Ganesh Housing Corporation Ltd Management Discussions

ANNEXURE - B

INDIAN ECONOMY OVERVIEW

GALLOPING AHEAD

Indias economy soared ahead, displaying outstanding strength with a GDP growth of 7.6%. This growth was supported by high manufacturing activity and relatively controlled inflation.

The manufacturing sector thrived with the easing of commodity prices. This not only increased production levels but also strengthened profitability margins of companies across various industries.

Retail inflation remained above 4% for the whole of FY24. Notably, while certain states struggled with inflation, producer states (crop production states) experienced a milder pinch as they did not have to deal with the logistics costs of importing crops.

Amidst this inflationary landscape, Foreign Portfolio Investors (FPIs) emerged as significant players who made net investments of around US$ 14.5 billion in 2023-24 in the debt market. This is the highest annual inflow since 2017-18. Notably, FPIs interest in the debt segment gained momentum in the latter half of the year after the announcement of the inclusion of Indian Government bonds in various global indices.

Conversely, Indias outward foreign direct investment (OFDI), or overseas direct investment, declined by 39% to US$ 28.64 billion in the year-end as of March 2024, amid uncertain global economic conditions. Of the total overseas direct investments, commitments through the equity route stood at US$ 9.62 billion in fiscal 2024, compared to US$ 19.13 billion in FY23. The equity contributed around 34% of the financial commitment in FY24.

India witnessed a significant uptick in goods and services tax (GST) collection, marking a notable increase of 11.7% to reach a substantial sum of 720.14 lakh crore. This surge in GST revenue reflects a strong economic environment, with the average monthly GST collection for FY24 standing at 71.68 lakh crore, showcasing a rise compared to the preceding fiscal periods 71.5 lakh crore. Moreover, the robust performance continued throughout the year, as evidenced by the GST revenue and net refunds totalling Rs. 18.01 lakh crore for the entire financial year, depicting a sturdy year- on-year growth rate of 13.4%.

Indias overall exports reached a record US$ 776.68 billion in FY24. The increase was marginal over the previous years US$ 776.40 billion. This growth was primarily driven by the resilience of services exports, compensating for the 3.11% contraction observed in merchandise exports. While merchandise exports declined to US$ 437.06 billion in FY24, services exports showcased a commendable growth rate of 4.4%, surging to a record US$ 339.62 billion.

Reflecting the Governments commitment to infrastructure development and economic growth, 80% of the revised FY24 budgetary allocation for capital expenditure has been utilised. In the revised estimate for FY24, the Government allocated Rs. 9.5 lakh crore for capital expenditure and Rs. 35.4 lakh crore for revenue spending, signalling a focused effort to bolster infrastructure and drive sustainable economic expansion.

According to projections by the Reserve Bank of India (RBI), the Gross Domestic Product (GDP) is anticipated to exhibit a robust growth of 7% in FY25. This optimistic outlook is supported by several potential factors such as the anticipated surge in household spending and the revival of the private capital investment cycle.

India witnessed a significant uptick in goods and services tax (GST) collection, marking a notable increase of 11.7% to reach a substantial sum of ^20.14 lakh crore. This surge in GST revenue reflects a strong economic environment.

INDIAN REAL ESTATE MARKET SURPASSING ALL EXPECTATIONS

The Indian real estate market experienced a remarkable upsurge in 2023 that exceeded all expectations. This dynamic market is now a beacon of opportunities for domestic and international investors, propelling the economy to greater heights.

Due to the post-pandemic boost in demand, the property market was able to survive rising interest rates, which started as a reaction to inflation pressures from the conflict between Russia and Ukraine and interruptions in global supply chains.

In 2022, higher rates initially did not affect buyers, resulting in a strong performance in real estate, which was already beginning to rebound after the COVID-19 pandemic. However, when interest rates and inflation started rising, consumer enthusiasm dampened. These concerns eased when the Reserve Bank of India stopped raising interest rates in April 2023, which made property buyers feel more at ease. Market analysts now anticipate potential rate cuts in the future.

