Real Estate is one segment of the Indian economy, which has been sailing through a sea of problems.
\\The sector is still trying to achieve industry status which even the Real Estate Bill also failed to deliver and tackling long waits for clearances of projects are just a few of them. Amid all these obstacles the industry is still trying to survive and grow. One company in this troubled sector is Anant Raj Industries. Delhi-based company has been in the business of construction and infrastructure development for over forty years. Company’s CEO& Director, Amit Sarin, in talks with Anchal Kakroo of The Pioneer highlighted how the company has worked its way around the issues to deliver quality work.
FY13 results showed that the company doubled its revenue but booked a loss on net profit front. What were the factors responsibleIJ
Anant Raj Industries was more focused on commercial projects but over the last year commercial business has been the worst hit. leasing has been down and also the land rates have been very volatile. Also in the last financial year we had to write off one bad debt of nearly Rs 78 crore. All these factors have had an impact. Hence, in FY14 we have shifted our focus more on our residential business.
What is the current situation of commercial projects and rental revenuesIJ
We have in total of 5 million square feet of commercial land ready to lease out of which till now only 50 per cent has been leased out. We still have 2 million square feet of area in the pipeline. In terms of rental, till now we have generated Rs 80 crore of rental but going forward we aim to achieve Rs 200- 225 crore as rental revenue by FY15.
How much debt is there on company and what are plans to reduce itIJ
As of now we have a total debt of Rs 1,300 crore but there is no pressure on the company as such as we tend to pay our debt on time. Out of the total debt we have already paid a little amount. Going forward we aim to reduce this debt to Rs 750 crore by Diwali this year.
Since the company has shifted its focus to residential projects, what are the new launches you are working onIJ
Indeed, our focus is on residential side and we are continuously working in expanding our product portfolio in the residential business. We have a strong order pipeline. We expect to receive Rs 7,000 crore in the next 3- 4 years from our residential projects. Also, we are launching Villas and flats in our Gurgaon sector 63- A Township. It will be done in three phases and we hope to fetch nearly Rs 3000 crore from the sale of the first phase only. Phase II & III will also be launched by the end of this financial year.
Apart from new projects, is Anant Raj Industry planning to expand to any new markets apart from Delhi NCRIJ
As of now we are completely focussed on Delhi NCR only. We wish to consolidate our hold locally. Expanding to new markets is something we as a company do not wish to do as we feel our biggest strength is in being a regional company only.