Thread by @ValueEducator

Ganesh Housing Q3 Concall Highlights 🏠🏡

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Overview :

1. Work from home created structural demand for realty sector
2. Pandemic reaffirmed the idea of community living as it gives more fulfilling lifestyle with the sense of safety and belonging

thus demand for such homes will be stronger due to restriction because of covid.
3. Due to lower interest rates consumers are going for bigger size homes

Qtrly Details :

1. New sales : 66.2 Cr (Growth of 33% vs Q3 21)
2. Booked Area from 4 projects : 176000 Sq Feet

(Growth of 37% vs Q3 21)
3. Collections : 46.5 Cr

4. Revenues Split w.r.t home prices :
3% sales from < 50 Lks
84% sales from 50 Lks to 1 cr
13% sales from > 1 cr

5. As of Dec 2021 Unsold Inventory of 185000 sq ft which will give revenues of 82.5 Cr

(with 50.4 cr completed inventory of 96000 sq. feet )

6. Debt reduced from 428.8 Cr (Q3 21) to 160 Cr (Q3 22). With Upcoming projects in Ahmedabad will deleverage the balance sheet further.

7. In last 2 years reduced the debt by 76%. Currently have debt to equity of : 0.3x

Future Growth Prospects & Guidance:

1. 4 Residential and 2 commercial projects will launched in phased manner
2. 2 Projects will be launched in next 6 to 12 months

3. 3 projects will be launched in next 12 to 24 months
4. 1 Project will be launched in next 24 to 36 months

5. Expected revenues in next 4 years : 3000 Cr (land bank already acquired)
60% from residential and 40% from commercial

6. Expected sales price per sq. feet for these projects is between 4000 to 5000 Rs Sq. Feet

Segments :

Affordable home segment : 50 lk rs per unit
Premium Segment : 75 lks to 1 Cr
Maple tree and Maple trade centre :1 cr to 2 cr unit

Rate per sq feet in Ahmedabad :
Vaishnavdevi Circle :
Current Rate : 4000 to 5000 Sq. Feet
Last Year Rate : 3700 to 3800 Sq. Feet

There has been increase in prices for houses

Malabar 3 Projects bookings opened in Feb 2021 and till end of the month all the inventory sold out.

Acquired the land away from city centre at nascent stages for very low prices that's why margins for Ganesh housing are higher.

In general contraction cost in different area are similar, so margins depends on what rate builder acquires the land.

Construction cost for mid segment (excluding land cost): 1200 to 1400 Sq. Feet

Ganesh Housing Have Land Bank of 500 Acres. Acquisition cost of this land is very low compared to current market prices.

Started doing advertising with social media platforms : Facebook, Instagram & other digital platform (40% of sales from digital platforms)

Malabar Retreat Project will be launched in next 1-2 months

Real estate is generally localised business as local players have expertise in land acquisition and land title clearance.