The Indian real estate market had a phenomenal inflow of around US$5.1 billion in 2023, of which land acquisitions accounted for an astounding 40%. Domestic developers were leading the way, receiving 42% of all investments, with overseas investment firms taking a more cautious stance. The market is still driven by strategic investments in the residential and industrial sectors despite forecasts of a slowdown in capital intake.

The market for fractional ownership, estimated to be worth US$ 5.4 billion in 2020, is expected to grow at a strong Compound Annual Growth Rate (CAGR) of 10.5% to reach US$8.9 billion by 2025. This technique encourages portfolio diversity within SEBIs regulatory framework by providing retail investors access to Grade A office assets. Driven by consistent demand, steady interest rates and strong GDP growth, the residential sector has become a focal focus for expansion. The demand for mid to high-priced residential homes is noticeably higher. (Source: Business Today and Financial Express)

Indias real estate market has emerged as the most preferred destination for global investors in the Asia-Pacific region, receiving over US$23 billion since 2018, accounting for 77% of the total investments during this period. This happened because of the economys strong performance, improved regulatory framework and robust demand across multiple real estate sectors. The U.S. remains the top investor, contributing to about 44% of the foreign inflows, followed by Canada and APAC at 25% each.

TRENDS IN THE INDIAN REAL ESTATE MARKET

SHOP-CUM-OFFICES

The emergence of shop-cum-office (SCO) premises has brought a huge upheaval in the Indian real estate industry. The ground-breaking idea changes the commercial real estate scene by integrating office and retail space into one structure. The adaptability, effectiveness and strategic outcomes that the SCO spaces offer businesses to promote economic growth make SCOs appealing.

TIER-II CITIES BECOMING RESIDENTIAL MARKETS

AMRUT and the Smart Cities Mission are two government initiatives that have assisted in transforming cities into superior residential hubs. Furthermore, these cities are more likely to see a growth in residential population density due to a promising increase in employment possibilities and economic growth. This is because several tier-II and tier-III cities are either well-connected to the nations major cities or are home to several multinational corporations, both Indian and foreign. Therefore, many working professionals are relocating to such cities, boosting the demand for residential properties.

GROWTH IN OFFICE LEASING

The demand for office spaces has risen, especially in the IT and retail businesses. Furthermore, e-commerce and third-party logistics companies feel the need to invest in warehousing, which will make them the fastest-growing commercial real estate segment. Apart from these, investments in data centres have also increased.

RISE OF LOW-DENSITY HOUSING

Demand for low-density housing, including villas, townhouses and plotted developments, has witnessed a significant upswing. The allure of low- density housing, with its emphasis on blending with nature, ensuring privacy and offering ample space, has caught the fancy of many homebuyers. As a result, theres a growing inclination towards low-density housing as individuals seek refuge from bustling urban environments.

INCREASED PREFERENCE FOR HOMEOWNERSHIP

After the COVID-19 pandemic, there has been a significant shift in societal attitudes towards home ownership. Theres a growing inclination towards owning a home rather than relying on rental arrangements, as individuals now prioritise stability and security.

RESIDENTIAL SECTOR

METEORIC RISE

The real estate market in India has grown remarkably in 2023, exceeding the growth rates of all prior years and shattering all records. This growth has been Fuelled by policy changes, improved consumer confidence, growing disposable incomes and an increasing desire for larger homes. Additionally, the Governments efforts to simplify regulations and improve transparency in the sector have contributed to this unprecedented growth.

With sales of 0.16 million units in the first half of 2023, the residential market started the year on a somewhat stable basis, although 1% lower than the previous year. Residential property demand in the nation not only proved resilient but also soared to a 10-year high in yearly sales in 2023, even after the Reserve Bank of India raised policy rates by 250 basis points between May 2022 and February 2023. In addition, H2 2023 saw the largest sales volumes produced over a half-yearly period in the previous ten years. The 0.17 million units sold in H2 2023 represent a strong YoY increase in the volume of 12% and played a key role in propelling the 2023 annual sales total to a 5% higher level.

The rebound in demand has also accelerated residential development, with 10-year highs being reached in the half-yearly and annual volume of units released. In reality, launch volumes in 2022 and 2023 have surpassed sales for the respective periods. The share of annual sales in the <INR 5 mn ticket size price segment has reduced from 45% in 2020 to 30% in 2023. On the other hand, during the same reference period, the share of sales in the T5-10 mn and >10 mn ticket-size categories grew from 35% to 37% and 20% to 34% respectively. The higher income segments were less affected by income disruptions caused by the pandemic. Besides, the high savings rate due to the initial weak sentiments and lockdown periods played their part in fuelling the current wave of demand.

