GANESH HOUSING LIMITED — Call Transcript 2025

Jan 20, 2025

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Jasmin Arpit Digitally signed by Jasmin Arpit Jani Jani Date: 2025.01.20 14:30:54 +05'30'

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“Ganesh Housing Corporation Limited Q3 FY ’25 Earnings Conference Call” January 17, 2024

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– – MANAGEMENT: MR. RAJENDRA SHAH CHIEF FINANCIAL OFFICER GANESH HOUSING CORPORATION LIMITED – MR. NEERAJ KALAWATIA VICE PRESIDENT FINANCE – GANESH HOUSING CORPORATION LIMITED – MR. B. RAVI CORPORATE AND FINANCIAL ADVISOR – GANESH HOUSING CORPORATION LIMITED – MR. ANMOL PATEL GANESH HOUSING CORPORATION LIMITED

– MODERATOR: MR. RAJAT GUPTA GO INDIA ADVISOR

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Moderator:

Ladies and gentlemen, good day, and welcome to the Ganesh Housing Corporation Limited Q3 FY '25 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded.

I now hand the conference over to Mr. Rajat Gupta. Thank you, and over to you, sir.

Rajat Gupta:

Yes. Thank you, Sagar. Good afternoon, everyone, and welcome to Ganesh Housing Corporation Limited earnings call to discuss the Q3 FY '25 results. We have on the call with us today, Mr. Rajendra Shah, Chief Financial Officer; Mr. Neeraj Kalawatia, Vice President, Finance; and B. Ravi, Corporate and Financial Advisor.

We must remind you that the discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with risks that the company faces. I now request Mr. B. Ravi: to take us through the company's business outlook and financial highlights, subsequent to which we'll open the floor for Q&A. Thank you, and over to you, sir.

B. Ravi:

Thank you, Rajat. Good afternoon, ladies and gentlemen. It's my pleasure to welcome you all to the Q3 FY '25 Earnings Call for Ganesh Housing Corporation Limited. I trust that you have had an opportunity to review our latest presentation shared on the exchanges. We are pleased to state that the third quarter of FY '25 has been yet another remarkable period for Ganesh Housing, continuing the momentum built over previous quarters. With every passing quarter, we have surpassed all our earlier numbers and have grown from strength to strength, further establishing our potentials as Ahmedabad's foremost real estate company.

First, the industry highlights. India's real estate sector has maintained its strong trajectory in the entire year of 2024, with institutional investment in Indian real estate reaching an all-time high of $6.5 billion, which is about 22% growth from $5.4 billion in 2023 calendar. This surge was driven by the industrial and warehousing segments, particularly, which attracted 2.5 billion, accounting to about 39% of the total investments, followed by the office sector, which is having a share of 36%.

The residential sector also showed significant momentum, growing 46% year-on-year to $1.1 billion. External investments comprised 66% of the total inflows, while domestic investment also rose, and they rose by 27%. The final quarter of 2024 was particularly dynamic with about 1.9 billion investments and local investors contributing 43% of the total inflows, underscoring growing confidence in India's expanding real estate landscape.

Ahmedabad also has been marching ahead. The Ahmedabad real estate market has reached a significant milestone in 2024 with residential unit sales taking a 10-year high. Residential sales grew by 15% year-on-year with around 18,400-odd units sold compared to 16,100 in 2023. The mid-range segment comprising properties priced between INR50 lakhs to INR1 crore did dominate the sales, but the premium segment also has seen an increase.

The year also witnessed a record introduction of 22,000 units, reflecting strong dynamic market Notably, the office transactions volume surged by 64% compared to the previous year with 3

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million square feet transacted, driven by the city's evolving economic landscape and robust government support.

Ahmedabad emerges as a financial and economic hub, supported by initiatives like the establishment of the international financial services center has further solidified this solution as a real estate hot spot. Ganesh Housing also saw a similar traction in the office space with the IT SEZ Million Minds attracting huge inquiries.

Now on the operational highlights. Ganesh Housing continues to play a pivotal role in driving Ahmedabad real estate growth. Let me share a few updates on the ongoing projects. Malabar Retreat, first. The project was which launched at the end of quarter 4 of FY '24, continues to receive strong market traction.

Construction has progressed to about 22% and presales have crossed over INR110 crores. Demand from premium apartments has been rising. And in our case, it is expected to rise further as construction milestones are achieved. The sample apartment is being ready anytime now. And after that, we see that this will actually increase.

This project will be a landmark project in premium housing in that area of Ahmedabad and we are sure that we exceed customer expectations. On the Million Minds SEZ Phase I, this marquee commercial venture is almost 1 year ahead of schedule, with completion expected by end of Q4 FY '25, that is this year, is expected to give possession for fit out by April-May 2025.

Marketing efforts targeting major IT players have garnered significant, almost overwhelming interest reinforcing the confidence with which we started. This project aligns with Ahmedabad's emerging hub for technology and innovation, and we are committed to ensuring its success. I'll talk about more of that later on in the question-answer session.

On the this commercial project, again another marquee projects on SG Highway, it spans about 1.8 million square feet as leases the possession of the process of securing all necessary approvals with the plan having been submitted. The project is projected to generate revenues of about INR2,100 crores and is set for completion by H2 FY '28. It's strategic location and design makes it a highly anticipated addition to Ahmedabad's commercial landscape.

