Sobha Limited · NSE:SOBHA
Sobha — Sobha Developers — Q1 FY2015 Earnings Presentation
33 slides from Sobha's earnings presentation, Jun 30, 2014
Slide 1: Sobha Developers Ltd Investor Presentation
Sobha Dewflower, Bangalore SOBHA DEVELOPERS LTD INVESTOR PRESENTATION 30th June, 2014
Slide 2: Q1 FY-15 Financial Highlights (Consolidated)
Q1 FY-15, FINANCIAL HIGHLIGHTS (Consolidated) Revenue of Rs.5.83 Billion during Q1 FY-15 as against Rs.4.63 Billion in Q1 FY-14 REVENUE Revenue up by 26% Yr-on-Yr. EBITDA of Rs.1.58 Billion during Q1 FY-15 as against Rs.1.40 Billion in Q1 FY-14 EBITDA EBITDA up by 13% Yr-on-Yr. EBITDA margin at 27%
Slide 3: Q1 FY-15 Financial Highlights (Consolidated)
Q1 FY-15, FINANCIAL HIGHLIGHTS (Consolidated) Total collections of Rs.5.93 Billion during Q1 FY-15 COLLECTIONS Generated Net Operational cash flow of Rs.739 Million UNRECOGNIZED Unrecognized revenue from sold units of Rs.24.94 Billion REVENUE Out of the above Rs.8.93 Billion expected to be recognize
Slide 4: Q1 FY-15 Performance Highlights
Q1 FY-15 : PERFORMANCE HIGHLIGHTS Recorded new sales value of Rs.4.82 Billion during Q1 FY-15 as against Rs.6.03 VALUE Billion during Q1 FY-14 Sold 0.75 mn.sq.ft of new space during Q1 FY-15 as against 0.92 mn.sqft VOLUME NEW SALES during Q1 FY-14 Achieved average price realization of Rs.6,388 / sq.
Slide 5: Sales Performance & Price Realization
SALES PERFORMANCE & PRICE REALIZATION Q1 FY-15 Q1 FY-14 Sales Sales Sales Sales Locations Area Sold Realization Realization Area Sold Realization Realization (Incl.JD share) (Sobha Share (Incl.JD share) (Sobha Share ) in sq. feet Rs/ sq.ft Rs/ sq.ft in sq. feet Rs/ sq.ft Rs/ sq.ft Bangalore 527,560
Slide 6: Real Estate Projects – Projected Cash Flow
REAL ESTATE PROJECTS – PROJECTED CASH FLOW Ongoing Completed Ref.No Description UOM Projects Projects 1 Total Developable area 29.41 mn.sqft 2 Area of Car Park, Common areas and Amenities etc 8.27 mn.sqft 1-2 Total Saleable area 21.14 mn.sqft 3 Sobha share of Saleable area 18.51 mn.sqft 4 Less: Leas
Slide 7: Location Wise Inventory Details
LOCATION WISE INVENTORY DETAILS Area in Million Square Feet Projects increase/ Opening Area sold Closing stock Area not Net unsold launched (decrease) of Opening Locations stock as on during as on 30th offered for stock as on during Q1 existing stock 1st Apr-14 Q1 FY-15 June-14 sale 30th June-14 FY-
Slide 8: Unsold Inventory Break-up
UNSOLD INVENTORY BREAK-UP Area available for Sale Area not offered for sale Particulars Area (Mn.sft) % Area (Mn.sft) % Below Rs.50 lakhs 0.13 2% - - Between Rs.50 lakhs to 1 cr 1.05 16% 0.36 16% Between Rs.1 cr to 1.5 cr 1.57 23% 0.71 32% Between Rs.1.5 cr to 2 crs 0.80 12% - - Between Rs.2 cr to 2
Slide 9: Price Band Category
PRICE BAND CATEGORY Q1 FY 14-15 Total Area Sold Sq.ft 754,779 Total Sales Value (incl. JD share value) Rs.Mns 5,240 Q1 FY 14-15 Area sold Value sold Category % % (Mn.sqft) (Rs.Mns) < Rs.50 lakhs* 27,183 4% 72 1% Rs.50 lakhs to 1cr 188,092 25% 1,092 21% Rs.1 cr to 1.5 crs 339,470 45% 2,356 45% Rs.1.5
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS REVENUE (Rs.Mns) EBITDA (Rs.Mns) 24,000 21,838 8,000 20,000 18,701 6,130 6,000 5,538 16,000 13,996 14,144 4,730 4,000 3,652 12,000 10,621 2,674 8,000 5,826 4,630 2,000 1,404 1,583 4,000 - - FY 10 FY 11 FY 12 FY 13 FY 14 Q1-14 Q1-15 FY 10 FY 11 FY 12 FY 13 FY 14 Q1-14 Q1-15 PROFI
Slide 11: Balance Sheet
BALANCE SHEET Rs.in Million Particulars 30th June-14 30th June-13 30th June-14 30th June-13 EQUITY AND LIABILITIES ASSETS Shareholders’ funds Non-current assets Share capital 981 981 Fixed assets Reserves and surplus 22,492 20,886 Tangible assets 3,121 3,127 23,473 21,867 Intangible assets 32 52 Min