In terms of absolute sales growth over the previous few years, the mid and premium categories have exceeded the affordable category. The premium segment with home prices over T10 mn has seen a notably strong performance with an annual sales growth of 33% YoY in 2023. While the mid-segment sales growth was roughly in line with market averages on an annual and half-yearly basis, the affordable segments 16% YoY decline in 2023 proved to be the sole negative factor affecting the market.

RETAIL SECTOR

FAST YET STEADY - BREAKING STEREOTYPES

India is now the FiFth-Largest retail market globally, having grown by 34% from US$ 890 billion in 2019 to US$ 1.2 trillion in 2023. Different industries within the business drove the industrys growth in 2023. (Source: Decan Chronicle)

As the industry emerged from the pandemic, office leasing in the leading cities reached a four-year high and completion of development saw an all-time high in 2023. As many as 11 malls opened for business this year, and the new retail space available in shopping centres surged by 72%.

CBRE reports that in 2023, the office sector saw a gross absorption of 61.6 mn sq. ft. across nine locations, representing a 7% growth and a four- year high in leasing activity after it touched the peak in 2019 with 65 mn sq. ft.

Nearly 57% of the annual leasing activity was accounted for by Bangalore, Hyderabad and Chennai. With a share of 22%, BFSI firms led the leasing market. Technology companies came in second with 21%, followed by engineering and manufacturing firms with 15% and flexible space operators with 14%. Office Leasing for the Oct.-Dec. 23 period reached a record-breaking 19 mn sq. ft.

The amount of office space projects completed rose by almost 13%, reaching an all-time high of 56.7 mn sq. ft. in 2023. In eight major cities, the new retail space supply in shopping malls surged by 72% last year to 59.48 lakh sq. ft. - 11 shopping malls became operational in 2023.

In 2024, the demand for the office sector is expected to be led by Bangalore, followed by Delhi-NCR, Hyderabad, Chennai, and Pune. (Source: Decan Chronicle)

INDIAN OFFICE SECTOR

SURGING AHEAD

The India office market outperformed forecasts in 2023 despite monetary tightening and geopolitical difficulties. Numerous deals were finalised in the second half of the year, demonstrating the occupiers remarkable tenacity.

In 2023, occupier sentiment has gradually improved as the total transaction volumes in the eight markets we cover have grown over the years four quarters. In terms of annual transaction volumes, the year came to a close behind the record highs in 2023, with 5.53 million sq. mts (59.6 mn sq. ft.) taken up.

All markets saw a YoY increase in transaction volumes, except Bengaluru, where the total 1.16 million sq. mts (12.5 million sq. ft) in 2023 represents a 14% YoY decrease. The decline in demand from the technology industry can be partly blamed for this. Still, its important to remember that transaction volumes in 2022—the base year—were abnormally high, and 2023s levels are still within Bengalurus longer-term average.

While the overall transacted volume has been on a steady uptrend, its underlying constituents have changed substantially over time. Third-party IT services have previously been a prominent demand driver of office space demand. Still, India-facing businesses have been anchoring demand in recent years due to a strategic business need to be aligned with the growing Indian market. India- facing businesses accounted for 37% of the total volume transacted during 2023, just shy of 39% in 2022. The share of third-party IT Services has dropped from 16% to 11% in the same reference period.

Compared to a year ago, when flex spaces accounted for 19% of all transacted volumes, as opposed to the current 17% in 2023, the need for tenure flexibility is less pressing. Flex space operators only accounted for 11% of the total transacted area in H2 2023, a more noticeable phenomenon than the twice as high (22%) in H2 2022.

The persistent increase in the demand for offices throughout 2023, despite the world economys unstable state, highlights the nations optimistic business attitude right now.

ABOUTAHMEDABAD

A WELL-DESERVED EPITHET OF THE MANCHESTER OF INDIA.

