Keystone Realtors Ltd

Dear Shareholders,

I am delighted to share Rustomjee's first Annual Report after our successful IPO in FY 2022-23. This has indeed been a landmark year for your Company, marking our transition into a publicly listed Company. It serves as our commitment to growth, transparency and long-term value creation.

Rustomjee has grown from strength to strength in the last 27 years. We have built several landmarks that include gated communities, integrated townships, standalone towers, commercial and retail spaces in the MMR.

Redevelopment continues to be our strong focus area. Being one of the largest brands in this space, we have rehoused over 1,400 families so far.

The real estate industry, which is on a strong footing with a sustained upcycle of growth, is further fuelling our growth. The government of Maharashtra has an ambitious plan to implement public infrastructure projects such as Metro Network, Trans Harbour link, Coastal Road, Navi Mumbai International Airport, etc. These will have a transformative impact on the lives of common citizens and the real estate sector of Mumbai. As per published data sources, the new launches in MMR in FY 2022-23 have gone up 18% compared to last financial year, Absorption from the new launches is up by 47% and overall absorption is up by 35% in FY 2022-23. As a result, inventory levels in MMR have gone down from 27 months to 18 months, indicating a huge headroom for growth. MMR is a land of opportunity and as the Indian economy grows, your Company will see tremendous growth being one of the biggest brands in MMR.

Strong Financial Performance

Reflecting on the past year, we are delighted to report that the Company has demonstrated robust performance amidst the dynamic market scenarios.

During the year, your Company focused on further strengthening the balance sheet by reducing the debt, giving successful exit to equity partner and enhancing our collection efficiency thereby generating healthy operating cash flows. Your management also ensured that we have a robust launch pipeline in place to capitalise on the ongoing uptrend. The Company is in a healthy liquidity position to accelerate our expansion plans.

Given the healthy pre-sales and collections of 1,604 Crore and 1,862 Crore, respectively, coupled with strong OCF and proceeds from the public offering, we have reduced the leverage and increased investments in new projects. Our net debt is the lowest ever at ~ 19 Crore. A strong OCF coupled with reduced debt levels is reflected in the improved Credit Rating of “A-(Stable)“ assigned by ICRA. Rustomjee, as a group, forayed into the fund management in FY 2022-23 under the brand of Mt. K Kapital. The Company received approval from SEBI for the launch of a Category II AIF for its US$ 100 Million maiden fund the Mt K Resi Development Fund. The fund has achieved a first investors such as State Bank of India and Famycare. This fund shall further strengthen your Company's ability to add more projects under the Rustomjee brand.

Execution

The integrated real estate development model enables us to handle projects from start to finish using our in-house resources. We have built competencies for every stage of the property development life cycle.

The management's aim has been to improve our presence in the mid-mass and aspirational segments as these are the largest and fastest-growing segments in the MMR. During the year, your Company was selected as a preferred partner for the redevelopment of 5 projects. These additions are in line with our asset-light strategy. Further 85% of these additions in terms of GDV are from mid-mass and aspirational segments. Your management's decision is data-driven & follows infrastructure growth to plan new developments. Our robust business development pipeline ensures consistent Y-o-Y growth in new project additions, supported by ample liquidity. Currently, we have 13 ongoing projects having saleable area admeasuring 4.94 Mn. sq. ft. and 22 forthcoming project having saleable area of 27+ Mn. sq. ft. having a GDV of ~ 35,000 Crore. Given our healthy launch pipeline, we are working towards achieving presales growth of 25% Y-o-Y over the next 3-5 years.

Sustainability at the Core

While building state-of-the-art structures is our passion, it is not without ensuring sustainability and safety. Sustainable processes and design continue to be at the core of our operations. In Rustomjee Seasons, we collaborated with a landscape consultant to deliver a natural close with marquee and self-sustaining biodiverse ‘Miyawaki' forest in an urban setting. Rustomjee Elements, on the other hand, boasts 190 trees specifically chosen to enhance the microclimate and biodiversity in the heart of the city. Rustomjee Crown will have 300 fully grown trees planted at the podium in addition to the shrubs and herbs that will dot the entire project. In addition, our projects are equipped with sewage treatment plants and EV charging stations. Moreover, we have received green building certifications for two of our projects IBGC certification for Rustomjee Urbania and LEED certification for Nataraj by Rustomjee. We have made considerable progress in our ESG practices. I personally believe that “What we measure is what we improve”. Therefore, environmentally we have started our journey to measure our carbon footprint and tracked water usage, recycling efforts and hazardous waste management. Socially, we have improved labour welfare compliance, enhanced human rights awareness, and achieved zero fatalities and high-consequence incidents. Our aim is to prioritise material ESG topics and set improvement targets for future progress.

Towards Higher Growth

At Rustomjee, our commitment towards building a happier world is what underlies our entire business strategy bringing the community together and building spaces where people can converge and support and feel connected is at the core of what we do. We start our briefs to the architect with this single-minded focus. Each of our projects has several dedicated spaces that encourage people to come together and celebrate festivals, barbeque zones where friends can get together for a Sunday brunch and senior citizen zones where the older generation can come and find companionship.

Our journey so far has been possible due to the unflinching trust and unwavering support of our shareholders, customers, employees, and other stakeholders. I would like to express my deepest gratitude for your faith in our vision and your contribution to our success.

Your management takes the responsibility of the investors' trust very seriously.

We are committed to grow the investments, the trust and build value for our stakeholders. With our strong business model, customer-centric approach, and a committed team, we are poised to navigate the future landscape and achieve our ambitious goals.