Sunteck Realty Limited · NSE:SUNTECK
Sunteck Realty — Q4 FY2021 Earnings Presentation
61 slides from Sunteck Realty's earnings presentation, Jun 30, 2021
Slide 1: Exchange filing cover letter for investor presentation
Sunteck Realty Ltd. Sunteck SRL/SE/13/21-22 Date: 30th June, 2021 The Manager, Listing Department The Secretary, Listing Department, National Stock Exchange of India Ltd Department of Corporate Services Exchange Plaza, BSE Limited Plot no. C/1, G Block, Phiroze Jeejeebhoy Tower, Bandra-Kurla Complex
Slide 2: Investor Presentation Q4 & Full-year FY2021
Sunteck Realty Ltd. Investor Presentation Q4 & Full-year FY2021 NSE: SUNTECK | BSE: 512179 | Bloomberg: SRIN: IN | NSE: SUNTECK | BSE: 512179 | Bloomberg: SRIN: IN | Reuters: SUNT.NS / SUNT.BO Reuters: SUNT.NS / SUNT.BO
Slide 3: Disclaimer
Disclaimer By attending the meeting where this presentation is made and any additional material is provided (“Presentation”) or by reading the Presentation, you (“Recipient”), agree to be bound by the following limitations. This Presentation has been prepared on the basis of the estimates of the man
Slide 4: Company Overview
COMPANY OVERVIEW MMR focused residential play Others, 6% Institutional Players (FPIs and MFs), 27% Promoters, Headquartered at Mumbai 67% Market Cap : ~ Rs 45,000 Mn (~Rs 4,500 cr) ~ 38* msf development portfolio across 19 projects Delivered Projects > Rs 70 bn (Rs 7,000 cr) Shareholding pat
Slide 5: Sunteck Journey So Far
SUNTECK JOURNEY SO FAR… Sunteck 1.0 Our journey began in 2000 as a Business Center Operator at the then upcoming CBD of Bandra-Kurla Complex (BKC) in Mumbai Sunteck 2.0 In the next phase from 2006 onwards, with our differentiated and well-researched view that families would love to live and
Slide 6: Sunteck 3.0
SUNTECK 3.0 These are early days at Sunteck. We have recently embarked on Sunteck 3.0 The salient aspects of Sunteck 3.0 are: 1. Maintain an asset light balance sheet Sell off most of our ~Rs 1,800 crores of finished inventory in the next 3-4 years Focus on JDAs like Naigaon and Vasai with l
Slide 7: Key Strengths
Company Overview KEY STRENGTHS Company Profile: Sunteck is a Mumbai focussed premium developer with experienced promoter, focussed project acquisition strategy, premium brand, strong execution and healthy balance sheet Strong Project Portfolio: Sunteck has about 38 mn sqft spread across 19* projects
Slide 8: Well-Timed Capital Allocation
Company Overview WELL-TIMED CAPITAL ALLOCATION STAGE SET FOR THE NEXT ROUND! Acquisition strength: Sunteck set to benefit from the opening up of attractive • Research based acquisitions acquisition opportunities post demonetization, GST, • Ability to predict growth areas ahead of the curve. RERA, NB
Slide 9: Sunteck Brand Portfolio
Company Overview SUNTECK BRAND PORTFOLIO 8
Slide 10: Economy & Industry Section
ECONOMY & INDUSTRY SECTION Sunteck),
Slide 11: Economic and Real Estate Outlook – Post-Covid-19
ECONOMIC AND REAL ESTATE OUTLOOK – POST-COVID-19 FY2021 GDP growth fell by -7.3% Y-o-Y as against an increase of 4% in FY2020 on the back of sharp contraction in 1HFY21 due to stringent nationwide lockdowns 4QFY21 GDP growth rate of 1.6% Y-o-Y showed that the economy was on a gradual recovery. S
Slide 12: Economic and Real Estate Outlook – Post-Covid-19