Ahmedabad is rapidly establishing itself as a major player in the Indian real estate market, driven by several factors that make it an attractive proposition for investors. It is a key centre for textiles, pharmaceuticals and information technology industries. This strong economic base translates to a growing demand for quality housing, propelling the real estate market forward.

Compared to other major Indian cities, Ahmedabad offers a significant advantage: affordability. Property prices here are generally lower, making it easier for first-time homebuyers and young professionals to establish roots in the city. This affordability and a growing job market create a win-win situation for residents and investors.

The city is undergoing significant infrastructure upgrades, further enhancing its appeal. The Ahmedabad Metro Rail and the high-speed Mumbai-Ahmedabad Rail are prime examples of improving connectivity within the city and to other major commercial centres. Projects like GIFT Citys expansion also create new business districts, stimulating demand for commercial and residential spaces.

According to Ahmedabad Municipal Corporation (AMC), its revenue and capital expenditure in FY24 was Rs. 10,169 crore against Rs. 7826.67 crore in the previous year. The civic body said Rs. 4,556.88 crore was capital expenditure on infrastructure works, 33% more than the Rs. 3,425.32 crore spent under this head in FY23.

In a significant move to push Ahmedabads growth trajectory, the Asian Development Bank (ADB) has approved a US$ 181 million loan. This targets the peri-urban regions surrounding Ahmedabad, aiming to significantly enhance the quality of life for residents and bolster the citys overall economic strength. According to a press release by ADB, Ahmedabad and its peripheral areas have seen rapid industrial growth, significantly contributing to Gujarats economic development.

The ambitious GIFT City project will see expansion with planned development of areas surrounding the existing GIFT City. The proposed development plan for the expanded GIFT City area outlines a comprehensive vision, with an earmarked investment of Rs. 6,187 crore dedicated to infrastructure development over the next 15 years. It is assumed that most of the extended area will be developed in 15 years. The first phase will cost Rs. 826 crore, which is less than other phases as land availability through the town planning scheme will take time. The total cost for implementing infrastructure is about Rs. 6,187 crore, subject to market rates and may vary in the future.

Some of the initiatives taken by the Indian Government to strengthen Ahmedabads positioning as a prominent commercial centre are mentioned below.

Delhi - Mumbai Industrial Corridor (DMIC)

The Delhi-Mumbai Industrial Corridor (DMIC), the first industrial corridor connecting the Western Dedicated Freight Corridor (DFC) to its core, is being developed by the Indian Government. The project spans the states of Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra along the DFC, where 20 companies began operations.

Metro Rail Expansion

The Phase I metro train project in Ahmedabad has significantly altered the citys transportation system, increasing the value of real estate in the catchment region. The second phase of development, which will link Gandhinagars Mahatma Mandir with Ahmedabads Motera, has already begun.

Third Outer Ring Road

In its City Development Plan 2021, the Ahmedabad Urban Development Authority (AUDA) suggested building a third outer ring road. This large-scale urban infrastructure project aims to control traffic congestion and meet the citys growing transportation needs.

Tharad - Ahmedabad Expressway

The Tharad-Ahmedabad Expressway, a 6/8 lane, 213.8 km expressway, was proposed by the National Highways Authority of India. The Bharatmala Pariyojna would see the construction of this Greenfield expressway.

AHMEDABAD REAL ESTATE MARKET

SHATTERING RECORD AFTER RECORD

As per a report by proptiger.com that analysed data from eight major cities across India, Ahmedabad is the countrys largest real estate hub, with a 51% growth. This can be attributed to the enhanced infrastructure.

The Northern Corridor, encompassing GIFT City, Peripheral North, has catalysed commercial and residential property sales in Ahmedabad. The growing need for office space has supported the residential real estate market. Ahmedabad has potential real estate investment due to its outstanding connectivity, rapid industrialisation, and continuous infrastructure advances.

SOME POLICIES CREATED BY THE GOVERNMENT OF GUJARAT

IT Policy (2022-2027)

The new Gujarat IT/ITeS strategy aims to create 1 lakh direct jobs in the IT/ITeS sector and boost Gujarats information technology ecosystem. Additionally, the state wants to increase its IT export revenue from 3,101 crores to 25,000 crores. It is anticipated that this will be accomplished by enabling top-notch co-working spaces, allowing any IT business to speed up its IT operations within the state. Another major goal is establishing a Gujarat AI School or AI Center of Excellence.

