Pansari Developers Ltd Management Discussions

INDUSTRY TRENDS & DEVELOPMENT

a) Global Economic Environment

The global macroeconomic landscape in FY 2024-25 remained volatile, driven by persistent geopolitical tensions, trade disruptions, and tighter financial conditions across several major economies. According to the International Monetary Fund (IMF), global GDP growth is projected at 2.8% in 2025 and 3.0% in 2026. While global headline inflation is expected to moderate, it is likely to remain above pre-pandemic levels, with estimates at 4.3% in 2025 and 3.6% in 2026. These global headwinds have had indirect implications on capital flows, input costs, and investor sentiment in emerging markets, including India.

b) Indian Economic Overview

Despite global challenges, India continues to demonstrate strong macroeconomic fundamentals. The National Statistical Office (NSO) reported a 6.5% real GDP growth in FY 2024-25, highlighting the countrys economic resilience. The Reserve Bank of India (RBI) has noted improved inflation expectations and a stable financial system, enabling a more accommodative stance on interest rates. As per IMF projections, Indias GDP is expected to grow at 6.2% in 2025 and 6.3% in 2026, reaffirming its status as one of the fastest-growing major economies.

BUSINESS OVERVIEW

The Real Estate sector is most globally recognized sectors. In India, real estate is the second largest employer after agriculture and is slated to grow at 30 percent over the next decade.

The Construction industry ranks third among the fourteen major sectors in terms of direct, indirect and induced effects in all sectors of the economy.

The real estate sector in West Bengal is steadily expanding, driven by rising urbanization, growing housing demand, and increasing industrial and commercial activities. The market is primarily focused on affordable to mid-segment housing, with a gradual rise in demand for modern, premium residential spaces. Improved infrastructure, supportive government policies, and faster project approvals have made the state an attractive destination for real estate investment. Sustainable and eco-friendly developments are gaining attention, reflecting evolving consumer preferences. The sector is also witnessing growth in suburban areas, supported by increasing connectivity. Overall, West Bengals real estate market offers stable, long-term growth opportunities across segments.

FUTURE OUTLOOK

The company is exploring at growth opportunities, our residential portfolio currently covers projects catering to customers across all income groups. We believe that we have established a successful track record in the real estate industry in Kolkata, West Bengal by developing versatile projects through our focus on innovative architecture, strong project execution and quality construction.

OUR STRENGTH

?€? Strong presence in Kolkata.

?€? Well known brand image and reputation.

?€? Focus on quality construction.

?€? Well qualified and experienced management team.

?€? Cordial relationship between management and labour.

OPPORTUNITIES & THREATS

Your company expects demands from the mid income and affordable residential segment to improve as we believe there is significant demand in this category across the country. There is a strong upturn in the commercial real estate sector also.

Unfavorable changes in government policies and the regulatory environment can adversely impact the performance of the sector. There are substantial procedural delays with regards to land acquisition, land use, project launches and construction approvals. Retrospective policy changes and regulatory bottlenecks may impact profitability and affect the attractiveness of the sector and companies operating within the sector.

OUTLOOK

a) Real Estate Sector Outlook

The Indian real estate sector has witnessed a significant rebound, driven by strong demand in both residential and commercial segments, especially in metro and Tier-I cities. Increased urbanization, rising disposable incomes, favorable government policies (such as PMAY and reduced GST for affordable housing), and greater confidence in organized developers have contributed to the sectors growth momentum.

In particular, the eastern region of India, including Kolkata, has seen rising demand for integrated residential townships, mid-segment housing, and commercial real estate. Regulatory reforms such as RERA and the GST framework have enhanced transparency, buyer confidence, and formalization within the sector.

b) Company Outlook - Pansari Developers Limited

Your Company continues to align its strategic vision with macroeconomic trends and evolving consumer preferences. The Company remains focused on delivering value through its "Purti" branded developments, ensuring quality construction, timely delivery, and customer-centric solutions. With a robust pipeline of residential and commercial projects in Kolkata and surrounding areas, the Company is well-positioned to leverage upcoming growth opportunities in the eastern real estate corridor.

The management remains cautiously optimistic while maintaining operational agility in navigating external risks, including material cost volatility and evolving regulatory dynamics.

INTERNAL FINANCIAL CONTROL SYSTEM AND THEIR ADEQUACY

The Companies Act, 2013 re-emphasizes the need for an effective Internal Financial Control system in the company. The scope of work for Internal Auditors, which is reviewed and expanded as required, addresses issues related to internal control systems particularly those related to regulatory compliance. Pre-audit and post-audit checks and reviews ensure that audit observations are acted upon. Audit Committee of the Board of Directors reviews the Internal Audit Reports and adequacy of internal controls.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The following review are intended to convey Managements perspective on the financial and operating performance of the Company during the Financial Year 2024-25. This Report should be read in conjunction with the Companys financial statements and other information included in this Annual Report.

The Company has recorded very satisfactory performance during the Financial Year 2024-25 on Standalone basis. Below is a brief quantitative overview of the financial and operational performance of your Company during the reporting period.

A. Standalone Results:

The Company has recorded a satisfactory performance during the year under review. The total income is Rs. 4,104.80 Lakhs as against total income of Rs. 5,858.78 Lakhs in the previous year. The Profit before depreciation and tax is Rs. 1,314.09 Lakhs. After providing for depreciation of Rs. 316.92 Lakhs and tax of Rs. 247.05 Lakhs, the Net Profit is Rs. 750.12 Lakhs as against Rs. 520.76 Lakhs in the previous year.

B. Consolidated Results:

On the consolidated front, the Company has received during the year. The total income is Rs. 4,484.32 Lakhs as against total income of Rs. 6,168.05 Lakhs in the previous year. The Consolidated Profit before depreciation and tax is Rs. 1321.48 Lakhs. After providing for depreciation of Rs. 317.43 Lakhs and tax of Rs. 253.96 Lakhs. The Consolidated Net Profit is Rs. 750.09 Lakhs as against Rs. 520.76 Lakhs in the previous year.

DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR, IF ANY) IN KEY FINANCIAL RATIOS, ALONGWITH DETAILED EXPLANATIONS THEREOF.

HUMAN RESOURCE MANAGEMENT

Employees are vital to PANSARI and we are committed to make PANSARI a preferred place to work with a career growth oriented professional environment with a sense of ownership. As at 31st March, 2025, the Company had 250 employees.

RISK AND CONCERN

Every business has both risk and return and they are inseparable. As a responsible management, the companys principal endeavor is to maximize returns. The company continues to take all steps necessary to minimize its expenses through detailed studies and interaction with experts. With regular check and evaluation business risk can be forecasted to the maximum extent and thus corrective measures can be taken in time.