To remind you here, the commercial landscape of Ahmedabad was really quite vacant all these years because after COVID people had not been investing in new commercial spaces. So with this actually the entire traction has started, and we believe that we really go places in the coming years.

Now on Godhavi Township I already informed you earlier, the surrounding project has attracted huge interest and work on building sports complex is to begin soon. With this, the buzz around this area where we have one of the largest land banks is building with every passing day. We believe that the earlier plan where we had earlier announced that we shall be working on the monetization of this in Q2 FY '26 is on schedule.

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In addition to these developments, we are actively scouting opportunities for various land acquisitions in high potential areas. Our extensive land bank remains a corner stone of our strategy, enabling us to respond swiftly to market demand while maintaining cost efficiency.

Now coming to the financial performance. In Q3 FY '25, Ganesh Housing has once again surpassed all earlier quarters. Revenue surged to INR264 crores, reflecting a 44% year-on-year. EBITDA stood at about INR218 crores, a growth of 57% Y-o-Y with an EBITDA margin at 83%, supported by effective cost management and operational efficiency.

PAT reached INR160 crores, a 60% increase over Q3 FY '24, resulting in a PAT margin of 61%. For the 9 months ended December 2024, our revenues have reached INR734 crores, which is a growth of 19%. EBITDA has grown by 23% to INR589 crores and PAT has grown by 25% to INR433 crores. This PAT is almost equal to the entire full year's PAT of FY '24. This robust performance positions us well to exceed our predicted 30% to 35% PAT growth for FY '25, as already told you to earlier.

Ganesh Housing is poised to capitalize on Ahmedabad's growth trajectory. By leveraging our extensive land bank, we are uniquely positioned to deliver high-value developments across residential and commercial segments. Our focus remains on mid to premium housing, driven by evolving consumer preferences for spacious and luxury homes.

Despite significant investment, our balance sheet remains robust with near-0 debt and strong liquidity. This financial strength enables us to pursue growth opportunities and deliver long-term value to all stakeholders. We also remain committed to leveraging technology and sustainable practices to enhance project efficiency and reduce environmental impact.

Our road map for the next 5 years has already been announced. It includes the expansion of our presence in Ahmedabad Ring Road corridors. With a strong pipeline of projects, we are confident in our ability to sustain growth and drive innovation in the real estate development.

In closing, I would express gratitude to the entire Danish housing team for their unwavering support of course, to the entire community at large, all the stakeholders. Together, we are reshaping Ahmedabad Skyline while creating enduring value for all our stakeholders. Our commitment to excellence, innovation and customer satisfaction will continue to guide our journey forward.

With this, I will open the floor for questions. Thank you.

Moderator:

Akash:

Thank you very much. Our first question comes from Akash from Nomura. Please go ahead.

Congrats on the great results. So my first question is on your presales. So can you give me an expectation of what kind of presales can we expect over the next 2 years? And second question is on the demand trend in Ahmedabad. Like how are you looking at on-the ground demand any negative signs with respect to demand? And second is like how are you looking at the pricing trends overall?

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B. Ravi:

Let me start with the demand and the pricing strength first. Ahmedabad demand doesn't seem to be dipping. In fact, yes, for the last 1 quarter, probably that's been a little slower than ever before. But because of the developments which are happening continuously in this area, the demand hasn't slowed down or it hasn't dipped for sure.

The prices also have been on the increase year-on-year in line with every other development, whether it's part of the construction or even just still inflationary trends. And the prices for real good apartments or office complexes, the premium ones, has never really abated.

On the presales, if you really see the project which we have today is the Malabar Retreat, okay? That is supposed to be completed, let's say, in the next 2 years. That's the only one which we have on the ground. Apart from that, yes, we will be having the residential projects of SEZ. We had Million Minds that are non-processing zone maybe in the next 6 months, that will be -- whenever it is announced, we will be able to talk about the presales at that point in time.

At this point in time, I think we'll only talk more Retreat. But for the next 2, 3 years, yes, there will be Retreat, which probably would have been completely sold off, then there will be SEZ residential 1 and 2. And 1 more addition would also happen is 1 commercial one that is likely to come up, let's say, in the next quarter-or-so, that will add to presales from -- starting from next -- maybe second or third quarter of '26.

And not to forget the township project that is the Godhavi Project, let's call it as a Godhavi Project because they land bank there. That is also going to -- as told you just now is going to start maybe in the Q2 of FY '25-'26. If that happens, then that will be a big presales sell. So I would want to say that as of today, if you really want to talk about the presales, I think we should wait for a real number, a good number. We have to wait for Q2 FY '26.

Moderator: Thank you. Our next question comes from Krishna Shah from Ashika Stock Broking. Please go ahead.

Krishna Shah: So my first question is on the margin line. So how are our net EBITDA and PAT margin is so high? If you could just explain our moat for these numbers?

B. Ravi: Are you finishing your question or should I go ahead with the answer.

Krishna Shah: Yes, this is my first question, so you can answer it.

