Sobha Limited · NSE:SOBHA
Sobha — Q3 FY2020-21 Earnings Presentation
42 slides from Sobha's earnings presentation, December 2020
Slide 1: Investor Presentation December 2020
INVESTOR PRESENTATION December 2020
Slide 2: Residential Sector: Driving Forces & COVID Induced Influence
RESIDENTIAL SECTOR: DRIVING FORCES & COVID INDUCED INFLUENCE Demand Financing Affordability scenario options factor • Strong Positive • Increased spending Sentiments. • Easy and quick ability. • Intrinsic desire of financing options. • More cash in the owning quality • Low Interest Rates. hands of c
Slide 3: Key Highlights: Q3 & 9M FY 2020-21
KEY HIGHLIGHTS: Q3 & 9M FY 2020-21 Best ever quarterly sales volume of 1.13 million square feet (Super Built up Area ) valued at Rs 8.88 billion. Price realization of Rs 7,830/square feet (Super Built up Area) achieved during Q3-21 is the highest price realization achieved by the company as comp
Slide 4: Key Highlights: Q3 & 9M FY 2020-21 (Contd)
KEY HIGHLIGHTS: Q3 & 9M FY 2020-21 (Contd) Real Estate Cash inflow achieved during Q3-21 is the highest in the last 10 Quarters Net Cash flow achieved during Q3-21 is the highest in the last 10 Quarters Highest ever Net Operating Cashflow of Rs 4.04 billion on rolling 9 months basis, during th
Slide 5: Sales Performance: Q3 FY 2020-21
SALES PERFORMANCE: Q3 FY 2020-21 Q3 - FY 21 Area Sold Total Sale Value Sobha Share Total Average Area Sold (in Mn sqft) Region of Sale Value Price Realization GROWTH – 6 % in Sq Feet in Rs Mns in Rs Mns Rs / Sq Feet Bangalore 786,630 5,997 4,678 7,624 1.60 1.13 Gurugram 97,267 945 641 9,712 1.07 Che
Slide 6: Sales Performance: 9M FY 2020-21
SALES PERFORMANCE: 9M FY 2020-21 9M FY 2020-21 9M FY 2019-20 Total Average Sobha Share Total Sale Total Average Sobha Share Region Area Sold Total Sale Value Area Sold Price Realization of Sale Value Value Price Realization of Sale Value in Sq Feet in Rs Mns Rs / Sq Feet in Rs Mns in Sq Feet in Rs M
Slide 7: Cash Flow Statement
CASH FLOW STATEMENT Amount Rs.in Millions PARTICULARS Q3-21 Q2-21 9M-21 9M-20 Q3-20 FY-20 Operational cash inflows Real Estate Operations 6,639 5,023 15,021 17,641 5,699 23,642 Contractual & Manufacturing 2,030 1,836 5,973 9,379 3,293 12,829 Total Operational cash inflow (A) 8,669 6,859 20,994 27,02
Slide 8: Cash Flow Statement (Contd)
CASH FLOW STATEMENT (Contd) Amount Rs.in Millions PARTICULARS Q3-21 Q2-21 9M-21 9M-20 Q3-20 FY-20 Financial Outflows Finance Cost 824 655 1,858 2,474 864 3,399 Income Tax 48 41 131 319 63 393 Total Financial Outflows (D) 872 696 1,989 2,793 927 3,792 Net Cash flow after Financial Outflow : (E=C-D) 9
Slide 9: Cashflow Highlights Q3 FY 2020-21
CASHFLOW HIGHLIGHTS Q3 FY 2020-21 Amount in Rs. Billions Total Cash Inflow Real Estate Cash Inflow GROWTH – 26% GROWTH – 32% 10.00 8.67 8.00 6.64 6.86 5.02 8.00 6.00 6.00 4.00 4.00 2.00 Q2-21 Q3-21 Q2-21 Q3-21 Contracts & Manufacturing Net Operating Cash flow Net Cash flow Cash Inflows GROWTH – 10%
Slide 10: Key Financial Highlights: Q3 FY 2020-21
