ANANTRAJ - Anant Raj Limited Share Price

Management Outlook and Major Points:

Anant Raj Limited's management expressed a highly positive outlook, emphasizing strong growth trajectories in both real estate and data centers. Key highlights include:

1. Financial Performance:

   • Record-breaking revenue of Rs.524 crore in Q2 FY25 (54% YoY growth) and H1 FY25 revenue growth of 51%.
   • EBITDA surged 40% YoY (Q2 FY25: Rs.124 crore), with PAT rising 75% YoY (Q2 FY25: Rs.106 crore).
   • Net debt reduced to Rs.95 crore as of September 2024, on track to achieve zero debt by December 2024.

2. Data Center & Cloud Expansion:

   • Current capacity: 6 MW operational, scaling to 28 MW by FY25-end (Manesar and Panchkula).
   • Launched Ashok Cloud (IaaS) in October 2024, piloting 0.5 MW with plans to expand to 14 MW cloud capacity by FY26 (part of 63 MW total DC target).
   • Cloud services (IaaS) to drive higher margins vs. co-location, with Rs.150 crore/year revenue per MW.

3. Real Estate Growth:

   • 20-acre land acquisition in Gurgaon (Rs.20 crore/acre) for residential projects, adding ~3 million sq. ft. saleable area.
   • Ongoing projects: Estate Residences (group housing) and Tirupati affordable housing.
   • Phase-I delivery of JV with Birla (228 units) completed.

4. Fundraising Plans:

   • Rs.2,100 crore fundraise via QIP (Rs.2,000 crore from market) to fuel 35 MW additional DC capacity (cloud focus).

5. Strategic Focus:

   • Transitioning from co-location to cloud services (IaaS → PaaS → SaaS) to capture higher-margin opportunities.
   • Leverage technical partnerships (e.g., Orange) for global-grade infrastructure.

Outlook: Management projects sustained growth across divisions, targeting 63 MW DC capacity by FY26 (25% cloud) and robust real estate launches. The dual focus on debt-free status and high-margin cloud expansion underpins confidence in long-term profitability.

Question 1:
Congratulations, Amitji, on a stellar quarter. You've entered a 100 crore club. That is an achievement, I would say. To many more. Amitji, my first question to you and team Anant Raj is, we also read about you announcing a fund raise program. How aggressive are the growth plans and how are you thinking two or three years down the line?

Answer Summary:
The INR 2,100 crore fundraise (INR 100 crore from promoters, INR 2,000 crore via market) focuses on expanding the data center and cloud business. Current capacity targets include 28 MW by FY25 and 63 MW by FY26, with 14 MW allocated to cloud services. Cloud demand is strong, positioning Anant Raj as a competitive player against hyperscalers. Partnerships (e.g., Orange) enhance technical capabilities.

Question 2:
Congratulations, first of all. My question is, is there any realignment in the guidance for the number of data centers capacity to build over the years, like by 2029 or 2030, when it will be like 300 MW?

Answer Summary:
No realignment; capacity plans remain on track. Current focus includes Manesar (operational), Panchkula (starting Dec 2024), and Rai (future). Cloud services will constitute 25% of future capacity (14 MW of 63 MW by FY26). Growth depends on fund availability, with cloud prioritized for higher profitability.

Question 3:
Hi, sir. The first thing about this fund is 2,100 odd crores. How do you plan to deploy it among various verticals, say data center, residential? What is the game plan there?

Answer Summary:
Funds are exclusively for data centers (cloud expansion). Real estate is internally funded. Cloud requires ~INR 100 crore/MW capex beyond colocation costs. Revenue starts immediately with cloud, unlike colocation's lead time. Pilot cloud (0.5 MW) is operational, generating INR 75 crore annually at full utilization.

Question 4:
Congratulations for the excellent set of numbers. So the 6 megawatts started contributing to the EBITDA as mentioned in the opening remarks. Can you please quantify that for the last quarter?

Answer Summary:
Data center revenue contributed INR 8 crore in Q2 FY25. EBITDA margin for colocation is ~82%, with cloud margins expected to rise as services expand. Cloud's revenue starts immediately, unlike colocation's staggered monetization.

Question 5:
Sir, what is the planned timeline we have for 100-acre land in Delhi NCR for future residential and warehousing with revenue opportunity?

Answer Summary:
Delhi's 101-acre land awaits the new master plan notification. Current focus is on Gurgaon (63-A) real estate and data centers. Development will begin post-plan approval, aiming for mixed-use (residential, commercial, warehousing).

Question 6:
So, my question is mainly on the cloud business. So we are talking about 14 megawatts, which will be coming, going ahead. So this is expected by which quarter? And what is the EBITDA per megawatt that we are expecting for this?

Answer Summary:
By FY26, 14 MW of cloud capacity is planned. Current pilot (0.5 MW) generates INR 75 crore/year at full utilization. Cloud EBITDA is ~INR 126 crore/MW annually (INR 150 crore revenue minus INR 24 crore operational costs). Four MW cloud capacity targeted by FY25 end.

Question 7:
So, on an operational basis, would we be paying any kind of fee to Orange or how is this partnership like in terms of economics of this deal?

Answer Summary:
Orange receives technical fees based on revenue share. Anant Raj owns all cloud infrastructure. The partnership ensures technical support, with costs factored into capex (servers, licenses, hardware).

Question 8:
And going forward, I do understand that although we are looking to expand into data center and we are going to sell properties, but are we going to also have a significant number of properties just for rental so that there is a perpetuity rental income coming in?

Answer Summary:
Yes. Commercial leasing will expand, aiming to triple rental income (currently INR 12.5 crore/quarter) in 2"“3 years. Focus remains on data centers and cloud, but leased commercial assets will enhance recurring revenue.

Question 9:
Sir, an article said the Gurugram court halted a 12-acre residential project. Is it true?

Answer Summary:
The report was inaccurate. Only 1,000 sq. yards (not 12 acres) is restricted from third-party sales. Licenses remain intact, and no project cancellations occurred.

Question 10:
Can you give me the, in which year we are, can do this plan, sir? [Regarding cloud service expansion]

Answer Summary:
Infrastructure-as-a-Service (IaaS) is live. Platform-as-a-Service (PaaS) is in development, complementing colocation. Future Software-as-a-Service (SaaS) integration is planned, enhancing cross-business synergies. Timelines depend on demand and technical readiness.