Arihant Superstructures Limited · NSE:ARIHANTSUP
Arihant Superstructures — Q1 FY2023 Earnings Presentation
50 slides from Arihant Superstructures's earnings presentation, July 2022
Slide 1: Investor Presentation Q1 – FY 2023
INVESTOR PRESENTATION Q1 – FY 2023
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Arihant Superstructures Limited (the “Company” or “ASL”) together with its Subsidiaries (collectively, the “Arihant Group”) for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs
Slide 3: CMD's Message
CMD’S MESSAGE “It’s a very satisfying to see Arihant Superstructures achieving a sustainable scalable model which will continue to deliver as key projects are reaching maturity levels with many more in the pipeline. The quarter has been especially a good one for project acquisitions with more than 1
Slide 4: Company Overview
COMPANY OVERVIEW To nurture the best talent and be a “Built to Last” VISION company To construct the most efficient spaces for our customers MISSION while leaving the least ecological foot-print To share wealth with all the stake holders and POLICY contribute to the well-being of society at large 4
Slide 5: Overview
OVERVIEW Diversified Portfolio Affordable Housing Presence across Over 96% of portfolio in Mumbai Metropolitan Region affordable and mid-income housing (MMR) and Jodhpur Ongoing & upcoming Operationally Efficient projects In-house design, engineering & ~14.12 Million Sq. Ft. across 17 project implem
Slide 6: Key Highlights for Q1-FY23
KEY HIGHLIGHTS FOR Q1-FY23 6
Slide 7: Operational Highlights
OPERATIONAL HIGHLIGHTS Business Development Sales & Collections Entered in the new market of Titwala in the MMR region by acquisition of 10,660 square meters of land in the affordable housing segment. Units Sold Area Sold Value of sales Collection (533) (4.05 L Sft) (INR 234.8 CR) (INR 110.6 CR) In
Slide 8: New Launch – Q1 FY23
NEW LAUNCH – Q1 FY23 After successful launch of the “Della” Tower in project Arihant Aspire in Q4-FY22, the Company launched a new project in Q1-FY23 in the affordable housing segment “Arihant Aakarshan” at Taloja, the hub of affordable housing in Navi Mumbai. Spread across ~10 acres, the project is
Slide 9: Q1-FY23 at a Glance
Q1-FY23 AT A GLANCE Units Sold (No.) Area Sold (Lakh Sft) Value of Sales (INR Cr) 1,628 13.8 764.0 934 8.7 400.3 710 6.3 533 264.8 234.8 4.1 FY20 FY21 FY22 Q1 FY23 FY20 FY21 FY22 Q1 FY23 FY20 FY21 FY22 Q1 FY23 Total Revenue (INR Cr) EBITDA (INR Cr) PAT (INR Cr) 332.5 41.4 71.3 272.3 237.6 47.6 50.2
Slide 10: Q1-FY23 Results
Q1-FY23 RESULTS Particulars (INR Cr) Q1 FY23 Q1 FY22 % change FY22 FY21 % change Total Revenue 89.61 84.64 5.87% 332.52 272.31 22.1% Total Operating Expenses 70.52 69.26 261.26 222.14 EBITDA 19.09 15.38 24.08% 71.26 50.16 42.1% EBIDA Margin 21.30% 18.17% 313 bps 21.43% 18.43% 300 bps Interest 4.79 5
Slide 11: Consolidated Net Debt – 30th Jun 2022
CONSOLIDATED NET DEBT – 30TH JUN 2022 Debt attributable as Entity Debt Entity % holding per % holding (INR Cr) (INR Cr) ASL 50.39 100% 50.39 Arihant Vatika 1.12 60% 0.73 Effective debt of ASL is worked out based on ASL’s shareholding in Arihant Aashiyana 45.44 60% 27.26 subsidiaries Arihant Abode 23
Slide 12: Consistent Pace of Delivery
CONSISTENT PACE OF DELIVERY We move forward with a strong belief that timely delivery with superior quality will be the key differentiator in the future Consistently delivered 700-900 units year on year since past many years and working towards improving the pace While most projects were in under co
Slide 13: Launch Pipeline
