INDUSTRY STRUCTURE AND DEVELOPMENTS:
Real estate sector endured the volatility brought by the regulatory reforms initiated
by the Indian
Government in the last 5 years. The initiatives such as Implementation of RERA across
the country, GST, demonetization brought much needed transparency in the processes
followed in the sector. Covid-19 has had a major impact on the sales volumes seen in the
sector for a good six-month period. Starting Q2 FY 22, real estate sector saw healthy new
supply and sales volumes to an extent that inventory overhang reduced to under 2 years
across all major Indian metros. New supply and sales volumes are expected to stay upbeat
for the next 2 years.
With the implementation of RERA, the accessibility of information on sales, transacted
rates, buyer demographics, consumer behavior has increased tremendously leading to
unprecedented times seen for the Indian Data and Analytics market, which is poised for
significant growth in the coming 2-3 years.
The Indian analytics market has seen considerable growth over the past years. Due to
Covid-19 pandemic, every industry has faced a slowdown. The financial year of 2022-2023
has been favorable for the data and analytics industry. Many businesses have turned to
social media as their main source for a range of advertising campaigns, product
promotions, and events because it is more efficient than traditional advertising.
Additionally, the expansion of social media analytics is encouraged by the rise in
popularity of internet-connected mobile devices like smart phones and tablets as well as
the rising number of users on social media platforms. Client demands are always changing
in the business climate where organizations must operate quickly.
The Indian analytics and data science industry will continue to grow and play a key
role in decision-making across every sector and industry. This industry will also develop
sophisticated and intelligent autonomous systems to help achieve with greater precision,
speed and efficiency than their human counterparts.
OVERVIEW AND OUTLOOK OF COMPANYS BUSINESS:
PropEquity, incorporated in the year 2008 is pioneer in the space of providing
proprietary Real Estate
Business Intelligence and Analytics of 44 Indian cities under a B2B business model to
180 institutions. Our clientele includes Private Equity Funds, Developers, Banks, NBFCs,
Equity Research Companies, construction industry etc. Our clients are among the largest
and most respected names in the Real Estate Private Equity Fraternity, Leading Developers,
and BFSI managing assets over USD 5 billion in India.
Our proprietary catalogue data of 16 years on real estate market trends of 44 Indian
cities covering 1,63,000 real estate projects of more than 45,000 developers empowers our
users to make informed and intelligent decision making based on real time data. Due to our
in-depth research, 16 years of experience, unbiased and credible research, the Company has
transformed itself into Indias most comprehensive Business Intelligence platform for real
estate in India.
We provide detailed market analytics and research of Indian cities through our
application PE PLUS and PropBuild on annual subscription basis to over 180 institutions
today.
We also provide detailed Consulting and Product feasibility reports where we recommend
the Developer and Private Equity Funds Fraternity with informed decision making in an
absolute unbiased manner with respect to the land parcels and projects we evaluate at all
times.
Real estate sector catered by us is eyeing growth in the next two years and we at P E
Analytics Ltd are looking at it with optimism.
Due to Companys in depth research, authentic data base and years of experience,
unbiased and credible data, the Company has quickly transferred itself into Indias most
comprehensive Business Intelligence platform for real estate in India. Our Company
provides authenticated real estate data, analytics and market research reports available
on various formats and pricing on annual subscription basis and customized reports as per
requirements of users.
The satisfactory performance, reliability and availability of our web based platform
Propequity and our network infrastructure are critical to our success and our ability to
attract and retain users and maintain adequate user service levels. Our website and
servers are vulnerable to telecommunications failures, computer viruses, hacking,
defacement, physical or electronic break-ins and similar disruptions, which could lead to
accessing difficulties, service interruptions, delays, loss of data, inability to accept
and/ or fulfill user requests or inaccurate data being processed or displayed. We may also
experience interruptions caused by reasons beyond our control.