Slide 12: Profit & Loss Statement
PROFIT & LOSS STATEMENT Rs. in Million % of Growth Particulars Q1-15 Q1-14 Q4-14 FY-14 Q1-15 vs Q1-15 vs Q1-14 Q4-14 Property Development 3,460 3,473 4,109 15,286 Contractual + Manufacturing 2,317 1,143 2,158 6,450 Other Income 49 14 41 102 Total Revenue 5,826 4,630 6,308 21,838 26% (8%) Total Expen
Slide 13: Cash Flow Statement
CASH FLOW STATEMENT Rs. in Million PARTICULARS Q1-15 Q1-14 Q4-14 FY 13-14 Operational cash inflows Real Estate 4,618 4,923 5,548 19,468 Contractual & Manufacturing 1,307 1,230 2,293 7,422 Total Operational cash inflow –(A) 5,925 6,153 7,841 26,890 Operational cash outflows Real Estate project expens
Slide 14: Cash Flow Statement (Continued)
CASH FLOW STATEMENT (Continued) Rs. in Million PARTICULARS Q1-15 Q1-14 Q4-14 FY 13-14 Financial Outflows Interest Paid (Net of interest received) 542 477 465 1,951 Income Taxes 148 129 453 989 Total Financial Outflows (C) 690 606 918 2,940 Net Positive Cash flow : (A-B-C) 49 613 1,494 3,673 Capital
Slide 15: Collections Trend
COLLECTIONS TREND 9,000 Quarterly Collections (Rs.Million) 7,841 7,500 6,329 6,340 6,555 6,153 5,925 6,000 5,377 5,293 5,548 4,923 4,552 4,444 4,618 4,500 3,883 3,000 2,111 2,293 1,788 1,494 1,230 1,307 1,500 1,036 - Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Real Estate Contractual Total ROLLING - T
Slide 16: Movement of Debt
MOVEMENT OF DEBT Consolidated Rs. in Million Increase Particulars 30th June-14 31st March-14 /(Decrease) Gross Debt 16,538 13,498 3,040 Less: Cash & Cash Equivalents 1,223 1,156 67 Net Debt 15,315 12,342 2,973 Note: Net Debt excludes JV partners share of debentures of and finance lease. Net Debt & D
Slide 17: Borrowing Cost
BORROWING COST AVERAGE INTEREST COST 14.50% 14.09% 14.00% 13.90% 13.88% 13.65% 13.56% 13.58% 13.45% 13.50% 13.00% 12.93% 12.73% 12.73% 12.77% 12.74% 12.50% 12.00% Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Finance Cost (Gross) : Rs. in Million June-14 Mar-14 Dec-13 Sept-
Slide 18: Real Estate – Completed Projects
REAL ESTATE – COMPLETED PROJECTS Apartments Completed 94 projects in 5 cities Total Developed area of 30.46 mn.sqft and Super Built-up area of 23.83 mn.sqft Product mix includes Multi Storied Apartments (Dreams, Luxury, Super Luxury & Presidential category), Row Houses, Villas, Plotted Developments
Slide 19: Real Estate – Ongoing Projects
REAL ESTATE – ONGOING PROJECTS 47 projects measuring Total Developed area of about 29.41 mn.sqft and Super Built-up area of 21.14 mn.sqft, located at 9 cities in India. 16.00 Location-wise Area in Mn.sqft 12.00 8.00 4.00 Sobha Silicon Oasis, Bangalore - BLR Gurgaon Thrissur Chennai Calicut Cochin CB
Slide 20: Real Estate – Future Launches
REAL ESTATE – FUTURE LAUNCHES Proposed new launches in the next 4 quarters SITE Area ~Total SBA Sobha share S.No Projects Location Type (in Acres) (sq.ft) of SBA (sq.ft) BANGALORE Kanakapura Road Apartments+ Row 1 Sobha Arena 11.07 1,015,225 700,506 Thalaghattapura Houses 2 Grandeur – Phase 2 Banner
Slide 21: Real Estate – Future Launches (continued)
REAL ESTATE – FUTURE LAUNCHES (continued) SITE Area ~Total SBA Sobha share S.No Projects Location Type (in Acres) (sqft) of SBA (sqft) GURGAON (NCR) 12 Babupur Village Sector 108,109 Row Houses / Villas 10.45 204,840 102,420 COIMBATORE 13 Harishree Gardens Veerakeralam Row Houses / Villas 9.08 206,0
Slide 22: Buyers Profile
BUYERS PROFILE Profession-wise breakup Customers funding status Business/ Non-IT Entreprenuer, Customers availed for Bank Loan 46% 11% professionals, 42% Self Funding 54% Medical/ Note: The funding position is considered for cumulative sales period Pharmaceutical from Apr-13 to Mar-14. 6% IT/ITES Pr
