions 156.26 210.84 (54.58) (25.89%)
Deferred tax assets (net) 3,483.58 2,839.89 643.69 22.67%
Other non-current assets 3,968.34 3,112.23 856.11 27.51%
Total 60,043.56 20,889.21 39,154.35 187.44%
2.4 Current Liabilities
(Rs in Lakh)
Particulars As at March 31, 2021 As at March 31, 2020 INCREASE/ (DECREASE) % INCREASE/ (DECREASE)
(i) Borrowings 1,17,482.32 1,14,392.89 3,089.43 2.70%
(ii) Trade payables 7,229.19 6,122.74 1,106.45 18.07%
(iii) Others 20,917.80 60,681.80 (39,764.00) (65.53%)
Other current liabilities
(i) Advance from customers 3,705.29 2,741.47 963.82 35.16%
(ii) Others 57,830.06 50,804.46 7,025.60 13.83%
Provisions 106.89 221.53 (114.64) (51.75%)
Current tax liabilities (net) 1,132.80 3,336.51 (2,203.71) (66.05%)
Total 2,08,404.35 2,38,301.40 (29,897.05) (12.55%)

3. Profit and Loss Analysis

A comparative table showing synopsis of FY 2021 versus FY 2020 of statement of Profit and Loss is provided below:

(Rs in Lakh)

Consolidated Profit and Loss FOR THE YEAR ENDED MARCH 31,
% INCREASE/ Revenue from operations 2,05,257.95 2,23,763.29 (18,505.34) (8.27%)
Other income 3,800.70 4,835.22 (1,034.52) (21.40%)
Total Revenue 2,09,058.65 2,28,598.51 (19,539.86) (8.55%)
Expenses 1,05,218.13 1,18,966.12 (13,747.99) (11.56%)
Depreciation and amortisation 4,119.22 4,486.79 (367.57) (8.19%)
Interest and finance charges 7,603.77 8,847.25 (1,243.48) (14.05%)
Profit before share of profit/(loss) of joint 92,117.53 96,298.35 (4,180.82) (4.34%)
ventures (net) and exceptional items
Share of Profit/(Loss) of joint venture (net) 324.95 590.88 (265.93) (45.01%)
Profit Before Tax 92,442.48 96,889.23 (4,446.75) (4.59%)
Profit After Tax 73,929.18 68,933.02 4,996.16 7.25%
Basic and diluted EPS (Rs) 20.33 18.96 1.37 7.23%
3.1. Revenue from Operations
(Rs in Lakh)
Revenue from projects 1,65,709.57 1,68,141.18 (2,431.61) (1.45%)
Revenue from hospitality 3,167.17 13,062.50 (9,895.33) (75.75%)
Other operating revenue 747.24 807.04 (59.80) (7.41%)
Rental and other related revenues 32,287.85 36,722.53 (4,434.68) (12.08%)
Property and management revenues 3,346.12 5,030.04 (1,683.92) (33.48%)
Total 2,05,257.95 2,23,763.28 (18,505.34) (8.27%)
(Rs in Lakh)
Operating costs 89,082.40 1,03,567.89 (14,485.49) (13.99%)
Employee benefits expense 4,912.18 6,424.25 (1,512.07) (23.54%)
Other expenses 11,223.55 8,973.98 2,249.57 25.07%
Total 1,05,218.13 1,18,966.12 (13,747.99) (11.56%)

4. Cash Flow Analysis

A comparative table of FY 2020-21 versus FY 2019-20 Cash Flows is provided below:

(Rs in Lakh)

Consolidated Cash Flow FOR THE YEAR ENDED ON MARCH 31,
2021 2020
Opening cash & cash equivalents 19,845.47 43,149.85
Net cash inflow/(outflow) from operating activities 70,250.80 (28,198.20)
Net cash inflow/(outflow) from investing activities (59,745.33) 35,842.38
Net cash inflow/(outflow) from financing activities (11,638.10) (30,948.56)
Closing cash & cash equivalents 18,712.84 19,845.47
Closing cash & cash equivalents including fixed deposits having remaining maturity of less than 12 months 13,307.60 10,833.59
Closing cash & cash equivalents including fixed deposits having remaining maturity of more than 12 months classified under non-current financial assets
3,306.36 3,603.56

HUMAN RESOURCES Learning & Development:

To foster the culture of continuous collaboration and learning your Company has launched Learning Management module (LMS) of SuccessFactors. This is a modern system that supports blended learning approach to enhance employee skills and boost organizational strength. The system positions employees at the center of the learning experience and drives engagement at the organization level. The LMS module has 105 courses of different duration ranging from 30 mins to 1 hr. The system aids in skill advancement and provide learning in areas like behavioral skills, technical skills, leadership as well as general management skills. The Mobile Learning feature empowers employees with the flexibility to learn at anytime from anywhere.