LAUNCH PIPELINE Est. Revenue potential# Project* Location Category Timeline No. of Units Area (Sft) (INR Cr) Aakarshan Taloja Affordable Q1 - FY23 439 2,66,378 135 Amisha Taloja Affordable Q2 - FY23 140 1,00,464 45 Aayan Titwala Affordable Q2 - FY23 200 1,45,044 160 Aaradhya Kalyan Affordable Q2 - F
Slide 14: Company Overview
COMPANY OVERVIEW 14
Slide 15: Geographical Spread – MMR & Jodhpur
GEOGRAPHICAL SPREAD – MMR & JODHPUR 14Projects 3Projects (MMR) (Jodhpur) Titwala Shilphata Kalyan Jodhpur Kharghar Badlapur Mumbai Taloja Vashi Panvel Dali Bai Circle Karjat Pal Gangana Road Khopoli 15
Slide 16: Portfolio Mix
PORTFOLIO MIX Category-wise portfolio mix High Income Group (> INR 10,000/Sq. Ft.) 3.22% Diversified portfolio mix with focus on affordable and mid income housing Affordable (< INR 5,000/Sq. Ft.) 59.47% Mid Income Group (INR 5,000- 10,000/Sq. Ft.) Area-wise Portfolio Mix 37.31% Jodhpur 19.77% Khargh
Slide 17: Completed & Ongoing Projects
COMPLETED & ONGOING PROJECTS Balance Units Total Area Balance Economic Total units Inventory Project Location Booked Saleable Booked Inventory in Interest of (No.) in Units (No.) Area (Sft) (Sft) Area (Sft) ASL (No.) COMPLETED PROJECTS MMR 3,134 3,070 64 25,34,751 24,91,003 43,748 ~80% Jodhpur 934 9
Slide 18: Forthcoming Projects
FORTHCOMING PROJECTS Total units Total Saleable Economic Interest Project Location (No.) Area* (Sft) of ASL Amisha Taloja 274 2,20,514 60% Arshiya Khopoli 1,135 8,56,669 100% Aspire Panvel 1,648 19,43,715 60% Aakarshan Taloja 1,928 12,56,240 100% Aaradhya Kalyan 1,410 9,09,502 100% Anchal Jodhpur 1,
Slide 19: Cash Flow Status & Potential
CASH FLOW STATUS & POTENTIAL Balance Balance Sale Revenue Receivable Revenue to be Balance Value of Amount potential of Total Est. Revenue Economic s from Recognized Potential Project Booked Received Balance Receivables Recognized Interest of Booked from Booked Revenue Area (INR (INR Cr) Inventory (
Slide 20: Cash Flow Status & Potential
CASH FLOW STATUS & POTENTIAL Total Est. Receivables* Economic Interest of Project (INR Cr) ASL Amisha 99 60% Arshiya 317 100% Aspire 1,574 60% Akarshan 691 100% Aaradhya 455 100% Anchal 661 100% Adita 44 100% Ashray 27 100% Anmol 80 60% Aloki 55 60% Avanti (New) 408 100% Aayan (New) 160 100% TBD* 78
Slide 21: Board of Directors
BOARD OF DIRECTORS Executive Directors Ashok Chhajer Nimish Shah Parth Chhajer Chairman & Managing Director Whole-Time Director Additional Whole-Time Director ● Over 2 decades in the real estate business ● A civil engineer with over 19 years experience in ● Worked briefly with the leading capital ma
Slide 22: Board of Directors
BOARD OF DIRECTORS Independent Directors Virendra Mittal Chandra Iyengar Independent Director Independent Director ● IIT Alumnus and a fellow chartered engineer ● 1973 batch IAS Officer ● Vast experience in construction, real estate, power plants, mining and ● Was Additional Chief Secretary-Home dep
Slide 23: Management Team
MANAGEMENT TEAM Deepak Lohia, Abhishek Shukla Sangeeta Chhajer Chief Financial Officer Chief Strategy Officer Head Post-sales & Operations ● CA having 24 years of experience in the areas of ● Seasoned business and finance professional with ● Rich experience of nearly a decade and a half in the Taxat
Slide 24: Awards & Recognitions
AWARDS & RECOGNITIONS 2021 2017-2020 Best Developer for Green Buildings by CIA World Zee Business Award – Iconic Award by Radio Affordable Housing Project of IGBC Pre-certified Platinum Developer of the Year City for Arihant the Year for Arihant Arshiya by Rating for Aspire project ( Affordable Hous
