Ganesh Housing Corporation Ltd (NSE: GANESHHOUC) Q2 2025 Earnings Call dated Oct. 21, 2024
Corporate Participants:
B Ravi — Corporate and Financial Advisor
Neeraj Kalawatia — Vice President – Finance
Rajendra Shah — Chief Financial Officer
Analysts:
Rajat Gupta — Analyst
Rishith Shah — Analyst
Eesha Shah — Analyst
Puneet Gulati — Analyst
Satyam Badera — Analyst
Ishita Lodha — Analyst
Ankur Kumar — Analyst
Rajesh Jain — Analyst
Unidentified Participant
Krishna — Analyst
Yasmin Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to Ganesh Housing Corporation Limited Q2 FY25 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. [Operator Instructions] 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, sir.
Rajat Gupta — Analyst
Yeah. Thank you. Good afternoon, everyone, and welcome to Ganesh Housing Corporation Limited earnings call to discuss the Q2 FY25 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 risk 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 — Corporate and Financial Advisor
Thank you, Rajat. Good noon, ladies and gentlemen, on the call. It’s a pleasure to welcome you all once again to the earnings call of Ganesh Housing, both for Q2 FY25 and H1 FY25. I’m sure you would have had a chance to go through the presentation, which was uploaded couple of days back.
I’m excited to share that this first half of FY25 has been one of the best periods in terms of performance for Ganesh Housing. We have been consistently building on the strong momentum over the past quarters and based on that, H1 ’25 has surpassed all previous quarters and H1, delivering the best robust results that reflect the strength of our strategy and execution. India’s real estate sector, to talk about it in the beginning, saw a robust performance in Q3 2024, that is this calendar, with institutional investments totaling to around $1.1 billion, which is a 45% Y-o-Y. This brought the total investment into the real estate sector for the first nine months of this calendar 2024 to about INR4.7 billion, which is almost the entire last year’s performance in last year’s investments. The growth was driven by private equity partnerships, particularly in premium residential projects. Investor confidence remains high due to the expectations of interest-rate cuts, which though, of course has just been put on hold a couple of days back, but there is an expectation in the next two quarters and also stable macroeconomic conditions and increased demand for high-end properties.
In Ahmedabad too, we have witnessed this kind of a growth. The residential sales grew by about 11% Y-o-Y with around 4,600 units sold. The new project launches did fall, but the demand for 3BHK, which is little higher than the mid segment actually remained very strong and that accounted for 56% of the market, while homes priced between INR4,000 to INR6,000 per square feet saw the highest demand. Notably, premium housing units about INR1 crore saw a 41% increase, reflecting the growing interest in larger luxury spaces.
Even on the commercial side, we saw very good momentum. In fact, recently there was a deal in Ahmedabad, which is one of the highest-ever in terms of per — the land transaction per — in terms of the price per square meter. A land was sold by Ahmedabad Municipal Corporation around the same place that we are trying to build up our new next commercial venture as a staggering INR3.07 lakhs per square meter, which is the highest-ever seen. In line with market momentum, Ganesh Housing is making notable contributions to the real estate sector’s growth.
We completed the Malabar Exotica project, as you know, well ahead of schedule, which resulted in substantial revenue recognition in Q4, but that continues to support the strong performance in H1 FY25 also. The process of executing sale deal is currently underway and is expected to be completed this quarter, further strengthening the revenue visibility. The Malabar Retreat project launched in Q4 of FY ’24 has received the expected strong response from the market. With 12% of the construction already completed, the project is doing very well in terms of bookings. The pre-sale revenue is about INR100 crores in that project as of now. Typically, demand for premium apartments increases once there is a sample house built in and when the construction reaches for the first few floors when there is a visibility. Therefore, we do expect a significant rise in bookings during the second half of this financial year.
Our commercial venture, the Million Minds SEZ project is progressing well ahead of schedule with phase one on track for completion. We have already initiated the marketing efforts targeting large IT companies, which began as planned. We should see some growth and some developments in the coming half year on that. The early response has been strong and we are confident that this should be one of our most successful projects. In fact, the kind of development which is coming up both in terms of their square feet and the type will be better than what we had actually earlier planned.
The One Thaltej commercial project is currently in the final stages of approvals with plans expected to be submitted to authority soon. Spanning a saleable area of 1.8 million square feet, this project is set to generate estimated revenues of about INR2,100 crores and we expect the construction to start in the next three to five months. We are constantly searching for new development opportunities in and around the areas of our land bank and should come up with more news in the coming months.
Overall, Ganesh Housing is poised to capitalize on a wide range of growth opportunities in Ahmedabad real estate market. The ongoing projects such as Million Minds, Malabar Retreat, the Godhavi Township and the One Thaltej commercial venture are all strategically aligned with the city’s growing demand for both residential and commercial spaces. Each project is advancing at a steady pace with already — several already seeing strong market response, particularly in the premium segment.
