“Ganesh Housing Corporation Limited

Q1 FY ’25 Earnings Conference Call”

July 16, 2024

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

MODERATOR: MR. RAJAT GUPTA – GO INDIA ADVISORS

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Moderator: Ladies and gentlemen, good day and welcome to Ganesh Housing Corporation Limited Q1 FY
'25 Earnings Conference Call hosted by Go India Advisors. 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 and then zero on your touchtone phone. Please note that this
conference is being recorded.

I now hand the conference over to Mr. Rajat Gupta from Go India Advisors. Thank you and over
to you, Mr. Gupta.

Rajat Gupta: Yes. Thank you, Michelle. Good afternoon everyone and welcome to Ganesh Housing
Corporation Limited Earnings Call to discuss the Q1 FY '25 Results. We have on the call with
us today, Mr. Rajendra Shah, Chief Financial Officer; Mr. Neeraj Kalawatia, Vice President,
Finance; and Mr. 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 the 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 gives me great pleasure to welcome
you to the Q1 FY '25 Earnings Call. I'm sure you would have had the opportunity to go through
the presentation uploaded on the exchanges as well as the website.

It is indeed a pleasure to state that this was yet another rewarding quarter for Ganesh Housing.
Building on its performance quarter-on-quarter for the last 10 quarters, Q1 of FY '25 was well
on the expected lines. Let me begin by providing an overview of the real estate sector. India
continues to be a driving force in the global economy, contributing about 8% to the GDP in
2023, projected to rise to over 9.23% by 2030.

The residential market has continued to strengthen with demand reaching a 11-year high during
H1 '24. Premium housing products priced over INR1 crore have emerged as the largest segment,
accounting for about 41% of the sales. The real estate sector has emerged as the top choice
among foreign portfolio investors that, is FPIs, due to the consumption-driven capex streams.

The Ahmedabad residential market has shown significant resilience and growth in the first half
of 2024. According to a report from Knight Frank, primary home sales reached a post-pandemic
high of 16,113 units in 2023 and in HY 2024 itself, about 9,337 units have already been sold.
This is a 17% increase compared to the same period last year, marking a 10-year high for half
yearly sales.

A notable trend is the shift towards premium segment, premium housing products priced over
INR1 crore, now make up about 20% of the market compared to 11% a year ago. This shift is
driven by the introduction of new lifestyle-oriented projects, offering better amenities and larger
spaces, meeting the elevated demand and resulting in robust sales.

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As we move into the second half of 2024, the Ahmedabad residential market is well positioned
to sustain its growth trajectory. Factors such as high affordability, comparatively lower prices
per square feet and an improving local economic environment supports this optimistic outlook.
In line with these trends, Ganesh Housing is actively contributing to the sector's growth.
Recently, we completed the Malabar Exotica project ahead of schedule, which resulted in
significant revenue bookings during the fourth quarter of FY '24 and continued strong
performance into the first quarter of FY '25 also.

The sale deed execution of Malabar Exotica is in currently in progress and is anticipated to be
completed within this quarter. Malabar Retreat launched in Q4 FY '24 has met with the exact
anticipated response. We have presales of over INR72 crores and cash receipts of over INR7
crores. The trend of bookings for such premium apartments generally increase after the first floor
and the sample house is done. Hence, we expect that these bookings should pick up in the Q3
and Q4 of this financial year.

Further as always, we are confident that this project also will be completed well as ahead of its
schedule. Our commercial venture, Million Minds SEZ continues to progress ahead of schedule.
As already said, the marketing of these rentals for the space to large IT companies is on
scheduled start in Q3 of this year.

Looking ahead to FY '25, we are on schedule to announce the phased launch of our Million
Minds residential projects, Phase 1 in the third quarter and Phase 2 in the fourth quarter of this
financial year. These 2 projects collectively span a development of about 1.8 million square feet.
Furthermore, the plans for the commercial project, One Thaltej, is in the approval stage. With a
saleable area of 1.8 million square feet, this project is expected to generate anticipated revenues
about INR2,100 crores and a targeted completion by H2 of FY '24, as said earlier.