Mental Wellness:

Mental wellness is a positive state of mental health. It ensures that individuals think, feel and act in ways that will create positive impact on their personal and professional life. Keeping this in mind, your Company launched 24/7 Employee Assistance Program (EAP).

This program offers professional counselling services to all employees seeking help in managing concerns related to their life. It supports employees who experiences problems that affect their well-being and performance at work. These sessions are conducted privately and ensures complete confidentiality. The program is supported with:

Weekly e-mailers – A 52-week e-mail campaign which promotes EAP program and encourages the employee to address their Mental Wellness needs.

‘Wellness & beyond- The monthly newsletter, is another step towards creating awareness about health and wellbeing. These newsletters share reliable and research-based information about various sensitive topics like managing elders, toxic relationships, coping with work stress etc.

Meet the Expert @ EAP Hour - These are sessions with professional counsellors where certain real-life scenarios are discussed. The counsellors advise employees on how to deal with the same. This helps employees to build confidence to reach out to EAP counsellor when required.

This program has assisted employees during the current unprecedented and challenging times. It has enabled them to manage stress, handle challenges and build stronger relations. This has led to a happier, healthier, focussed and more productive workforce.

Health and Safety:

Your Company is always committed to the health and safety of its employees. Your Company provides a clean, hygienic and conducive work environment to all employees. During the pandemic time your Company has doubled its efforts to ensure health and safety of its employees. All offices and sites go through regular sanitation, social distancing norms are followed, sanitizers are placed at various locations, visitors entries are minimized, wearing masks is mandatory. Weekly mailers are sent to educate employees regarding safety measures to be practiced during the pandemic times.

HR Automation and Digitalization:

To achieve the vision of Paperless organization, your Company has decided to leverage technology and go the digital way. All the HR processes are automated by deploying SAP success factors, industrys most powerful and flexible Cloud-based HR solution.

Different modules of the system are designed to cater to every strategic & functional aspect of HR management.

RCM & On-boarding – More than 533 candidates were assessed and out of that 96 were hired & onboarded seamlessly without printing a single document.

Employee Central module – is a comprehensive suite for human capital management. It meets all the requirements of a modern, high-performance HRIS system. It can handle end to end employee lifecycle related transactions without requirement of any paper trails. The module provides fully integrated employee and manager self-services, simple approval processes and user-friendly mobile experience.

Career Development & Succession Planning - The system supports individual career development by providing clear career paths linked with development goals and learning needs. This in turn also creates talent pipeline for various roles within the organization ensuring business continuity and smooth operations.

Compensation – The compensation management tool enables the organization to execute pay for performance. The inbuilt calibration feature drives better compensation decisions with objective ratings.

Performance & Goal Management System – The module allows to improve employee performance through thoughtful goal setting, real time goal progress tracking, ongoing dialogues and continuous feedback for individual development.


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 and 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.

Pandemic risk

The outbreak of a novel strain of coronavirus (i.e. COVID-19), which commenced in December 2019 has now spread across the world. India has been no exception and currently our country is looking to come out of second disastrous wave. At the same time, the country is progressing well in its vaccination program. All prominent rating companies and experts, including Reserve Bank of India have projected a healthy recovery of economic activities in India. However, the COVID-19 outbreak could become more severe and result in a more widespread health crisis and/or result in a global recession because of disruptions of economic activity. Any of these factors may have a material adverse effect on your Companys financial condition and results of operations.


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/land 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/land development rights prior to entering into definitive agreements. The ensuing negotiations may result in either a transaction for the acquisition of the land/land 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.


As we enter 2021, the momentum of historic sales could slow a bit but will remain strong to narrate a positive story. Unlike the past year, the real estate sector is now picking up with home buyers willing to make the move. With most workers displaced during the lockdown now back, construction activity has resumed and work is moving at a faster pace to fulfil commitments.

In Mumbai, there are a lot of properties which were unsold but ready to move in, with no GST to be paid because occupation certificates were already issued. This has also helped home buyers look at real estate proactively and as an investment. The demand for residential property has in fact also been guided by the concept of work from home — as families are now looking out for an upgrade as individual space becomes a crucial factor.

Focus on Mumbai and beyond

We shall continue to explore development opportunities in and around Mumbai and explore hubs in the nearby regions on a case-by-case basis.

Strengthen relationships with key service providers and develop multiple vendors

In order to continue delivering landmark offerings to our customer, we shall further strengthen our relationship with our key service providers, i.e. architects, designer and contractors. Your Company is also working on strategy to develop more and more vendors who can deliver product and services in line with Companys philosophy and product offerings.

Internal Control Systems

The Company has also focused on upgrading the IT infrastructure – both in terms of hardware and software. In addition to the existing ERP platform, the Company is presently reviewing the process documentation to ensure effectiveness of the controls in all the critical functional areas of the Company.


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