Today's Top Gainer
Note:Top Gainer - Nifty 50 More
Vishal Gupta, Managing Director, Ashiana Housing Limited, has done MBA from FORE school of management (Delhi), and has displayed an in-depth understanding of the real estate business, customer psychology and the market behavior. He has a great eye for detail and takes a keen interest in the conceptualizing and planning of new housing project for the company. In his worlds "For over decades Ashiana has provided quality of construction, safety of investment and integrity of commitment at affordable rates that have created bench marks in the real estate sector.
Ashiana Housing Ltd. has built over 8 million sq. ft. of Residential & Commercial space and put a smile on the faces of more than 6500 families who reside in various projects at Bhiwadi (Rajasthan), Neemrana, Ghaziabad, Gurgaon, Greater Noida, Jamshedpur, & Patna, Ashiana Housing Ltd has always pioneered residential townships in a variety of locations. They are the first group housing developer in Patna, Bhiwadi, Jamshedpur and Neemrana, the first in retirement resort and also the first to undertake the maintenance of their residential property. Since 1979, Ashiana has stood the test of time for its quality of construction, safety of investment and integrity of commitment.
Replying to Yash Ved of IIFL,Vishal Gupta says "We currently have eight projects under development across five cities."
What is your reaction to Budget?
The budget has nothing much for the real estate industry. The introduction of service tax on residential development will lead to a higher cost for buyers and decrease affordability. However, amendments in section 80-IB are welcome as it promotes affordable housing.
Brief us about your current and upcoming commercial and residential projects?
We currently have eight projects under development across five cities. Five of these are group housing projects, two are retirement resorts and one is mixed use project having a hotel and shopping space. In the next three months we plan to launch a mixed use project with a 110-key hotel and about 80,000 sft retail spaces in Jamshedpur. We are actively looking for projects in Mumbai-Pune region and Rajasthan.
Tell us about your projects in retail and hotel?
In retail, we have been focusing on neighbourhood shopping. We have retail space closer to our projects in Bhiwadi. We are also looking for retail space at our Jodhpur and Jaipur projects. In Jamshedpur, we propose to go a step beyond and cater to the city of Jamshedpur. As for the hotel space, currently we have 50 room club cum hotelpremises at Bhiwadi. We are adding another 50 rooms at the same location. At Jamshedpur a 100 room hotel is planned. We are looking for similar options at Jodhpur.
What is your view on affordable housing?
To us affordable housing is a well planned space with open areas with quality construction and yet delivering it to the customer at a comparatively low cost as compared to the general market pricing. These are planned keeping in mind the requirements of middle income group and their paying capacities.
Any delayed projects in the current scenario?
Ashiana has continued to build substantial living accommodation in the recent past even with the market conditions not being favorable to the RE industry. Inspite of such adverse market conditions, we have stuck to our delivery schedules to a very large extent. Delays, if any, have been well within the acceptable time limits in the industry. In the current month, we are delivering completed houses in three of our projects and in another two months one more project will be completed and handed over.
Brief us about your fund raising plan?
Currently there are no fund raising plans, as the current growth targets can be funded by internal accruals.
What is your view on the real estate regulator?
The real estate industry needs regulation, which can ensure growth of the industry. However, the industry suffers from over regulation from multiple authorities. One additional regulator will increase red tapism and increase the time it takes from land acquisition to the launch of a project.
However, the current bill has been drafted in a manner that will hurt the customer instead of benefiting him. The bill should be redrafted and thought needs to be given to create a single window clearance system for the industry instead of creating another regulator.
What is your debt equity ratio?
Current debt stands at around Rs95mn and debt-equity ratio is at approximately 0.08.
Brief us on your financials?
For the financial year 2008-09, the total sales and other income of the company was approx. Rs1.04bn and PAT was over Rs280mn. Further, the unaudited figures for the nine months period ending 31st Dec 2009 for total income and PAT stood at Rs780mn and Rs210mn, respectively. On the basis of ongoing projects and industry prospects, PAT is estimated to grow and more than double itself by the financial year 2011-12.
Brief us about your current shareholding pattern?
As on 31st December 2009, the Indian promoters’ holding was 68.26% of the total paid-up capital and 31.74% shares were held by the public.
Your recruitment plans?
We have almost completed our recruitment process for our sales and accounts departments. Around 20 vacancies have been filled last month. We are in the process of recruiting aggressively for the construction and facility management verticals now. We are expecting to induct a similar number (20-25) this month as well.