Now for the financial highlights for Q2 and H1 FY25. It’s very heartening that in Q2 FY25, we have delivered a stellar performance with a revenue of INR250 crores, which is a significant 52% year-on-year. Our EBITDA has reached INR215 crores, representing a 76% growth year-on-year with an outstanding EBITDA margin at 86%, up by 15.6 percentage points from the previous quarter. This highlights the company’s ability to optimize cost and drive profitability.
Our profit after tax saw an impressive rise to INR159 crores, which is up 84% year-on-year. This resulted in a healthy PAT margins of 63.5%, up 11.1% year-on-year. Even on the first half year FY25, we have achieved total revenues of INR470 crores, which is an 8% increase Y-o-Y. EBITDA stands at INR371 crores, which is a 9% increase Y-o-Y. EBITDA margins are maintained at 78.8%. The PAT for the first half year reached INR272 crores, which is a 10% Y-o-Y, further supported by strong margins and operational efficiency.
Our PAT for six months is almost 60% of the PAT for the full-year FY24, justifying our expected and projected growth in the bottom line by around 30% year-on-year. This exceptional performance across all key metrics demonstrates our capacity to maintain strong margins and growth momentum while efficiently managing operations and capital.
Despite significant capital expenditure, as you can see all over, we have maintained very strong financial numbers in terms of cash flows. With zero debt, our cash balances, cash and bank balances as of 30th September ’24 stands at around INR250 crores, which was around INR220 crores in FY24 March. This is further going to be strengthened in the months to come.
Looking ahead, our focus remains on delivering high-value developments with a clear roadmap for the next five to seven years that ensures that we are well prepared to tap into any future market dynamics. By leveraging our land bank and focusing on mid to high-end residential and commercial segments, we are confident that these will create substantial value for all the stakeholders while enhancing Ahmedabad’s real estate landscape.
With this, I would request the floor to be opened for questions. Thank you.
Questions and Answers:
Operator
Thank you. [Operator Instructions] The first question is from the line of Rishith Shah from Nuvama Wealth. Please go ahead.
Rishith Shah
Hi, sir. Good afternoon and thanks for the opportunity and congrats on a great set of results again. Sir, I had three questions really. So first question was actually around the competition and the land prices. So you highlighted that there was a record-breaking deal that happened in this quarter in Rajput area. So that basically — and that is more so as per reports for the commercial. And secondly, we recently also saw a press release from one of the larger pan India competitors that they are adding land parcels in Ahmedabad. So just wanted to understand how this record-breaking land prices as well as new entrants coming into the market will affect the land prices as well as the competition and the overall landscape in Ahmedabad?
Neeraj Kalawatia
Would you want to give — ask all the three questions we can take together or you want one by one.
Rishith Shah
Yeah. So that was the first question. I’ll ask all the three questions together. So the second part was on the costs that we see. So again, impacting from the same increase in launches or increase in construction activity, do we foresee the labor prices being impacted?
And thirdly, the question that I ask usually is the split between the revenue in terms of the land sale and project sales? And lastly, fourth question — one more question if I can add regarding the Million Minds IT project, ITeS project so the marketing efforts that are ongoing, can you elaborate a little bit on it and maybe how is it, I mean, placed? Are we looking for an outright sale right now or people are leasing on the property. That’s it. Thank you.
Neeraj Kalawatia
Sure. Okay. I’ll take right for the beginning and all the four questions. The competition, the land price was a very important question, but that this kind of a competition or the increase in the land prices and more and more people being interested in the land in Ahmedabad actually will lead to the land prices increase, which actually affects positively for Ganesh also. Why I’m saying that is that we have had land banks at various areas in Ahmedabad at most strategic places, which are of very historical costs, very low cost historically. And therefore, any such kind of a increase in price which a competitor will have because they are buying the land now will drive their prices until the same price of the projects completed, which will have a project as a perfect impact on Ganesh Housing because their land price being the same, we will still be — on the final price will still be much cheaper, if at all, if we choose to be or will earn much more than a competitor can get in terms of the ultimate sale prices. So therefore, these things do help Ganesh Housing because of the large land bank we already have fixed on. That’s one.
Even for the new ones, wherever any such kind of land deals do happen, any new project’s prices will be determined as per the demand. And we will also, even if we purchase on that, it will be driven through the similar kind of a demand and supply situations. There the positive for Ganesh is that we are in the brand of, recall, absolutely on the top in Ahmedabad. Therefore, our kind of prices normally have always had a premium to the general prices which are available in the market, also because the kind of a premium construction and the facilities that we have been giving. So we do believe that with this kind of good development, I would call it in Ahmedabad real estate sector, Ganesh Housing is quite well placed to capitalize on both their brand as well as their land bank. That’s one thing.
Yeah, you want to — Rajendra bhai will add.
Rajendra Shah
Apart from this, we can leverage our unutilized capacity, we can do — we can go for JVs and such partnerships for development if pan India players comes to Ahmedabad, meaning our — one can imagine what can happen to IRR of our project because investment generally is made by some pan India players wherever — whereas they will require a local support to secure approvals and carry on requests.