There's a particular update in our Godhavi township projects, except for the fact that the
surrounding areas, as we had told you in the last quarter, are continuously abuzz with activities,
proving that our strategy to postpone its launch to the HY FY '26 is correct. Overall, Ganesh
Housing remains committed to leveraging these opportunities to foster the growth of both the
company and the Ahmedabad real estate sector.

We are confident that our initiatives including the Million Minds commercial and residential
projects, Malabar Retreat, the township project at Godhavi, the commercial project One Thaltej
and the strategic land sales will drive value for our stakeholders. We have already laid out our
plans for the next 5 to 7 years and are progressively systematically going in that direction.

Now for the financial highlights of FY '25 Q1. We have registered the first quarter revenue of
INR221 crores, an EBITDA of INR156 crores and a PAT of INR114 crores. Though the revenue
is lower than the corresponding first quarter of FY '24 or Q4 of FY '24, it would be appropriate
to mention certain important aspects in this direction.

The corresponding first quarter of FY '24 was an exceptional quarter with a whopping INR161
crores of PAT and hence, it's not exactly comparable to Q1 of FY '25. Secondly, if you see the
sequential numbers, that is Q4 of FY '24 and Q1 of this year, the PAT has increased which is in

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line with the trend seen in Q2, Q3 and Q4 of FY '24. So the revenue from the completed projects
also has seen a 40% growth Q-on-Q.

Thirdly, we'd like to mention that even in this year, that is FY '25, we expect to achieve a 30%
to 35% growth in PAT over FY '24, that is over the INR460 crores FY '24 what we achieved,
we see a 30% to 35% growth in PAT as the coming 3 quarters of FY '25 are expected to be better
quarter-on-quarter.

Despite the significant capex in our ongoing projects, we have successfully maintained a strong
financial position with surplus cash flows. The cash flows remain strong and will continue to
improve in the coming quarters.

Finally, I would like to mention that Ganesh Housing is well equipped to continue its path of
profitable growth, thanks to its strong brand, innovation, strategic capital management, robust
financial health and dedication to operational excellence, all supported by established
governance framework. We are committed to continue our track record of exceptional
performance, executing unique and value-added real estate projects and be the leading brand in
the years ahead.

As it is said in Bhagavad Gita, [yath acarati sreṣṭhaha tat eva itharoho janaḥ sa yath pramaṇam
kurute lokas tad anuvartate 0:09:47]. Meaning, whatever actions great persons as leaders
perform, the others follow. Whatever standards they set, all the world pursues. That is our goal.

With this, I request the floor to be open for questions. Thank you.

Moderator: Thank you very much sir. We will now begin the question-and-answer session. The first question
is from the line of Rishith Shah from Nuvama Wealth. Please go ahead.

Rishith Shah: Sir, two questions from my end. Actually, for the first question on the Malabar Retreat, so we
said we have kind of did a presale of around INR72 crores, INR7 crores collection. So just a
little bit on the project as a whole, so what is the expected GDV and the expected construction
cost of the entire project? And secondly, what is the scheduled completion time line from when
we start looking -- seeing the revenue flow into the P&L?

Neeraj Kalawatia: See, the total sales value of this project is around INR450 crores, and the cost of the project is
somewhere around INR340 crores. And this is like two towers of the premium segment with 22
floor building. And with each unit is around having a minimum carpet area of 2400 square feet.
And in terms of the target time line to complete the project, that is -- as per our estimated
schedule, we have taken a 3-year period. But as you see in last 3, 4 projects, the way we have
completed our project, we will complete that project ahead of the schedule itself.

B. Ravi: So it could be well into March, FY '27. It could be in the third -- or fourth quarter of FY '27.

Rishith Shah: Okay. Great. And during this period, we kind of intend to exhaust the inventory, I mean, sale
during the construction period, right?

Neeraj Kalawatia: Yes, that's our mission. That's our plan also.

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Management: Yes. Mostly that happens with us. When project is about to get completed completely, in these
kind of projects, we would have sold at least 80% to 85% of the inventory. We will keep some
remaining base units for -- meaning, some friends and family. But 80% to 85%, we will be
exhausting by the time we have completed major construction work.

