Signatureglobal (india) Limited · NSE:SIGNATURE
Signatureglobal (india) — Q1 FY25 Earnings Presentation
35 slides from Signatureglobal (india)'s earnings presentation, Aug 7, 2024
Slide 1: Cover letter to stock exchanges
Date: 7th August, 2024 The Manager The Manager BSE Limited National Stock Exchange of India Limited Corporate Relationship Department, Listing Department 1st Floor, New Trading Ring, Exchange Plaza Rotunda Building 5th Floor, Plot no C/1, G Block Phiroze Jeejeebhoy Towers, Bandra Kurla Complex Dalal
Slide 2: Q1'FY25 Investor Presentation August 2024
Q1’FY25 INVESTOR PRESENTATION August 2024
Slide 3: Disclaimer
Disclaimer This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and r
Slide 4: Operating Highlights
Operating Highlights Strategy & Portfolio Financial Snapshot Company Overview 3
Slide 5: The Company sold >950 units at an average ticket size of INR 32.0 Mn
The Company sold >950 units at an average ticket size of INR 32.0 Mn during the first quarter of FY25 Sales in Rs. Bn 80 72.7 • INR 31.2 bn in Q1’FY25 60 Strong Sales 40 31.2 • Growth of 255% vis a vis Q1’FY24 at INR 8.8 bn Performance 20 8.8 • Achieved >30% of the sales guidance for the FY25 0 FY'2
Slide 6: Portfolio addition of ~2.6 Mn sqft in focus micro markets
Portfolio addition of ~2.6 Mn sqft during the current financial year in focus micro markets 40 • Achieved an Operating Cash Surplus before Investment in Land of INR 31.1 Operating 30 5.3 bn in Q1’FY25 Cashflow before 20 12.1 • Operating cash surplus of c. 44% of collections during Q1’FY25 9.1 Invest
Slide 7: FY25 annual guidance
FY25 annual guidance Launches1 Pre-Sales INR Bn INR Bn 160 160 160 120 120 100 80 73 80 42 40 30 31 40 0 0 FY24A FY25E Q1'FY25A FY24A FY25E Q1'FY25A Owing to the generous response, we expect The company has witnessed a strong subscription sales growth of >35% . rate on the project launches & looking
Slide 8: Pro Forma P&L on FY25 Guidance
Pro Forma P&L on FY25 Guidance Particulars FY24 FY25E Q1’FY25 INR Bn % INR Bn % INR Bn % Pre Sales 72.7 100.0 31.2 Embedded EBITDA 23.3 32% 35.0 35% 10.9 35% - D&A 0.22 0.22 0.05 - Finance Cost 2.2 2.0 0.6 Embedded PBT 20.8 29% 32.8 33% 10.3 33% Tax rate ( assumed 5.3 8.3 2.6 rate 25.2%) Embedded PA
Slide 9: Strategy & Portfolio
Operating Highlights Strategy & Portfolio Financial Snapshot Company Overview 8
Slide 10: Focus across three distinct micro markets fueled by world class infrastructure
Focus across three distinct micro markets fueled by world class infrastructure THREE FOCUS AREAS 1) Sector 71 17.0 mn sqft1 Proximity to all prime areas of Gurugram; red light free to Golf Course Road in future 37D 2) Sohna Elevated Corridor 7.2 mn sqft1 Commenced in 2022; Closer to 71 Cybercity and
Slide 11: Snapshot of Ongoing Portfolio; Aim to be delivered by FY26
Snapshot of Ongoing Portfolio; Aim to be delivered by FY26 Number of Land Saleable Area Sold Area Sold Value Category Category Wise Share of 16.4 mn sqft Ongoing Portfolio Projects (in acres) (in mn sqft) (%) (INR bn) Affordable 8 53.6 4.7 96.5% 22.4 Others 2.3% Mid Income - Gurugram 8 91.6 7.4 94.2
Slide 12: Strong pipeline of mid income housing projects across focused micro markets
Strong pipeline of mid income housing projects across focused micro markets; aim to launch by FY26 Estimated Saleable Area1(in mn Location Project Land (in acres) sqft) Recent launch of 2.1 mn Each focus area has distinct Group Housing, Commercial Sector 71, SPR and Retail 92.6 17.0 sqft in Jun ‘24
Slide 13: Strong Portfolio of ~51 mn sqft across Ongoing and Forthcoming projects