B. Ravi: Yes. See, these are all to historically invested land banks. And therefore, the investment costs have been quite low, and therefore, automatically, when we sell it at this juncture where the pricing is high in the market, the margins -- the cost being so low, the margins are remarkably high. So the margin is only a factor of the cost itself being lower.

Krishna Shah: Got it. Got it. So there's a land that is driving this margin. So if you just quickly explain for any of your competitors, what would be the land prices percentage of the venue cost -- land cost and what is your currently?

B. Ravi: You're talking about price per square yard you're talking about or as a percentage...

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Krishna Shah: No. Land cost as a percentage of revenues. Management: We did not get your question exactly...

Krishna Shah: I'm just trying to ask that if, for example, your competitors, what would be the land cost which would form part of our cost of goods sold, what will be there land cost versus what is yours currently as a percentage of revenue, which is why the margins are so high, right?

Management: There are 2 parts to my answer. One is, if you are developing a project in case one is developing a project, generally land cost depends on what area, what location you are having your project. But a good yardstick is provided by RERA where RERA allows you to withdraw about 30% of the collections of project, assuming it to be land cost.

Krishna Shah: Okay. Got it. Management: However, in our case there are -- meaning, our margins, net margins and our EBITDA margins are high because of 2 factors. One, a lot of our revenue and profits are derived from sale of land and not from projects. And secondly, the land also, whatever we have sold is 1 which has historically acquired about 7, 8 years back and that is why historical cost of that land was very low. However, this is sold at real market prices. And hence, the margins are... B. Ravi: So let me add to this. See, if you really want to have a comparison, Ganesh Housing has been always investing for future growth. So wherever the land banks have been acquired, they have been acquired with the vision for the next 5, 10 years and more. And therefore, historical cost of the land has always been lower in all the projects also. Now that cannot be probably the same, if you have to compare with others because all other developers maybe having a similar kind of a land bank, others may actually do a land bank buying and add value to it in terms of construction.

So they cannot be any one, what I call, as measuring rod for all the projects. But generally, the land cost can be comparative to the current market prices of that, if it's bought at that time and then developed, it can be very low. It has been already there in the books like in our case. I hope that clarifies.

Management: Just to add to what Raviji just said. In fact, I would go one step further in setting that we would have a competitive edge for other developers because generally, we tend to develop projects only on the land, which we historically on. So I -- there are my chances of making higher margins are remarkably high as compared to anybody who acquires land freshly from market.

Krishna Shah: Got it. Sir, just a last question. Firstly, how much land bank do we currently have? And if that is paid for everything or not? Are there any payments left? And secondly, about the revenue that we have currently of INR2,640 crores in this quarter, what has been the split between land sold versus units sold?

Management:

See, the total land bank we have in Ganesh Housing is subsidiary and which are fully paid around 535 acres of land and this land is fully paid for and fully account for. And in terms of the breakup

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of the sales, we will land and this year, around 90% to 95% of the sale is coming from the land in this quarter, and the rest is coming from the project sales.

Krishna Shah: Okay. And going forward, where do you see this revenue going?

Management: See, this at least for the coming quarter and the coming year, we see this momentum will keep on going on. And subsequently, we will have on substantial revenue coming from this developed project. 2 of them, which we explained in the earlier call was Malabar Retreat and One Thaltej. We will have a substantial presale value that will add lot to the top line and bottom line.

Krishna Shah: Okay sir, thank you so much. I'll come back in queue.

B. Ravi: And 1 more thing. This mix is going to remain so for some time because SEZ what we are developing processing area of SEZ is meant for long-term lease. So we will not -- we will be incurring a lot of expense. We will be constructing projects However, we will be earning rent in terms of revenue. So there will not be lump sum sale kind of thing.

Krishna Shah: Got it. You're currently forming the annuity income in the Million Minds project, right?

B. Ravi: Yes. Correct. Moderator: Thank you. Our next question comes from Sohail Kanalil from ULJK. Please go ahead. Sohail Kanalil: So my first question is regarding the One Thaltej commercial project. So are we still on track to begin the construction this quarter? And what are the initial market responses to this development?

B. Ravi: No, it is -- it may not be starting this quarter because we -- the approval of the plans have been submitted and the approval may or may not come by this quarter, but surely in the next quarter. And as I said, in terms of the demand, there has hardly been any good commercial space has been given out off late. And people have diverted all the attention from commercial to the residential ones, 1 that after the COVID impact for the 2 years up to '21, '22.

And therefore, addition of good commercial spaces have hardly been there. Now people have started and therefore, we do believe that once Thaltej demand of that will be high as soon as we start. And generally, we have always been getting a good traction for this kind of spaces, especially the kind of a building that we are building.

And this is going to be very close to a commercial hub. Like there's a mall opposite, there are various offices. I mean spaces also, it's quite close towards the -- you might be knowing Paladin club of Bangalore -- Bombay, that's there in Ahmedabad also opposite to that. It's going to be that.

So -- and also it is there very close to the next CBD that is the Vaishnodevi one. So I think this particular line has been really growing. So we do believe that we'll get an incredibly good traction for this.

