It is our determined PERSEVERANCE with Prudence and Patience that will help ussuccessfully navigate the rough weather and we are convinced we will sail through tosmoother seas very soon.
We are pleased to present this year's Annual Report for Anant Raj Limited. It is amatter of pride that this year marks the 50th year of the Group. Every great journeybegins with small steps - and this is so true in the case of Anant Raj.
The journey that began with small steps in 1969 has seen us take confident stridesacross residential commercial IT Parks and hospitality segments in real estate. Frombuilding strong pillars in the 70s and establishing our position in the 80s weleapfrogged with India as the country shifted to high-growth phase with liberalisation inthe 90s. We entered the new millennium as one of the emerging names in the real estatespace in the newly developing hotspot of NCR. We sailed through the financial crisis of2008 on the basis of our clear geographic focus and strong emphasis on timely execution ofprojects.
The last few years have seen the real estate sector face major challenges. Oversupplyand a large inventory overhang have been prime concerns impeding growth. Theimplementation of RERA in 2017 has brought in much needed transparency and accountabilityin the sector. Relaxation of FDIs over the years has been a step in the right directionfor the sector. However the NBFC crisis induced liquidity crunch since the end of 2018has created fresh challenges for the sector. The government has been taking significantsteps to boost the sector with initiatives like Housing for All by 2022 and Pradhan MantriAwas Yojna (PMAY). Affordable housing has been a particularly bright spot in theresidential sub-segment so much so that even large developers are now increasinglylooking at Affordable housing as the next opportunity.
While the decidedly challenging economic and operating environment has affected allplayers in the sector irrespective of size or location at Anant Raj we continued topush ahead with PERSEVERANCE Prudence and Patience. We continued with our single-mindedfocus on execution of projects. This year we received part Occupancy Certificate forMACEO - our group housing project at Sector 91 in Gurugram. Our iconic township project -Anant Raj Estate received one of the fastest partial-completion certificate for theresidential colony which forms almost 65% of the total area.
This year the Company also entered into its first ever 50:50 joint venture with BirlaEstates Pvt. Ltd. for joint development of residential project at Sector 63A in Gurugram.The Company will contribute land which will be developed by the JV partner. The totaldevelopable area under the JV is around 35 msf with a monetisation value of US$ 800 overthe next 4 years.
Another key development during the year was the successful land allotment at Tirupatiin Andhra Pradesh for affordable housing. After Anant Raj AASHRAY this will be theCompany's second foray into the growing affordable housing space. The 10.14 acre plot ofland at Tirupati will result in a total developable area of 1.2 msf.
During the year the Company commenced work on its new Cinema & Retail cumCommercial project at Trilokpuri. The Company has interesting project launches plannedduring the year including additions to its Moments Mall as well as up-gradation andadditional capacity at one of its hotel properties at Chattarpur New Delhi. Plans arealso in advanced stages for a new multi-use development of a mid segment and upscaleLuxury Hotel with Grade A commercial building at NH 8 New Delhi.
Given India's strong stand on data sovereignty the Company is also consideringdeveloping India's largest data centre park at its IT Building RAI in Sonepat.
With this backdrop let us now update you on the financial performance of the Company :
The consolidated Total Revenue for the year was Rs 500.28 crore against Rs 480.13 crorelast year. There was a significant increase in the operating EBIDTA for the year whichrose by almost 20% to Rs 132.23 crore from Rs 110.28 crore last year. However the totalNet Profit for the year was Rs 66.47 crore against Rs 65.98 crore in the previous year. Inkeeping the Company's excellent dividend track- record a dividend of 12% (' 0.24) pershare has been proposed subject to the final approval of the shareholders.
The demerger of the Company is also progressing on schedule we shall keep you postedon this.
As an organisation Anant Raj has always been an outlier. Guided by the promoters'vision of always being vigilant and watchful the Company has never shifted from itsstrong NCR focus. When undertaking projects the Company has always taken on projects itis confident of executing within time and maintaining quality. Over the last fifty yearsthe Group has developed over 20 msf of outstanding real estate projects ranging fromresidential to retail and from IT Parks to commercial buildings to international standardhotels. It is the Company's clear understanding of its capacity and capability that hasensured its steady progress over these five decades and built a solid trust and sterlingreputation in NCR region.
It is with this same vision and approach that we are confident of overcoming thecurrent challenging phase in the real estate sector. It is our determined PERSEVERANCEwith Prudence and Patience that will help us successfully navigate the rough weather andwe are convinced we will sail through to smoother seas very soon.
As we look ahead into the near and mid-term we are quite excited. The worst we thinkmight be over for the real estate sector. The reelected government at the centre isresolute in its make in India a '5 trillion economy in the next five years. Its sharpfocus on infrastructure and real estate is expected to kick-start revival in the sector.One of the key challenges of the sector has been the liquidity crunch. With thegovernment's reforms expected to infuse liquidity we are certain the real estate sectorwill pick up speed.
With those positive thoughts we would like to express our sincere gratitude to all ourstakeholders - our shareholders our employees our customers our suppliers ourpartners our investors and our bankers for their sustained trust and faith in the AnantRaj journey. It has been a wonderful journey of fifty years but the best we believe isyet to come...
|Thank you and best wishes || |
|Yours sincerely || |
|Ashok Sarin ||Anil Sarin |
|Chairman ||Managing Director |