ECONOMIC AND REAL ESTATE OUTLOOK – POST-COVID-19 Real estate sector is set to revive from the 2nd Covid-19 wave on the back of – Strong structural demand for housing – From 32% now, share of Indian population residing in cities to increase to 50% by 2030 Work from Home concept gaining more acc
Slide 13: Economic and Real Estate Outlook – Post-Covid-19
ECONOMIC AND REAL ESTATE OUTLOOK – POST-COVID-19 Rise in income-levels and favourable demographics (66% of Indian population is less than 35 years of age) has led to best affordability in the last 25 years. Source: HDFC 12
Slide 14: Company Section
COMPANY SECTION Sunteck),
Slide 15: Cash Flow Highlights – FY 2021
CASH FLOW HIGHLIGHTS – FY 2021 Despite the challenges of 1H FY21 on account of Covid-19 pandemic - Sunteck’s continued focus on prudent cash flow management including cost-saving measures has enabled the company to maintain strong financial metrics in FY 2021 The company generated strong positiv
Slide 16: Cash Flow Statement
CASH FLOW STATEMENT Robust collections drives strong operating cash flow and reduction in debt. Net cash flow generated from operating activities at Rs 2,861 (Rs 286 cr) Particulars FY 2021 FY 2020 Net Cash Flow - Operating Activities 2,861 -780 - Operating Profits before Working Capital Changes
Slide 17: Business Updates – Q4 FY2021
BUSINESS UPDATES – Q4 FY2021 Pre-sales grows by 6% qoq in Q4 FY21 to Rs 3,710 mn (Rs 371 cr) vs Rs 3,492 mn (Rs 349 cr) in Q3 FY21 Highest ever collections in a quarter till date driven by achieved pre-sales Q-o-Q Collections growth at 27% : Rs 3,210 mn (Rs 321 cr) in Q4 FY21 vs Rs 2,525 cr (R
Slide 18: Business Updates – FY 2021
BUSINESS UPDATES – FY 2021 Strong Pre-sales in FY21 of Rs 10,217 mn (Rs 1,022 cr) Highest-ever pre-sales achieved in the mid-income segment driven by residential projects at ODC, Goregaon West - a YoY growth of 77% to Rs 4,835 mn (Rs 484 cr) Strong pre-sales also witnessed in the ready to move
Slide 19: Key Performance Highlights: FY2018-FY2021
KEY PERFORMANCE HIGHLIGHTS: FY2018-FY2021 Revenue (Rs mn) Net Profit (Rs mn) Net Debt (Rs mn) 10,000 3,000 7,000 2,500 6,000 6,636 8,000 8,883 8,568 2,000 2,411 5,000 6,000 2,240 4,978 4,000 4,536 4,867 5,801 6,139 1,500 4,000 3,000 1,000 2,000 2,000 500 829 419 1,000 0 0 0 FY18 FY19 FY20 FY21 FY18
Slide 20: Key Performance Highlights: Collections Efficiency
KEY PERFORMANCE HIGHLIGHTS: COLLECTIONS EFFICIENCY Collections / Pre-sales has been strong at >50% over the previous years. In FY21, the ratio was strong at ~76%. Sunteck always endeavors to achieve >50% collections to pre-sales ratio as it leads to efficient cash flow management Pre-Sales Col
Slide 21: Q4 & FY 2021 Operational & Financial Results
Q4 & FY 2021 Operational & Financial Results
Slide 22: Operational Performance Trend
Operational Highlights OPERATIONAL PERFORMANCE TREND Strong sequential growth Rs million Pre-Sales Segment 1QFY21 2QFY21 3QFY21 4QFY21 FY20 FY21 BKC Projects Luxury - - - 900 718 900 ODC Projects Mid-income 409 530 1,886 2,010 2,734 4,835 Naigaon Projects Affordable 482 323 615 750 7,628 2,170 Other
Slide 23: Strong Sequential (Q-o-Q) Growth