I) PropEquity Real Estate Business Intelligence (Residential)-is our subscription
based product providing analytics, data and real estate research covering the Indian
real-estate Industry. By leveraging our proprietary database, our clients gain access to
real time information that would otherwise take months to assemble, along with the tools
to search, analyze, compare, chart and audit at a click of a button. Through Propequity
our clients: Track over 1.63 Lac projects of over 45,000 developers across 44 cities in
India with historical trends of 16 years Gain Access to accurate market data for
objective, fact-based decision making Mitigate risks through fact based due diligence Get
access to Supply, Absorption, Inventory and Pricing Trends available at a
city/developer/micro market/project level for the last 16 years on a monthly basis Use
Catchment Area Analysis a unique geospatial tool covering critical analytics on supply,
absorption (split by typology, unit sizes and ticket prices), inventory, pricing trends,
supply mix (typology, unit sizes and ticket sizes), top performers, new launch project
details etc. for any chosen catchment of the cities under coverage.
Analyse Developer and Project scoring basis customized score cards, scoring can be
monitored over a period of time
Real Estate Business Intelligence (Commercial) is a platform for changing the way
commercial real estate is analyzed in India. Our Commercial Platform is built on not only
100000+ lease and sale registration data but also enhances extensively by over 150 survey
and data analysts spread over each city to track occupancy, vacancy, construction status
for over 6000+ ready and over 1000 under construction buildings. Our clients gain access
to: Over 900 million sqft of commercial supply tracked across Top 7 metros Benchmarking of
rents payable by them vs other occupants in the same building Comparison of tenants vs
other occupiers in the same building.
Details of under construction projects
Institutional vs Strata Breakup, Rental Analysis, sector wise breakup of absorption/
occupancy. Historical variations in rent of the same building (year wise and area wise
II) Research & Consulting:
Prop Equity Research and consulting arm provide our clients the required market
intelligence and analytics to strengthen their business strategies in residential and
commercial sectors from a macro to a micro level. We deliver consulting solutions that
integrate business intelligence with portfolio optimization, location base analysis and
organizational strategies. Our research and consulting arm works on a macro to micro
analysis model where macro variable cover the Economy (GDP, Inflation,
Employment rate, forecast of economic indicators etc.). Political factors, Demographic,
infrastructure and micro variables cover the micro market analysis, existing stock,
historical and forecast of supply and demand, vacancy, rental and capital values,
prevailing prices, project life cycle tracks including delays, absorption trends and
target consumer profiling. This funnel approach ensures that the client receives a
detailed overview of micro market of choice and is enabled to make an informed decision.
The verticals include Apartments, Row houses/ villas, Independent Floors, Plots, office,
malls, SEZ, industrial and the retail sectors with hotel, multi housing and specialty
reports available for selected markets.
III) Collateral Risk Management
We are a leading provider of Valuation of Real Estate Assets & Plant and Machinery,
Project Approval and Project Monitoring services across top cities in India. Leading
institutions in BFSI and Insurance segment trust us for independent and incisive Technical
services reports.
Our team of highly skilled experienced engineers provides unrivalled service by
leveraging in-depth Market understanding combined with comprehensive data and cutting-edge
technology.
Our scalable technical services platform assists our clients in multiple facets of
their decision making related to their investment and lending decision. Over past few
years we have emerged as a one stop technical services shop for our clients.
Our Key services include:
Retail and Construction Finance Valuation Services Project Monitoring and Land Loan
Verification Project Approval Process
STRENGTHS, OPPORTUNITIES, RISKS AND CONCERNS
Our Company has built relations with suppliers, clients and other persons who are
connected with our business. Further, our Managerial Personnel also possesses the
requisite domain knowledge to provide efficient services to our clients. Accordingly, our
Companys performance is dependent upon the services of our promoters and Key Managerial
Personnel.
Our future performance will, therefore, depend upon the continued services of these
persons.