Neeraj Kalawatia
On the cost side, yes, they can be — the labor costs and all have increased as you know, both the input costs have increased a year and a half back and they are only following the normal inflation. We don’t see too much of upheavals in the labor cost at this point in time. The split between land and projects is 90-10 in the case of land bank is. And as you know, we are following the completion method and therefore we will only be able to book the projects once they are completed, the new ones which have already started.
The Million Minds marketing efforts, the way the whole thing has been growing and people have actually on their own. There are various interested parties unable to take the name at this point in time, at least in December by which time actually finalizing everything just a couple of months from now. We have seen extremely good interest in the entire building. There are about INR12 crores which are supposed to be let out or even sold. And we have seen an interest in all the 12 floors as we stand at this point in time. And we will see whether we need to continue to lease the way we have modeled ourselves in the earlier stages or we need to sell it off. That will depend on some economics that we work out. I’m unable to say — it will only follow the sale model or only follow the lease model at this point in time, but those aspects would be addressed in that coming one or two months maximum. I hope I have answered all your four questions.
Yeah, you want to add something?
B Ravi
Yes, please. See, on availability of labor and increase in labor cost, we have actually deployed a technology which is we are going for precast mean pre-cast slabs vertical and horizontal which will require, meaning, our dependence on labor is reduced drastically because of that.
Rishith Shah
Right. Got it, sir. Thank you so much for the detailed reply. And just one follow-up, if I may. So in terms of — so I understand that the market will be more structured as and when the pan India players come into the market and we may also explore some joint development opportunities. But in terms of supply, will it potentially — I mean, do you see the supply being potentially impacted or exceeding the demand in any case in the near-term.
Neeraj Kalawatia
Normally the kind of interest which happens from by various players is only when they see a huge demand coming up in the month — years to come. And therefore, the very fact that such kind of prices are there and people are getting interested necessarily means that there are good growth opportunities and good demand coming — are coming up in the years to come. And therefore, I don’t think that will have any such kind of oversupply issue, if that’s your question.
On the other hand, I would like to say that there could be a supply in certain pockets where whenever there is an oversupply, then the demand drops, it could be oversupply, but not in the area where we are operating, whether it is the kind of a commercial building that we are setting it up in the SEZ or the kind of the premium housing that we are setting up. In all these areas, we don’t see any such kind of a lower supply situation coming up in the near future.
Rishith Shah
Very clear, sir. Thank you so much for the detailed reply.
Operator
Thank you. Next question is from the line of Eesha Shah from Axis Securities. Please go ahead.
Eesha Shah
Hi, first of all, congratulations on excellent numbers. I basically have two questions. As for Malabar Retreat, I see that the construction completion is 12% this quarter, which is just up by 2% from the past quarter. So is there a reason for the lag? And what is the expected timeline for the project?
And the second question is, for the Ahmedabad market, we’ve seen a good price increase, I think, as we’ve already said in land, but as well as the overall realization level, do we see the same kind of price hikes in the coming years or do we see them stabilizing now going forward?
Rajendra Shah
See, in terms of Malabar Retreat, you see the last quarter has been largely dominated because of rainy season and largely where the most of the construction activity was happening for the basement and you are well aware that the basement activity remained highly impacted because of the — whenever there is heavy rainfalls. So most of the period you see the last quarter has been rainfall in Ahmedabad and this year it has been comparatively one of the best years for the rainfall in Ahmedabad. Largely it does not happen even during the rainy season. So because of that, the construction activity has been impacted to a certain extent. But our schedule for the project is well in terms of timeline, which we have scheduled somewhere near around March 27.
Eesha Shah
Okay. Perfect.
Neeraj Kalawatia
Eesha, what happens is, initial — this was, as you know, launched in March and almost towards the end of March. The last quarter was April, May, June where the maximum effort and maximum time goes in doing the foundation, the basement and all that. Once that is done, when it comes to the ground level, putting up the next few floors and all is not actually a very difficult task, which is what when we talk to you again for December, you will see a substantial progress in that.
Eesha Shah
Okay.
Rajendra Shah
And there was substantial progress in terms of cost being spent in that project. However, construction milestone is one which we measure the progress of project and that’s why you can see it is 2%.
B Ravi
And you’re talking about the price hike and all that in the future to come. I think we have projected our future one at the current prices, but you’re right, whenever these kind of changes do happen, the prices are driven by slightly increases do happen. There may not be a sudden spike in all unless, of course, it’s a very good project like what we are doing with SEZ. That kind of prices may be not comparable with the rest of the people in the vicinity. But that’s one exception. But generally this price hikes and all that happens periodically and especially when for good new premium projects, the prices can be quite different from the general projects.
Rajendra Shah
Just to add to what Ravi ji just said, I was talking to some experts in real estate and according to them, prices per square feet in Ahmedabad is one of the most affordable if you compare any Tier 2 city or some metro cities. So there is a — meaning, there is still lot of hope for price to increase without affecting affordability.
Eesha Shah
Okay. Thank you, sir.
Neeraj Kalawatia
Thank you.
Operator
Thank you. The next question is from the line of Puneet from HSBC. Please go ahead.
