Statement from the Chairman's desk
"We have our hands full. We will remain focused on the quality of real estate
development and ‘ the timely execution of our projects to ensure we - create value
for all our stakeholders. Our future is particularly riveting."
Pear Shareholders
It is my privilege to present our Annual Report for FY23 to you. I am delighted to
report that the Company has reported excellent growth in difficult times.
The macroeconomic volatility and geo-political factors dominated the global business
environment during FY23. Global growth is expected to decelerate due to a slowdown in
markets. In contrast, emerging markets, led by India, will provide some respite. India's
growth continues to be resilient, underpinned by the Government's capital outlay and
buoyant private consumption. India should retain its position as the fastest-growing large
economy for the third consecutive year, provided circumstances continue to remain
favourable
Aligned with and aware of the contours of the economic landscape, the real estate
sector witnessed significant activity and reported splendid growth. India's residential
real estate market reported record-breaking sales in FY23, growing 36% from the previous
year.
At Ganesh Housing, we had an excellent run. It has been a recordbreaking year with many
firsts -- the Company recorded the highest revenue; we almost reached the best Net Profit
in our three-decade journey; we registered a record net cash flow.
Most importantly, for the first time in 16 years, we are in a zero-debt position.
In fact, we have a cash surplus of C320 crore. This is a massive gain , giving us a
significant runway to sell our inventory at our own will and convenience It removes the
pressure of repayments.
During the year, we delivered our residential project, Malabar County 3, in just 2.5
years, the fastest ever due to the astute use of tech and precast with tech inside every
home. We would be delivering Malabar Exotica, which started construction in July 2021, in
a similar manner, probably even faster.
Having said that, I must add that we look forward to an exhilarating journey for the
next 8-9 years. We have started the largest-ever development on the ground with Malabar
Exotica and Million Minds SEZ Phase 1 - a total development of 1.7 million square feet.
With the massive Million Minds projects, we have a crystal-clear blueprint of where we
are heading to in the next seven to eight years, with upcoming projects comprising almost
28.7 million square feet of development and clear cash flow visibility.
During Q4/FY23, we acquired the minority stake in one of our subsidiaries Gatil
Properties Private Limited, from Monsoon India Infrastructure Direct II Limited, the
Mauritius arm of the US-based fund. With this strategic investment, Gatil is now a 100%
subsidiary of Ganesh Housing.
Gatil is developing a township project on a 450-acre land parcel in the fastgrowing
area of Godhavi, Ahmedabad. The township project will provide a continuous and definitive
cash flow and profit for the next five to six years. It has a development potential of
around 15.3 million square feet with a saleable potential of over C5,000 crore. We plan to
launch this project in five different phases, with the first being launched in the 4th
quarter of FY24. We expect to complete the project by the second half of FY29.
In a nutshell, our hands are full. We will remain focused on the quality of real estate
development and the timely execution of our projects to ensure we create value for all our
stakeholders. The timely delivery of our projects will significantly enhance our
liquidity, allow us to undertake more daunting projects, and propel the Company into a new
growth orbit.
I am optimistic about the prospects of the real estate sector. I believe that the
momentum gained will continue for the next decade. I feel that our future is particularly
riveting.
In closing, I would like to thank all our stakeholders for believing in our story,
reposing their confidence in our capability, and extending their support in our long
journey of endurance.
Warm regards,
Dipakkumar G. Patel
Chairman