Operational Highlights STRONG SEQUENTIAL (Q-o-Q) GROWTH Both pre-sales and collections witnessed strong Q-o-Q growth during FY21 >70% of the total pre-sales and total collections of FY 2021 was achieved during the 2H FY21, once the Covid-19 lockdowns subsided Pre-sales Collections All figures ar
Slide 24: Operational Performance: Pre-sales Mix
Operational Highlights OPERATIONAL PERFORMANCE Pre-sales mix In FY21 – 69% of the pre-sales was driven by mid-income (Sunteck City, ODC) and affordable (Sunteck World) segment. The ready-to-move-inventory (Signia High, Borivali and Gilbird Hill, Andheri) also contributed 23% to the total pre- sa
Slide 25: Operational Performance: Collections Mix
Operational Highlights OPERATIONAL PERFORMANCE Collections mix Mid-income, affordable projects drive strong collections performance. In FY21 – both mid-income and affordable segment together contributed 65% of the total collections. FY 2021 FY 2020 BKC / Luxury / Others BKC / Luxury / Others Sig
Slide 26: P&L (Consolidated)
Financial Highlights P&L (CONSOLIDATED) In FY 2021, Revenue from operations grew by 10% Y-o-Y to Rs 6,139 mn (Rs 614 cr) from Rs 5,597 mn (Rs 560 cr) in FY 2020 EBITDA and EBITDA Margin for FY 2021 stood at Rs 1,369 mn (Rs 137 cr) and 22% respectively PAT for FY 2021 stood at Rs 419 mn (Rs 42
Slide 27: Balance Sheet (Consolidated)
Financial Highlights BALANCE SHEET (CONSOLIDATED) Liabilities FY21 FY 20 Assets FY21 FY20 Shareholders Funds 27,724 27,487 Trade Receivables 3,352 3,731 Minority Interest - - Inventories 26,145 27,438 Borrowings 6,879 9,207 Loans & Advances 1,161 1,289 Others 5,934 5,004 Cash & Bank balances 991 1,6
Slide 28: Amongst the Strongest Balance Sheet
Financial Highlights AMONGST THE STRONGEST BALANCE SHEET In H2FY21, the consolidated net debt to equity has been reduced significantly to 0.18x. Particulars FY 2021 9M FY21 H1 FY21 Secured Debt 5,969 7,723 7,637 Cash & Bank Balance 991 1,000 993 Net Secured Debt 4,978 6,723 6,644 Unsecured Debt 0 0
Slide 29: Consolidated Debt Trend
Financial Highlights CONSOLIDATED DEBT TREND In FY21, the consolidated net debt to equity has been reduced significantly to 0.18x. Consolidated debt trend FY 2018 FY 2019 FY 2020 FY 2021 Secured Debt 4,256 5,857 7,903 5,969 Cash & Bank Balance 1,144 1,479 1,662 991 Net Secured Debt 3,112 4,378 6,241
Slide 30: Amongst Industry Leading Debt/Equity Ratio
Financial Highlights SUNTECK – AMONGST INDUSTRY LEADING DEBT/EQUITY RATIO In FY21, Sunteck’s net debt/equity ratio of 0.18x is amongst industry leading The industry average is 0.47x – which is 2.6 times that of Sunteck’s net debt/equity Industry Average 0.47 Sunteck Realty 0.18 0.00 0.10 0.20 0.
Slide 31: Credit Rating Update
Financial Highlights CREDIT RATING UPDATE The Long-term issuer rating of Sunteck is “AA-” and Short-term issuer rating is “A1+”. AA- / Positive AA- / Stable Key Rating Drivers – Healthy track record in real estate development in MMR Adequate committed cash flow visibility Prudent Financial Pol
Slide 32: Asset Light Balance Sheet: Releasing Locked Up Capital
Financial Highlights ASSET LIGHT BALANCE SHEET: Releasing Locked Up Capital We are actively monetizing our finished inventory in our Completed Projects, releasing locked up capital. Finished Inventory Added Inventory in FY21 Sales of Finished Inventory Finished Inventory Completed Projects as of F
Slide 33: Asset Light Balance Sheet: Stack Them High, Let 'em Fly!