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Sohail Kanalil: That's perfect. That's perfect. Okay. And I have 1 more question regarding to comment on the trends and consumer preferences in the residential properties in the mid segment and, say, the premium segments, 3 BHK-or-so in Ahmedabad or are there any shifts right now towards any other segments? B. Ravi: It maybe 3 BHK, premium or this has been the ones which have been most in demand. Moderator: Thank you. The next question comes from Ishita Lodha from Svan Investments. Please go ahead. Ishita Lodha: Sir, is it possible to comment on the profile of the buyers of the land? Management: That's not possible right now. No. But they are very well-known developers, though not in organized market but all are having very, very creditable background. So basically take it offline for the time being we can't. Ishita Lodha: No problem. And I have another question. Our land bank is about 535 acres. And even in last con-call, you had mentioned it was 535 acres, and we had sold some land. So at the same time, we are buying some land. So are we buying at the same land or what locations? B. Ravi: Yes, it is sale -- the buying can happen at different locations, Ishita. And the selling is happening around the as we had said last time too, we do have surplus land around that, which we had done it with development cost objective as well as land sale objective itself. So we do have enough for the Township project. So other than that, what we believe can be a good 1 to sell it off. We have been selling in that area too. Buying has been happening at different locations on a required basis. Ishita Lodha: So it is nearby area or it is far off like... B. Ravi: Nothing in Ahmedabad is really far away. Even from where we are sitting right now, One Thaltej is a matter of 20 minutes. So we are buying land not from a distance perspective, we're buying it from a future development. So even if let's say this, let's say, 20 kilometers away or 15 kilometers away, we believe that, that is where the expansion of the city will happen. This is what we have done, whether it was the SEZ Million Minds what we are doing today, that was bought historically many years back. Godhavi also was bought 15, 20 years back. So this is well in advance that you're looking at. So distances times -- by the time the development comes in, they vanish. And the distances are hardly there. Ishita Lodha: Okay. So my understanding is right that the thought process behind buying and selling of the land is because we believe that the land where we are buying, where the development would be better and there we could do better sales? B. Ravi: Yes, it's a mix also. See, even if we do believe that the land that we have in Godhavi, we are selling some places nearby Garodia these are all areas, which are also developing. We actually look at saying that whether it makes better sense to develop that piece of land or it makes sense to sell it off if we are getting a good price. And sometimes, the latter wins our development.

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That's where we sell. These are part of the vertical, right? So we can sell wherever we believe that, that makes more sense than just developing it.

Moderator: Thank you. The next question comes from Rohit Shinde from Market Memories Wealth Advisors Private Limited. Please go ahead.

Rohit Shinde: Yes. So I have 2 questions. So my first question is, how has the Malabar Retreat advanced given the earlier weather-related delay? And are you on track to meet the revised completion time line? B. Ravi: There's no revised. Actually, Malabar Retreat will, like all other projects, we are sure that it will be completed before time. As you know, Exotica was completed almost 10, 12 months before the due date. The same thing would happen because in a matter of a few months, let's say, by 7, 8 months, the structure has come to almost in the 2 towers comes to almost INR6 crores and INR8 crores. So we believe that it's absolutely on track, maybe even earlier. And the sales part of it will pick up once the view happens on the sample flats, which is expected in 15 days from now, maybe or 1 month. Yes, Neeraj.

Neeraj Kalawatia: I think there is slight confusion here. There is no delay in terms of construction. I think you're coming out of the last quarter call, where we have said the progress has been a little slower. Now we explained during that call also the progress was slower because of the rainy season. And whenever we account for the total completion period, we account for those contingency also monsoon period where the work remains lower.

So there is nothing like it is not as per the schedule or it is delayed. It is as per the schedule only. And this progress is well accounted for when we take into account the total period of the completion.

Rohit Shinde: Got it, sir. And my second question, sir, is that you have deployed precast technology to reduce labor dependency across your projects. So are there plans to adapt other innovative construction methods across projects?

B. Ravi: At this point -- see, that's a continuous development. Anmol would you like to take that?

Anmol Patel: So we are always exploring recent technologies even as we develop the township, we can probably use technologies like 3D printing for smaller villas. So we are always exploring technology. So as and when the new projects come up, depending on the size and scale of the projects, we definitely implement on newer technologies.

Moderator: Thank you. Next question comes from Sarthak Awasthi from Sea Funds Management India Private Limited. Please go ahead.

Sarthak Awasthi: Yes. So sir, my question is on the supply side in the Ahmedabad city. So how the supplier we have seen increase in the past 5 years and how much we are expecting in the coming 5 years? Because that will be the defining the pricing point in that city. So can you brief on that?

Management: Now in terms of the supply, if you see, a, the latest report which is published there in terms of the total launches, in fact, there is set a reduction in terms of the launches. But whereas there is

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an increase in the absorption. So while there is -- if you see on the demand side, though, the market is progressing, but on the launch side, there's a little, I'm saying, hold by the developer largely because of there's one big major event which is taking place in Ahmedabad is the revision of the Jantri rates because that is impacting the cost of the project. So there is lot of projects which may the developers are waiting and watch before launching the project.

Neeraj Kalawatia:

So we are not expecting a lot of supply side, meaning supply side pressure. And secondly, the areas in which we operate, in fact, Ganesh Housing happens to be the one of the largest developer in that area. So again, micro geography while also we don't expect a lot of competition from local developers or developers operating in that area. From that perspective, actually, we are kind of I would say, well equipped and we are safe.

