Ansal Properties drops after poor Q3 outcome
Feb 11, 2014
Source : Business Standard


MUMBAI: Ansal Properties & Infrastructure lost 3.39% to Rs 19.95 at 11:52 IST on BSE after consolidated net profit fell 90.66% to Rs 1.48 crore on 3.81% decline in sales & operating income to Rs 267.09 crore in Q3 December 2013 over Q3 December 2012.

The Q3 result was announced after market hours on Friday, 7 February 2014.

Meanwhile, the S&P BSE Sensex was up 13.84 points or 0.07% at 20,390.40.

On BSE, so far 28,000 shares were traded in the counter as against average daily volume of 65,946 shares in the past one quarter.

The stock hit a high of Rs 20.05 and a low of Rs 19.60 so far during the day. The stock had hit a 52-week low of Rs 12.20 on 6 August 2013. The stock had hit a 52-week high of Rs 32.95 on 7 February 2013.

The stock had underperformed the market over the past one month till 7 February 2014, sliding 1.9% compared with the Sensex's 1.53% fall. The scrip had, however, outperformed the market in past one quarter, surging 9.84% as against Sensex's 2.14% fall.

The small-cap company has equity capital of Rs 78.70 crore. Face value per share is Rs 5.

Ansal Properties and Infrastructure's consolidated EBITDA (earnings before interest, taxation, depreciation and amortization) declined 52.48% to Rs 21.08 crore in Q3 December 2013 over Q3 December 2012.

Commenting on the company's financial performance, Mr. Pranav Ansal, Vice Chairman and MD, Ansal Properties and Infrastructure said, "The company successfully sold about 2.64 million square feet during Q3 December 2013 and about 10.69 msf during nine months ended 31 December 2013 with the better realisation achieved for sale excluding FSI sales than achieved during nine months ended 31 December 2012. The realisation (excluding FSI sales) for Q3 December 2013 improved by almost 12% to RS 2,281 per square feet from Rs 2,025 per square feet. In addition, during the quarter company managed to sell 2.64 msf for a total value of Rs 326 crore despite lethargic conditions in the real estate market. The profit for nine months ended 31 December 2013 rose by almost 32% from Rs 32.16 crore to Rs 42.60 crore. This was mainly due to profit booked from bulk sale of one of our slow moving project in Greater Noida".

With regard to future business outlook, Ansal Properties and Infrastructure said the company will continue to focus on high growth markets in NCR as well as in other states of Northern India by expanding its existing townships to increased returns through economies of scale as well as entering into collaboration for new projects in order to conserve capital deployment in land aggregation and to achieve better realizations. Further, the company has accelerated its cash flows by monetizing its assets from finished stock sales and sale/exit from non-core assets/slow moving investments to free up cash reserves and reduce the debt. Further, the company said it is in active dialogue with various parties and negotiations for the monetization of certain assets are under way and various aspects of the deal are being deliberated to conclude these sales.

Ansal Properties said that as per the business plan, the company is focusing on the Northern India Territory for township development and has accelerated the development and sales efforts in all the townships that were launched in the past few quarters. The company is in an aggressive mode of completing and delivering the projects in the four states of Northern India (viz. Haryana, Uttar Pradesh, Rajasthan & Punjab) and build on the further saleable area in these states by expanding the existing townships, Ansal said in a statement. In addition, the company will continue to seek private equity participation to increase execution and further mitigate risk for existing shareholders, it added.

Ansal Properties & Infrastructure is engaged in the real estate development business. It is an integrated township developer with focus on mid-income housing space across various cities of Northern India (Haryana, Uttar Pradesh, Rajasthan & Punjab) wherein the company acts as a master developer for its integrated township and hi-tech township projects, starting from project conceptualization, planning, designing, construction and delivery.


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