Financial Highlights ASSET LIGHT BALANCE SHEET: Stack Them High, Let ‘em Fly! Our focus is to maintain high sales velocity on Ongoing Projects. Presales Activity (Numbers) Projected Operating Margin Ongoing Projects Number of Units Number of Units Additional Till Date Total Launched Sold Expected
Slide 34: Asset Light Balance Sheet: Near Term Growth Engines
Financial Highlights ASSET LIGHT BALANCE SHEET: Near Term Growth Engines Our near term growth engine is driven by several asset-light JDA models with limited upfront capital. Projected Operating Margin Targeted Launch Upcoming Projects Project Structure Date Additional Till Date Total Expected Vas
Slide 35: Asset Light Balance Sheet: Long Term Growth Engines
Financial Highlights ASSET LIGHT BALANCE SHEET: Long Term Growth Engines We continue to add projects to our pipeline that provide long-term longevity to our growth engine. Projected Operating Margin Targeted Launch Future Projects Project Structure Date Additional Till Date Total Expected South Mu
Slide 36: 2021: A Unique Opportunity for Sunteck
2021: A UNIQUE OPPORTUNITY FOR SUNTECK In January 2021, the Maharashtra cabinet approved a 50% reduction in the premium fees paid by developers for ongoing and new projects between August 1 and December 31, 2021 The savings that Sunteck can realize in 2021 by fast-tracking projects and paying pr
Slide 37: Efficient Use of Capital
EFFICIENT USE OF CAPITAL We will use shareholder capital in the most prudent manner possible If we have opportunities to deploy capital in high-return projects, we will do without any reservation The Maharashtra premium reduction in 2021 is a good example of front-loading capital spending to 2
Slide 38: ESG & CSR
ESG & CSR Sunteck),
Slide 39: Sunteck - ESG Performance Highlights
SUNTECK - ESG PERFORMANCE HIGHLIGHTS Environmental Social Governance ‘Go Green’ CSR campaign Support for migrant labourers and Philosophy on code of Digital transformation to reduce frontline workers following the governance COVID-19 outbreak resource consumption Policy framework consistin
Slide 40: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY A Vaccination Drive arranged for Sunteck Employees 42
Slide 41: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY 440
Slide 42: Site Pictures
Site Pictures Sunteck),
Slide 43: Completed Projects Under Construction Projects
Annexures Completed Projects Under Construction Projects
Slide 44: Completed Projects Under Construction Projects
Annexures Completed Projects Under Construction Projects
Slide 45: Completed Projects Under Construction Projects
Annexures Completed Projects Under Construction Projects
Slide 46: Completed Projects Under Construction Projects
Annexures Completed Projects Under Construction Projects
Slide 47: Avenue 1
Annexures Completed Projects Under Construction Projects AVENUE 1
Slide 48: Completed Projects Under Construction Projects
Annexures Completed Projects Under Construction Projects
Slide 49: Completed Projects Under Construction Projects
Annexures Completed Projects Under Construction Projects
Slide 50: Completed Projects Under Construction Projects
Annexures Completed Projects Under Construction Projects
Slide 51: Commercial Projects
Annexures Completed Projects Under Construction Projects SUNTECK KANAKA CORPORATE PARK, GOA COMMERCIAL PROJECTS SUNTECK CENTRE, VILE PARLE SUNTECK GRANDEUR, ANDHERI
Slide 52: Completed Projects Under Construction Projects
Annexures Completed Projects Under Construction Projects
Slide 53: Completed Projects Under Construction Projects
Annexures Completed Projects Under Construction Projects
Slide 54: Avenue 2
Annexures Completed Projects Under Construction Projects AVENUE 2
Slide 55: Completed Projects Under Construction Projects
Annexures Completed Projects Under Construction Projects
Slide 56: Completed Projects Under Construction Projects
Annexures Completed Projects Under Construction Projects
Slide 57: Completed Projects Under Construction Projects
Annexures Completed Projects Under Construction Projects
Slide 58: Completed Projects Under Construction Projects
Annexures Completed Projects Under Construction Projects
Slide 59: Completed Projects Under Construction Projects
Annexures Completed Projects Under Construction Projects
Slide 60: Awards and Recognitions
Annexures AWARDS AND RECOGNITIONS
Slide 61: Thank You!
Thank You! Corporate Office 5th Floor, Sunteck Centre, 37-40 Subhash Road, Vile Parle (East), Mumbai – 400057 Tel: +91-22-42877800 Email: ir@sunteckindia.com 60