Things are finally changing for the better
- both for the Indian economy in general and the real-estate industry
in particular. After years of facing stiff and strong headwinds, the
year 2014-15 has brought a welcome change and much-needed cheer for the
On this positive and optimistic note, we welcome you all to the Annual
General Meeting of Anant Raj Limited.
The Indian growth story is once again making headlines all over the
world. Bold and directional steps by the government have revived
sentiments and confidence, revitalizing the economic growth of the
country. The Indian GDP for the year 2014-15 grew by an impressing 7.3
per cent, and the absolute size of the Indian economy crossed uS$ 2
trillion for the first time, a significant milestone indeed. The
drastic fall in oil prices in the latter half of the year ensured that
inflation came down to desirable levels, enabling the RBI to relax its
In tandem with these favorable economic developments, the government''s
focus on boosting infrastructure and real-estate sectors created benign
conditions in the real-estate space. There was a palpable feeling of
revival in demand, both in the residential as well as commercial sub-
segments, as buyers, who had deferred their purchases, returned buoyed
by lower interest costs. Changes in REIT rules by SEBI and further
reduction for FDI in real-estate both in terms of minimum built-up area
and amount to be invested, added to the building momentum.
At Anant Raj Group, it was a year when there was only one focus -
We are progressing very well on our largest project till date - Anant
Raj Estate. During the year, we ensured that all our energies were
totally directed and focused on execution. This is evident from the
fact that we were able to partially complete (Pocket A & B) the
project, for which we were given one of the fastest partial completion
certificates by the Haryana government. So far, we have fully developed
65 acres of land at Anant Raj Estate. We have started giving possesion
of plots. Our low-cost housing project at Neemrana in Rajasthan is
almost completely handed over to buyers, again showcasing our execution
focus, as this was project was completely in record time.
On the commercial projects front, the 1st Phase of IT Park at Panchkula
was also completed with tenants already starting to locate inside.
There was no new procurement in terms of our land bank. This is because
we firmly believe that this is the time to execute.
In terms of our financial performance, the key highlights were as under
- The total Income from Operations for the year was '' 484.08 crores
against '' 483.41 crores for the previous year.
- Profit Before Tax for the year was '' 175.45 crores compared to ''
124.94 crores in the previous year.
- Profit After Tax for the year was '' 142.37 crores against '' 100.38
crores in the previous year.
At Anant Raj Group, we have successfully gone through the tough times.
One of the key reason for this is the fact that we did not reduce the
prices of our ready projects. We have already done all the capex that
was required, we have a substantial land bank and we have maintained
our debt levels. Further, our mix of commercial assets are yielding us
steady cash-flows in the form of rental income to the tune of '' 75
crores annually. These factors have given us the advantage to be firm
on our prices, and we plan to keep our pricing policy on the same lines
this year as well.
Going forward, we believe that we are now looking at a very vibrant and
exciting future. The government''s focus on infrastructure through
initiatives Smart Cities and Housing for All are all directional steps
to new growth and opportunities in the real-estate sector. There are
unmistakable signs in the last few months in the form of increased
activity across all the sub-sectors of the real-estate space: sales of
homes are increasing and the absorption of commercial spaces is on the
rise. The explosion of e-commerce has created a new category of
commercial space lessees. All these factors bode well for the near and
mid-term for Anant Raj Group.
We are looking at a monetization opportunity of '' 7,000 crores over the
next 4-5 years as we continue to relentlessly focus on execution,
completing projects in record times. The Anant Raj Estate project
alone promises monetization of '' 5,000 crores by 2020. In addition, we
are expecting our commercial projects to attract more tenants and yield
upwards for '' 300 crores in rental incomes by 2020. The new Metro
Development Plan 2021 for Delhi will result in a huge gain for our land
bank in Delhi. In the hospitality space, we are expecting the
government to further increase FAR with housing scope, a move that
would surely unlock the value of the 10 plots for hotel development we
We are confident and convinced that we are poised for unprecedented
growth and with our strategy of EXECUTION THE FOCUS, Anant Raj Group is
ready and prepared
Thank you for your trust and faith in Anant Raj Group.