Strong Portfolio of ~51 mn sqft across Ongoing and Forthcoming projects Ongoing projects of 16.4 mn sqft saleable area Forthcoming projects of 29.3 mn sqft saleable area1 Strong project pipeline to result in sustainable growth Mid Affordable Group Mixed Total – Category Income Others Housing Housing
Slide 14: Strong sales momentum
Strong sales momentum SALES GROWTH OF 255% IN Q1’FY25 VS Q1’FY24 SALES CAGR OF 62% DURING FY21-FY24 INR Bn INR Bn 31.2 40 80 72.7 6.0 30 60 4.5 20 40 34.3 31.2 2.0 3.0 8.8 25.9 10 1.5 16.9 0.9 20 0 0.0 Q1'FY24 Q1'FY25 0 FY21 FY22 FY23 FY24 Q1'FY25 Sales (INR bn) Area Sold (mn sqft) Q1’25 SALES COMIN
Slide 15: Growing collections leading to fast paced construction while maintaining low net debt
Growing collections leading to fast paced construction while maintaining low net debt 102% GROWTH IN Y-o-Y COLLECTIONS Particulars Q1’FY25 (INR Bn) 14 Collections 12.1 12.1 12 10 Others (GST & other charges) 0.51 8 6.0 6 Cash inflow 12.6 4 2 Less : Operating Expenses 0 Q1'FY24 Q1'FY25 - Construction
Slide 16: Financial Snapshot
Operating Highlights Strategy & Portfolio Financial Snapshot Company Overview 15
Slide 17: Healthy gross profit margins and Low Leverage Levels
Healthy gross profit margins and Low Leverage Levels Revenue being recognized from recently delivered units of Signature Global Park • INR 4.0 bn revenue recognized from operations in Q1’FY25 vs INR 1.7 bn in Q1’FY24 • Adjusted gross margin of INR 1.1 bn (28.44%) for Q1’25 vs INR 0.5 Financial bn (3
Slide 18: Consolidated PL Snapshot
Consolidated PL Snapshot PL Statement (INR bn) Q1’FY25 Q1’FY24 Q-o-Q% Adjusted Gross Margin % & Adjusted EBITDA Margin % Revenue from real estate properties - Mid- Income Housing 3.5 1.3 169.23% - AHP 0.3 0.3 16.31% 50% Total Revenue from real estate properties 3.9 1.6 143.75% 40% Cost of Goods Sold
Slide 19: Net Debt Position of the Company with Growing Operating Cashflows
Net Debt Position of the Company with Growing Operating Cashflows Operating Surplus1 and Net Debt2 (INR bn) Lenders to Signature Global 15.00 11.6 10.9 9.8 10.00 9.1 5.6 5.2 6.9 5.00 4.7 2.5 0.00 Mar-21 Mar-22 Mar-23 Mar-24 Jun-24 Net Debt Operating Surplus Comfortable Net Debt position given the cu
Slide 20: Successful launches of 2 Group Housing Projects: Deluxe DXP & Titanium SPR
Successful launches of 2 Group Housing Projects: De-Luxe DXP & Titanium SPR Marking entry into Premium Housing Project Highlights – Deluxe DXP • Located on Dwarka expressway, a central location on an expressway connecting Delhi with Gurgaon; • Received 5.4x of EoIs* from customers versus the units l
Slide 21: Key projects sold during FY24 & Q1'FY25
Key projects sold during FY24 & Q1’FY25 Deluxe - DXP Titanium SPR CITY 93 Particulars Amount Particulars Amount Particulars Amount Launch Qtr Mar-24 Launch Qtr Jun-24 Launch Qtr Mar-23 # of Residential Units 1,008 # of Residential Units 608 # of Residential Units 996 Residential Units Sold Till 30th
Slide 22: Seen success in mid income low rise floors since entering the market
Seen success in mid income low rise floors since entering the market CITY 37D CITY 79-B CITY 81 Particulars Amount Particulars Amount Particulars Amount Launch Qtr Sep-21 Launch Qtr Mar-23 Launch Qtr Sep-21 # of Residential Units 1,204 # of Residential Units 776 # of Residential Units 828 Residentia
Slide 23: Successful deliveries in recent times gives confidence to customers
Successful deliveries in recent times gives confidence to customers SG Park, Sohna Orchard Avenue – Sector 93, Gurugram Orchard Avenue 2 – Sector 93, Gurugram Roselia, Sector 95A, Gurugram Serenas, Sohna Grand Iva, Sector 103, Gurugram
Slide 24: Strong debut at the stock exchange