KEY FINANCIAL HIGHLIGHTS: Q3 FY 2020-21 Total Income Rs 6.96 billion up by 27% compared to Q2-21 Real Estate Revenue Rs 4.64 billion Contractual and Manufacturing up by 39% compared to Q2-21 Revenue: Rs 2.20 billion up by 16% compared to Q2-21 EBITDA:Rs 1.38 billion up by 8% Profit Before Tax Rs 0.3
Slide 11: Key Financial Highlights: 9M FY 2020-21
KEY FINANCIAL HIGHLIGHTS: 9M FY 2020-21 Total Income Rs 16.02 billion Real Estate Revenue Contractual and Manufacturing Rs 10.20 billion Revenue: Rs 5.36 billion EBITDA Rs 3.74 billion Profit Before Tax Margin at 23% Rs 0.61 billion Profit After Tax Rs 0.45 billion 11
Slide 12: Movement of Debt
MOVEMENT of DEBT Amount Rs.in Billions Particulars 31st Dec-20 30th Sept-20 30th Jun-20 31st Mar-20 31st Dec-19 Gross Debt 31.34 31.56 31.25 31.18 32.08 Less: Cash & Cash Equivalents 1.59 1.06 1.04 0.95 1.14 Net Debt 29.75 30.50 30.21 30.23 30.94 D/E Ratio Net Debt (Rs Bn) D/E Ratio 1.30 1.28 36.00
Slide 13: Borrowing Cost
BORROWING COST 11.00% Average cost of borrowing has declined in the last 5 quarters Rate of Interest % 10.00% 9.80% 9.81% 9.76% 9.72% 9.69% 9.57% 9.64% 9.39% 9.32% 9.31% 9.30% 9.17% 9.00% 8.00% Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Finance Cost(Gross) Rs. In Million
Slide 14: Real Estate (Residential) Projects: Projected Cash Flow
REAL ESTATE (RESIDENTIAL) PROJECTS: PROJECTED CASH FLOW Completed projects Ongoing - Area Ongoing - Area Particulars Total UOM with unsold inventory offered for sale not offered for sale Total Saleable area 6.13 19.53 7.80 33.46 Mn. sqft Sobha Share of Saleable area 6.05 18.11 6.96 31.12 Mn. sqft To
Slide 15: Sales Value Performance Q3 FY 2020-21 (Price Band and Region)
SALES VALUE PERFORMANCE Q3 FY 2020-21 (Price Band and Region category) % CONTRIBUTION PER PRICE BRACKETS REGION CONTRIBUTION TO TOTAL SALE VALUE Coimbatore Kochi Mysore Pune GIFT City 1% 12% 0.10% 1% 2% Bangalore > Rs.3 Crs < 1 Cr 67% 9% Thrissur 20% 4% Rs.2 Crs to 3 Crs Chennai 24% 2% Gurugram 11%
Slide 16: Sales Value Performance 9M FY 2020-21 (Price Band and Region)
SALES VALUE PERFORMANCE 9M FY 2020-21 (Price Band and Region category) % CONTRIBUTION PER PRICE BRACKETS REGION CONTRIBUTION TO TOTAL SALE VALUE Coimbatore Kochi Kozhikode Mysore Pune 0.91% 13% 0.53% 0.34% > Rs.3 Crs GIFT City < 1 Cr 2% 11% 1% 19% Thrissur Bangalore 4% 66% Rs.2 Crs to 3 Crs 20% Chen
Slide 17: Buyer Profile: 12 Months Rolling
BUYER PROFILE: 12 Months Rolling PROFESSION-WISE BREAKUP BUYERS AGE-WISE BREAKUP Others >51 Years 21-30 Years IT/ITES 21% 15% 16% Business/Entrepre Professional neur 6% 48% 41-50 Years 22% Medical/Pharma 4% Non IT 31-40 Years Professional 47% 21% RESIDENTIAL STATUS Indian 88% NRI 12% 0% 50% 100% 17
Slide 18: Real Estate - Projects Portfolio
REAL ESTATE - PROJECTS PORTFOLIO Total Developable / Leasable Area in Mn sqft CITY COMPLETED ONGOING FORTHCOMING Completed Real Estate projects located across 7 cities, with Total development of 58.75 mn sqft and Super Bengaluru * 46.10 13.42 7.25 Built-up area of 44.63 mn sqft Mysore 1.58 - - U