Slide 23: Contracts - Overview
CONTRACTS - OVERVIEW Completed Projects Projects Under Progress 251 Projects aggregating to 34.72 mn.sqft of area 29 Projects aggregating to 8.76 mn.sqft of area Completed projects located in 21 cities across India Ongoing contractual projects located in 11 cities across India Infosys, 84% Infosys,
Slide 24: Contracts – Projects Break-up
CONTRACTS – PROJECTS BREAK-UP Contractual projects status as on 30th June-14 PROJECTS UNDER PROGRESS S.NO DESCRIPTION No of Built-up area Projects (Mn.Sft ) 1 Bangalore 12 2.95 Share of Non-Infosys Contractual orders has increased to 40% 2 Trivandrum 3 1.73 3 Mangalore 2 0.87 Non-Infosys clients inc
Slide 25: Execution Track Record
EXECUTION TRACK RECORD Developed Area - Track record 70.00 65.18 62.93 60.00 56.25 51.80 50.00 46.58 Area in Mn.sft 38.99 40.00 33.11 30.00 23.88 18.72 20.00 14.60 10.00 - FY 96-06 FY-07 FY-08 FY-09 FY-10 FY-11 FY-12 FY-13 FY-14 Q1 FY-15 Real Estate 6.98 1.63 2.69 3.50 2.13 5.39 3.14 1.47 2.34 1.18
Slide 26: Land Bank Status
LAND BANK STATUS Total Extent of Land 2,642 Acres Total Developable Area 227.35 Mn.sqft Sobha Share of Land 2,548 Acres Sobha Share 220.03 Mn.sqft GURGAON (10.45 acres) Total Cost consideration 23,258 Rs.Mns Developable Area 0.20 Balance amount payable 3,140 Rs.Mns BANGALORE (873.46 Sobha Share 0.10
Slide 27: Backward Integration (World Class Manufacturing Facilities)
BACKWARD INTEGRATION (World Class Manufacturing Facilities) Interiors & Furnishing Division Glazing & Metal Works Division Concrete Products Division Turnover : Q1 FY-15 Rs.192 Mn Turnover :Q1 FY-15 Rs. 303 Mn Turnover : Q1 FY 15 Rs.87 Mn Factory area 0.8 Mn sq ft Factory area 0.3 Mn sq ft Factory a
Slide 28: Share Holding Pattern
SHARE HOLDING PATTERN Top FII’s Top Mutual Funds FII's, • Axis Mutual Fund 32.22% • East Spring Investments • Platinum Investment • Franklin Templeton Mutual Funds, • Swiss Finance • BNP Paribas 2.94% • Morgan Stanley • Kotak • Blackrock • HDFC Promoter Others, • Invesco • JP Morgan Holding, 4.26% 6
Slide 29: Sobha – Stock Performance
SOBHA – STOCK PERFORMANCE 1 year Chart - Sobha vs Nifty vs NSE Realty Status as on: 30th June-14 60 50 % Change in Closing Price 40 No. of Shares 98.06 Million 30 20 Market Capitalization Rs.48.74 Billion 10 0 Stock Price : 52 week High / Low Rs. 583 / 213 -10 -20 Avg. Daily volume (12 months) 201,8
Slide 30: Thank You
THANK YOU Corporate Office Investors Contact : Sobha Developers Ltd. Mr. Ganesh Venkataraman K.Bala Murugan ‘SOBHA’, Sarjapur-Marathahalli Outer Ring Chief Financial Officer Senior Manager – Investor Relations Road(ORR), Mobile: +91- 96635 61144 Mobile: +91- 98807 30459 Devarabisanahalli, Bellandur
Slide 31: Annexure
ANNEXURE (Real Estate – Ongoing projects sheet updated as on 30th June,2014) Annexure slide
Slide 32: Real Estate On-Going Project Details as on 30th June, 2014
Sobha Developers Ltd Real Estate Ongoing Projects - 30th June, 2014 Real Estate -- On-Going Project Details as on 30th June,2014 Total Sobha Share Sobha Share of ≈ Construction Avg.Price Total No of Total Saleable Construction Start Sl.No Projects Location Type Developable of Saleable Saleable Area
Slide 33: Real Estate On-Going Project Details (continued)
Sobha Developers Ltd Real Estate Ongoing Projects - 30th June, 2014 Total Sobha Share Sobha Share of ≈ Construction Avg.Price Total No of Total Saleable Construction Start Sl.No Projects Location Type Developable of Saleable Saleable Area Timeline Realisation Remarks Units Area in Sq.ft* / Launch Da