Puneet Gulati
Yeah, thank you so much for the opportunity. My first question is on your Million Minds project, you’re targeting rental of almost INR70. And I mean, is there a discussion that you’re seeing on those rentals with your prospective tenants? And any timeline for pre-leasing there?
Neeraj Kalawatia
Yeah, the timeline I’ll tell you, we — as I just said, we shall be work — talking about that maybe in the next two, three months itself, there’ll be a lot of development in this which we can very concretely tell you when we talk about Q3 results. So because there is a lot of work going on in that direction, both on the prices that we talked about, INR70 per lease — for the rental charges as well as any outright sale, traction is there in that, I would call at this point in time. So interest being there, we are quite assured that the pre-leasing what we are saying because the project is likely to be completed in FY — the first quarter — early first quarter FY26, which is just about five months from now, five to six months. So we do see that the pre-lease activities would happen in the next three months or maybe five months at the maximum, because we’ll have to be giving them out for fitouts and all that in the first quarter of FY26, right? So we do believe that this — whatever development we are seeing on ground right now, they will be leading to good traction in the coming years.
Rajendra Shah
And coming back to INR70 per square feet what you said, we believe this is maintainable and sustainable rent and we are kind of stand by this.
B Ravi
These are in fact the current prevailing rental rate for a regular commercial property. So we are not charging any premium for the kind of the property we are making right now in terms of our provisioning.
Puneet Gulati
Okay. And similarly on the construction cost side, the implied construction cost seems to be less than INR3,500 a square feet. What is driving this low cost? I mean, market seems to be at a much higher rate at least in other cities?
Neeraj Kalawatia
Yeah. See it is a basic cost that we had been talking about. It might change if there is a premium that’s added to the building. So frankly, market-to-market, these kind of differences can be there. Here is — this is what we had estimated based on a particular plan about a year and a half back. So as we are looking at the entire aspect of how the whole building is coming up, how the — we have added actually much more in terms of the square feet to this as we see as well as the premium mix to that. So we will come back a few on these actual costs and all that maybe in the next six months, but we do believe that the basic cost will be well around this cost what we mentioned. That’s not very different from what we normally have for such kind of real estate.
Puneet Gulati
Understood. Secondly, you also talked about potentially buying more land, even though you have 500 acres. How do you think about your land on business development strategy here?
Neeraj Kalawatia
Well, it is the raw material. Land has to be there in order to be considering development projects, right, in the future. So that being our raw material, we would want to continue to acquire because then the future projects should not get affected. We cannot wait for — normally, we have been developing on our own land, right, we’re not just doing immediate buying and selling. That’s the reason why we try to accumulate. More importantly, the land buying has to happen in the areas where we believe the future development happens and where there will be a growth potential.
As — just to tell you in 30 seconds, the growth in Ahmedabad has been shifting westwards and northwards as we always keep saying. So earlier, everything was happening in the walled city, then transferred to this part of it is called the Ashram Road that is this western part of the river, then it shifted to CG Road, then it shifted to SGI, then it’s gone to the Ring Road and is now growing beyond. So keeping in view the kind of development which happens in the city, the promoters being the forefront — in the forefront of trying to take advantage of this kind of development, we always to keep looking at the land which is available in and around the areas. So that will be a continuous exercise, which will happen. Obviously, it will be keeping in view the prices versus the potential increases will happen, plus the potential development that can happen in these areas.
Puneet Gulati
And of the 500 acres, how much land would you have on the northern and the western part?
Neeraj Kalawatia
At this point in time, almost 100% is hardly on the other side. So these are all the development which is happening now both on the — as well as the west, it’s not exactly north, it’s northwest and that is that Million Minds area. That’s where all the — even Adani’s township is there close by and various other — it’s a new CBD. So that’s where this entire 65 acres is coming up and the best part, most part of it is where the Godhavi land is there. There are a lot of other traction happening as we told in the last quarter results also. There’s a lot of development happening in that less part of it with a lot of line of acquisition for future growth. So we do have planned at the places where it is just right for us to be at this point in time having acquired 10, 15 years back.
Puneet Gulati
Understood. And lastly, if I may, any challenges you’re facing on approvals front or availability of contractors, etc?
Neeraj Kalawatia
That’s one good — very good point of Ahmedabad, right here in Gujarat and that is these approvals and both on the contractor side, there’s nothing. We have been doing it seamlessly for so many years, year-on-year, beyond there and we don’t see any such problems. And even on the approval side, probably one of the most progressive states if you can call in terms of understanding the growth and giving approvals is Gujarat.
Rajendra Shah
I have worked in Mumbai for almost like 25 years. My experience of working in Gujarat and Mumbai, if I were to mention in two lines. Here we know in Ahmedabad that these are the kind of things which will not — just not happen in government. So you better make plan which is approval by government and then you will not have any problem. There are lot of flexibilities and loopholes or sort of work around which are available in Mumbai, which is not there anymore.
Puneet Gulati
Understood. That’s very, very helpful. Thank you so much and all the best.
