Shriram Properties Ltd. · NSE:SHRIRAMPPS
Shriram Properties — Q3 FY24 Earnings Presentation
42 slides from Shriram Properties's earnings presentation, February 2024
Slide 1: Investor Presentation Q3 FY24 Results
Investor Presentation Q3 FY24 Results February 2024
Slide 2: Disclaimer
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Shriram Properties Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, an
Slide 3: KPI Summary – 3Q | 9M FY24
KPI Summary – 3Q | 9M FY24 Sales Volume Sales Value Collection Handovers -3% 48% Q3 FY24 KPI’s 6% 34% YOY YOY YOY YOY 1.11 msf 588 Cr. 334 Cr. 787 No's 12% 22% 19% 29% YOY YOY YOY YOY 9M FY24 KPI’s 1,055 Cr. 1,619 No's 68%* 72%* 66%* 54%* FY24 Plan 20% 26% 47% 50% ~4.8 msf YOY ~Rs.2,330 Cr. YOY ~Rs.
Slide 4: SPL Q3 KPI Impact
Q3FY24: Muted Growth due to deferred launches & handovers Unprecedented rains and floods in Tamil Nadu impacted Delayed launches launch momentum in Chennai Plan approval delays (prolonged process & Jurisdictional Deferred Launches to ambiguity) delayed launches @ B’lore Q4 FY24 Q3FY24 Headwinds Dela
Slide 5: KPI Impact of Deferred Launches & Handovers
KPI Impact of Deferred Launches & Handovers Delayed/Deferred Launches Delayed Handovers Deferred Revenue recognition Shriram122 West Shriram Greenfield Phase II Shriram Grand City - Delayed & launched only by end Dec’23 - OC received by End-Dec (30-45 days delay) - Deferred due to late receipt of st
Slide 6: Q4 is traditionally best quarter, due to seasonality
Q4 is traditionally best quarter, due to seasonality Historical Q4 trends – Sale Volume Historical Q4 trends – Sales Value 24% 19% 25% 31% 32% 32% 28% 37% 45% 50% FY20 FY21 FY22 FY23 FY24 KPI FY24P FY20 FY21 FY22 FY23 FY24 KPI FY24P (9M Actuals; 4Q (9M Actuals; 4Q 9m Q4 residual target) 9m Q4 residu
Slide 7: Operational Highlights: 9M|FY24
Shriram 107 Southeast Operational Highlights: 9M|FY24 ________________ Note: Data presented herein reflects aggregate for the Company, covering all projects under all development formats viz., Own, JV/JDA and the DM 7
Slide 8: Key Highlights & Developments – 9M | FY24
Key Highlights & Developments – 9M | FY24 Operational Performance Financial Performance • YTD Sales 3.03 msf (+12% YoY); Q3 at 1.11 msf (+6% YoY) • Satisfactory 9M performance despite Q3 adversities • Aggregate Sales Value at Rs.1,654 crs YTD (+22% YoY) • EBITDA up 14% YoY, PBT up 11% YoY, PAT at Rs
Slide 9: Performance Snapshot: 9M|FY24
Performance Snapshot: 9M|FY24 Pre-Sales Volume (msf) Sales Value (Rs. Cr.) Collection (Rs. Cr.) 4.8 1,600 1,654 2,300 19% 1,055 12% 4.0 22% 3.0 1.8 1,352 1,846 646 1,195 545 887 2.7 1.3 494 307 +22% +12% +19% 2.7 3.0 1,352 1,654 887 1,055 9MFY23 9MFY24 FY23A FY24P 9MFY23 9MFY24 FY23A FY24P 9MFY23 9M
Slide 10: YTD Launch Trends & Q4 Launch Outlook
YTD Launch Trends & Q4 Launch Outlook FY24 Launches so far Impressive Sales-at-Launch 48% Launch Sold at Projects Type Launch % sold 44% 43% Area launch 38% Shriram Esquire New May’23 1,31,870 57,835 44% 34% Shriram Hebbal 1 New May’23 1,44,328 63,750 44% Shriram Paradiso New Sep’23 10,71,330 4,64,0
Slide 11: Encouraging Pricing Trends: Realisation up 15% from Mar’23 levels
Encouraging Pricing Trends: Realisation up 15% from Mar’23 levels Price Increase by Project – Top Projects only Avg. Portfolio Price increase Trends Development Increase in Project March’23 9M FY24 Type 9m FY24 15%* Shriram 107 Southeast -Phase 3 Apartment 4,300 5,081 18% Avg Shriram Southern Crest
Slide 12: Project Execution Trends: Q4 Handover Readiness
Project Execution Trends: Q4 Handover Readiness No. of Handed Project Name Total Area RERA date Project Current Status units over Shriram Greenfield Ph II 7,04,355 653 30-Dec-23 11 OC Received Registration Chirping Wood Tower 5 2,20,740 148 30-Mar-24 Nil OC Received Momentum Liberty Square 5,84,780
Slide 13: Financial Highlights : Q3 & 9M|FY24
Shriram Southern Crest Financial Highlights : Q3 &9M|FY24 13
Slide 14: Financial Highlights | 9MFY24