Sarthak Awasthi:

Okay, sure. My second question is on that we have a moat we have in Ahmedabad, like we have an edge over other companies as we have a land bank. So are there any plans to cater into the emerging cities which can be the future? So my question is on the capital allocation part. As we are under cash surplus, so where we are going to allocate that capital so that the returns to the shareholders should be maximum?

B. Ravi: So at this point in time, we have on hand in terms of developing various products which we have announced in Ahmedabad itself. And therefore, though we do explore other cities, we haven't yet gone into any other cities, and there are no immediate plans of that. Having said that, I don't think it's a very good opportunity comes in, it could be ignored. But there are enough has been happening in Ahmedabad, which is keeping us busy. And we do believe that in the next 2, 3 years also continue to be busy.

Moderator: Thank you. The next question comes from Prit Nagarsheth from Wealth Finvisor. Please go ahead.

Prit Nagarsheth: Yes. Just 1 clarification. Sir, you mentioned Godhavi Township to be launched by quarter 2 of financial year '26. Is that what you said?

B. Ravi: That's right. This is the same time last quarter, we had said that looking to all the developments which are happening there, we are trying to realign our planning in line with that. And therefore, yes, as of today, is absolutely on track. The dates stay as what’s announced already Q2 FY '26.

Prit Nagarsheth: Got you. Got you. And what do you think would be the impact of the Jantri or the circle rate increases that have been planned? How do you see that impact Ganesh?

B. Ravi:

At this point, it is very difficult to say exactly because nothing is certain. There have been all various ways, various values, various news, which has been coming in. but nothing really concrete. So it's very difficult to really pinpoint as to what could be the impact. I think that wait for the dust to settle to be able to sell anything very thin concrete. Generally, as you see, this can -- it can be beneficial also going forward. It has got is both pros and cons actually, it's a debate, which is exactly what's going on right now also in the market. So I think we'll have to wait for some time to be able to comment on that.

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Prit Nagarsheth:

Right. And lastly, for a bookkeeping question. We seem to be on track for the targets that you have mentioned, guidelines for this financial year. What about the next financial year? Any guidelines that we can have from you?

B. Ravi:

We'll have to first -- when we have our budgets done in the next board meeting before the next year, I think that's the appropriate time to talk about it in the year-to-year. So I think in the next call, we'll surely tell you what would be the targets. Because we are not giving the projections as such. We've been only giving 1-year view. So I think we'll do that in the month of May.

Moderator: Thank you. Next question comes from Khushwant Pahwa from KPAC. Please go ahead. Khushwant Pahwa: Congratulations on great set of numbers. My question is regarding your project Million Minds. You mentioned that you'll be finishing the construction in Q4 of current financial year and giving it for fit-outs April onwards. I also recall one of the discussions in previous con call, wherein we said that as per Ind AS 115, we can only book revenue when the construction is complete or OC is given and sale deed is happening. So just wanted to understand when do you see the revenue for this project getting booked in this fiscal year or next fiscal year?

B. Ravi:

This will be in FY '26 starting. I'll explain. As you know, Million Minds is the Phase 1, what we are doing right now, it's all going to be on the lease-out basis. It's going to be giving us continuous annual lease rentals. And the kind of a traction, I told in my opening remarks that I'll be talking about the traction in the SEZ, now is the time to talk about the Million Minds.

Though they are about 14 floors -- 14 of 15 floors including the general utility one, kind of marketing, which has been done and it's been continuously been happening at various road shows in various cities, top tier cities, we have got inquiries for leasing out almost 30 floors. So it's almost double than what we have available as an inventory.

That is the traction which I earlier also told about the commercial spaces really receiving very good traction in the city of Ahmedabad. So with that, we do believe that though earlier in terms of whatever we have said that the least happens once the building is completed, it might happen for -- in the next 6 months fully leased out. The way that traction is that we'd be able to get a majority of the lease rentals in the next FY '26 itself. So almost like what we had said about INR70 crores is the lease rental will be earning on that year-on-year.

The way it is, it will be more than INR70 crores. It's not less, but even more than that. And also, the lease out can happen because of the demand, which has come up, it can happen quite immediately, giving us almost the entire INR70-odd crores or more in the year FY '26 self. So the revenue will start flowing.

It's not going to sold. If it was sold, yes, it could have been -- as and when sold it would come up leased out in rentals for that month itself.

Understood. Understood. And just one more question. Your land bank continues to be around 530, 535 acres. Can you just give an idea about how much land was bought and sold in this quarter in terms of acreage?