Strong debut at the stock exchange Issue details Share price performance – stellar >3x return from offer price of INR 385 1600 Issue Size INR Bn 1400 Fresh issue size 6.0 1200 1,437 Closing price as Offer for sale issue size 1.3 1000 Listing on 1st Aug’24 price - 444 800 Total issue size 7.3 600 400
Slide 25: Company Overview
Operating Highlights Strategy & Portfolio Financial Snapshot Company Overview 24
Slide 26: Largest Player in Delhi NCR's Affordable and Lower Mid-Income Housing Market
Largest Player in Delhi NCR’s Affordable and Lower Mid-Income Housing Market Focused housing factory Strong commitment to sustainability & green growth • Commenced operations# in 2014 with affordable housing, • All projects are either Edge or IGBC certified ventured into mid-income housing market in
Slide 27: Track Record of Execution
Track Record of Execution Delivered Housing Projects Totaling to c. 11.0 msf1 Solera Synera Grand Iva Orchard Avenue Serenas Sector 107, Gurugram Sector 81, Gurugram Sector 103, Gurugram Sector 93, Gurugram Sector 36, Sohna 1,443 units 819 units 1,465 units 726 units 1,303 units On the path of deliv
Slide 28: With Quick Turnaround of Land Resources
… With Quick Turnaround of Land Resources Disciplined approach to land acquisition leading to quick turnaround of up to 18 months from 2.2 mn sqft of Individual Floors completed acquisition to launch Sunrise & Karnal City Time from Land Acquisition to Project Land Acquisition Date Launch Date Launch
Slide 29: Well Established Brand and Strong Distribution Network Focused on Mid-Income Segments
Well Established Brand and Strong Distribution Network Focused on Mid-Income Segments Well entrenched sales and distribution network driving customer acquisition Strong Brand Recall Strong Distribution Network Engaged celebrity brand ambassadors for various campaigns Campaign Name Response2 ✓ Strong
Slide 30: Use of improved construction technologies for timely project completion
Use of improved construction technologies for timely project completion Using Aluminium Formwork Technology to Reduce Construction Time Standardization providing ▪ Imported the Aluminum formwork technology providing a unique advantages competitive edge ❑ Reduced structure cost ❑ Increased pace of co
Slide 31: Leveraging Technology for efficiency & scale
Leveraging Technology for efficiency & scale Digital Integration of all stakeholders Strong emphasis on digital sales Projects being sold through various digital channels ✓ Stronger Internal Controls including website since 2014 ✓ Human Resource Management Software ✓ Strong Linkage with Core ERP AHP
Slide 32: Trusted brand with strong campaign being run at a national level
Trusted brand with strong campaign being run at a national level • Relatable brand ambassadors like Vidya Balan and Vijay Raaz • Company has strong presence across social media and has touched c.100 mn social media users • Strong in-house direct sales team of 41 members1 and indirect sales team of 1
Slide 33: High Quality Board & Experienced Management Team
High Quality Board & Experienced Management Team Name Designation Brief Profile Independent Directors 8+ years of experience in real estate industry; Pradeep Kumar Chairman & Whole- Served as MD on the board of SMC Comtrade Aggarwal Time Director Limited for 10 years Kundan Mal Agarwal Vice Chairman
Slide 34: Focus On Sustainable Development
Focus On Sustainable Development Waste Management Use Of Solar Panels Use Of LED lights Green Building Initiatives Green Building Initiatives (Water Management) Use of Low Flow Fixtures INDUSTRY LEADING CERTIFICATIONS Green Building Certification* IGBC Certification Occupational Health & Safety Qual
Slide 35: Thank You
THANK YOU Contact us at investor.relations@signatureglobal.in
SignatureGlobal (India) — Q1 FY25 Earnings Presentation on 6ix