Quarterly consolidated performance

Consolidated sales for the quarter ended Mar ’07 stood increased by 90% with most of the upside coming from real estate business. Consolidated segment revenue of real estate was up by 103% to Rs 39.24 crore (or 81% of PBIT). Ceramic tiles was higher by 54% to Rs 9.02 crore.

As operating profit margin improve to 86.1% from 81.6%, the operating profit doubled to Rs 40.75 crore (up 100%). While the material cost as a proportion to sales was flat at 6% that of staff and other expenses was down by 70 bps and 460 bps. At operating level the segment profit of real estate/investment was higher by 103% to Rs 39.19 crore and that of ceramic tiles was up 29% to Rs 76 lakh. Just a moderate growth in segment profit of ceramic tiles is on account of 170 bps erosion in segment margin.

Other income was higher by 400% to Rs 95 lakh. Interest cost was lower by 32% to Rs 28 lakh and depreciation was higher by 161% to Rs 1.75 crore. The PBT was higher by 104% to Rs 39.67 crore. The taxation including deferred tax and FBT in absolute terms was higher by 155% to Rs 13.30 crore and the tax incidence was higher by 33.5% compared to 26.8%. This has effectively restricted the growth in net profit to 85% at Rs 26.37 crore.

Sales on consolidated basis for the fiscal ended Mar ’07 was higher by 258% to Rs 203.41 crore. The operating profit margin was higher by 16.5% points to 87% thus balooning the operating profit by 342% to Rs 177.05 crore. The other income was higher by 274% to Rs 3.33 crore. The interest cost was lower by 9% to Rs 1.05 crore but that of depreciation was lower by 83% to Rs 5.27 crore. The PBT before EO was higher by 372% to Rs 174.06 crore. EO item was nil during the quarter as against an expenses of Rs 2 lakh in the corresponding previous period. The PBT after EO was higher by 372% to Rs 174.06 crore. With taxation being higher by 392% to Rs 43.20 crore the net profit was higher by 366% to Rs 130.86 crore.

Consolidated segment revenue of ceramic tiles for the fiscal ended Mar ’07 was up by 67% to Rs 35.97 crore and the segment profit of the same was up by 132% to Rs 4.39 crore. The segment profit of real estate segment was higher by 372% to Rs 170.72 crore as its segment sales stood higher by 372% to Rs 170.77 crore.

Standalone performance

Standalone sales for the quarter ended Mar ’07 was down by 63% to Rs 9.14 crore. With operating margin contract to 28.7% from 81.6% the operating profit declined by 87% to Rs 2.62 crore. Other income was higher by 389% to Rs 93 lakh. The interest cost was down by 46% to Rs 22 lakh and depreciation was higher by 161% to Rs 1.75 crore. Consequently the PBT was lower by 92% to Rs 1.58 crore. The taxation was lower by 91% to Rs 46 lakh and eventually the net profit stood lower by 92% to Rs 1.12 crore.

However for the fiscal ended Mar ’07 the standalone sales was higher by 191% to Rs 164.24 crore. The operating profit leaps by 247% to Rs 138.92 crore gaining out of higher sales and expansion in margin to 84.1% from 70.5%. With no major damage coming at non operating level and marginal decline in tax incidence the net profit was up by 276% to Rs 105.61 crore.

The company that has completed merger of 5 associate companies with itself has sought and got the inprinciple approval of BSE and NSE for a amalgamation of 4 other companies with itself and the above amalgamation is subject to all legal approvals. The above referred 4 companies are Grand Meadows, Papillon Estates, Roseview Estates and Bhasin Resorts and are engaged in investing in developmetn of hotels and appartments. A portion of the hotel of Grand Meadows has been rented for air-catering services. The Shareholders and creditors of the company have accorded their consent to proposed amalgamation. The applications for amalgamation have been filed before the Hon'ble High Courts of Punjab & Haryana and Delhi for their consideration. The amalgamation, if approved by the Hon'ble High Courts at Delhi and Punjab & Haryana will be effective from April 1, 2006. The company shall be issuing 55, 06,744 fully paid equity shares to shareholders of the transferor companies in consideration thereof. The results do not include the impact of amalgamation of the above said four companies.

