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Anant Raj Ltd.

BSE: 515055 Sector: Infrastructure
NSE: ANANTRAJ ISIN Code: INE242C01024
BSE 00:00 | 02 Dec 101.95 -0.95
(-0.92%)
OPEN

103.15

HIGH

103.60

LOW

101.25

NSE 00:00 | 02 Dec 101.90 -1.05
(-1.02%)
OPEN

103.20

HIGH

103.75

LOW

101.20

OPEN 103.15
PREVIOUS CLOSE 102.90
VOLUME 54411
52-Week high 120.10
52-Week low 42.65
P/E 39.82
Mkt Cap.(Rs cr) 3,304
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 103.15
CLOSE 102.90
VOLUME 54411
52-Week high 120.10
52-Week low 42.65
P/E 39.82
Mkt Cap.(Rs cr) 3,304
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Anant Raj Ltd. (ANANTRAJ) - Chairman Speech

Company chairman speech

Dear Shareholders

With the blessings of Lala Anant Ram Sarin and Smt. Raj Kumari Sarin Iam delighted our FY 2020-21 report the first one post our demerger of Anant Raj Limitedinto Anant Raj Limited and Anant Raj Global Limited. With all legal processes andformalities relating to demerger complete we are now filled with renewed enthusiasm andenergy to move towards a better future and create value for all stakeholders.

The impact of the pandemic was evident in the real estate industry. Thelockdown and the subsequent unavailability of labour and raw materials in the first halfof FY 2020-21 saw the entire industry face delays in project execution. The demand toobottomed in line with low consumer confidence. In the second half of the fiscal theeconomy bounced back and consumer confidence improved. This along with a huge pent-updemand led to a steady pick-up in real estate demand since January 2021.

Focussing on Priorities

At Anant Raj our top priority in these times was the safety of ourpeople. We adopted all safety guidelines as mandated by the Government includingtemperature checks regular sanitisation of facilities and maintaining social distancing.To ensure business health we pushed back new projects as demand was low and insteadfocussed on maintaining adequate liquidity and balance sheet integrity. We continued tomaintain sharp focus on reducing debt which stood at ' 1482.97 Crore as on June 30 2021.You will appreciate that its more than two years now that the Company has not taken anyfresh loans.

Despite the execution difficulties we made efforts to ensure timelydeliveries a track record that we have maintained since inception. That said theunprecedented nature of crisis led to some delays and this was a trend all through theindustry. I appreciate the patience shown by our home buyers and assure them that we arenow much better prepared and have all resources in place to ensure fast execution.

Considering the impact of pandemic on the weaker section ofcommunities we also undertook to distribute food and safety kits to needy people.

Performance Review FY 2020-21

Our performance reflects the market sentiments. Our total income for FY2020-21 was ' 275.51 Crore as against ' 417.60 Crore last year. EBITDA increased by 4.67%to ' 69.85 Crore due to a sharp decline in construction-related expenses. PAT thoughdeclined 26.38% to ' 20.12 Crore due to higher finance costs. Our balance sheet positioncontinues to be strong with net worth of ' 2468.16 Crore as on March 31 2021.

In affordable housing segment we adopted a cautious approach anddelayed projects given the market situation. However with residential recovery in sightwe have made all groundwork and are all set to soon commence Aashray II project inTirupati Andhra Pradesh involving development of 2000 affordable homes. The otherproject of 1600 affordable homes at Sector 36A in Gurugram through a JV with Adani willfollow soon. We already have deep competencies in this segment with our track record ofdelivering 2600 affordable homes at our Anant Raj Aashray project in Neemrana Rajasthan.We will continue to build on it.

In the commercial segment 20% of our 5.5 msf of commercial space wasoccupied generating a consolidated lease income of ' 14.54 Crore in FY 2020-21. The lowoccupancy has been a result of pandemic whereby several companies adopted work from homemodel. Given these properties are Grade A and amongst the best in Delhi and NCR we areconfident of improved occupancy as the market situation improves and demand forready-to-occupy commercial space returns.

In the hospitality segment we have finalised plans to upgrade ourexisting Stellar (earlier Mapple Emerald) and Bel la Monde properties with additionalconstruction subsequent to increase in FAR. The new FAR rule also makes our hugeready-to-develop landbanks an attractive option of large hotel chains with whom we areactively exploring opportunities.

In the residential segment Anant Raj Estate Township in Sector 63A ofGurugram is our landmark project. It comprises Luxury Villas Independent Floors GroupHousing Plots and Commercial Spaces. Considering its prospects we have entered JV withBirla Estates Adani and Ireo to further expand revenues in this area. Avarna ProjectsLLP our JV with Birla Estates made good progress in executing Birla Navya project thePhase I of which has been almost completely sold out and Phase II is planned to belaunched in Q3 of FY 2022.

In our operations we undertook a calibrated approach by focussing onareas where growth was visible.

Ready to Ride the Wave

After a downslide the real estate market is now showing green shootswith positive sales momentum. This is more so in the residential segment which iswitnessing increased demand due to a growing trend of study and work from home as buyersseek bigger and better homes. Considering the positivity we have expedited development ofexisting projects and are actively considering starting newer ones of affordable housing.We also look to explore development opportunities at our vacant plots in Anant Raj EstateTownship.

We are confident of generating strong cash flows from realisation ofthese assets and effectively channelising them towards clearing debt and thus improvingprofitability.

We also see strong growth opportunities in the Data Centres andWarehousing segments thanks to the visionary leadership of the Central Government. Withrapid digitalisation in India further accelerated by the pandemic huge amount of data isbeing generated necessitating the need to store them safely and cost effectively. Ridingon this the Government called for the need to develop world-class Data Centres (DCs) inIndia to store data locally. At Anant Raj we see this as a huge potential for upside. Ourthree IT Parks are perfectly suited to develop Tier III and IV DCs with a total IT loadcapacity potential of 300 MW. Starting with developing an 8 MW IT load capacity at ourManesar IT Park in FY 2021-22 we intend to add more capacities over the years.

The Government's call for Make in India and Atmanirbhar Bharat areother initiatives that are paving the path to make India a manufacturing hub. The impactof this is visible in increased demand for storage space from e-commerce food andpharmaceutical industries. We have identified ~84 acres from our landbank to developworld-class customised warehouses.

Closing Comments

I thank all our stakeholders for their unstinted support in thesechallenging times. The property buyers who continue to trust Anant Raj brand the businesspartners who enabled us carry out operations with ease and the employees who rallied tokeep the business running.

Finally I believe that the coming days are going to be exciting and weare leaving no stone unturned to make the most of the opportunities.

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