Nyssa Corp. Management Discussions

Global Economy

In 2022, the global economy faced a series of turbulent challenges. High inflation rates, the most significant in several decades, led to tightened financial conditions in most regions. Additionally, Russias invasion of Ukraine had a lasting impact on economic activity. The rapid spread of COVID-19 in China also hampered growth during the year.2 However, the recent reopening of economies has paved the way for a rapid recovery. Global governing bodies have undertaken various initiatives to mitigate existing economic risks. Monetary policies are anticipated to focus on restoring price stability, while fiscal policies aim to alleviate cost pressures while maintaining a suitably tight stance. In addition, structural reforms can play a crucial role in lowering inflation by enhancing productivity and addressing supply-side constraints.2 These collective measures are expected to support economic stability and reduce the impact of prevailing risks.As per the latest International Monetary Fund (IMF) estimates published in January23, the global economy is projected to grow at 2.9% in 2023 (vs estimated 3.4% in 2022) and 3.1 % in 2024.1 In 2022, Middle East and Central Asia have been the highest contributor to the global real GDP, while Emerging and Developing Asia are expected to be the highest contributors in 2024. Euro area is estimated to grow at 1.6% in 2024, whereas United States and Latin America are expected to grow at 1.0% and 2.1% respectively in 2024. 3

Indian Economy

The Indian economy has staged a full recovery, ahead of many nations and has positioned itself to ascend to the pre- pandemic growth path in FY23. However, India must also cope with the challenge of controlling inflation. Fortunately, actions taken by the government and RBI along with decline in global commodity prices has led retail inflation levels reaching to 5.7% in December22 and 5.66% in March23, which are within the RBI upper tolerance target of 6%. 4. As per IMF, Indias real GDP grew at 6.8% in 2022 (estimates) 5 and expected to grow at 5.9% in 2023 and 6.3% in 2024, with resilient domestic demand despite external headwinds. As per CEIC, Indias per capita GDP reached USD 2,301 in March22, an all-time high resulting in a significant increase in demand driven by consumption.7 Industrial production also increased supported by persistent demand conditions. For the first half of FY23, the Industrial Sectors overall Gross Value Added (GVA) increased by 3.7%, above the 2.8% average 9 growth seen in the first half of the previous decade. In 2023, nearly 15% of the worlds growth is forecasted to come from India.5 These growth projections are partially based on the economys resiliency, which can be observed in how quickly private consumption rebounded, while the governments capital expenditure, which surged by 63.4% in the first eight months of FY23 was also a major contributor.9 India will also be able to maintain a positive growth-interest rate differential owing to the governments policy of capital expenditure led growth, which will result in a sustainable debt to GDP over the long term.To connect India to international supply chains, the Production Linked Incentive (PLI) programmes were created with an expected investment of 4 lakh crore during FY22-27.6 As per the Indian Brand Equity Foundation (IBEF) In FY22, investments under PLI programmes totalled INR 47,500 Crs, which reached 106% of the years set objective.10 Due to PLI initiatives, production/sales of 3.85 lakh crore and the creation of 3.0 lakh jobs have been registered.10 The Indian economy has also begun to prosper from more formalisation, greater financial inclusion, and economic possibilities brought forth by technologically driven economic reforms.

Indian Real Estate Sector

Real estate sector in India is expected to reach USD 1 trillion in market size by 2030, up from USD 200 Bn in 2021 and contribute 13% to the countrys GDP by 2025 Indian Real Estate Sector Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for Indias growing needs. Indias real estate sector saw over 1,700 acres of land deals in top eight cities in the first nine months of FY22. Foreign investments in the commercial real estate sector were at USD 10.3 Bn from 2017-2021. As of February 2022, Developers expect demand for office spaces in SEZs to shoot up after the replacement of the existing SEZs act. As per ICRA estimates, Indian firms are expected to raise roughly USD 48 Bn through infrastructure and real estate investment trusts in 2022, as compared with raised funds worth USD 29 Bn to date.

Budget Impact on The Indian Real Estate Sector

Budget 2023-24 could be a watershed moment for the real estate industry. The Finance Minister has announced measures of growth and progress, built on the foundations of Amrit Kaal, a 25-year plan to transition India from 75 to 100 years of independence. The sector will reap dividends from the growth-oriented fiscally ‘balanced budget proposals like enhanced capital expenditure in infrastructure, that is 33% increase in capex funds to INR 10 lakh Crs to elevate the urban planning substratum, boost the paradigms of infrastructural connectivity, and notch up holistic development in multiple corridors, and improve multimodal connectivity between mass urban transport, rail, and air network underscores Indian governments concerted focus on infrastructure development that will open up hinterlands across geographies. These coupled with the emphasis on systematic development of megacities as well as tier II and tier III cities for the future will prompt real estate players to seek land parcels in the periphery for RE developments, especially in the commercial space. In its effort to have a robust financial sector, strong public finances, and provide a cushion against global headwinds, the government fixed the fiscal deficit for 2023-24 at 5.9% of GDP well below the 6.4% budgeted for 2022-23. The announcement reassured sovereign credit rating agencies. It will heighten investment activities across all business sectors which will help the real estate sector to maintain stability. Over the last decade, various government policies and initiatives have directly or indirectly contributed to the development of the Indian RE sector:

Real estate (Regulation and Development Act) RERA: With the introduction of RERA, the largely unorganised RE sector was brought within the ambit of the regulator, making the developer /builder/ promoter/agents accountable and answerable, thereby bringing in transparency. This has increased confidence amongst the customers and investors.

Smart Cities Mission: The objective of the smart cities mission is to promote cities that provide core infrastructure and give its citizens a decent quality of life, and a clean and sustainable environment through the application of ‘Smart solutions, thus requiring the adoption of technology to deliver energy-efficient and sustainability-focused solutions.

