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As stated in the previous reports the general economic activity level has considerably improved which feeds real estate development activity. Although the pent up demand of the Covid period has been satiated the momentum towards property purchase has not died down, thereby improving the sentiment.


In early part of 2022-23, the improved the buyers confidence, due to buoyant, economic climate and the growth story of the country, in general, resulted in optimistic sentiment for future, although the war in Ukraine and the cut back in employment opportunities in the west, moderated the sentiment. However the outlook for Real Estate development activity is still positive in spite of increased interest rate hikes and the disturbed world condition.


The major source for land acquisition has been Companys equity and private debt funds with the Banks/ NBFCs having completely withdrawn from lending against land. However the Banks/NBFCs continue to finance construction and working capital.


In our last report we had stated that we had launched a large project of 290 apartments named Lancor ‘Infinys in one building with initial feedback, being encouraging. We had sold 205 apartments as of the date of this report but unfortunately for a prolonged period the final permit for the construction of the additional 80 apartments between 11th and 15 floors has not been received thereby denying the company the benefit of sales and realization of invested funds. The main reason for the delay was the confusing stand on account of premium FSI payment on a concessional basis.

It looks like a finality will be reached on this matter in the next 10 to 15 days where upon the company will receive the final permit and proceed with the construction and sale of the remainder of the apartments valued at nearly Rs.100 crores.

As reported, last years report, the company has launched 5 new projects to move forward on its sales of apartments at a satisfactory pace and its realization leading to handsome revenues and incomes.

All these projects have received Real Estate Regulatory clearances (RERA) and building plan approvals etc., The company has nearly concluded another 4 projects which are now maturing to the stage of signing agreements with the landowners and submitting plans to the authorities for clearances. In all these projects the earnings and net retained income would be handsome while the risks are mitigated due to the limited amount of investment in a project thereby ring-fencing the company against arbitrary decision either by the landowners or others to a large extent.


The company continues to look for investment opportunities and has in fact submitted a proposal for commercially developing a property.

The demand for commercial projects in the city is not very good as compared to the residential segment.


There has been no significant momentum in the last 12 months on this front and the comments made in the previous report continues to remain valid. Although it was thought that the concessional premium FSI for metro and railway corridors would be rewarding, it has now turned out as not so good since the Government has raised the guideline value of the property, which is the basis on which premium FSI calculations are made thereby increasing the premium FSI cost and negating the benefit to the developers on this account. This move to increase the guideline value will certainly slow down the property businesses in general and make the properties on the metro corridor less attractive for development.


As you are aware the company owns about 34 acres of land in Sriperumbudur of which it has taken about 9.08 acres in Sriperumbudur for plotted developments and has successfully obtained all the approvals including registration under RERA act.

The company is in negotiation with a International Automobile Companys Employees Credit Society to sell 100 of its plots to their employees at a predetermined price to yield handsome returns and cash flows. Hopefully the sales are completed soon and incomes are accounted in this financial year. The balance plots which are owned by the company may also be allotted to the same organization but perhaps at a higher price. The Company also expects to sell the plots in retail at a higher price which will ensure diversity of ownership.


The Company announced the establishment of a Senior Citizen enclaves in three of its projects under the brand name "Harmonia". Considerable efforts and monies had been spent to launch the brand and it is expected over time to be a catalyst for Senior Citizen homes sales.

The responses have been moderate and the company will further intensify its presence in the market and obtain more revenues and profits in future. It is expected that good response will be forthcoming when the buildings are constructed with all the services are provided as in the case of Sriperumbudur development.


Luxury projects in the city areas are clearly an opportunity, the company has discovered.

Strong brand value

Use of new and innovative products in the making of modern and stylish building

Positive profit contribution in the city projects including its marque project Lancor ‘Infinys

Reasonable land bank

Long serving committed employees


Operation restricted only to the state of Tamilnadu

Delayed project launch due to the extraordinary time delay in getting approvals _ increasing construction cost _ challenging land price

High taxes including stamp duty and registration expenses


The company has realized that investing monies in large projects is generally very risky due to the stoppage from execution by various actions either by the land owners, Courts and others resulting in blockage of large amount of funds for prolonged period.

The alternate model is to take a number of smaller projects mainly in city, earn good margins and handsome returns on investments which is why the company has now clearly shifted to city development model. The company will still do one large project derisking itself to the barest minimum more in the nature of Lancor ‘Infinys, every 18 months which gives the company a turnover of approximately Rs.300 crores from such a project or Rs.600 crores every three years. The interest rates scenario for both company and home buyers is the continuing cause for concern and hopefully some stability is achieved soon despite disturbed world condition on the economic front.


The inflation in the economy has been tamed to a large extent which might result in more stable interest rates and thereby increases the home buyers ability to take higher loan to buy properties.

The current slowdown in the economy in China has reduced the input costs of several items namely steel, copper etc., which has contributed to stable input costs.


The company had obtained two improvements in its ratings from D to B+ and from B+ to BB as a result of reduction in the debts due to sales. Once the company obtains the final clearances for additional floors for its project ‘Infinys and sale of plots, liquidity is expected to improve thereby there would be further reduction in the debt will occur as well as improvement in rating.

As on the date of writing this report the pressure on liquidity is still felt but by all accounts it appears that over the next two quarters things will ease.


The companys project "Infinys" met with major execution risks at the early stage of construction namely flooding of the site when excavation was done for two basements causing anxious moments for all. The site also had hard rocks at several places which took weeks to remove.

The project as of today is delayed by over three months but hopefully it will not meet with any further surprises. The project TCP Altura experienced a very different type of execution risks caused by the contractor having experienced major cash flow and solvency problems.


The companys Managers fortunately, in heavy rain, created stanchions, to prevent further erosion of soil in the context of double basement having been flooded. A number of pumps were deployed to pump out the water and within a period of a week the site became safe from erosion and ready to start construction of the basement. The rocks in the site were chiseled out although this work persisted for over two months and at each stage delaying construction. However it is gratifying to report the building now is in the second floor level and barring unforeseen circumstances by end of March the civil structure work would be fully completed.


During the financial year 2022-23 the company on a standalone basis registered a total revenue of Rs. 11551.73 Lakhs as compared to Rs. 10595.95 lakhs in the previous year resulting in an increase of 9.02%. On the consolidated level the company made revenue of Rs. 11600.75 Lakhs as against Rs. 10393.34 lakhs in FY 2022.

The performance of the company will definitely change for the better in view of launch of "Infinys" project, completion of Altura D block and start of the construction of Lumina H1 H2 & ABC blocks in the context that the pandemic is firmly behind us.

The projected turnover of the company will significantly increase. There is a good possibility that on a full year basis the company will revert to profit.

Place: Chennai

Date : 14th July, 2023

For and on behalf of the Board of Directors of

Lancor Holdings Limited
RV Shekar S. Sridharan
Managing Director Director
DIN: 00259129 DIN: 01773791