Neeraj Kalawatia
Yeah. Thank you.
Operator
Thank you. The next question is from the line of Satyam Badera from Profitmart Securities. Please go ahead.
Satyam Badera
Congratulations on good set of numbers. And I have a question on IT SEZ. Can you please provide an update on the market response for phase 1 so far? And along with how far we are in progress in construction process?
Neeraj Kalawatia
The progress is that…
Satyam Badera
Have we initiated a discussion with ISRAN [Phonetic] regarding the marketing strategies of this project? Additionally, can you outline any other phase of the IT SEZ that you are planning in current financial year.
Neeraj Kalawatia
To answer the last question, if you have finished, you have any more questions, I’ll take that all.
Satyam Badera
No, I have one more question. I have one more question. What is the approximate inventory we are currently holding on the ongoing project, total inventory of all the projects? And can you even share of the Malabar Retreat?
Neeraj Kalawatia
Okay. I’ll just — we will take that later. Let me finish all the other questions. Now, as of today, the progress, what you asked about SEZ is very well — almost like a year ahead of schedule, if you can say so. And therefore, we are expected to complete that and hand it over for fitouts and all that in Q1 FY26, that means in April to June of next year, that is April, May, June ’25. Now this is where we see which is almost like in 10, 12 months or more well-ahead of schedule. So it is progressing well. At this point in time the roof and various activities are going on full strength.
So the discussion with ISRAN in terms of the lease, yes, it’s an ongoing process. We have had at least two rounds and there is a full-fledged discussion happening even as we speak around the same day. And therefore we — that’s why we said, I just told a couple of minutes back that we see a very good traction, very good interest in this kind of development. We can be — I mean, I dare say and I’m telling you this as a completely outsider that this will become one of the top buildings of India, leave alone Ahmedabad. That’s the way it is going. And therefore, we very strongly believe that the kind of interest which has been generated now and which will probably keep getting generated will not just completely leases out in the shortest period of time, but also enthuse us to go towards the second phase, which we have not yet started. We were planning to start the second phase. We’re not going to do that in this financial year because you asked that question, it’s not going to be in FY25.
But looking at this traction, we may say that we may have to constantly plan as projected, we said, no, we will be doing that in our earlier projection we have told. I think even that should start on schedule, even maybe well-ahead of schedule to the kind of traction that we are seeing right now. So phase two might well begin soon. We don’t know. Let’s finish this. In the next three to four months, we should see a lot of traction in this. Once we do that, we will talk about phase 2b.
Rajendra Shah
Coming to inventory what we have in hand, we have roughly about 30,000 square feet of office space which is available for sale in Maple Tree and Maple Trade Center project and there are few residential units which are available like six units which are available in Malabar Exotica project which have to be sold. However, meaning everything else is booked, but there are some customers who will not come forward for doing their final agreement, which is about 10 to 12 of them. Once they do final agreement with us, even that inventory will go. Other than that, there is hardly any inventory which is there for any completed projects.
Satyam Badera
Okay, thank you.
Neeraj Kalawatia
Thank you.
Operator
Thank you. The next question is from the line of Ishita Lodha from SVAN Investment Managers. Please go ahead.
Ishita Lodha
Hi, sir, congratulations for the great quarter.
Neeraj Kalawatia
Thank you. Ishita, you will have to be a little louder, please.
Ishita Lodha
Okay. Am I — is it better now?
Neeraj Kalawatia
Yeah, little better.
Ishita Lodha
So as per the previous participant’s question, I understand that 90% of the sales were land sales. So is it possible to share the area of the land which was sold in this quarter?
Neeraj Kalawatia
That’s about 23 acres.
Ishita Lodha
Okay. And in the investor presentation, in slide number 20, I see that there is a target mentioned that the company wants to develop 33 million square feet in the next few years having a total pre-sales value of INR17,500 crores. And then if I come to slide number 8, I see that the ongoing and planned projects were at the same quantum. So I have the confusion here because I understand that the commercial and the township projects are on lease basis. So does this pre-sales value, is it just residential or does it include the commercial and how does it…
Rajendra Shah
For the ease of the calculation, we have considered capitalized value of the lease asset also on a standard CapEx rate, which will give us an overall potential capital value of the total developer, which will take place in around next 7 to 10 years.
Ishita Lodha
Okay. So is it possible to share the rate — capitalization rate that we take…
Rajendra Shah
It is around 7%.
Neeraj Kalawatia
7% to 8%.
Ishita Lodha
Okay. And in this 33 million square feet, how much is residential, how much is commercial, and how much is the township?
Rajendra Shah
See, out of the 30 million, there around 15.3 million is the SEZ, both processing and non-processing areas, where largely you have a processing and non-processing in the ratio of 50:50. Then we have around 15.3 million square feet of development which has been targeted for the township, which is largely the residential development. Then there is a 1.8 million of the development in target for that One Thaltej project, which will be a pure commercial project.
Ishita Lodha
Okay, so the township is the residential one.
Rajendra Shah
Yes, that is residential. Meaning overall, if one wants to see about 25% of the development will be commercial and 75% will be resi.