Rishith Shah: Awesome. Yes. Sounds great. And the second question, so we kind of saw -- as you were
explaining, we saw dip in the revenue maybe sequentially as well as year-on-year. So the
fluctuation in my sense would be, again, in the land sale part. So can you give us a split? I mean,
what was the land sale in the quarter and how it compared to the previous quarter and year-on-
year as well?

B. Ravi: Yes. So you're right. Till the time, though the bookings may be there, the cash flows may be
there, unfortunately, because of the accounting standard we cannot book the revenues till the
time it is completed. And therefore, yes, the revenues from these projects may not come exactly
the way the bookings happen.

However, yes, as we had said, the strategic land sales is happening. Even this quarter, I think,
about INR46 crores, INR50 crores are from the completed projects and the balance of about
INR160 crores was from the land sales. And in the coming quarters, things could continue. And
maybe another -- moving 4 or 5 or more till the time, let's say, the new projects have come on
stream. So this quarter, it is about INR160 crores of land sales and about INR46 crores, INR50
crores of project sales.

Rishith Shah: Okay. And the project sales was largely related to Exotica, right?

B. Ravi: That's right. Yes. But -- that's a 40% increase year-on-year. Last year, in the first quarter, it was
about INR32 crores-or-so. Now it is more than INR46 crores, that's about 40% growth.

Rishith Shah: Right. And last question, any new project additions in site in the near term, do we see?

B. Ravi: No, no. All that we have announced remain. As I just mentioned, all those projects are on
schedule. And so these are the ones which we have -- we're still going to do. Let's say, it is One
Thaltej or residential, 2 projects this year. These are the 3 projects which will start this year. I
think else is anticipated at this point in time. Of course, the SEZ will continue. It's going on
really well. That would -- that is slated to complete, as we said, maybe less than a year from
now.

Rajendra Shah: Yes, and if we -- if the response is good, we may prepone some of the launches of next phases
of SEZ commercial or SEZ residential.

Moderator: We'll take the next question from the line of Satyam Badera from Profitmart Securities. Please
go ahead.

Satyam Badera: How does we plan to manage the operational aspects of the commercial SEZ project, while
concurrently constructing the residential projects and completing the remaining phases of
commercial projects within the SEZ?

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Rajendra Shah: Yes, by operations, you mean arranging finance for the same. Right now, we are sitting on --
meaning we have a financial closure for Phase 1 of commercial SEZ has already happened.
Meaning, we have enough cash balance which will take care of entire cost of construction of
Phase 1.

Satyam Badera: For residential?

B. Ravi: Residential will come out from the bookings itself, right?

Rajendra Shah: Yes, presales of resi itself will give enough cash to start construction of...

B. Ravi: See, the majority of the cost is already incurred long back in the land itself. So that has already
been spent for -- there's no cash outflow for that. Only for the construction is what we need to
spend. And more often than not, this comes in either from the approvals which are already there
from our other businesses, other sales and the cash flows or from the booking itself. So it funds
for itself.

Moderator: We'll take the next question from the line of Gunit Singh from Counter Cyclical PMS. Please go
ahead.

Gunit Singh: So can you please share the revenue potential from projects being completed in FY'25 and
separately in FY'26?

B. Ravi: Please repeat.

Gunit Singh: Can you share the revenue potential of projects that will be completed in FY'25 and also FY'26
separately for us?

Rajendra Shah: So, Gunit, in FY'25, in fact, after we have completed Malabar Exotica, which is only few flats
of Malabar Exotica for which agreement is yet to happen, are remaining. After that, we have
new projects which is launched after that is Malabar Retreat, which will take at least about 2.5
years from now to get completed. So we don't expect any revenue from projects to further come
in rest of the FY'25 or '26 for that matter.

Gunit Singh: FY'27?

B. Ravi: But there will be sales from the past completed projects.

Rajendra Shah: Yes. We hold some inventory of some of the past completed projects like Maple Tree and Maple
Trade Centre, which is market value of that is roughly about, say, INR40 crores to INR45 crores.
We can encash that and that can reflect in our, meaning project revenue. But other than that, for
FY'25 and FY'26, we don't see any project revenue.

