GANESH HOUSING LIMITED

Surabhi Sutaria

GO INDIA ADVISORS

Rajendra Shah

CHIEF FINANCIAL OFFICER – GANESH HOUSING CORPORATION LIMITED

Neeraj Kalawatia

VICE PRESIDENT FINANCE

Ravi

CORPORATE AND FINANCIAL ADVISOR - GANESH HOUSING CORPORATION LIMITED

INR 2742 million

highlights and strategic business decisions. On the operational front we had done a new sales of INR 2742 million during financial year 2022 which was 17% higher as compared to financial year 2021. In terms of b

17%

perational front we had done a new sales of INR 2742 million during financial year 2022 which was 17% higher as compared to financial year 2021. In terms of booked area we came from four projects w

7.36 lakh

ancial year 2021. In terms of booked area we came from four projects we have booked approximately 7.36 lakhs square feet which was 14% higher than that of financial year 2021. Additionally our collections

14%

ked area we came from four projects we have booked approximately 7.36 lakhs square feet which was 14% higher than that of financial year 2021. Additionally our collections have also increased conside

1959 million

2021. Additionally our collections have also increased considerably during the year and stood at 1959 million which is 16% higher than that of financial year 2021. Demand remains strong during the year withs

16%

r collections have also increased considerably during the year and stood at 1959 million which is 16% higher than that of financial year 2021. Demand remains strong during the year withstanding all c

18%

l and labor cost same has been more than compensated by increasing unit sales price. Furthermore, 18% of our sales have come from units which are costing less than 50 lakhs, 58% of the sales have com

50 lakh

unit sales price. Furthermore, 18% of our sales have come from units which are costing less than 50 lakhs, 58% of the sales have come from units which are costing between 50 lakhs to 100

58%

s price. Furthermore, 18% of our sales have come from units which are costing less than 50 lakhs, 58% of the sales have come from units which are costing between 50 lakhs to 100 lakhs

100 lakh

akhs, 58% of the sales have come from units which are costing between 50 lakhs to 100 lakhs and the rest of sales have come in from units which are costing more than 100 lakhs as of March

0.8 million

nil inventory of ongoing projects. Also ending March 2022, we have unsold completed inventory of 0.8 million square feet which we think we will realize somewhere around 430 million rupees. Now to talk abo

430 million

ld completed inventory of 0.8 million square feet which we think we will realize somewhere around 430 million rupees. Now to talk about our ongoing project Malabar 3 is the project where we received RERA a

“Now to talk about our ongoing project Malabar 3 is the project where we received RERA approval and permission to commence construction in February 2021.”

“During 12 odd months of actual construction post this approval we have managed to complete 70% of the construction of this project that was fixed towers.”

“Coming to Malabar Exotica project, we have received RERA approval and permission to commence construction in July 2021 during this short period we have completed approximately 20% of the construction in this project.”

“In both these project Malabar 3, and Malabar Exotica we have booked 100% of the units.”

“Ongoing and upcoming projects in the key locations of Ahmedabad provides us with great comfort and visibility of cash flow which keeps us on track to deleverage further.”

“Coming to our future growth prospects and guidance, Ahmedabad market is seeing a huge uptrend across the residential and commercial real estate demand.”

“These projects will be launched in a phase manner with two projects being launched over next 6 to 12 months, three bring launched over next 12 to 24 months and one being launched within 24 to 36 months period.”

“We continue to target development of 8 million square feet of infrastructure and special projects like SCZ township etc in next four years with total sales value of approximately 30,000 million.”

“Our assumption and belief are that the prices will go up by 6 to 8% in this year and that will be much below the wage growth of 8 to 10% in the economy and therefore there will be increase in affordability and link to that an increase in volumes furthermore.”

“The expected sales prices of these project will be in the range of Rs.4000 to Rs.”

Rajendra Shah

16

Moderator

10

Neeraj Kalawatia

8

Manish Agarwal

4

Haresh Hindocha

4

Sourabh Gilda

3

Nishant shah

3

Gautam Gosar

3

Ashwin Agrawal

3

Nagesh Rajanna

3

Surabhi Sutaria

Thank you Margaret. Good afternoon, everybody and welcome to Ganesh Housing Corporation Limited earnings call to discuss the Q4 and FY2022 results. We have on the call with us today Mr. Rajendra Shah Chief Financial officer, Mr. Neeraj Kalawatia, Vice President Finance and Mr. 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 the risks that the company faces. We now request Mr. Rajendra Shah to takes us through the company’s business outlook and financial highlight subsequent to which we will open the floor for Q&A. Thank you and over to you Sir.

Rajendra Shah

Thank you Surabhi and good afternoon ladies and gentleman. We thank you all for joining us on this call today to discuss our Q4 financial year 2022 and financial year 2022, 12 months result. Financial year 2022 was a roller coaster year in terms of impact it created economically, politically, and humanly led by various COVID waves, Russia Ukraine war tension, inflation concerns, rising oil prices and now rising interest rates. However, real estate sector continued to perform well across the country favored by supply dynamics due to industry consolidation, enhanced affordability and various regulatory reforms in India. We are happy to announce that this has been our best year in terms of profitability in past five years. Before I discuss about the financial highlight during the year, we would like to share a few operational highlights and strategic business decisions. On the operational front we had done a new sales of INR 2742 million during financial year 2022 which was 17% higher as

Moderate

Thank you very much. We will now begin the question and answer session. The first question is from the line of Manish Agarwal from JM Financial. Please go ahead.

Manish Agarwal

Hi good afternoon Sir. You mentioned interestingly about cost price increases being almost equivalent to the selling price, so if you could just give us more colour as to how the customer is taking it. Are they open to such kind of price hikes or is there a demand if it can possibly happen.

Rajendra Shah

I would explain this with an example see Malabar Exotica is a project which we opened up for sales in July 2021. When we opened this up for sale, our sale price was Rs.3700 per square feet. Within two months demand was so high that we were forced almost to increase this price to 3900, 4000 level. Right now the last units which we have booked in that project, we have booked at almost Rs.4500 which denotes more than 20% hike as compared to the price at which it was launched. If you see increase in input cost that increase is not more than 7 to 8% year on year. In fact today only I just saw in newspaper saying that recent inflation which is highest is at 7.73% odd so I think it is very clear that about 15% to 20% odd increase in sales price is much more commensurate or much more equipped to handle input cost increase of 7% to 8% so I think I have answered your question.

Manish Agarwal

Sure understood and this would be more specific to your project only or competitors are also in the micro market taking such kind of price hikes.