Khushwant Pahwa:

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B. Ravi:	We can tell you the sold. The ones which are there in acquisitions can always be 521 is already
	acquired. Obviously, of which more 25, 26 acres have been sold, and there will be more additions
	also because there are which are being added to it.
Khushwant Pahwa:	Congratulations and all the best.
B. Ravi:	Thank you very much.
Moderator:	Thank you. The next question comes from Yasmin from Antique Stock Broking. Please go
	ahead.
Yasmin:	Congratulations on good set of numbers. My question pertains to basically one is land sales. I
	think you sold around 20, 25 acres last quarter also, right? A similar number this quarter?
B. Ravi:	True. Very true. Just around the same 23 and now 25. Correct.
Yasmin:	And what was the sales from that in terms of crores or rupees?
B. Ravi:	I think it was almost like INR250...
Management:	No, roughly around 90%.
B. Ravi:	90%.
Yasmin:	Sorry, 90?
Management:	90% of the total revenue of that quarter comes from the land. 90% of 266.
Yasmin:	That is from the land sales...
Management:	Yes.
Yasmin:	This land was in that Godhavi belt, right?
Neeraj Kalawatia:	Not necessarily, like we have a lot of surplus land in and around Godhavi there are an area like
	Garodia which are adjoining to the Godhavi area, where we are holding a surplus land also.
Yasmin:	Right, right. So my last question. So basically, last 2 quarters, you haven't really had a lot of
	house sales, but more of land sales is what is driving the...
B. Ravi:	Yes.
Yasmin:	And going ahead, you are expecting probably home sales to kind of -- and rentals to kind of
	drive the numbers, right?
Neeraj Kalawatia:	Yes, both of them.
B. Ravi:	Three things. Land being the vertical will always be there. Then there is this Godhavi as I just
	said, starting in Q2, that will actually be project sales. Then there are these rental income, which

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will start next year itself from Million Minds Phase 1 that will be also all project sales and annuity. So I think these are the things which are attributes to the sales in FY '26.

Yasmin:	Right. And my -- okay, understood. So and your annuity income, what you're targeting is
	upwards of INR70 to INR100 crores, right?
B. Ravi:	INR70 crores.
Management:	INR70 crores per annum.
B. Ravi:	Upwards of INR70 crores, correct, per annum.
Yasmin:	That will come in from Q1?
B. Ravi:	Yes, Q1, But may not be an entire amount of INR7 crores happening in or INR6 crores
	happening in the month of April itself, but majority of the INR70-odd crores will happen maybe,
	let's say, 70%, 80% of that because leasing out -- when we lease it for fit-outs in April, May,
	there will be a couple of 1 or 2 months, so we can take safely 10 months of rental probably of
	this the next year.
Yasmin:	So around INR60-odd crores per annum is what you're saying, right?
B. Ravi:	Yes. Yes. Not per annum, only for FY '26. Thereafter, it will the full...
Management:	70 per annum.
Yasmin:	Right. Understood. Okay. And any rough number in terms of this Godhavi project? What could
	be the potential in terms of sales once you have the blueprint or you start executing the phases?
Neeraj Kalawatia:	See, we have already given that number on a basic plot to plot give, where if you develop the
	entire area on the basis plotting side, it gives us roughly around the sales potential of INR5,000
	crores.
Yasmin:	INR5,000 crores. And how many acres would that be?
Neeraj Kalawatia:	That is 450 acres.
Yasmin:	Okay. And all of it is owned by you, right?
Neeraj Kalawatia:	Yes, yes.
Management:	Yes.
Yasmin:	Okay, okay. And it will be over how many years?
Neeraj Kalawatia:	It is part of our 7 to 10 years of plan.
Moderator:	Thank you. The next question comes from Heta from Monarch AIF. Please go ahead.

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Heta: Sir, I have just 2 quick questions. I believe earlier you had mentioned that Million Minds commercial Phase 1 may also be sold out because we're seeing a good traction. So is that land - - like are we not going ahead with the plan? Are we sticking to leaving the commercial Phase 1? B. Ravi: We always prefer leasing Phase 1. And therefore, I think if the traction for leasing is there, we will go ahead with that rather than sales. Neeraj Kalawatia: But that plan is not dropped, that option is still open, if we get a good kind of opportunity there also. Heta: So by when could we have some clarity on that, sir, say, in the next 2, 3 quarters? B. Ravi: The way it stands today, the -- almost the entire first phase would be on lease basis. And therefore, the rental will start off, as I said, maybe after the fit-out period, but for at least 10 months next year, from the end of first quarter or second quarter of FY '26. Heta: Understood. Understood. And just 1 clarification. So this 500 acres of land inventory that Ganesh Housing has, that is over and about the future development plans, right? Neeraj Kalawatia: This is part of -- this land bank is part of that future plan, which we have already disclosed. Moderator: Thank you. The next question comes from Neeraj Sadani, investor. Please go ahead. Neeraj Sadani: So my question is -- 1 question was regarding Million Minds SEZ. So from what I understand, we do have a lot of inquiries. Now SEZ usually have to benefits the previous sections of the income tax act. So will the occupiers of Million Minds also get the benefit have we got those provisions in place? Neeraj Kalawatia: In terms of income tax, now that benefit has gone, that scheme which was available for the SEZ the concept has already been offered but now you see more than the income that GST is a larger tax component for any business nowadays. And this is SEZ is a this is a GST tax free zone. So as against the income tax, the GST benefit will be much larger to the unit holder. Management: Apart from that, Gujarat government has announced a lot of other benefits and softs to unit owners and developers of SEZ. All those benefits will be available. However, the income tax benefit, what you would just said, that is something which will not be available... Neeraj Sadani: GIFT City for what I understand, just read online regarding the GIFT City, which is basically our closest composition for all these MNCs corporate at shop at your Million Minds project because if we will compare GIFT City and Million Minds, then what do you say where do we stack up? Because I'm pretty certain that GIFT City entities are actually getting price benefits? Neeraj Kalawatia: Neeraj, it's not exactly one-on-one comparison. I'll tell you, what tax benefits are there in GIFT City are in the IFSC zone only. It is only for the financial services. What we have in SEZ is a combination of SEZ and non -- to be 50-50, we can have SEZ unit 50 and 50 non-SEZ units also. So it is not exactly for the reasons of tax benefits that people will be coming to this but for the infrastructure. But for GIFT City it will be only for the financial services sector going for the tax benefits. So that's the difference between these 2.