But at the same time, we are seeing a lot of traction and a lot of attraction in terms of whatever
land bank we are holding, which are getting sold at very decent prices and which is going to give
us continuous kind of EBITDA margin and -- decent EBITDA margin.

Gunit Singh: For FY'25 and '26, our revenues would come only from sale of our land banks?

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B. Ravi: FY'25 for sure. And FY'26, we need to see how the second part of the year, how the Godhavi,
the whole project starts because that is slated for H2 of FY'26 as we said. If that comes in as
scheduled, then yes, there will be project sales from that also. So that could be quite a major
revenues coming from project sales at that point in time. From the -- near residential ones which
we have announced, there may not be anything in FY'26. But from the new sales, which -- for
the new project of Godhavi, yes, we will see projects sales.

Gunit Singh: All right. Sir, so you mentioned that PAT to grow by 30%, 35%. So what kind of revenue sales
are we looking at from land bank in FY'25? And also, can you share the revenue potential for
projects being completed in FY'27?

B. Ravi: Yes. What is the second question? Please repeat.

Gunit Singh: Can you share the venue potential of projects being completed in FY'27?

Rajendra Shah: INR450 crores.

B. Ravi: FY'27 from -- yes. In FY'27, yes. In FY'27, the project which will be completed would be
Malabar Retreat and that would be having about INR450 crores or INR470 crores of revenues,
which could be coming in FY'27. In FY'25 that you asked, the revenues which we see, I have
given you a guidance for the PAT 30%, 35%, which looks to be definite. The exact value of the
revenues is slightly difficult to tell because of the various price ranges in the land. But we do
expect it to be about 10%, 15% higher than what we have registered in FY'24. That's our
expectation.

Gunit Singh: All right, sir. My last question would be what is the value of -- what is the current market value
of the land bank which we hold overall as per your internal estimates?

B. Ravi: I've always maintained one particular sentence in this, it is very difficult to say. It can range from
INR15,000 crores, INR20,000 crores and beyond. And with every quarter, the value only
increases by over 10%, 15%, 20%. But frankly, the value of that comes in along with the
development of the project itself. And in that the value of that land is much more than that.

So once it's executed, it can be much more valuable than that. That's the way we would say. And
in the next 7 to 10 years, we already have projected that land bank, which we have to be used in
the various projects, and that is going to give us all the revenues which we have -- which is there
in the presentation already.

Gunit Singh: All right, sir. So unconstructed, we can consider baseline to be minimum INR15,000 crores --
INR15,000 crores, INR20,000 crores?

Rajendra Shah: Yes, surely. Yes, much higher than that, but conservatively, yes, INR20,000 crores.

Moderator: The next question is from the line of Deepesh Sancheti from Maanya Finance. Please go ahead.

Deepesh Sancheti: Since you have a lot of cash in the books, what is the -- first I want to know what is the average
cost of the company incurring every year to accumulate land parcels? And ahead of that is like

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how does the company plan to allocate its capital between ongoing projects, new developments
and potential land acquisitions?

B. Ravi: Deepesh we lost you. The third question see I think you'll have to repeat. I'm sorry the line was
bad. Can you just repeat your question?

Deepesh Sancheti: Yes. I wanted to know since you have a lot of cash in the books, how do we plan to allocate that
capital between ongoing projects, new development and potential land acquisitions?

B. Ravi: Yes. See the ongoing projects and new developments are almost the same as we say because
every new development will have an increased cash inflows also except for the SEZ commercial
if we decide to do the second part of second phase of SEZ also on a rental basis then yes we will
need a cash flow for that. But otherwise it will be paying for itself like just the residential one
because we'll be selling and we'll be collecting cash.

Having said that all the cash flows obviously would first be applied for the ongoing projects
itself and we also have to look at opportunities to acquire new land which is always -- I think --
because that's the raw material for the future. So as of March '24 if you'll see we have got various
amounts which has been allocated I think almost like INR400 crores, INR500 crores or more
allocated for the land acquisition.

So at that time we had quite a few surplus amount available. In this year we also -- we see a
good amount of cash surpluses coming in. And the way the costs are going to be incurred
between the allocation between the land and the projects could be in the ratio of about 30 to 70
probably.

