Mr. Ashok Chhajer
Chairman and Managing Director, Arihant Superstructures Ltd.
Questionnaire Mr. Ashok Chhajer
The Reserve Bank of India (RBI) raised the key rates for 12th time since March, 2010. With this, interest rates as well as home loans are set to get costlier. How do you see this impacting the real estate industry in general and your company in particular?
This has increase the cost of finance to the borrowers. (developer)& customer which has brought down sales by the customers & new launches from the developers. Our company has projects of all stages and strategy of not speculating has made us sold which can give surplus cash flows for the new projects. The concern in future will be a sales volume which has to be achieved.
The Competition Commission of India (CCI) has asked government to set up regulatory framework for realty sector to protect consumers from unfair trade practices. What is your stance on this?
This must be brought into force ASAP. This will new entrants & might by flyer to be responsible for all acts done.
What did you make of the new land acquisition bill which has been proposed, and its impact on realty sector?
Accumulation of large parcel of land way ahead of time by developer will be a history which today seen is going on the path of "Zamindar's" of the past. This will restrict acquisition and also give correct prices for farmers. Impact - very large town ship will be not possible.
Your company performed well in FY11 with PAT of 73.60 million and sales & contract income of Rs 1015.71 million. What is your guidance in terms of sales as well as profit for the rest of the year and upcoming fiscal?
It is expected to be 2 times of the last FY in the upcoming fiscal year and gradually scaling up in years to come.
Could you throw some light on your ongoing and upcoming projects? Are any new project launches being put on hold at this point in time, given the rising interest rates?
The Company has presence across Navi - Mumbai and Mumbai-Thane region in Maharashtra and Jodhpur in Rajasthan. Currently the Company (along with its subsidiaries) has 6 ongoing projects aggregating over 2.08 million sq.ft. of area under Construction. There are 5 more projects lined up having a total Constructible area of approx. 7.43 million sq.ft. across Navi - Mumbai and Mumbai-Thane region in Maharashtra and Jodhpur in Rajasthan.
No launches have been pros pond on the contrary we have launched two project at Navi Mumbai & Badlapur last month.
Do you expect homes to get more expensive? How has the demand been impacted? Have you seen customers pulling back?
Yes. Homes may get more expensive in Affordable housing segment with the rise in the input cost however in the premium segment there may be some correction of 5%-10%. Drop in sale are noticed. Don't think to be in a hurry as it will be a market ahead.
How much does the debt of your company currently stand at and how much would you like to scale it down to?
The Current outstanding debt is Rs.8 Cr.
Would you like to convey any message to the shareholders and investors of the company?
The company has got a continuous stability & in the years to come will give good returns to all shareholders & investors as the company has secured profitable business years ahead..