Since the banking crisis erupted in 2008, its domino effects have been
felt across major economies and industries over the last five year. The
real-estate sector is no exception, having faced its share of uphill
challenges in the form of falling demand and rising costs, leading to
pressures on both top-line and bottom-lines. However, the sector is now
re-emerging from shadows with many positive developments happening over
the last one year, and is set for an upturn in the ensuing year.
The newly elected government has taken up infrastructure development as
one of its top-priority. Many pending projects have been put on fast-
track for immediate clearance. Many mega-projects are also being
planned, including as industrial townships. Low- cost housing is also
in the focus on the government as a priority.
In the Delhi/NCR region, the revised Farm House Policy has unlocked the
true development potential by creating zones for commercial and/or
residential construction. A minimum of three dwelling units per acre
has been allowed under the Delhi MDP 2021. This is in addition to
increase in Minimum Floor Area Ratio (FAR) announced by DDA earlier in
These developments indeed augur extremely well for the real-estate
sector in Delhi / NCR region in general, and particularly for your
Company. As you are aware, your Company is amongst the highest quality
land-bank owners in Delhi/ NCR region. With these new developments,
your Company''s 200 acres of land in Delhi is ready for monetisation
through both residential as well as hospitality projects in the next
During the year 2013-14, your Company continued to focus on execution
of projects and reducing its overall debts. You will recall that your
Company has invested almost Rs. 1,000 crores over the last four years
in acquiring new land as well as in its various projects. As part of
its strategy to divest non-core assets, the Company sold some land
parcels and utilised a part of it towards debt repayment, thereby
reducing the gearing.
On the execution front, your Company completed the Phase 1 of IT Park
at Panchkula in Haryana. Work is going on in full swing at the marquee
Anant Raj Estate project of the Company, where bookings have crossed
over Rs. 700 crores. Your Company also completed the low-cost housing
project at Neemrana in Rajasthan. Your Company was one of the first
real-estate players to launch a low-cost housing project with
Government of Rajasthan. 2,580 units have been completed in record
time, and families have already started moving in. This highly
successful project has created a template for the Company for low-cost
housing, and the Company is planning to undertake larger projects.
In spite of challenging operating environment, your Company was
successful in delivering yet another year of outstanding results:
This year the total revenue was Rs. 503.11 crores as compared to Rs.
578.08 crores in the previous year.
EBIDTA for the year is Rs. 159.67 crores as compared to Rs. 178.27
crores in the previous year.
PAT for the year is Rs. 100.38 crores compared to Rs. 106.04 crores in
the previous year.
What stands out is the fact that the Company was able to reduce its
debt by Rs. 90.98 crores and the total debt for the year 2013-14 is Rs.
1,403.14 crores against Rs. 1,494.12 crores last year.
Your Company is determined to reduce this debt further in the next
couple of years and is considering sale of one or two of its hotel
properties and /or hospitality land parcels. Moreover, with demand
picking up, the additional cash flows will also be used to reduce debt.
With the expected upturn in demand, your Company will at an enviable
position as it has almost 6 million sq.ft. of ready to lease commercial
assets. Previous experience has proven that ready-to-lease properties
are always preferred, and first to be leased by clients. Over the next
4-5 years, we are confident that almost 60-80 per cent of our
commercial assets will be leased out.
Anant Raj Estate is the game-changer project of your Company. Situated
off the Golf Course Road in south Gurgaon, it is the only township that
has three 60 feet roads surrounding it. Spread over 160 acres, the
township consists of plots, floors and villas, the construction of
which is already under way. This project alone has a potential to
generate revenues of approximately Rs. 5,000 crores in the coming 3-5
years for the Company.
As we look ahead, we are excited that our 200 acre land bank in Delhi
is now brimming with monetisation opportunities. Our commercial
properties are ready to be leased out. Our hospitality properties are
now looking more attractive. Our residential projects are being
preferred by buyers for their location, quality and timely completion.
The future, indeed looks exciting as we continue to EXECUTE. EMERGE.
Our congratulations to Mr. Amit Sarin, our CEO, who has been amongst
the six 2014 India Business Leaders of the Year, who were awarded by
HORASIS, at the Global Indian Business Meeting in the United Kingdom in
June, 2014. The award recognises outstanding entrepreneurs who have
been building and leading successful Indian firms, and is jointly
organised by All India Management Association (AIMA) and Federation of
Indian Chambers of Commerce and Industry (FICCI). This award
underlines the harmonised synergy of experience and youth at Anant Raj
that is at the heart of the Company''s next phase of growth.
We thank all our investors, share- holders, bankers, partners,
suppliers, customers and employees for the sustained faith and trust in
the management of the Company, and assure them that we are on track to
emerge as a leading integrated infrastructure development enterprise in