Slide 25: ESG
ESG ASL engages in sustainable development of Environment, Society and Governance Environment Social Governance • Most of our developments have • Social development by supporting Rural sewage treatment plants, rainwater development projects, rural infrastructure • The Board inculcates culture of har
Slide 26: Business Drivers
BUSINESS DRIVERS The information contained in this section has been derived from the “Market Research in MMR and Jodhpur Report”, which has been commissioned by our Company from Liases Foras Real Estate Rating and Research Private Limited. 26
Slide 27: Real estate sector rejoices on the back of strong macros
Real estate sector rejoices on the back of strong macros Higher affordability due to lower cost of borrowings Inventory months reduced in last 6 months 8.90% 56 8.25% 8.35% 8.05% 51 44 6.80% 6.80% 6.70% 42 6.40% Union Bank SBI HDFC ICICI Tier 1 Tier 2 Oct-19 Oct-21 FY 21 H1 – FY22 The housing loan
Slide 28: Real Estate market is broad basing, favoring organized players like ASL
Real Estate market is broad basing, favoring organized players like ASL No. of Medium & Small developers reduced in CY20 Immense scope of penetration for larger players Super Large Developers 6% 5% Large Developers 5% Medium Developers Medium & Small Developers 11% Super Large & Large Developers Sma
Slide 29: Affordable segment to outperform: ASL a key player
Affordable segment to outperform: ASL a key player All India residential sales 30-60L ticket size residential sales Million Sq. Ft. Million Sq. Ft. 800 300 705 258 700 CAGR – 14% 250 CAGR – 16% 600 200 MMR Market is estimated 500 150 to more than double by 400 320 108 FY27 to absorption volume 300
Slide 30: ASL's long-standing presence in extended suburbs of MMR
ASL’s long-standing presence in extended suburbs of MMR Central Extended Suburbs, Navi Mumbai, Panvel, Karjat and Khopoli are the markets in which Arihant Group is present ASL’s presence in micro markets of MMR ASL has 51% share of supply in INR 30 Lacs – 1Cr segment and 58% share of supply in bel
Slide 31: ASL: One of the established real estate player in affordable and mid-income housing
ASL: One of the established real estate player in affordable and mid-income housing segment Strong Brand in MMR with • Customer- centric development model distinguished track record • Preferred developer in MMR and Jodhpur • Completed ~3.5 Million Sq. Ft. in last 5 years Cost efficient business mode
Slide 32: Cost efficiencies ensures high margins despite competitive pricing
Cost efficiencies ensures high margins despite competitive pricing in affordable housing segment Asset Light Model Low-Cost Land • Continuing to enter into JD, JV or DM • Acquire lands on outright basis at low-cost arrangement in Mid-income segment for affordable housing • Targeting redevelopment op
Slide 33: Robust outlook supported by long term growth drivers
Robust outlook supported by long term growth drivers Affordable & Project Land Joint Mid-income Portfolio Reserves Development Segment • 16 out of 17 projects • 12 ongoing projects • In addition, ASL has • Looking to expand in this segment with aggregate land reserves of and develop Land saleable ar
Slide 34: Financial Snapshot
FINANCIAL SNAPSHOT 34
Slide 35: Capital Market Data
CAPITAL MARKET DATA NSE Trading Symbol ARIHANTSUP Shareholding Pattern BSEScrip Code 506194 (As on June 30, 2022) Public 22.45% Bloomberg Code ARSU:IN FIs/Banks/FPIs GICSSector Real Estate 2.84% Market Cap as on INR 596.8 Cr. 23rd July 2022 52 Week High INR 204.5 Promoters 74.71% 52 Week Low INR 90.