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Neeraj Sadani: Million Minds is IT. And I think you're focusing on the tax part of it and GIFT City is setting looking at the finance part. So fair point and well taken. But in that case, when we are talking to different I don't know how it is in the rest of the country, but -- so you are saying that nowhere there's new IT company set up a shop in the SEZ and they don't get income tax benefit anymore? Management: Yes. Because that income tax benefit is withdraw now. Neeraj Kalawatia: And this IT-enabled services scope is very, very wide to include virtually all the businesses which one can think of. Not only financial services, which is the case with GIFT as against that... Management: So again, a new manufacturing area, which is called Dholera which is going to have a lot of semiconductor and battery EV these kind of manufacturing capabilities over there. Even those kind of companies who are setting up shop there are looking to have space at Million Minds because, first of all, we are closer to them than any other SEZ like GIFT City. So we are much closer to them, plus they get a lot of benefits on R&D and other services as well, not only services.

Moderator: Sorry to interrupt sir, we are losing the audio in between. Neeraj Sadani: I'm saying that like -- so I understand that GIFT City land belongs to the government and they lease out to various developers to make projects, so there are some restrictions. But here in Vaishnodevi Circle, this is a private led owned by the Ganesh Housing Corporation, right? Neeraj Kalawatia: Yes. Neeraj Sadani: So this is our internal decision that we have decided that I want to give it out to IT. So tomorrow, if we want to give it out to say a finance guy also, nobody stops us. That's why I have asked? Neeraj Kalawatia: For the special economic zone region, we have -- so anything from IT services, manufacturing related, R&D related we can do anything like that. And in the domestic region, which is the other 50%, we can give out offices to anyone. It doesn't matter the industry.

Neeraj Sadani: Okay. I got it. We are exporting services and stuff, it's fine. Like we do qualify for GCC, right, like... Management: Yes, we do. Neeraj Sadani: Yes. Okay. And now that since we have so much demand for Million Minds like explain it instead of 14 floors, we actually have an demand of 30 floors coming in, do we plan to like prepone our Phase 2? B. Ravi: Bang on, Neeraj. That is almost certainly likely to happen. We -- of course, we'll have to wait for a proper announcement on that. But you are right, that looks to be on the cards for sure. Neeraj Sadani: Okay. And this Million Minds, we are going to lease out as a core and shell pieces or are we're going to finish it and give it?

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Management:

We aim at giving it as core, shell. If somebody asks for it and we have to do it for them, we'll charge them and do it for it also. We need to give them...

Neeraj Sadani: Because our revenue realization is pushed forward if we finish and give. If we give core and shell our revenue will start flowing in immediately?

B. Ravi: True. Yes. Neeraj Sadani: Okay. And then any particular reason as to why we are so bullish on the Godhavi area. I'm not from Ahmedabad, I'm from Gujarat, so I don't really know if you could throw some light as to what is reality because I don't know if it's a rumor or something somebody had told me that probably that is the reason where the Olympic village is supposed to be setting up or something like that. So I mean I'm just trying to correlate, is this -- that is the reason why we are so bullish on Godhavi because when you you're selling land also you're still buying it in that area. B. Ravi: No, no, I'll tell you. On the call, I can only say that there is a lot happening around that period. I would definitely wish that you come over here, we actually have a personal meeting, maybe all of you come over and we'll take you and give you a proper presentation on that. But on the call because it can be -- it can take a long time to really explain all what has been happening, I can tell you where somebody is very interested in what is happening around that that place. Management: And for that matter, even if Olympic doesn't happen over there, for arguments sake, if it doesn't happen, even in that case, also the Godhavi happens to be natural extension of South Bhopal, predominantly saturated residential area, which is going to extend to that area. So anywhere city is expanding into that area, and we will have good salability in that. Neeraj Kalawatia: Also, one more reference that I can give is that we -- the most prime areas, SG Highway, where all the main clubs are located, so clubs become like certain hubs. So Karnavati and Rajpath Club, etcetera. Now Godhavi is even before the newer ones that Karnavati and Rajpath are building. So it is in between that and people are developing things ahead of Godhavi already. A lot of developments are happening ahead of Godhavi. So there is a blank space in between. So a lot of development is poised to happen over there.

Neeraj Sadani: I might have missed this, but so essentially, are you planning to sell plotted lands only or will it be a mix?

Management: See, the current number, which we have given, that is largely on the plotted development only. So on a conservative basis, as and when...

Neeraj Sadani: The entire 450 acres of plotted land will fetch you INR5,000 crores?