Ishita Lodha
Okay. Thank you.
Neeraj Kalawatia
Thank you, Ishita.
Operator
Thank you. The next question is from the line of Ankur Kumar from Alpha Capital. Please go ahead.
Ankur Kumar
Hello, sir. Thank you for taking my question and congrats for a very good set of numbers. Sir, I wanted to ask regarding guidance. In the last call, we talked about 30% to 35% of growth in bottom line. So given 1H is strong, do we still stick to it or how should we look at second half on that front, sir?
Neeraj Kalawatia
I think looking to the performance, 60% of last year has already achieved right now and second quarter has generally been a little better than first quarter last year if we have seen. So I think we are well on course to achieve a 30% growth year-on-year?
Ankur Kumar
Got it, sir. And sir, you said 90% of sales is land sales and 23 acres. So how much can we expect in second-half? And how much is the total land bank that we will be selling in, say, next one to two years?
Neeraj Kalawatia
That has not been — what will be the amount of sale in the next one, two years, that is not really quantifiable right now because we see an opportunity, whether it is better to sell or whether it’s better to hold, that’s what rises. And therefore, it’s difficult to say that at this point in time. But the next half year, I think the pattern of the land sales versus budget sales could be the same as the first half year.
Ankur Kumar
Got it, sir. And sir, in the PPT, we are saying this nine-month land prices have stopped going up in Ahmedabad region. Is that right? I think in the slide number seven, we talked about INR per square feet that kind of has stabilized in 9M ’24 versus CY23. So how should we look at in going forward?
Rajendra Shah
That is actually not stabilized. If you see on a year-on-year, it is around somewhere around 8% of the growth in terms of the pricing. So the price as such is going upward year-on-year.
Ankur Kumar
Got it, sir. And we expect this trend to — growth to continue in this line?
Neeraj Kalawatia
Yeah. The trend is showing that way only. That is very strong.
Ankur Kumar
Got it, sir. Thank you and all the best.
Neeraj Kalawatia
Thank you.
Operator
Thank you. [Operator Instructions] The next question is from the line of Rajesh Jain from RK Capital. Please go ahead.
Rajesh Jain
Hi, sir. Good afternoon. Congrats on an extremely good set of numbers.
Neeraj Kalawatia
Thank you.
Rajesh Jain
I was going through your presentation and you have projected the sale value of around INR17,500 crore cumulative till FY34 over the next 8 to 10 years. So I just wanted some clarification, like this projected sale value is at the current rate of the land and the constructed flat or have you factored in the increase in prices also over the years?
Neeraj Kalawatia
Current rate.
Rajesh Jain
Okay, great. So then keeping in mind the future acquisition that is inevitable. So can the company grow at a CAGR of 24%, 25% over the next, I mean, almost 10 years?
B Ravi
So Rajesh, one correction. All these INR17,500 crores what we are we are saying we will achieve is going to happen on land, which is already acquired and paid for.
Rajesh Jain
Right.
B Ravi
So it is only a question of whether there can be any increase in construction cost. Yes, there may be any increase in construction cost. Again, there will be matching interest — increase in matches — matching or higher increase in sale prices. We believe that we will be able to maintain this 35% to 30% growth year-on-year, which is sustainable.
Rajesh Jain
For almost a decade, for almost 8 to 10 years, I mean these numbers work out to almost that rate for 8 to 10 years, right?
Neeraj Kalawatia
Yes. So the way the land prices are going as we just discussed for the last 40 minutes, we do believe that our historical land prices would be able to — we will be able to sell it at increased rate as we go by. And therefore, sustaining this 20%, 25% CAGR looks to be definitely done. Now this is where we see at this point in time looking to all the parameters which are available for our consumption. And I’m sure nothing is going to happen, I mean, wrong is going to happen in the years to come and we are planning for INR1 trillion economy and all that and a very stable government both in the center and the state. So all this gives us the confidence that we can achieve that. Rest is of course leave it to the almighty.
Rajesh Jain
Yes, sir. So, like as investors, we have the visibility for the current year and we have the visibility for the long-term, 8 to 10 years, but what I’m lacking is the visibility for FY26 in terms of your reported numbers because of the way the accounting is done for your business for your industry, like how much revenue do you think you can report next year? So this year will be a true — I mean, it is a done deal that you will be doing 30%, 35% growth. So what about the next year in terms of reported numbers?
Neeraj Kalawatia
See, there are various projects which we are planned for the next year also and that is including the kind of where the Godhavi township project. Now the revenues from that is such that it will be a completed project. So whatever we do in Godhavi will actually go to the top line and bottom line in the same year as and when we start monetizing that land parcel. And therefore, that project will continue to add to the top line. So we believe that the kind of development is happening around the Godhavi township area, which will lead to good sales in township for the next year, which will ensure the kind of revenue which will happen.
Now, this situation has been the same for the last couple of years, wherein we have maintained revenue and profitability in spite of having a lesser project on hand. But the project of Godhavi which will be starting next year is a pure project sales, which will happen in FY26 itself. And that’s the reason we believe that the projection that we have given can be maintained.