Moreover the company propose to consolidate the business of the group by amalgamating 12 of the private companies in the group with the company. The Board of Directors of the company on its meeting on Jan 18, ’07 has approved the scheme of arrangement and the same has been filed with the stock exchanges. As per the scheme the construction and development business of Anant Raj Agencies, a private group company will he demerged and be merged with the company along with the following group Companies: 1. West Land Buildtech 2. Victor Promoters 3. Sunrise Buildtech 4. Springdales Estates 5. Rockfield Buildtech 6. Parkland Promoters 7. Northland Estates 8. Mayur Buildtech 9. Jasmine Promoters 10. Greenwood Promoters 11. Anant Raj Exports. This scheme is subject to the approval of the respective Shareholders / Creditors and High Courts having Jurisdiction over the respective Companies.

Other developments

Anant Raj Industries has informed BSE that the shareholders at the Extra-Ordinary General Meeting (EGM) of the Company held on January 11, 2007, have authorised the Board of Directors to issue and allot equity shares not exceeding Rs 1225 crore in the course of one or more private or public offers, including offers to qualified institutional buyers under chapter XIII A of the Securities and Exchange Board of India (Disclosure Investor Protection Guidelines), 2000 (the 'SEBI Guidelines').

BOD of Anant Raj Industries at its meeting held on April 26, 2007, have approved the following:

1. Issue of fully paid equity shares, subject to the approval of the Shareholders, on preferential basis, to the Foreign Institutional Investor (FIIs), as named hereunder to the extent of equity shares mentioned against their respective names. The shares are to be issued at a rate of Rs 1,229.51 per share, inclusive of premium of Rs 1,219.51 per share. The price for the issue of the shares is not less than the price determined in accordance with the guidelines for the issue of securities on preferential basis as provided in the SEBI (Disclosure & Investment) Protection Guidelines, 2000. (A) Names of the Proposed Allottees :-
   Government of Singapore Investment Corporation Pte (GIC); No. of Fully paid equity shares proposed to be Allotted :- 35,14,322, (B) Names of the Proposed Allottees :-Morgan Stanley Dean Witter Mauritius Company; No. of Fully paid equity shares proposed to be Allotted :- 13,65,900, (C) Names of the Proposed Allottees :- Quantum (M); No. of Fully paid equity shares proposed to be Allotted :- 6,80,000.
2. To enter into Co- Investment agreement with Reco Qila Pte Ltd, an affiliate of GIC.
3. Convening extra ordinary general meeting of the Company to be held on Tuesday, May 22, 2007, for the purpose of considering the matter of preferential allotment to persons other than the existing shareholders of the Company'.

During quarter ended Sep ’06, Rose Land Buildtech, in which Company hold 50% share capital, has entered into an agreement for purchase of entire equity of two companies who own a Motel situated at NH-08, near Airport, New Delhi for a total purchase consideration of Rs 159 crore.

During the quarter ended June 30 2006: The company acquired the entire equity share capital of Green Retreat & Motels, a company engaged in developing a 5 star hotel on about 7.5 acres of land in Delhi (near International Airport) on Delhi-Gurgaon Road for a purchase consideration of Rs 100 crore. b)The company was allotted 10 acres of land in Industrial Model Township at Manesar (Haryana) by Haryana State Industrial Development Corporation for development of an Information Technology Park. The company is developing an area of 1800000 Sq.ft there at.

Valuation

Promoter shareholding as end of Mar ’07 stand at 67.09% as against 70.03% as end of sequential previous quarter ended Dec ’06 and 68.86% as end of corresponding previous period i.e. Mar ‘06. The stock hovers around Rs 1182.25.