Management: Yes, yes, yes. And if the development horizon changes, then this number will automatically be up to that extent. Moderator: Thank you. Next question comes from Kshitij Saraf from Tusk Investments. Please go ahead. Kshitij Saraf: Congratulations on the continued good performance. I wanted to understand, since you focus only on Ahmedabad, are you planning to add more asset classes in the mix? So you're focused

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on resi and commercial right now. Are you going to look at like hospitality, likes retail and sort of widen your breadth in terms of your development?

B. Ravi: The master plan at a Million Minds also has this kind of thing. Neeraj Kalawatia: If you just check the website of Million Minds, we will be able to see the master plan where we have -- we're going to come up with co-living spaces, co-working obviously will obviously be there in the commercial but there'll be co-living spaces, hotels, service apartments. So all of these are future plans. So once we have a certain amount of development already there, then we will execute these projects. So in the coming -- in the future call, we will address these questions in more detail. Kshitij Saraf: Got it. Got it. And from a cash deployment standpoint, we have the cash on the books, so are you planning to pay it out in the form of dividend primarily? Management: Dividend decisions will be taken at the end of the year by the Board. Yes, I mean we had given the dividend last time, that was a good payout of more than 20%, and we hope to... Management: 110%. Management: No. Pay out being more than 20%, 30% of I think given the kind of numbers we have shown and what we like to show, that could continue, but it's a little early to say how that we apply -- of course, there are a lot of projects to be used. So there will be a good -- it will be a very proper decision taken by the Board, which will happen in the next 4 months. Moderator: The line for the current participant has been dropped from the queue. We'll move on to the next question. The next follow-up question comes from the line of Khushwant Pahwa from KPAC. Please go ahead. Khushwant Pahwa: Just one question. We see that about 90% of the revenue and to that extent, profits are coming from sale of land. And even though the rental incomes may pick up INR70 crores next year from Million Minds and all, the mix of land may continue to be significant in the overall revenue share. So are you expecting to maintain the run rate of land sales quarter-on-quarter? Any thoughts if you can share any guidance that you can give broadly? B. Ravi: I'll give a very short answer to this. If you go ahead with the plans that we have announced about Godhavi, whether it's project or construction or as a plotted development from Q2 FY '26, the majority of the revenues would be from project sales and not land sales. Now this land sales is always a vertical, but it's not that it will continue to be in a similar magnitude as we see now. This is an opportunity which we see at this point in time. Next year onwards, the way the project developments are happening, majority of that revenue would be from the housing from lease rentals from Godhavi and the like and maybe from One Thaltej also in terms of the projects after the execution. So it will not necessarily be a significant portion for all -- for the next 3 years or something. But yes, for 1 or 2 years, it can be significant or if you -- the project of Godhavi starts off next quarter -- it's the next -- as I said, the next year, then this land sale will become a lesser significant number of the total.

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Khushwant Pahwa:	Understood. But then the revenue recognition for those will happen only when we are able to
	complete those projects, right? So there may be a...
B. Ravi:	Godhavi -- sorry to interrupt, but Godhavi is not only construction, it can also be plotted. So if
	it is plotted, then the revenue recognition happens immediately.
Moderator:	Thank you. The next question comes from Amber Jain, an individual investor. Please go ahead.
Amber Jain:	Congrats, first of all, for the fantastic results. I just wanted to know, as Tishman Speyer is one-
	of your marketing partner in Million Minds. So by -- and they are one of the, I think, the
	prominent IT leasing player in world. So is there any plan for this in this Million Minds project
	for getting off some data center or something like that?
Management:	See, as of now in the total SEZ portion, there can be a potential. But for Phase 1, currently, the
	data center cannot be set up in this kind of building that require a different kind of infrastructure
	altogether. So maybe in the total area, it can be set up as part of some of the strategic planning,
	but not in Phase 1.
Amber Jain:	Okay. Okay. And as you said that there are a lot of traction in terms of inquiry Million Minds,
	but any LOIs or any intents that have been closed or is it still under discussion or negotiations?
B. Ravi:	No, no it’s a mix. There are very close to LOI itself. I think we'll have to wait for a month or 2
	months, where will make a larger announcements on this.
Amber Jain:	Okay. And sir, the last question, the One Thaltej project that you are planning to start, is there
	any pricing visibility of it, but what pricing we are planning to launch or something on that? It
	is yet under discussion?
Management:	In terms of what sellable pricing you're saying?
Amber Jain:	Sellable pricing, yes, per square feet or maybe total revenue that we are planning maybe?
Management:	That is largely in the range of 6,000 to 7,000, 6,500 you can say, 7,000 are sellable area.
Moderator:	Ladies and gentlemen, that was the last question for the day. I now hand the conference over to
	the management for closing comments.
B. Ravi:	Thank you, everyone. That was an interesting call. Thanks for all the questions. As said, we'll
	continue to focus on performance and delivering all our promises. We look forward to seeing
	you all soon maybe in Ahmedabad and also for the next quarter call which will be the yearly
	call. Thanks, once again. Have a nice day.
Moderator:	Thank you. On behalf of Ganesh Housing Corporation Limited, that concludes this conference.
	Thank you for joining us, and you may now disconnect your lines.

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