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Anantraj Industries – Weak Results

June 30, 2009

Q4FY09 has been extremely lacklustre for Anantraj Industries (Anantraj) as it did not sell any property during the period. The company reported revenues of Rs153.2m, a decline of 92.9% YoY. Revenues for the quarter consisted of sales from its ceramic division as well as rental income. The company’s rental income increased from Rs33.5m in Q3FY09 to Rs50m. This was primarily an account of its Karol Bagh mall property. Other income for the company was quite robust at Rs216m on account of its large cash balance of Rs7.4bn.

Anantraj’s balance sheet position is strong as cash on its books (as on March 2009) stands at Rs7.4bn. The company’s debt stands at Rs1.21bn. This gives the company greater scope to utilize its cash and further leverage its balance sheet for acquisition of land and property at attractive values.

Anantraj is currently working on its Manesar project which has already started accruing rentals. The Karol Bagh project is also complete and has started contributing to rentals. Besides these two projects, the company has been focusing on certain hotel projects

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