Rajesh Jain
So even in FY26, you are saying that there will be a good growth over FY25 base in terms of reported numbers?
Neeraj Kalawatia
Yes.
Rajesh Jain
Okay, sir. Okay. That’s very helpful. And sir, just one request. If you can start publishing or even during the con call, if you can give out your booking numbers or collection numbers or the numbers which have not yet flown to your reported numbers that…
Neeraj Kalawatia
In my speech — let me just — the one which we had given for Retreat, we have this pre-sales of INR100 crores, which I just mentioned. So yes, we’ll continue to give that kind of numbers quarter-on-quarter. Thank you for the suggestion. Thanks.
Rajesh Jain
Yeah.
Operator
Thank you. [Operator Instructions] The next question is from the line of Rutil Shaha from Advisor. [Phonetic] Please go ahead.
Unidentified Participant
Yeah, sir. Thank you for the opportunity. Sir, I was actually referring to your last quarter’s presentation in which we have given the slide for the upcoming residential project and the commercial project, but we have discontinued that in the current quarter’s presentation. So just wanted to know that why we have followed this practice from current quarter. Is there any change that we are looking into?
Neeraj Kalawatia
No, see, what happened, we have been giving it all these while, right? I mean, it was so repeated and it was just increasing it. There’s no particular reason. I think the better thing would be that once this quarter Q3 also done — when we are planning for the next year, we’ll bring that back in terms of the timelines and all that in the updated stuff. We just were waiting for the phase one to be getting over and all that. There’s nothing in particular. I think we’ll soon get it back in a quarter or two with an updated timelines and also price because when we see a good traction, we might have to revise that also. So we’re just waiting for that.
Unidentified Participant
Okay. Got it. Sir, second was one bookkeeping question. So currently in six months period if we see, our sales is around INR450 crores and corresponding sales last year six months was around INR435 crores income. But the trade receivables currently as on September are INR300 crores, which in the last September were hardly INR30 crores. So why is this huge bump in trade receivable as on September 21st.
Neeraj Kalawatia
See, trade receivables follow the sales and some land, it is always a timing difference, and something — some land which might have been sold, let’s say, early quarter of the quarter, then funds might have come in and sometimes the sales happens towards the later part of the quarter, wherein the funds are yet to come in, only certain parts of the funds have come in. But overall if you see that it is following the same pattern as it has been year-to-year also. So that is the only difference, I would say. There’s nothing much to read into it.
Unidentified Participant
Okay. Got it. And sir, another question. So you just mentioned that this quarter we sold around 23 acres of land.
Neeraj Kalawatia
Yeah.
Unidentified Participant
And in another quarter, we have — I mean you have conveyed that it is an ongoing process to sell and buy the land because it is a raw material for the business. So have you got bought some land in this quarter? And if yes, how much acre it would be?
B Ravi
It is somewhere around 25 acre of land which has been bought during this quarter.
Unidentified Participant
Okay. Got it. And sir, just one last question. This 23 acres that we have sold, it would be in the vicinity of the — I mean, it would be in the township or in the vicinity of township where it would be located probably if you can say.
Neeraj Kalawatia
You are asking the question where are we buying it?
Rajendra Shah
Yeah, vicinity of township.
Neeraj Kalawatia
It is all places like this is the township. There could be some other development and our — some future development which are seen, we will be buying land around that area. So it is not necessarily — we are not looking at only certain pockets of land. We are looking at land which is available for future development or from a projection perspective. So we are not restricted in that case, we are quite open in — we look at — we keep scouting around in fact.
Unidentified Participant
And which area are we selling the 25 acres that we sold?
Rajendra Shah
This is again largely the land parcel which we are not keeping targeted for any potential development. These are also the land which are there in the western part, but not in our targeted development areas.
Unidentified Participant
Okay. Got it, sir. Okay. Thank you, sir. That’s it from my side.
Neeraj Kalawatia
Thank you.
Unidentified Participant
All the best.
Operator
Thank you. The next question is from the line of Krishna from Ashika Stock Broking. Please go ahead.
Krishna
Thank you for the opportunity. I have one quick question to understand the consumer or the customer mix that we have. So how much percentage has been booked by the end user or first time buyers versus the investment purposes?
Rajendra Shah
We have hardly any investors. In fact more — majority of the majority of the booking, bulk of our booking is done by actual land users. The pace of determining this is kind of home loans which are as a percentage of your total bookings, which is very high in our case.
Krishna
Okay. And what would be that percentage if you could just mention?
B Ravi
Okay. So almost 90% of the — our sale, they are backed by the home loan.
Krishna
Okay. Got it. Thank you. This is helpful.
Neeraj Kalawatia
Thank you.
Operator
Thank you. The next question is from the line of Yasmin Shah from Antique Stock Broking. Please go ahead.
Yasmin Shah
Thank you for the opportunity. Just wanted to ask you, what’s the current land bank and what amount or in terms of probably acres, you don’t want to kind of exclude the land bank in terms of development and which can be added to your sales of land in the coming years after total land bank available.