So 30 in favor of maybe land acquisitions for which maybe additional money may have to be
given or it will be just getting the executed the land, the sales deed in our name for the advances
already given, but about 70% of this cash flows will be used for the ongoing projects including
what we are going to be announcing which will be starting rather. I hope I was clear in that.

Moderator: Mr. Deepesh.

B. Ravi: We lost him again.

Deepesh Sancheti: Am I audible now?

B. Ravi: Yes. So I hope I've been -- I made myself clear. Have I answered all your questions.

Deepesh Sancheti: Yes. Just wanted to know what is the average cost of the company incurring every year through
accumulate land?

Rajendra Shah: See it's very difficult to say what is the average cost because the land acquisition are happening
in different places where everywhere the rates are different and mostly our land acquisition are
happening on the untapped areas.

B Ravi: And structure of acquisition also is different because you might contract for say INR100 crores
of land acquisition today, but that INR100 crores is payable when he does -- meaning vendor

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does certain things. So it's difficult to say what is the kind of amount which you outlay towards
land acquisition in particular year. It is a very dynamic thing.

Having said that, I would definitely want to add Deepesh that the track record of Ganesh Housing
has always been to tap those land parcels which have not been in the -- I mean in the eyes of the
general public and therefore more often than not the price at which it is acquired is one of the
lowest ever in the market.

That is the reason why all these lands which we have acquired over the period of years are giving
us this kind of an excellent EBITDA margins of 70%, 79% and all. So I believe that this kind of
-- looking to the track record the trend would always be the same.

Deepesh Sancheti: That's right. So are we planning I mean going ahead, are we planning to hedge ourselves by
doing a lot of JVs and -- or are we still looking at acquisition of land and then developing it?

B. Ravi: No. See it's always as per the occasion and as per the opportunity which comes in. At this point
in time we have our hands full with all the projects which are there. And yes the land has to be
always kept -- keep acquiring, but if something comes up wherein we believe that a JV will give
us -- because of the use of the brand Ganesh which as I said is the leader, if that can be used as
we get a good project where we don't need to invest in the land, we just become the developer
along with them or co-developer. We are open to such kind of projects, too. And look into the
future, yes, that kind of things might come up, but nothing which we can announce at this point
in time.

Deepesh Sancheti: Okay. Just one last question was what are the presale figures which are projected for FY '25-'26
from our residential projects if any kind of guidance would be helpful and what is the expected
time line for occupancy of the constructions commercial projects?

B. Ravi: The first question and I'll ask you to repeat the second question. But the first question I think the
guidance we would refrain from giving 2 years in advance, we've given it for this year. And I
think towards the close of this financial year we will be able to tell you more correctly or
accurately what would be the numbers for FY '25-'26. So I'm sorry I won't be able to give you
any number at this point in time. And the second one, sorry, what you said?

Deepesh Sancheti: What is the expected time line for achieving occupancy in our constructions commercial project?

B. Ravi: Yes. So that is expected to complete be, let's say, around quarter 1 of FY '26 and the rentals are
-- looking for the rentals the clients and all is starting from Q3, Q4 of this financial year itself.
So I think in FY '26 it's a little guesswork at this point in time, but I think going above 30%,
40% rentals occupations are already people signing up on the agreements should be possible.
That's what we look at.

But there again we would be able to give you a better picture in Q4 of FY '26 because by that
time a lot of traction with the expected or probable clients will come into this SEZ would have
happened because that's when the real marketing starts.

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Deepesh Sancheti: Right. And our focus is only going to be Gujarat and around or are we looking at other states
also?

B. Ravi: As of now Gujarat, Ahmedabad.

Deepesh Sancheti: Only in and around Ahmedabad?

B. Ravi: Yes.

Deepesh Sancheti: Perfect. Thank you so much. If I have any other questions I will fall back in line.

B. Ravi: Sure. Thank you.

Moderator: Thank you. We will take the next question from the line of Mayank Shah from Arjav Partners.
Please go ahead.

Mayank Shah: I had two questions. The first is like what's the confidence of the location of IT SEZ project
compared to like a location the GIFT City or anything?

