Ganesh Housing targets over Rs 300cr revenue this year

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In an interview with CNBC-TV18's Managing Editor Udayan Mukherjee, Shekhar G Patel, MD, Ganesh Housing , spoke about the latest happenings in his company and sector.

Here is a verbatim transcript of the exclusive interview with Shekhar G Patel on CNBC-TV18. Also watch the accompanying video.

Q: Can you just take us through what your development plan is for the next four to eight quarters in Gujarat?

A: We have a total 650 acres of land in and around Ahmedabad. Out of that, 550 acres for our township, 100 acres is for our SEZ and residential project and another 25 acres is in the city for different kind of projects.

Currently, we have six projects in hand, roughly two million sq feet, Rs 500 crore project. We have booked almost all the units in these projects. We are planning 1.5 million sq feet residential project on SG highway in the next quarter.

Q: This two million sq feet that you spoke about, what is the delivery schedule of that?

A: Delivery schedule is July-August next year.

Q: So most of the apartments have been pre-sold already?

A: It has been sold, 96% has been sold.

Q: At what kind of rates roughly?

A: Roughly, on an average, Rs 2500 a sq feet. Sale value is around Rs 500 crore.

Q: This Rs 500 crore of revenues will be booked between now and July next year, over the next three quarters?

A: We have booked Rs 110 crore until now and over the next three-four quarter we will book the remaining Rs 390 crore.

Q: I am asking because your revenues for fiscal year 2010 was Rs 100 crore, so are you saying that the revenues for fiscal year 2011 could be in excess of Rs 400 crore?

A: No, it will be split in two years.

Q: FY11 and FY12?

A: Yes.

Q: How much can you book in FY11, you will spill only by one quarter, April-May-June quarter of FY12?

A: We have already booked Rs 110 crore and Rs 390 crore will be booked in the next three-four quarters so you can calculate on that basis.

Q: So Rs 300 crore plus revenues for fiscal year '11 looks quite likely before March 31, 2011?

A: Yes. I think so.

Q: What kind of plan do you have for this Million Minds mega project, if you can just talk beyond the next three-four quarters?

A: Million Minds project is mixed of IT, SEZ and residential. Total we have 14 million sq feet of development there. Out of that 14 million, three million sq feet is for IT space and 11 million sq feet is for residential space. That is on the very prime location in Ahmedabad on SG Highway. We are planning to launch it in January.

Q: So fiscal year '12, you will be booking revenues from the Million Mind project as well?

A: Yes.

Q: How much? What is the roadmap there for development execution and booking of revenues, the first phase of Million Minds?

A: Total 14 million sq feet, we will be completing in four years. We will start with the IT space first and IT space and residential. I think the spill over from the project will be four years.

Q: All of it will be on a sale basis or you intent to lease out some of the commercial space?

A: Residential space will be on the sale basis and IT space will be on lease as well as long-term lease.

Q: Any possibility of rates going up in the Ahmedabad market because there is quite a bit of supply, even Godrej properties have been launching fairly significantly sized projects out there?

A: Rates are going up since last two-three years pretty well. Ahmedabad has done good in the last two years and I think Ahmedabad is now focus city in India. So, I think rates would go up.