Shraddha Prime Projects Ltd Management Discussions

Shraddha Prime Projects Limited (formerly Towa Sokki Limited) is a BSE-listed Mumbai-focused real estate developer engaged in residential and commercial redevelopment across key micro-markets of the Mumbai Metropolitan Region (MMR). The Company delivered a consolidated profit of 2,491.54 lakhs in FY 2024 25, supported by improving sales momentum and disciplined execution.

1) Industry Structure & Developments

Indias real estate sector benefited in FY24 FY25 from resilient domestic demand, infrastructure push, and favourable financing conditions. Policy continuity via ‘Housing for All, Smart Cities, and PM Gati Shakti continues to anchor long-term growth. Demand in top cities has been stable even as new launches moderated around elections; the premium and luxury segment gained share with rising ticket sizes.

MMR Market Snapshot (Context)

MMR remains Indias most liquid housing market with distinct demand drivers across micro-markets: (i) Western suburbs (Borivali–Dahisar) where redevelopment and mid-income demand drive steady absorption; (ii) Central suburbs (Mulund Bhandup) benefiting from strong upgrade demand and connectivity to Thane and Mumbai via

Eastern Express Highway and Metro lines; and (iii) Thane (Balkum–Ghodbunder Road) with robust mid-to-premium launches supported by infrastructure and improving social amenities.

2) Opportunities & Threats

Opportunities: Urbanisation-led demand; redevelopment pipeline (society/cluster/MHADA/SRA); asset-light JV/ JDA structures; PropTech-enabled customer journeys; and green building as a premium differentiator. Threats: Regulatory complexity (RERA/DCPR approvals), input-cost inflation, execution risks in brownfield sites, cyclical mortgage rates, and high competitive intensity in MMRs marquee locations.

3) Segment-wise Performance

The Company operates in a single operating segment—Real Estate Development—comprising residential and commercial projects.

Key Projects & Location-specific Market Context (as disclosed to BSE)

4) Outlook (Linked to Locations & Market)

Thane Balkum (Shraddha Peninsula): Advanced delivery timeline strengthens cash-flow visibility; pricing supported by premiumization and limited ready inventory. Focus on timely handover and amenity-led differentiation to sustain absorption.

Borivali Magathane (Shraddha Pratham): With CC in place, phased launch strategy and efficient configuration mix (compact to mid-sized apartments) expected to widen buyer funnel; affordability and connectivity to employment hubs are key levers.

• Mulund West (Himgiri CHS & Shraddha Paradise Enclave): Redevelopment-led supply with favourable FSI under DCPR provisions; superior access via EEH and suburban rail supports steady sales velocity. Staggered approvals and construction milestones will be aligned to manage working capital cycles and de-risk execution.

5) Risks & Mitigation

Approval & Execution Risk: Brownfield redevelopment involves multi-stakeholder coordination (society, tenants, municipal agencies). Mitigation: robust due diligence, transparent society engagement, milestone-based payments, and EPC/vendor performance monitoring.

Input Cost & Interest Rate Risk: Material/labour inflation and mortgage-rate cycles can impact affordability and margins. Mitigation: hedging via phased sales, value engineering, and disciplined pricing; focus on cash-flow backed construction schedules.

Regulatory/Policy Risk: DCPR/RERA compliance, CC/OC timelines, and scheme-linked obligations (e.g., 33(11)). Mitigation: dedicated approvals team, external consultants, and strict compliance governance.

6) Financial & Operational Performance (FY 2024 25)

Revenue trajectory was supported by project progress and a stronger sales mix in MMR. Operating margins remained healthy owing to cost control and calibrated pricing. Debt increased modestly to support the project pipeline; management aims to deleverage as collections ramp up with milestones (notably at Thane and Borivali). Operationally, the Company emphasised: (i) timely approvals and CC/ IOD progress; (ii) customer experience through transparent communication; and (iii) sustainability/aligned design standards to enhance long-term value.

7) Internal Control Systems & Adequacy

The Company maintains an ERP-enabled internal control framework, periodic internal audits, whistle-blower mechanism, and Board-level oversight to ensure reliable financial reporting, asset safeguarding, and regulatory compliance.

8) Human Resources / Industrial Relations

A lean core team with specialised external consultants supports approvals, design, sales, and construction. Programmes for upskilling, safety awareness, and performance-linked incentives were continued to align human capital with growth plans.

This MD&A contains forward-looking statements based on current expectations, estimates, and projections. Actual results may differ materially due to various risks and uncertainties. The Company undertakes no obligation to update any forward-looking statement.