B. Ravi: It's very high -- confidence level is very high because the way it was started off was with the
clear understanding that there is huge potential in that area. GIFT City is further 15 kilometers
away. This is absolutely in the CBD the new CBD wherein the entire ecosystem of whether
Reliance, Adani, Zydus Cadila, all these people offices and all and very new commercial spaces
coming up in and around that Vaishnodevi Circle.

So this is a very high confidence. And frankly, looking to this potential only Tishman Speyer, I
mean, approached us two years back saying that they would like to partner us and take this
project to the huge clients that they have. So we believe that we'll be doing very well in that.

Mayank Shah: Okay. So I have one more question also. Like cumulatively, what is the launch pipeline like we
can expect in residential as well as commercial front in like the current financial year as well as
in FY '26?

B. Ravi: Sorry launch price, right?

Rajendra Shah: Can you please repeat?

Mayank Shah: My question is what is the launch pipeline like we can expect in the residential and commercial
front in FY '25 and FY '26?

Neeraj Kalawatia: See, already, we have launched Malabar Retreat at a price of INR5,400 and that has also given
a good traction in terms of the inquiry and initial conversion. Our initial thought of launching
that at least INR5,500 for that residential, so that we are not hiking any price even in the 6
months', 8 months' time also in the FY '25.

And maybe FY '26, it will be plus INR300. That is our current thought. Maybe as we move into
that direction and at the launch time, again, we will reevaluate the market and see what brings

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the right pricing whether we can hike the price further or not. But INR5,400 is selling at Malabar
Retreat that's the base price we are talking about.

B. Ravi: And in the SEZ Residential, it's INR5,500 to start with and it could go up to INR5,800 in FY
'25-'26 that's what Rajat -- I mean, Neeraj has said. But frankly the way the whole thing starts is
that we do it with an amount, which is a little lower in the initial stages. And as and when the
traction goes up with every quarter or something with new bookings, as you know this is done
by everyone it keeps growing.

So the average which we saw in the earlier projects also has been almost like 50% higher than
the launch price itself that's kind of traction we have seen. So let's see how this goes in this
project and that too being in a very good ecosystem of the entire 64 acres and very good
residential localities and good garden and all that, we should be able to command such prices,
for sure.

And just to tell you the other ones, which are let's say, the Shantigram project, which is very
close by is already talking about higher than INR6,500 even as of now. So obviously -- and that
is just about a 1 kilometer or 2 kilometers away from this place. So we're really -- that is the way
it will go. And it has always been going towards that and we will look into the brand fetch such
kind of prices also.

Mayank Shah: Got it. Thank you.

Moderator: Thank you. The next question is from the line of Ritwik Sheth from One Up Financials. Please
go ahead.

Ritwik Sheth: Sir, few questions from my end, on the Ahmedabad market. What is the kind of share the branded
developers like you have in the Ahmedabad market in the periphery? And can you -- who would
be the top 3, 4 branded players, organized players in Ahmedabad, if you can throw some light?
And where do you see this going over the next 3 to 5 years?

Neeraj Kalawatia: See, post implementation of the RERA and GST and especially post COVID now the real estate
market is now being totally governed and commanded by the top developers and organized
players only. Even those who have been in unorganized mode they have now converted to
organized mode only. So basically, if we see even in the presale part during the under
construction only these top developers are commanding better bookings and better realization
of their projects.

And we see ourselves around the top developers of the market. There are many other developers
also who are doing good in their respective area like Adani is doing in the Shantigram township,
then there are the likes of the Safal, Goyal, Shivalik. There are many developers but around this
-- if you see, around 15-odd developers are there who are commanding the major market share
in the city.

Ritwik Sheth: So 15, you said 1-5.

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Neeraj Kalawatia: 1-5 the top developers I'm talking who are -- by their names the products are getting sold. The
name itself is so trustworthy. Arvind is also there in their respective area.

B. Ravi: Each of them -- I would like to add that each of these top 15 have their own niche at various
places. Let's say, for example, Arvind is there very good at the project development side and
outskirts, which is there. And some of the Goyal's and the Safal's are there in certain residential
part of it in a particular locality.

