undefined share price Management discussions


It has been a near-normal year after two years of pandemic induced challenges but the global economy continues to face headwinds of rising inflation and tapered growth. The rise in central bank rates to fight inflation and Russias war in Ukraine continue to weigh on economic activity with its impact likely to spill over to current year 2023 as well. The rapid spread of COVID-19 in China also dampened growth in the previous year 2022, but the reopening has paved the way for a recovery. Stronger-than-expected private consumption and investment amid tight labor markets and greater-than- anticipated fiscal support helped the major economies. The baseline forecast is for growth to fall from 3.4% in 2022 to 2.8% in 2023, before settling at 3.0% in 2024. Advanced economies are expected to see an especially pronounced growth slowdown, from 2.7% in 2022 to 1.3% in 2023. With further financial sector stress, global growth declines to about 2.5% in 2023 with advanced economy growth falling below 1.0%. Global headline inflation in the baseline is set to fall from 8.7% in 2022 to 7.0% in 2023 on the back of lower commodity prices but underlying (core) inflation is likely to decline more slowly.

As per International Monetary Fund (IMF) reports, growth in current year 2023 is expected to be 2.8% with a gradual pick-up in 2024. The economic activity is expected to remain sluggish mainly due to slow down in advanced economies. For advanced economies, growth is projected to decline sharply from 2.7% in previous year 2022 to 1.2% in current year 2023 amid financial sector turmoil, high inflation, ongoing effects of Russias invasion of Ukraine, and three years of COVID.

Financial year 2022-2023 was a milestone year for the Indian Real estate sector with all-time high sales. The sector showed healthy growth on the back of a high base achieved in 2021-2022. The demand pick-up seen in the second half of 2020-2021 has continued into 2022-2023 and is expected to continue in fiscal 2023-2024. The number of launches is also increasing and touched a decadal high last year, inventory is continuing to show a decline or stability across Tier-1 cities, indicating a healthy demand momentum.

While the residential segment witnessed strong performance, commercial office sector continues to remain sluggish with demand not yet reaching the pre-pandemic levels. The challenges to office space demand have been the work from home trend and slowdown in global economic growth. The global slowdown directly impacts sectors like IT/ITeS which is the major occupier of office space in India. Retail real estate sector though, is back to full swing with consumption recovering beyond pre-pandemic levels and should continue the momentum.


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.

However, your Company also finds some challenges like rising unavailability of trained labour force, increased cost of manpower, rising cost of construction and over regulated environment.


The Company has identified that its operating activity is a single primary business segment viz. Real Estate Development and Services carried out in India. Accordingly, whole of India has been considered as one geographical segment.


Financial year 2022-23 was a landmark year for the real estate sector wherein we witnessed good sales collection, project deliveries and business development. Post-pandemic, developers have moved away from the traditional way of doing business and rightly focused on end-user customer demand with a strong focus on innovation and digital transformation. We believe that financial year 2023-24 will continue the healthy sales momentum backed by solid structural foundation, sustained demand and relatively affordable albeit somewhat higher housing loan rates. Financially strong and reputed developers with superior execution capabilities stand to benefit disproportionately from the ongoing cyclical upturn. Our portfolio consists of both small and large sized projects, offering complete solution to our esteemed consumers. As such, the Company remains bullish on its existing projects and at the same time, it shall be speeding up construction of existing projects and continue to focus on timely delivery. Owing to numerous reforms introduced, the sector has gone through changes in the tax, regulatory as well as the business environment. The financial year 2023-24 will be challenging and opportunistic and the ones likely to succeed are those who shall embrace the changing market dynamics.


The Company has a proper mechanism in place for identifying, assessing, monitoring and mitigating various business-related risks. The Board of Directors of the Company are regularly informed and updated about the risk assessments and minimization procedures.

In the course of its business, the Company is exposed to stiff competition from other established developers in the market and is exposed to a wide variety of risks such as:

• Increase in interest rates and foreign currency rates;

• ongoing pandemic situation

• Customer risks;

• Changes in the Government policies;

• Longer working Capital cycles;

• Unanticipated delays in project approvals;

• Price Uncertainty;

• Rising cost of inputs;

• Stagnant and low construction margin;

• Economic vulnerability and regulatory risks in developing markets;

• Changing demographics, aging and urbanizing populations.