Gujarat Electronics Policy (2022-28)

The state Government will create Gujarat Electronics Manufacturing (GEM) clusters per the policy to improve the environment for Electronics System Design &

Manufacturing (ESDM). Common testing labs, R&D facilities and other infrastructural facilities will be available to these clusters. The government aims to create about 10 lakh new jobs in the ESDM industry.

Tourism Policy (2021-2025)

The MICE Policy offers a capital subsidy of 20% on qualified capital investment to build tourism centres with a minimum investment of crore. The Gujarat Tourism Policy offers various products, including adventure tourism. According to the policy, a theme park or amusement park may be established with qualified capital inputs of between US$ 50 billion and US$500 billion. The idea is to encompass travel, health and wellness, and experiential travel centred in rural areas.

OFFICE

The year 2023 experienced a gross leasing volume (GLV) of 1.62 msf, recording a 5-year high and a growth of 40% compared to the previous year. The flex space industry, which accounted for 32% of the demand, and IT-BPM, which contributed 23%, are the main drivers of the rising demand.

It is anticipated that in the future, new commercial development along the SG Highway (from Pakwan Junction to Vaishnodevi Circle) will result in the emergence of new office buildings with superior-grade spaces. More and more people are becoming aware of GIFT City ahead of the Vibrant Gujarat Global Summit, which aims to attract new Fin-tech companies. Developing the Sabarmati muiti-modai transit hub will also strengthen the link between Ahmedabad and GIFT City and stimulate local economic growth.

RESIDENTIAL

Regarding the residential market, Ahmedabad accounted for the largest share in the affordable sector in Q4 of the quarterly launches. In 2023, 21,713 units were released annually, representing a three-year high and a 13% increase from the previous year. Annually, the mid-segment accounted for 53% of releases, followed by the high-end category (27%) and the inexpensive segment (20%). This year, a spike in activity in a few sub-markets has been seen due to improved road and metro links, such as the Northern and Eastern Corridor.

The State Government recently announced plans to convert significant agricultural land in the Northern submarket to residential usage. It is anticipated that this action will promote growth in that region. Demand for residential real estate in the GIFT City may be significantly boosted in the years to come by recently proposed physical and social infrastructure (such as an entertainment centre, international colleges, healthcare facilities, and more) in conjunction with steady economic activity.

Additional road connectivity measures and the operationalisation of the Phase II metro by mid-2024 are likely to attract new residential constructions in the communities surrounding transit corridors, such as GIFT city, Zundal, Chharodi, and Gota.

RETAIL

About 0.40 million sq. ft of Main

Street leasing activity was reported annually, with the fashion industry accounting for 51% of the market. Accessories & Lifestyle (13%) and F&B (10%) followed in order of dominance. Due to the scarcity of ready-to-move premises on well-known main streets like Sindhu Bhavan Road, Ambli- Bopal Road, and CG Road, businesses are looking into pre-commitments in newly constructed buildings and under-construction areas near these key streets.

AHMEDABAD OFFICE SECTOR

GEARING UP FOR PROMISING TIMES AHEAD

Ahmedabad recorded a gross leasing volume (GLV) close to 0.1 MSF in Q1 2024, recording an 80% drop every quarter and a 60% drop from last year. This large dip is attributed to the limited availability of office supply that meets occupier requirements, resulting in delayed closure of active demand in the market. The overall quarterly leasing activity was driven by the IT-BPM segment (~70% share), followed by BFSI (~11% share).

The city recorded grade - A stock addition of 0.71 msf during the first quarter across SBD (~62% share) and PBD (~32% share) submarkets. The city-level vacancy was recorded at 30.90%, a nominal rise of 74 bps on a q-o-q basis, due to a slowdown in leasing activity amidst steady supply. The city-wise vacancy is expected to slightly increase considering the new supply pipeline of ~2.36 msf by the years end.

