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Anant Raj Ltd.

BSE: 515055 | NSE: ANANTRAJ |

Shares falling in the `Trade-to-Trade` or `T-segment` are traded in this series and no intraday is allowed. This means trades can only be settled by accepting or giving the delivery of shares.
Series: BE | ISIN: INE242C01024 | SECTOR: Construction - Real Estate

BSE Live

Oct 14, 16:00
73.25 0.00 (0.00%)
Volume
AVERAGE VOLUME
5-Day
41,324
10-Day
73,967
30-Day
86,321
17,398
  • Prev. Close

    73.25

  • Open Price

    75.45

  • Bid Price (Qty.)

    72.25 (200)

  • Offer Price (Qty.)

    73.50 (2500)

NSE Live

Oct 14, 15:49
73.20 -0.25 (-0.34%)
Volume
AVERAGE VOLUME
5-Day
459,074
10-Day
574,112
30-Day
674,690
192,642
  • Prev. Close

    73.45

  • Open Price

    73.80

  • Bid Price (Qty.)

    73.20 (12)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2018 2017 2016 2015 2014 2013 2012 2011 2010

Chairman's Speech

Dear Shareholders, Indian economy is witnessing a tough environment. For the first time in several years, the industry is facing the pressure of higher inflation and subsequent higher interest rate, the pressure of coalition politics leading to slower decision making in India and the turmoil in USA and Europe leading to rupee depreciation has created an environment that is challenging. I have always believed that real estate is as much a financial business as it is real estate. And in this challenging environment, it was important what Anant Raj did. And this is what we are proud of. Over the last two years, our experience told us that we were somewhere in the bottom of the real estate market as far as Delhi and NCR were concerned. The larger behemoths and acquirers of land banks were burdened with debt and were selling land parcels. We believed it was time. We thought that our approach was finally taking complete shape. We have a sizable base of build-to-hold annuity assets whose incomes will keep growing as occupancy increases and now, we have a sizable build-to-sell residential land bank that will generate free cash. BUILD-TO-SELL ASSETS We identified that given the attractive pricing of land parcels, time was right to re-enter residential in a big way. We identified locations like Delhi, Gurgaon, Manesar, Sonipat, Neemrana and acquired 225 acres of land bank for Rs. 900 crores. Given that most of our cash reserves were committed to executing annuity assets like commercial, IT parks and retail, we leveraged our balance sheet and acquired these land parcels. To us, this is our confidence on the location, price and the future monetisation of the new land parcels we bought. We were very clear that given the interest rate environment, we need to have a faster cash cycle for this investment. And therefore, residential was the best option. Here is why we are bullish on the residential land parcel that we have bought: One, the locations are great. Both the current demand and its future potential look brilliant. Our 40 years of experience and knowledge of Delhi and NCR makes us believe that we have chosen the right land parcels. Two, the price of the land parcels are also at the bottom end of the curve and therefore, look right. With right land cost and construction cost, and Anant Raj quality, we feel we will be able to price our projects very competitively, and hence gain market share in our locations. Three, locations like Gurgaon, Manesar and Neemrana have inherently more demand than supply. We believe that we will be able to launch, pre-sale and generate cash flow for construction from customers, not requiring us to bend backwards for construction funding. Four, Anant Raj has demonstrated superior execution over the last several years. We believe we will build fast and give possession faster resulting in faster cash cycle for the company. THE RESULT We have already pre-sold 3000 units. We expect that we will deliver 13.1 million sq.ft. of residential projects across premium and affordable over the next five years. In terms of net cash inflow, this means Anant Raj cash will increase manifold. BUILD-TO-HOLD ASSETS Anant Raj has been executing its portfolio of commercial, IT Park/SEZ and hotels over the last few years. As on date, we have a total of 5 million sq.ft. of commercial, retail and 5 hotels. We have invested about Rs.1200 crores so far in these assets. In 2011-12, the annuity income from these assets increased to 91.76 crores from Rs.76.18 crores. The commercial portfolio is about 50 per cent occupied and all the hotel assets are already leased out and generating revenues. We expect to grow our annuity income over Rs.150 crores in the next 12-18 months and still have room for further growth to Rs.200-250 crores in next 3-4 years. BALANCE LAND BANK Even after the development of the 13.1 million sq.ft. of residential and the completed 5 million sq.ft. of commercial and hotels, Anant Raj will have a further 47 million sq.ft. of land bank to develop further. Most of this land bank is paid for. We at Anant Raj are big believers of timing. We feel that in the last few years, we have remained to true to our belief. We sold when we thought markets were at the peak and have now acquired, when we feel the markets are nearing bottom. This helps us remain competitive. It puts us into a virtuous circle when others are struggling to come out of their vicious circle and debt trap. As we look ahead this is what I see : Growing annuity income, large cash flow from residential projects, and prime land bank to further develop. This is what Anant Raj represents today. Before I conclude, I want to thank every stake holder that has helped us reach such a strong position today. I thank every customer who bought his dream house from us. I thank every corporate, big or small, who chose us to grow his business. I thank the hundreds of masons and technicians who worked overtime so that we keep our delivery and quality commitment intact. I thank every member of team Anant Raj for the passion and the hard work they bring to realize our collective dream and keeping customers happy. I thank every bank that has trusted us with funds irrespective of the market cycles. I thank the entire capital markets eco-system for projecting Anant Raj ''different'' from others. I thank the Indian government in general and the Delhi and NCR governments in particular for creating demand for homes, offices and hotels in areas where we operate. Thank you all. Sincerely, Ashok Sarin Anil Sarin Chairman Managing Director