The Market for our tech based data analytics for Real Estate Services is rapidly
evolving. Our future success will depend on the growth and expansion of this market, which
relies on a number of factors, including client adoption, client demand, changing client
needs, the entry of competitive products, the success of existing competitive products,
potential clients willingness to adopt an alternative approach to data collection,
storage, and analytics and their willingness to invest in business improvements after
significant prior investments in legacy data collection, storage and processing software.
The estimates and assumptions that are used to calculate our market opportunity are
subject to change over time and there is no guarantee that the organizations covered by
our market opportunity estimates will pay for our services at all or generate any
particular level of revenue for us.
Strengths - PropEquity market intelligence platform (PE PLUS) is a one-stop solution
capturing real estate market intelligence from multiple sources which includes ground
survey checks, details provided on RERA, unit wise registration data of all ongoing
projects, therefore the application provides most sought after analytics required for
informed decision making at a click of a button. Most of the respected names in the
Private Equity, Developers and Banking Industry have been a clientele of PropEquity for
the last 8-10 years with a client retention rate of 90% + over the years.
Opportunities - Real estate sector is poised to witness significant growth across
geographies over the next 2-3 years, which will open numerous opportunities for us to
cater to in the sector with our plan to reach a large share of developers in major Indian
metros by the end of Mar24.
Risks and Concerns - Macro geo political factors impacting countrys GDP growth can
influence the momentum seen in new supply and sales volumes in the short run. Increase in
mortgage rates is also likely to impact end-user buying across cities. However, we believe
that FY 24 will witness the expected sustenance in sales volumes across major Indian
metros due to improving metrics at ground level.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
As stated in Boards Report, the Company has in all material respects, an adequate
Internal Financial Control System over Financial Reporting. The Company has proper and
adequate system of Internal control to ensure that all assets are safeguarded and
protected against loss from unauthorized use or disposition and that transaction are
authorized, recorded and reported correctly.
The Company has effective system in place for achieving efficiency in operations,
optimum and effective utilization of resources, monitoring, thereof and compliances with
applicable laws. The Company has also appointed Internal Auditor to check the Internal
Control System and their adequacy.
DISCLOSURE OF ACCOUNTING TREATMENT
The Company has followed all the treatments in the Financial Statements as per the
prescribed Accounting Standards
MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT INCLUDING NO OF
PEOPLE EMPLOYED.
Human resources are the most valuable asset of our business and the relationship with
the staff and workers continued to be cordial during the entire year. The Directors wish
to place on record their appreciation of the valuable work done and co-operation extended
by them at all levels. Further, the
Company is taking necessary steps to recruit the required personnel from time to time.
Company has framed requisite policies through which Healthy environment remains amongst
the Employees and help us improve quality of life of our employees. Employees are given
freedom to share their views to the Management. We are committed to fair employment
practices and freedom of expression, supported by a strong Companywide value system.
During the year there was no instance of strike, lock out or another issues related to
Human Resources.
Human Resources Mission: We support, attract, and retain high-performing employees
who fit our positive, can-do culture, are committed to serving the community, and uphold
our mission and values. We do this by providing competitive, equitable benefits; resources
for personal and professional development; and expectations for high ethical conduct so
that employees can be successful in their work and enjoy doing it.
Type of Financial Ratios |
2022-23 |
2021-22 |
Variance |
Explanations |
Current Ratio |
12.24 |
4.02 |
205% |
Current ratio has fallen due to proceeds of OFS being parked in other
liabilities account pending disbursement as at 31st March, 2022. |
| Debt-Equity Ratio |
NA |
NA |
NA |
_ |
| Return on Equity |
15% |
23% |
-35% |
_ |
Net Capital Turnover Ratio |
32.04 |
43.54 |
-26% |
Net Capital Turnover Ratio has fallen due to IPO proceeds lying parked
in bank balance pending utilization |
| Return of Capital Employed |
10% |
15% |
-32% |
Due to IPO allotment on 30-03-2022. |
Details Of Any Change in return on Net Worth as compared to the immediately previous
financial year along with a detailed explanation.