Financial Highlights | 9MFY24 o Satisfactory 9M performance despite Q3 Adversities: • Near flat revenues, EBITDA up 14% YoY, PBT up 11% and Net Profit at Rs.55.3 crs in 9MFY24 • Q3 suffered on delayed receipt of OC’s and consequent deferred handover/sale deed regn resulting in deferment of revenue r
Slide 15: Financial Highlights : Profit & Loss | Q3 & 9MFY24
Financial Highlights : Profit & Loss|Q3 & 9MFY24 9M FY24 Particulars (Rs. Crores) 9MFY24 9MFY23 YoY (%) Q3FY24 Q3FY23 YoY(%) FY23 EBIDTA Total Revenues 629.0 643.0 -2% 240.6 222.0 8% 813.9 Rs. 157.1 Cr Cost of revenue 335.3 389.9 153.7 132.4 453.2 Employee benefit expense 64.4 59.5 22.0 19.5 78.7 14
Slide 16: Financial Highlights (contd.): Profit & Loss
Financial Highlights (contd.): Profit & Loss|Q3 & 9MFY24 9M | FY24 ❑ Revenue growth muted, primarily due to OC led hand over delays suffered in Q3FY24 • ~60% of Revenues to-date driven by recently completed projects - Grand City, Shankari, Southern Crest, Liberty Square and Park63. • DM fee accounte
Slide 17: Financial Highlights: Consolidated Cash Flows
Financial Highlights: Consolidated Cash Flows | Q3 & 9M FY24 (Excl. DM & JV cashflows) Amount in Rs. Crores 9M FY24 Q3FY24 Q2FY24 Q1FY24 FY23 Collection Trends Collections 499 189 171 139 524 SPL Own & JDA / JVs / DM 1,194 DM Income 118 22 26 70 57 1,053 Other Inflows 1 - 1 - 1 251 124 Operating Inf
Slide 18: Ongoing efforts to reduce debt and cost of debt
Ongoing efforts to reduce debt and cost of debt Gross & Net Debt trends Debt Equity Ratio* Cost of Debt (%)** Cr. 700 656 553 0.70 13.70% 600 86 481 508 12.50% 500 120 11.90% 61 11.46% 400 141 0.36 0.36 300 569 0.30 200 432 447 341 100 - Mar-21 Mar-22 Mar-23 Dec-23 Mar'21 Mar'22 Mar'23 Dec'23 Mar'21
Slide 19: New Market Entry: PUNE
New Market Entry: PUNE 19
Slide 20: PUNE: A promising new market with promising great prospects
PUNE: A promising new market with promising great prospects Pune: The City on expressway in the journey of growth 01 Pune market is predominantly Affordable & Mid Market focused, and also end-use driven. Reflects significant similarity to our core markets. 02 Second largest market among Top-7 market
Slide 21: Why Pune & What’s There for “Shriram”
Why Pune & What’s There for “Shriram” Pune “Undri” Key Segment Market dynamics Brand leverage Competitor Presence region Most sought after Significance presence of 1. Largely IT sector crowd. Strong brand image in 1. Kolte Patil alternative Affordable and mid – 2. Compact sized apartments Pune by “S
Slide 22: Outlook: FY24 & Beyond
Shriram Blue Outlook: FY24 & Beyond 22
Slide 23: FY24 Outlook | Context & Strategic Objectives
FY24 Outlook | Context & Strategic Objectives Strategic StrategicObjectives Objectives ➢ Sustain growth momentum: Target 20%+ CAGR in sales over the next 2-3 years ➢ Ensure sustained profitability; Positive net earnings with Improving profitability and returns; and ➢ Progress towards ‘Zero Net debt’
Slide 24: Strong Income Recognition Outlook (FY24-25e)
Strong Income Recognition Outlook (FY24-25e) Sales Volumes (msf) 4-year cumulative sales of 14msf Completed 3.8 msf in FY23 To Hand over ~2,000 units Handover in ~3,000 units in FY24 4.0 FY23 3.8 3.2 3.0 Project Completion Trend (msf) # units handover 2,093 2,885 2,280 2,000+ ~8,000 FY20 FY21 FY22 F
Slide 25: Green Building Initiatives through EDGE
Green Building Initiatives through EDGE ✓ SPL committed to “Green Buildings”, as part of its growth strategy and EDGE - ADVANTAGES FOR DEVELOPERS sustainable development efforts Positioning as a first mover in the market with a major marketing ✓ EDGE: A measurable solution from IFC, a part of the Wo
Slide 26: Awards & Recognitions: Q3 | FY24
Awards & Recognitions: Q3 | FY24 Developer of the year, residential –15th Realty+ Residential Complex of Conclave & Excellence the Year - 15th Realty+ Awards 2023, South Conclave & Excellence Shriram Properties Awards 2023, South Enterprise Security Award Park 63 – Indian Express L&D Excellence Awar
