Ganesh Housing – Results

Ganesh Housing Corporation Ltd (GHCL) reported revenue growth of 180.4% for FY08 to Rs1.3b. Net profit grew 229.5% to Rs1.1b. EBITDA margins were 82.9% v/s 43.1% in FY07. For 4QFY08, revenue declined 53.9% YoY to Rs147m and net profit declined 61.8% YoY to Rs40m.

In 4QFY08, GHCL acquired 21.2msf land from promoter group companies for the Ognaj Township. This is part of the ~33msf land that was to be transferred from promoter group companies to GHCL.

The management is considering strategic tie-ups for development of key projects like – Million Minds IT SEZ (~13msf), and (b) Ognaj Township (~21msf). We believe this is a positive move, as these projects are vast and have an embedded execution challenge.