Sobha Ltd

Preparing for Scale

A Year of Achievements.

A Foundation for Sustainable Growth.

'Dear share?d^^s and frends ofSO&H'A

In 2023, amidst a challenging global economic landscape, India emerged as the world's fastest- growing major economy. Despite facing challenges such as geopolitical unrest and persistently high inflation, timely interventions by the Government maintained economic stability. India experienced exceptional growth, becoming the fastest-growing nation globally and surging ahead in the real estate sector, positioning itself as the 5^th largest economy and set to become the 3^rd by 2030.

Fuelled by a robust domestic economy, positive consumer sentiment, and a notable shift in consumer preferences, India's residential real estate sector witnessed significant growth in FY 2023-24. This growth was driven by genuine homebuyers across all segments, highlighting renewed demand and encouraging institutional investment in the sector.

In FY24, SOBHA achieved its best-ever performance, exceeding all previous records across all sales parameters - Sales area, Sales value, and Average realization. With a record annual sales value of ^66.44 billion, supported by new area sales of 6.08 million square feet and an average price realization of ^10,922 per square foot, SOBHA's performance underscored its strong brand value and stakeholder trust. SOBHA's share of total sales value also crossed ^5,000 crore for the first time.

Exceptional customer satisfaction remains at the heart of everything we do. This philosophy is reflected in our robust financial performance, strong sales figures, and successful project completions.

We maintained our momentum in terms of construction, completing 4.40 million square feet.

We completed our first development in GIFT City, taking SOBHA's footprint of real estate projects to 10 cities. More than one-fourth of our pre-sales for FY24 were driven by repurchases and referrals, a powerful testament to the loyalty our brand inspires.

As a leading real est?te developer, SOBHA's visi?n for 'Preparing for Scale' transcends mere expansi?n.

It involves more than just building a great product or growing bigger; it's about building a great system for replicating success and growing smarter. Our unique backward integration model exemplifies our innovative spirit, ensuring complete control over production processes and consistent delivery of exceptional quality. By prioritising operational excellence and strategic expansion, we are well- positioned to cater to a broader customer base across 12 major cities in India.

Our long-term strategy for sustainable growth revolves around strategic land acquisition, financial prudence, operational efficiency, and uncompromising quality. This approach enables us to meet the growing demand for exceptional living spaces and maintain our reputation for excellence.

Our commitment extends beyond building meticulously crafted world-class properties. We are proud to be one of India's most trusted and respected real estate brands, evidenced not only by our sales figures, but also by the significant value creation witnessed in our projects. SOBHA Dream Acres, Bengaluru, for example, appreciated over 100% during its lifetime, highlighting our ability to deliver exceptional returns for customers and investors. Similarly, SOBHA City, Gurugram demonstrated a remarkable 78.6% price appreciation, further solidifying our brand recognition and customer trust in key markets.

This focus on quality and customer satisfaction aligns perfectly with the current market trends. Capitalising on the revival of the IT/ITeS sector and expansion of global firms, tech cities like Pune, Chennai, Bengaluru, and Hyderabad are experiencing a surge in customer demand. Limited supply and record sales further solidify these markets as key growth centres. This allies perfectly with SOBHA's established presence in these strategic locations. Additionally, Gurugram emerged as a market leader in both sales and capital appreciation, showcasing the overall strength of the Indian real estate market. Our robust future pipeline ensures we are well- positioned to capitalise on these thriving markets.

The pandemic significantly impacted real estate trends. While rising construction costs and supply chain disruptions posed challenges, the demand for spacious homes with enhanced amenities soared. SOBHA has nimbly adapted to these evolving trends. Recognising the preferences of

new-age homebuyers, SOBHA goes beyond mere square footage. We understand that affordability is no longer the sole deciding factor. This is also evident from the fact that 58% of our sales value came from homes priced t2 crore and above.

Today's discerning customer seeks a holistic living experience, prioritising health and safety, community living, sustainability, and smart home integration. Our offerings cater to these progressive needs, ranging from premium limited villas to large-scale mixed- use developments, all characterised by our hallmark exceptional design, quality, and timely delivery.

At SOBHA, we are deeply committed to building a sustainable future. This means taking environmental responsibility and social well-being seriously.

We integrate green building practices, energy- efficient designs, and environmentally responsible construction techniques to create eco-friendly homes. But our commitment extends beyond just the buildings themselves. We foster positive social change through impactful CSR initiatives that empower communities and promote environmental well-being. A recent example of this dedication is the SOBHA Community Home Project, which aims to construct 1,000 homes for deserving families in Palakkad, Kerala. We are proud to announce that in this fiscal year alone, we have already delivered 100 homes to families in need. By prioritising sustainability and creating liveable communities, we at SOBHA are laying the foundation for a future where people and the environment thrive together.

Looking ahead, experts predict continued growth in FY 2024-25, driven by India's urban population and sustained demand for quality housing. We are equipped to navigate the dynamic real estate landscape by leveraging strategic partnerships, managing our debt portfolio effectively, developing innovative product offerings, and prioritising a customer-centric approach. With a healthy pipeline of 17.67 million square feet, SOBHA is poised for disproportionately large growth opportunities. Together, as we continue our journey of not just anticipating the future, but actively shaping it, we thank you for your continued trust and support.