B Ravi
So see the total land bank we have been holding and subsidiary taken together is around somewhere around 535 acres. And this keep on — I’m seeing adding a reduction depending on what is the business activity and the targeted sale and subsidy happening. So as such, there is no fixed policy where we are saying that this is the land which we will keep it permanently or which will keep it purely worth selling purpose. It is largely how the development is happening all around the places as well as how the government is responding on different areas, how they want the development to take place in those areas. Accordingly, we take those decisions.
Yasmin Shah
And any plans to move out of Ahmedabad into any other cities?
Neeraj Kalawatia
But at this point in time, no, there is not immediately. You will see if there is something which comes up if — we are not averse to that, but we do believe that the opportunities which are being given in Ahmedabad is so good that it — we are not yet lured into any other city with similar kind of ROCEs.
Yasmin Shah
Right. And within Ahmedabad, I don’t think you all do any JDAs, right?
Neeraj Kalawatia
Not as of now, but we don’t — again, we are not averse of that. We are quite open to that also. But at this point in time, we don’t have a JV project, it might come up.
Yasmin Shah
Okay. And lastly, what was your — I think in the previous quarter’s call, you had given some guidance in terms of top line and bottom line growth for the next one or two years. Can I have that number again, please?
Rajendra Shah
See, those number we have already given in terms of 20% to 30% growth in the bottom line, the top line we think it might — they might not be the [Indecipherable] but bottom line, we are pretty sure that we will be targeting those areas.
Yasmin Shah
Right, okay. Thank you very much and all the best.
Neeraj Kalawatia
Okay. Thank you.
Operator
Thank you. The next question is from the line of Rajesh Jain from RK Capital. Please go ahead.
Rajesh Jain
Yeah, thanks for the follow-up. Sir, I just wanted to understand like it could be an accounting question and pardon my ignorance for this. So just wanted to understand how much time lag is there between your pre-sales numbers and the reported numbers? I mean, as per the accounting standards, what is the norm here? If you can just help me with that.
B Ravi
See, if you see Ind-AS 115 talks about you can book the revenue only when the project is completed, you got the occupancy certificate as well as sale deal is happening. So — and generally, if you take a timeline of three years period of time for a project to get completed, so your pre-sales will get converted into the reported number after the BU numbers. And largely it depends on how the sales deals are happening, how the customers are responding. So over the next — after the BU certificate, you get to two to three quarters where the entire revenue of the project gets booked into the books. So this is what is happening in all last three, four projects, what we are experiencing.
Rajendra Shah
Just to answer your question generally, meaning there could be time gap of about — average time gap of about one year to one and a half years for pre-booking to get convert reflect into revenue from project.
Rajesh Jain
But your average projects will get completed within three years’ time. So I mean, for a particular project, it will get reflected in revenue numbers after three years, you are saying for a particular project?
Neeraj Kalawatia
Yes. Unless we achieve the closure much faster, like what we did in Exotica, it was completed well ahead of schedule. So if that happens, then the revenue comes in faster also because a lot depends on the completion of project.
Rajendra Shah
In case of Exotica this project get completed one year ahead of the schedule. So instead of fourth year, the revenue started recognizing in books in third year. Same is with Malabar Retreat also, the project gets completed well ahead of the schedule. Accordingly, those revenue recognition get paid for.
Rajesh Jain
Okay. And you’re saying as per the accounting norms, this will be reorganized only on 100% completion, not even on certain milestones like 25% completion or…
Rajendra Shah
No, that practice is no longer now.
Neeraj Kalawatia
Not allowed.
Rajesh Jain
Okay. Understood. Thank you.
Neeraj Kalawatia
Thank you.
Operator
Thank you. The next question is from the line of Rutil Shah from Advisor. Please go ahead.
Unidentified Participant
Yeah. Sir, thank you for the follow-up. Sir, as you just mentioned that this quarter we had bought around 25 acres of land. So this — can you let us know what is the total buy value of this new land?
Rajendra Shah
Sorry, could not get your question.
Neeraj Kalawatia
No, no, we are yet to acertain. Right now we are not aware.
Rajendra Shah
25 crores cost.
Unidentified Participant
Okay.
Neeraj Kalawatia
We shall get that out the moment it’s booked. So at this point in time it’s not ascertainable is what Rajendra bhai just said but we will get it out in the coming months.
Unidentified Participant
Okay, great, thank you.
Neeraj Kalawatia
Thank you.
Operator
Thank you. Ladies and gentlemen, that’s the last question for today. We have reached the end of our question-and-answer session. I would now like to hand the conference over to the management for closing comments.
Neeraj Kalawatia
So thank you everyone for interest — continuous interest being shown in Ganesh Housing numbers. I think we have been delivering on all the promises made year-on-year and sometimes even better. We are hopeful that we will continue to do that in the times to come too. I look forward to your interest being sustained just as our numbers have been sustained. Thank you very much.
Operator
[Operator Closing Remarks]