Slide 36: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Particulars (INR Cr) FY19 FY20 FY21 FY22 Q1 FY23 Total Revenue 242.2 237.6 272.3 332.5 89.6 Cost of Construction, Land & 195.5 119.2 149.2 289.1 60.3 Development Changes in Inventories (51.1) 33.6 33.4 (92.3) (5.5) Employee Benefits Expense 13.8 12.1 11.9 16.4 4.4 Other
Slide 37: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Equity and Liabilities (INR Cr) FY19 FY20 FY21 FY22 Q1 FY23 Share Capital 41.2 41.2 41.2 41.2 41.2 Reserves and Surplus 80.7 85.6 97.5 137.2 146.0 Non-Controlling Interest 13.9 20.0 24.6 24.6 26.5 Total Equity 135.7 146.8 163.3 203.0 213.7 Long Term Borrowings 237.7 316.9
Slide 38: Financial Performance
FINANCIAL PERFORMANCE Income Statement (INR Cr) Return Ratios Revenues EBITDA PAT ROE ROCE 333 25.0% 272 20.2% 242 20.0% 238 16.3% 17.6% 15.0% 11.0% 10.9% 10.0% 11.4% 89.6 71.3 56.9 47.6 50.1 41.4 5.0% 8.4% 18.3 11 15.7 19.110.7 0.0% 4.5% FY19 FY20 FY21 FY22 Q1-FY23 FY19 FY20 FY21 FY22 *Non-annualiz
Slide 39: Project Status
PROJECT STATUS 39
Slide 40: Arihant Aalishan (Kharghar)
ARIHANT AALISHAN (KHARGHAR) Kaveh & Baraz-I Project Configuration Completion Status • 4 Towers Sales Booking Phase-1: 54% • Basement + Stilt + 53 floors / 37 46% floors Phase-2: 7% * Elevation image is an Artist’s impressions for representational purposes only 40
Slide 41: Arihant Aspire (Panvel)
ARIHANT ASPIRE (PANVEL) Hortensia & Iliana Project Configuration • 3 Towers (ongoing) Sales Booking Completion Status • 3 Basements + Ground + 42 63% 55% floors * Elevation image is an Artist’s impressions for representational purposes only 41
Slide 42: Arihant 4Anaika (Taloja)
ARIHANT 4ANAIKA (TALOJA) N, O & P wings Project Configuration • 4 Wings Sales Booking Completion Status • Stilt + 10 floors 99% 66% * Elevation image is an Artist’s impressions for representational purposes only 42
Slide 43: Arihant 5Anaika (Taloja)
ARIHANT 5ANAIKA (TALOJA) R, S & T wings Project Configuration • 3 Wings Sales Booking Completion Status • Stilt + 16 floors 49% 18% * Elevation image is an Artist’s impressions for representational purposes only 43
Slide 44: Arihant Aloki (Karjat)
ARIHANT ALOKI (KARJAT) B2 building Project Configuration • 2 Buildings (ongoing) Sales Booking Completion Status • LG + 14 floors 46% 27% * Elevation image is an Artist’s impressions for representational purposes only 44
Slide 45: Arihant Aarohi (Shilphata)
ARIHANT AAROHI (SHILPHATA) C wing Project Configuration • Stilt + 18 floors Sales Booking Completion Status 50% 62% * Elevation image is an Artist’s impressions for representational purposes only 45
Slide 46: Arihant Anmol (Badlapur)
ARIHANT ANMOL (BADLAPUR) D-Block Project Configuration • Ground + 15 floors Sales Booking Completion Status 58% 37% * Elevation image is an Artist’s impressions for representational purposes only 46
Slide 47: Arihant Amisha (Taloja)
ARIHANT AMISHA (TALOJA) U, V & W wings Project Configuration • Ground + 7 floors Sales Booking Completion Status 47% 29% * Elevation image is an Artist’s impressions for representational purposes only 47
Slide 48: Arihant Anchal (Jodhpur)
ARIHANT ANCHAL (JODHPUR) Benecia block Project Configuration • Stilt + 7 floors Sales Booking Completion Status 78% 98% * Elevation image is an Artist’s impressions for representational purposes only 48
Slide 49: Arihant Adita (Jodhpur)
ARIHANT ADITA (JODHPUR) Juana building Project Configuration • Stilt + 14 floors Sales Booking Completion Status 42% 80% * Elevation image is an Artist’s impressions for representational purposes only 49
Slide 50: Thank you!
Thank you! For further Information please contact: Abhishek Shukla Chief Strategy Officer Tel: +91 22 6249 3333 Cell: +91 9619195775 Email: abhishek.shukla@asl.net.in Corporate Office: Arihant Aura, Floor No. 25, B wing, Plot no 13/1, TTC Industrial Area, Thane Belapur Road, Turbhe, Navi Mumbai – 40
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