So everyone has chosen their own areas of excellence and areas of development also in terms of
the land bank. So all of them and in terms of the ranking yes, it may be there. But those who
have got let's say, good best of everything that's the residential, commercial and the land bank
and all that if you really have to take it in that then Ganesh Housing sits right on top.

Ritwik Sheth: Okay. Got it. And these top 15 developers would have lion's share like 70%, 80% of the total
market in Ahmedabad would be these top 15 players, right?

Neeraj Kalawatia: See, it's not like that with every player. Like -- there are only a few players who now -- who
follow the strategy what we follow holding the land bank for a much longer period and then
went into development. There were many of the developers they acquire and then wait for some
time and then they launch it immediately went for land holding period is not that great for those
players. So it's like a different strategy for different developers not like one solution fit to all.

Rajendra Shah: And Ahmedabad market is very segmented. You will hardly see very large developer
commanding more than 10% of market share. So it's very highly unlikely.

Ritwik Sheth: Okay. Thank you, sir. And all the best.

Moderator: Thank you. We'll take the next question from the line of Aarti Kamani from Profitmart. Please
go ahead.

Aarti Kamani: Yes, I got my answer. Thank you.

Moderator: Thank you. We'll take the next question from the line of Prit Nagersheth from Wealth Finvisor.
Please go ahead.

Prit Nagersheth: Just one question. Sir, you mentioned that One Thaltej is under approval. So any sense of time
line for One Thaltej?

B. Ravi: One Thaltej?

Prit Nagersheth: Yes.

B. Ravi: We had said last earnings call that would be there in Q2 of this year. I think Q2 or early Q3. It
is sorry, we had announced its H2 it's absolutely on schedule for H2.

Prit Nagersheth: For H2, so you are saying post Diwali around Diwali timeframe?

B. Ravi: That's right. Correct.

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Prit Nagersheth: Thank you so much. All the best.

B. Ravi: Thank you.

Moderator: Thank you. We'll take the next question from the line of Yasmin Shah from Antique Stock
Broking. Please go ahead.

Yasmin Shah: I had a couple of questions. First thing is on the SEZ, what is the potential sales one can look at
in the next 2 years in terms of assuming you sell the entire inventory or whatever is your target
from Phase 1 and Phase 2, what is like for Phase 1 and then for Phase 2? And my second question
is, do you have any plans to enter into a market apart from Ahmedabad, Gujarat?

B. Ravi: Let me take that. So the second question first. No. At this point in time, we don't have any plans.
We don't have any concrete plans going out of Ahmedabad, but an opportunity coming up with
a very good return or something, we will always go and we do evaluate projects outside of
Ahmedabad off and on. And if we find something, we may choose to go. But right now, there is
nothing.

Question number one, there are 2 things in SEZ one, if you have been talking about SEZ
commercial, at this point in time, Phase 1 is all there only in the -- it's on lease basis. We're not
going to sell anything. If you're talk about SEZ residential. Yes, Phase 1 and Phase 2 will be
launched in the third quarter and fourth quarter of this financial year, that will start seeing
bookings of the same type like Malabar Exotica, Malabar -- all that, which will start from FY'26
first quarter or last quarter of FY'25.

So this is what -- I hope I have cleared the doubt that if it is SEZ commercial, it's going to be all
that -- on these spaces as of Phase 1. Phase 2, we'll see in the traction for Phase 1 SEZ commercial
has been picked up very well, there is a lot of demand for the rental, Phase 2 also may go on the
same line, but it isn't fixed as of now. The residential will always be an outright, sale basis.

Yasmin Shah: So on the first Phase, in terms of leasing income, what can one expect assuming that you're going
to lease out, say, 40%, 50% or 70%, whatever your target?

Neeraj Kalawatia: See, on a full potential basis of 100% occupancy, it will give us an Annual Rental of INR70
crores.

B. Ravi: On a conservative basis, INR70 crores, 100% rentals on a conservative basis, frankly, it can be
far more. Because we haven't given is -- we have given a very low estimate of this. But if you
Start on a 40, 50 basis, it will follow the same percentage, which INR70 crores is for full, 50%
is around INR35 crores. But as then when the larger spaces go, the rentals can actually go up
also. And therefore, first 40, 50, maybe at a rate which is leading to around INR70 crores amount.
But as we know, that amount can also increase. So between INR70 crores to INR80 crores or
more can be the full rentals.