NEW SUB-MARKET BOUNDARY

CBD: Central Ahmedabad west of Sabarmati river and east of 132ft Ring road, includes the micro market of CG Road, Ashram Road, Paldi, Navrangpura, Ambawadi, Usmanpura, Naranpura

SBD: West of 132ft Ring road, spanning from Sarkhej Okaf to South of Sola Science City, includes micro markets of SG Highway, Thaltej, Prahladnagar, Okaf, Iscon Ambli Road and Sindhu bhavan Road

PBD: It includes micro markets in Science City, Adani Shantigram, Gota, Motera, Chandkheda, Mindspace IT SEZ, and Gandhinagar.

GIFT City: GIFT City and GIFT SEZ designated area

East Ahmedabad: The entire city on the east of the Sabarmati River includes the micro market of Shahibaug, Vatva, Maninagar, Vastral, Odhav, Naroda, Narol

MARKET STATISTICS

Sub Market	Inventory	Vacancy	YTD Gross Leasing Activity	Planned & under Construction	YTD Construction	YTD Net Absorption
	(SF)	(%)	(SF)	(SF)	(SF)	(SF)
SBD	1,67,14,607	29.85	18,946	20,30,931	4,40,133	34,290
CBD	31,97,603	33.55	11,261	13,07,959		11,261
GIFT City	32,84,456	12.16	63,000	23,30,241		63,000
Total	2,64,26,685	30.9	93,207	69,02,461	7,15,848	1,08,551

AHMEDABAD RESIDENTIAL SECTOR

RELENTLESSLY SURGING AHEAD

The residential sector kept momentum in 2023 thanks to the strong recovery in prices and demand during the previous two years. With 16,113 units sold during the year, sales levels maintained their upward trend and were a healthy 15% higher than the previous years. The Ahmedabad homebuyer remained resolute despite interest rates rising to prepandemic levels and residential prices reaching new highs.

While demand growth has been healthy, developers have launched new lifestyle-oriented products with better amenities and larger areas to tap into this rich demand stream. Twenty-two thousand four hundred ninety-seven units were launched during 2023, representing an 8% growth over 2022. Just as sales volumes ended the year on a strong note, growing by 39% YoY in H2 2023, the residential units launched during the second half of 2023 grew by 15% YoY to 11,941 units during the period.

More and more of these projects are being started due to the State Governments support of skyscraper construction through an increase in the citys Floor Space Index (FSI) restrictions, particularly along the SG Highway. Because of the higher building costs and, to some extent, the extremely high prices at which the land parcels were purchased, these items are priced much higher than the typical residential project.

Plotted developments became increasingly popular after the pandemic as peoples desire for spacious, open living areas increased. This trend has subsided substantially as we move further from the pandemic; sales conversions are now at more value-for-money pricing.

AHMEDABAD RETAIL SECTOR

The Ahmedabad retail sector experienced healthy main street leasing during FY23. In Q1, leasing activity was close to 0.18 msf of space uptake, while in Q2, the city witnessed main street leasing activity of 85,000 sf. The fourth quarter recorded a main street leasing volume of 75,000 sf* in the fourth quarter of 2023, recording a 10% growth from the previous quarter.

Main Street rentals have mostly stayed steady every quarter, while year- over-year growth has been between 18% and 20%. Prominent avenues, including Sindhu Bhavan Road, CG Road and Iskcon-Ambli Road, had a rental appreciation in the region of 25-30% on a year-over-year basis due to strong demand and limited space availability. New retail corridors will emerge in many city submarkets in the upcoming quarters, maintaining the total rentals range bound.

The State Government has welcomed interest in establishing an entertainment centre and retail zone in the central submarket and GIFT city. This is expected to create a lot of retail momentum in these submarkets moving forward.

Space constraints in malls will continue in the foreseeable future due to low vacancy rates in superior-grade malls and the lack of new supply in the city. The Governments plan to turn Gandhinagar and Ahmedabad into a twin city is creating interest in the two recently opened malls in Gandhinagar: Swagat Holiday Mall and Pramukh Orbit Mall.

OPPORTUNITIES AND THREATS

OPPORTUNITIES

Smart Homes: Developers now offer homes with smart technology that allows residents to control various aspects of their homes through their smartphones or voice assistants. A recent survey by Security.org discovered that around 78% of people today are willing to pay more for a smart home, and around 82% of the renters want at least one smart home device.