Slide 27: Project Pipeline Update – December’23
Project Pipeline Update – December’23 Project Pipeline (msf) Upcoming – 20 msf # projects Msf 8.6 53.1 Ongoing – 24 msf 7.8 44.5 Pipeline – March’23 53 52.9 1.6 10.6 Less: Projects Completed (4) (1.8) 4.1 11.9 Add: Projects Added 1 1.9 8.5 Pipeline – December’23 50 53.1 Ongoing Ongoing Ongoing Upcom
Slide 28: Shareholding Pattern as at 31st December 2023
Shareholding Pattern as at 31st December 2023 Category No.of Holders % Promoters 3 28% Strategic Investor 1 14% Shareholding Pattern as at 31st December 2023 Institutional Investors 20 10% Body Corporates 534 12% Promoters , Public 75,811 36% Public , 35% 28% Total 76,369 100% Strategic Body Investo
Slide 29: Investment Summary
Investment Summary 8. Access to Capital 1. Corporate Governance ➢ Shriram Group DNA and marquee investor ➢ Strategic relationships with domestic and presence for a decade contribute to strong international financial investors governance and transparency practices ➢ Early recipient of FDI in the sect
Slide 30: Residential Real Estate Sector Overview
Shriram WYTFIELD Residential Real Estate Sector Overview 30
Slide 31: Residential Real Estate Sector: Resilient & Attractive Investment
Residential Real Estate Sector: Resilient & Attractive Investment Growth momentum strong despite ambivalent global economy * KEY EMERGING TRENDS – Largely remain intact • Top-7 City sales decade high for CY23 – 5.36 lac units, Up 16% YoY • Housing affordability favorable, Rate hike impact minimal •
Slide 32: SPL’s Core Market Trends
SPL’s Core Market Trends • Absorption continue to dominate in SPL’s core markets Pricing & Segment wise Trends 2023– Core Markets Bengaluru Chennai Kolkata • 79% of absorbed units for CY23 in top 5 cities (Bangalore, Hyderabad, Thane & Pune) • Inventory overhang on downward trajectory − Bengaluru am
Slide 33: Thank You
Thank You Shriram Luxor Shriram Chirping Woods 33
Slide 34: Annexures
Annexures 34
Slide 35: Annexure-1: Projects Snapshot by Development Models
Annexure-1: Projects Snapshot by Development Models Development Own Developments Joint Developments Joint Ventures Management Execution Track Record Execution Track Record Execution Track Record Execution Track Record Completed Completed Completed Completed ✓ 7 projects ✓ 23 projects ✓ 3 projects ✓
Slide 36: Annexure-2: Consolidated Cash Flows – With and Without JV Cashflows
Annexure-2: Consolidated Cash Flows – With and Without JV Cashflows Particulars SPL Consolidated (CFS) SPL Enterprise (100%)1 (Excl DM) Amount in Rs. Crores Q1FY24 Q2FY24 Q3FY24 9M FY24 Q1FY24 Q2FY24 Q3FY24 9M FY24 Collections 139 171 189 499 261 347 3147 922 DM Income 70 26 22 118 70 26 21 118 Othe
Slide 37: Annexure-3: Business Model Dynamics
Annexure-3: Business Model Dynamics Range of Services offered by SPL under DM Model DESIGN APPROVALS SALES MARKETING CONSTRUCTION CRM HANDOVER MAINTENANCE Development Capital Scalability Return Risk Rewards to LO Risk to LO Model Intensivity Own Low High High High Least/NA Least/NA JDA Moderate High
Slide 38: Annexure-3: Business Model Dynamics (Contd.)
Annexure-3: Business Model Dynamics (Contd.) Land Project Launch & Execution Delivery Financials Developement Ownership Project & Approval Branding Sales & CRM Project Delivery & RERA Maintenance Overall Economics Revenue Construction Costs Marketing Costs Debt & Interest Costs Free Cashflow Sharing
Slide 39: Annexure-4: Our Project Presence - Bangalore
Annexure-4: Our Project Presence - Bangalore 39
Slide 40: Annexure-4: Our Project Presence - Chennai
Annexure-4: Our Project Presence - Chennai 40
Slide 41: Annexure-4: Our Project Presence - Kolkata
Annexure-4: Our Project Presence - Kolkata 41
Slide 42: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Shriram Properties Limited Strategic Growth Advisors Pvt. Ltd. CIN – L72200TN2000PLC044560 CIN - U74140MH2010PTC204285 Mr. Shrikanth D S, AGM – Finance Mr. Rahul Agarwal / Ms. Brinkle Shah Jariwala Email Id – ir.spl@shr