The Company has in place adequate internal control systems covering all its operations to provide reasonable assurance with regard to information and maintenance of proper accounting records, the economy and efficiency of operations, safeguarding of assets against unauthorized use or losses, and the reliability of financial and operational information. The internal control system of the Company is supplemented by internal audits, review by management and documented policies, guidelines and procedures. The shortcomings in the internal control system, if any, is communicated to the respective departments and measures are taken to overcome the same. During the year under review, no reportable material weaknesses or significant deficiencies were observed in the design or operations.

The Internal Control mechanism comprises of a well- defined organization structure, pre-determined authority levels and clearly defined policy guidelines for appropriate delegation of authority. Internal control is an integral part of the Companys Corporate Governance. The objective of internal control is to give reasonable assurance about the effectiveness and appropriateness of operations, about the financial information, about the reliability of reporting, and of compliance with legislation and other regulations.


The financial highlight including the operational performance of the Company is stated hereunder, in brief:

Rs. In Lakhs)


2022-23 2021-22

Total Revenue from Operations

11261.81 4885.69


1715.86 437.05


426.70 201.18

Basic EPS

2.47 1.16


At RDB Group, there is a firm belief that our professionals are most important assets. The Companys business is managed by a team of competent and passionate leaders. We are privileged to have a vibrant pool of young and energetic people working as one impeccable team. Transparency in working, open communication and satisfactory work environment are the key intrinsic to RDBs work culture. The Companys focus is on unlocking the people potential and further developing their functional, operational and behavioral competencies. The management allocates sufficient attention in training the workforce to ensure that they are well equipped to take up challenging projects and to ensure their timely delivery by sticking to target schedules.


Pursuant to the provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the details of key financial ratios along with the reasons for significant changes therein are given below:

Sl. Particulars No.

For the year ended March 31st, 2023 For the year ended March 31st, 2022 Reasons for significant change (if any)

1 Debtors Turnover

6.00 8.17 Due to increase in Receivable Recovery

2 Inventory Turnover

0.45 0.21 Due to increase in Turnover

3 Interest Coverage Ratio

1.51 4.14 Due to increase in the interest Expense

4 Current Ratio

1.58 1.64 --

5 Debt Equity Ratio

2.15 1.79 Due to increase in Borrowing

6 Operating Profit Margin (%)

16.77% 6.56% Due to increase in Income

7 Net Profit Margin (%)

4.17 4.28% Due to increase in Turnover


1. Above ratios are based on the standalone financial statements of the Company.

2. Significant change means a change of 25% or more as compared to the immediately preceding financial year.



For the year ended March 31, 2023 For the year ended March 31, 2022 Reasons for change (if any)

Return on Net Worth

4.04 1.99 Due to change in Net Worth


It is imperative that infrastructure development occurs in a sustainable manner in India and around the globe, if the impact of climate change is to be slowed to broadly acceptable levels. The Indian Government must maintain a commitment to ensuring that rapid growth does not happen at an untenably high environmental cost. Infrastructure projects will play a key role in ensuring the success of green growth. The Company complies with all the applicable environmental laws, rules and regulations and makes voluntary efforts to practice effective use and saving of resources and energy, in the recognition that global environmental conservation is an essential facet of corporate and individual pursuits.


For the Company, the health and safety of its employees is of paramount importance and as a good corporate citizen, it is committed to ensuring safety of all its employees at the work place. The Company has zero tolerance towards sexual harassment at the workplace and has adopted a policy on prevention, prohibition and redressal of sexual harassment at workplace and has constituted an internal complaints committee in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules framed thereunder.


Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include, economic conditions affecting demand/supply and price conditions in the domestic market in which the Company operates, changes in the Government regulations, tax laws and other statutes and incidental factors. The Company assumes no responsibility nor is under any obligation to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments, information or events.

For and on behalf of the Board


Place: Kolkata

Rajeev Kumar IPS (Retd.)

Date: 11th August, 2023

Chairman & Whole-time Director