The Net Worth of the Company has increased to Rs.6,416.37 (in Lakhs) in comparison to
previous year of Rs. 5,519.39 (in Lakhs).
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.
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2023
{Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies
(Appointment Remuneration of Managerial Personnel) Rules, 2014}
To,
The Members, P. E. Analytics Limited
We have conducted the Secretarial Audit of compliance of applicable statutory
provisions and to good corporate practices by P. E. ANALYTICS LIMITED (hereinafter called
P. E. ANALYTICS LIMITED/ Company). Secretarial Audit was conducted in a manner that
provided us a reasonable basis evaluating the corporate conducts/statutory compliances and
expressing my opinion thereon.
Based on our verification of the P. E. Analytics Limited books, papers, minute books,
forms and filed and other records maintained by the Company and also the information
provided by the its officers, agents and authorized representatives during the conduct of
secretarial audit, we report that in our opinion, the Company has, during the audit period
covering the financial year ended
31st March, 2023 complied with the statutory provisions listed hereunder and also that
the Company proper Board processes and Compliance-mechanism in place to the extent, in the
manner and subject the reporting made hereinafter:
We have examined the books, papers, minute books, forms and returns filed and other
maintained by P. E. Analytics Limited for the financial year ended on 31st March, 2023
according to provisions of:
(i) The Companies Act, 2013 (the Act) and the rules made thereunder;
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA) and the rules made
thereunder; (iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed
thereunder; (iv) Foreign Exchange Management Act, 1999 and the rules and regulations made
thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and
External Commercial
Borrowings;- Not Applicable
(v) The following Regulations and Guidelines prescribed under the Securities and
Exchange Board of India Act, 1992 (‘SEBIAct):-(a) The Securities and Exchange Board
of India (Substantial Acquisition of Shares and Takeovers) Regulation, 2011; (b) The
Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2018; (d) The Securities and Exchange Board of India (Employee
Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999; (e) Securities
and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations,
2021;
(f) The Securities and Exchange Board of India (Registrars to an Issue and Share
Transfer Agents)
Regulations, 1993 regarding the Companies Act and dealing with client;
(g) The Securities and Exchange Board of India (Delisting of Equity Shares)
Regulations, 2021; (h) The Securities and Exchange Board of India (Buyback of Securities)
Regulations, 2018; (vi) Compliances/processes/systems under other specific applicable Laws
are being verified on the basis of random sampling and as per the compliance certificate
submitted to the Board.
We have also examined compliance with the applicable clauses of the following:
(a) Secretarial Standards issued by the Institute of Company Secretaries of India and
approved by the Central Government. - Generally Complied with (b) The Listing Agreement:
Chapter V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
During the period under review, the Company has complied with the provisions of the
Act, Rules,
Regulations, Guidelines, Standards, etc. mentioned above.
We further report that the Company has complied with the requirements pertaining to the
composition of the Board of Directors, which is to be constituted as per the Companies
Act, 2013, SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.
There were no changes in the composition of the Board of Directors that took place during
the period under review.
We further report that the Company has complied with the SDD compliances as per the
Regulation 3(5) and 3(6) of SEBI (PIT) Regulations, 2015.
We further report that there are adequate systems and processes in the Company
commensurate with the size and operations of the Company to monitor and ensure compliance
with applicable laws, rules, regulations and guidelines.
We further report that during the audit period, no specific events / actions having a
major bearing on the companys affairs in pursuance of the above referred laws, rules,
regulations, guidelines, standards, etc. referred to above has occurred in the Company.
For Agarwal S. & Associates, Company Secretaries, ICSI Unique Code:
P2003DE049100 Peer Review Cert. No.: 2725/2022
Date: 11.05.2023 |
Sd/- |
Place: New Delhi |
Garima Grover |
UDIN: A027100E000289307 |
Partner |
|
ACS: 27100 |
|
C.P. No: 23626 |
+91-9892691696