Green Buildings: In response to growing environmental awareness, developers are directing their efforts towards constructing ecofriendly buildings, prioritising energy efficiency and sustainability. With its annual construction of 10 million new homes, India stands as a promising arena for advancing green building practices across residential and commercial domains. More than 40% of Indias commercial Grade A office space holds green certification, with expectations exceeding 50% within the coming decade, thus resonating with worldwide Environmental, Social, and Governance (ESG) initiatives.

Real Estate Brokerage: Indias real estate brokerage sector is transforming greater organisation and professionalism, as numerous companies now provide comprehensive services catering to buyers and sellers. These firms extend offerings, including property valuation, legal documentation assistance and property management, streamlining the entire property transaction process for clients.

Micro-Markets: As real estate grows, many smaller markets are popping up in India. These are usually found on the outskirts of cities and offer affordable homes with modern amenities.

THREATS

Regulatory Hurdles and Legal Complexities: Real estate transactions are subject to myriad regulations and legalities that vary from one jurisdiction to another. Navigating complex zoning laws, property rights, and environmental regulations can be daunting.

High dependence on manual labour: The construction industry relies heavily on manual labour, making it vulnerable to workforce disruptions like labour migration and other potential reasons for labour shortages. This can lead to project delays and higher construction costs.

FINANCIAL PERFORMANCE

(Based on Consolidated Financial Statements)

RATIOS	2023-2024	2022-2023	Change(%)	Reason for Change
Debtors turnover Ratio	7.35	6.84	7.59%	Debtors Turnover Ratio has improved on an account of higher proportionate realisation compared to increase in turnover.
Inventory Turnover Ratio	2.02	1.2	68.61%	Inventory Turnover Ratio has improved as increase in sales and decrease in inventory on account of revenue booking from completed projects.
Interest Coverage Ratio	168.83	19	788.58%	Interest Coverage Ratio has improved on account of substantial increase in Operational income & reduction in Debt Liabilities.
Current assets Ratio	6.08	5.16	17.65%	Current Ratio has improved as reduction in current liability and increase in current assets.
Debt equity Ratio	0.14	0.2	-30.91%	Debt Equity ratio is reduced on account of reduction in Debt & other Liabilities.
Operating profit margin	0.7	0.41	69.92%	Operating Profit Margin Ratio has improved significantly on account of higher than expected revenue and reduction in operating cost during the year.
Net profit margin	0.52	0.17	211.62%	Net Profit Margin has improved mainly on account of better realisation and operational efficiency during the year.
Return on net worth	29.72%	8.67%	242.66%	Return of Net Worth Ratio has improved on account of higher revenue and reduction in operating cost & Finance cost during the year.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

Throughout the year, Ganesh Housing Corporation Limited discovered new risks and re-evaiuated old risks to develop risk mitigation methods. Credit risk, market risk, operational risk, and legal risk are some of the risks that the Companys key businesses face. Ganesh Housing Corporation Limited has also looked into unique risks associated with investment management and the environment in which it operates. The Company manages cost-escalation risk through measures targeted at reducing costs with our suppliers and sorting out stringent contracts and procurement. Ganesh Housing Corporation Limited assesses track records and performance skills to ensure the relevant contractors are on board to manage project execution risk.

HUMAN RESOURCE

Ganesh Housing is aware that employees form the foundation of the Companys success. They are the ones who translate ideas and strategies into tangible results.

Ganesh Housing Corporation recognises the importance of fostering a thriving work environment. The Company has implemented robust hiring and recruitment processes to build a strong team. Over time, this has allowed Ganesh Housing to cultivate a pool of skilled personnel at all levels, ensuring that the workforce aligns with the organisations goals. This commitment to talent acquisition ensures the right people are at the places to achieve success.

Furthermore, Ganesh Housing Corporation goes beyond simply hiring skilled workers. The Company believes in empowering its employees through continuous learning. Ganesh Housing fosters a culture of selflearning by encouraging team members to expand their horizons in areas that align with business goals and personal interests. Additionally, they prioritise creating a safe and positive work environment. This nurturing atmosphere fosters team bonding and helps employees feel comfortable and valued, contributing to a successful and productive organisation.