Pradhan Mantri Awas Yojana (PMAY): This initiative aims at providing ‘housing for all. The government has also given infrastructure status to ‘affordable housing, thus enabling developers to raise funds, including external commercial borrowings. Interest subvention provided under the PMAY has increased the demand for affordable homes.

Monetisation of non-core real estate: In 2022, the government set up the National Land Monetisation Corporation to monetise non-core real estate assets held by public sector enterprises. Make in India: The ‘Make in India initiative has boosted the creation of manufacturing facilities, resulting in the emergence of suburban areas and, consequently, housing colonies/projects. Foreign Direct Investment (FDI): FDI policy has been considerably liberalised, permitting foreign investment in under-construction projects and for the operation of completed projects, subject to certain conditions. Real Estate Investment Trusts (REITs): SEBI introduced REITs as an investment vehicle in 2014 to raise funds from investors to acquire, own and operate revenuegenerating real estate assets directly or through special purpose vehicles. REITs are publicly listed, highly regulated, and provide a steady return to investors. The introduction of REITs enabled developers to monetise revenue-generating real estate assets and utilise the funds for the further development of new assets.

Ease In Housing Finance: In order to boost affordable real estate, housing loans up to USD 54,306 in metro cities were included in priority sector lending by the RBI in June 2019. Loans under priority sector lending are relatively cheaper. Housing loans account for more than half of retail loans.

Land Acquisition Bill: In December 2014, the Government passed an ordinance amending the Land Acquisition Bill which is intended to speed up the process for industrial corridors, social infra, rural infra, housing for the poor and defence capabilities.

Amendment to the Benami Transactions Act: Benami transactions were common in the real estate sector. However, an amendment to the existing Benami Transactions Act gave teeth to the act, making it more stringent. The act further enhanced Indias status as an investment destination by instilling professionalism, accountability, and greater transparency in transactions.

Residential Real Estate Sector: Indias Housing Market growth to expected to continue with 9% rise in FY24 sales. The growth is supported by a steady and healthy demand, although factors such as a potential global recession and inflation may slightly dampen the demand soon. However, the market is expected to withstand any pressure due to supply consolidation and improved affordability compared to historical standards. According to data from Liases Foras, residential sales in the top eight cities in India, including Mumbai, Bengaluru, Chennai, Hyderabad, NCR, Pune, Ahmedabad, and Kolkata, increased by 18% in 2022-23, reaching 392 Mn Sq.ft. This growth was driven by consistent and healthy demand, as well as renewed interest and improved perceptions from homebuyers following the pandemic.

The sector witnessed a significant number of new and improved product launches to meet market demand, resulting in a reasonable balance between demand and price. New launches increased by 60% compared to the previous year, reaching 551 Mn Sq.ft. in 2022-23. Top 7 cities recorded new launches of around 1.09 Lakh units in Q1 2023 against 89,100 units in Q1 2022 and 92,900 units in Q4 2022, indicating a rise of 23% on annual basis and a rise of 18% from the previous quarter. Key cities contributing to new launches in Q1 2023 included MMR (Mumbai Metropolitan Region), Hyderabad, Pune, NCR and Bengaluru, together accounting for 89% supply addition. MMR witnessed the highest volume of new launch activity in the current quarter, accounting for 34% of the total new supply across the top 7 cities. Kolkata comprised the lowest share of 5% launches amongst the top 7 cities in India. The NCR market witnessed the highest price surge, which had previously undergone a correction and stagnation due to low demand. Hyderabad, Mumbai, Kolkata, and Bengaluru followed suit with incremental trends in housing prices.


Pursuant to provisions of Regulation34 (3) of SEBI (LODR) Regulation, 2015 read with Schedule V part B(1) details of changes in Key Financial Ratios is given hereunder:

S. No. Key Financial Ratio FY 2022-23 *FY 2021-22
1. Debtors Turnover Ratio Times 0.27 -
2. Inventory Turnover Ratio Times 0.21 4.94
3. Interest Coverage Ratio Times 5482.33 618.24
4. Current Ratio Times 2.01 2.52
5. Debt Equity Ratio Times - -
6. Operation Profit Margin % 21.19 17.63
7. Net Profit Margin % 13.43 14.85
8. Change in Return on Net Worth % 2.67 8.22

*Previous years Figures have been regrouped / rearranged wherever necessary


The Company has duly complied with the prescribed Accounting Standards and have not followed any alternative method.


The financial performance of the Company has declined in the year under review.


During the year under review, the Company has posted Total Revenue of INR. 5,51,98,494/- as against for the corresponding previous year of INR. 15,73,80,058/-.

Further, the Company earned Total Comprehensive Income INR. 74,11,224/- as against total Comprehensive Income of INR. 2,21,29,796/- for the corresponding previous year.


During the year under review, the Company has posted Total Revenue of INR. 6,09,45,120/- as against for the corresponding previous year of INR. 17,67,59,838/-.

Further, the Company earned total Comprehensive Income INR. 74,14,287/- as against Total Comprehensive Income of INR. 2,21,48,368/- for the corresponding previous year.


The Company providing training programs to employees to improve the knowledge and skills of employees to match the various changes in the industry. These improvements will positively affect the productivity of workers, which can increase the profits and efficiency of an organization. Some of the things employees may learn through training include work ethics, human relations and safety.


Statements in this report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions are within the meaning of applicable laws or regulations. These statements are based on certain assumptions and reasonable expectation of future events. Actual results could however differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include changes in the government regulations, tax laws, statues and other incidental factors as applicable to the Company.