Yasmin Shah: That's per annum, right?

B. Ravi: That's right, per annum.

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Yasmin Shah: And second question is how much was the investments you have planned or you've already done
in the Phase 1 SEZ?

Neeraj Kalawatia: Phase 1 of commercial, you're saying?

B. Ravi: Yes.

Neeraj Kalawatia: We have already invested around INR180 crores in the development of the Phase 1 till date.

Yasmin Shah: INR180 crores, okay?

Neeraj Kalawatia: Yes.

Yasmin Shah: And any further investments are required or this is about it?

Neeraj Kalawatia: Yes. The development is going on.

Rajendra Shah: We have reached to, about 40% level of completion. So we will still require to invest more.

Yasmin Shah: So probably double of this amount is something fair to assume, right?

Neeraj Kalawatia: Something near to INR300 crores or around INR325 crores.

Yasmin Shah: Okay. Got that. Lastly, if you do develop the Phase 2, what is in terms of -- if I have to say in
terms of potential there, revenue potential there or in terms of million square feet, if you could
guide?

Neeraj Kalawatia: See, how we are planning right now is that there will be each phase of 1.3 million safe of the
construction with probably a leasable area of 8.5 lakh square feet as per the international standard
because the entire designing is being done by the Tishman Speyer. And the rental is around
INR70 crores, which we have presumed right now as to the current rate, we have estimated that
only as a conservative basis right now, but only once we see the entire traction of the Phase 1,
then we'll get to know how much rental escalation can be there potentially on that side.

Yasmin Shah: No, that I got it. I'm talking about the residential part. That would also be like 1 million square
feet?

Neeraj Kalawatia: Residential is 9 lakh square feet of the development of each phase, with -- each phase has a sales
potential value of INR500 crores. So taken together, both the Phase 1 and Phase 2 will have a
INR1000 crores of the sales value.

B. Ravi: At 1.8 million square feet.

Yasmin Shah: Thank you, and all the best.

Moderator: Thank you. We'll take the next question from the line of Yasmin Shah from Antique Stock
Broking. Please go ahead.

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Yasmin Shah: Sorry, sir, I forgot to ask what's the cash balance at the end of the years or end of the quarter,
sorry?

Neeraj Kalawatia: See, FY'24 end, we were having a INR430 crores of the cash balance. So out of that, around
INR60 crores is still there.

Yasmin Shah: And for your future development, you will need to take on some debt, right?

B. Ravi: No. This amounts -- see, every quarter, there are cash accruals coming up, right, because of the
sales and profitability that we have said. And also whenever we do the residential, the amount
will be funded by itself. So looking at the way these projects as planned, already the amounts
required, which is therefore SEZ Phase 1 is commercial, is already in our bag.

We don't need any money for that. And residential phases, as and when we launch, our internal
accruals as well as the collections from the clients of the booking will ensure that we do not need
any additional or extra money from the outside, which means no debt and no equity either.

Yasmin Shah: And sir, you had given guidance, I joined in a bit late, on your -- for this years in terms of bottom
line, right, in terms of that was around 30%?

B. Ravi: Yes. 30%, 35% increase year-on-year. That means FY'24 was INR460 crores. We see 30%, 35%
increase in the PAT in FY'25.

Yasmin Shah: Got that. Okay. Yes. Thank you so much and all the best.

Moderator: Thank you. Ladies and gentlemen, I would now like to hand the conference over to the
management for closing comments. Over to you, sir.

B. Ravi: Thank you all for joining on this call as well as showing so much of keen interest in the company.
It's a great company, which is the performance has always been good, the deliverance well ahead
of schedule, the quality of top notch, just living to its brand. I think we will definitely continue
to perform the same way and look forward to having you all on the call next time, too. Thanks
a lot. Have a good day.

Moderator: Thank you, members of the management. Ladies and gentlemen, on behalf of Go India Advisors,
that concludes this conference. We thank you for joining us, and you may now disconnect your
lines. Thank you.

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