Slide 19: Future Launches and RERA Status
FUTURE LAUNCHES AND RERA STATUS Forthcoming Launch Pipeline : Ongoing Projects - RERA registration status : Total Saleable area No of projects No of projects LOCATION No of Projects Location (Mn Sft) applied for RERA approved by RERA Real Estate - Forthcoming Bangalore 72 68 Bangalore 6 6.96 Mysore
Slide 20: Contracts Portfolio
CONTRACTS PORTFOLIO Overall area delivered since inception: 52.60 million square feet Order book value as of 31st December 2020: Rs 21.26 billion Contractual Ongoing Project Details as of 31st Dec 2020 Contractual Revenue & Collection Details as of 31st Dec 2020 Amount in Rs. Billions Built-up area
Slide 21: Contracts: Completed Projects Region Wise Contribution Details
CONTRACTS: Completed Projects region wise contribution details Total Developed Area(in Mn Sqft) Order Value (in Mns) 30.00 25.98 35,000 28,608 25.00 30,000 20.00 25,000 20,000 15.00 15,000 10.00 6.67 5,358 6,542 4.45 4.77 5.61 10,000 5,337 5,377 5.00 1,562 0.28 0.08 0.40 1.53 1.37 0.70 0.14 0.45 0.1
Slide 22: Manufacturing Division Performance
MANUFACTURING DIVISION PERFORMANCE SOBHA – Only Real Estate Company in India with Aatma Nirbhar (Self-Reliant) Model It supports company to achieve world class quality with timely & efficient delivery Glazing & Metal Works Division Interiors & Furnishing Division Concrete Products Division Turno
Slide 23: Commercial Portfolio: Completed and Forthcoming Projects
COMMERCIAL PORTFOLIO: Completed and forthcoming projects Total Leasable Area Sobha Share of Leasable Project Name Status % of area Leased (in sqft) Area (in sqft) Sobha City Mall, Thrissur Completed 94% 338,493 258,247 One Sobha, Bangalore Completed 80% 225,334 150,974 Sub Total 563,827 409,221 Sobh
Slide 24: Sobha Dream Acres Project Status
SOBHA DREAM ACRES PROJECT STATUS Total SBA launched for sale as on Dec - 2020 5.24 mn sqft Total Developable Area Launched 7.43 mn sqft Total SBA Sold till Dec - 2020 4.84 mn sqft Area Completed till Dec - 2020 4.91 mn sqft Percentage sold 92 % Sobha Dream Acres Wing 26, 27 & 28, Bangalore Sobha Dre
Slide 25: Snapshots of Completed Residential Project: Richmond, Bangalore
SNAPSHOTS OF COMPLETED RESIDENTIAL PROJECT: 25 RICHMOND, BANGALORE 25
Slide 26: Snapshots of Completed Contractual Project: Infosys SEZ, Bangalore
SNAPSHOTS OF COMPLETED CONTRACTUAL PROJECT: INFOSYS SEZ, BANGALORE 26
Slide 27: Snapshots of Few Ongoing Projects
SNAPSHOTS OF FEW ONGOING PROJECTS Sobha Dream Gardens, Wing 06, Bangalore Sobha Palm Court Blk 2, Bangalore Sobha Royal Pavilion wing 4, Bangalore Sobha Royal Pavilion wing 16, Bangalore 27
Slide 28: Snapshots of Few Ongoing Projects (Contd)
SNAPSHOTS OF FEW ONGOING PROJECTS (Contd) Sobha City, Tower C2, Gurugram Sobha City, Tower C3, Gurugram Sobha City Athena : Project Launched in Bangalore Residential SBA : 121,606 Commercial SBA: 28,863 28
Slide 29: Board of Directors
BOARD OF DIRECTORS Ravi PNC Menon J.C. Sharma Jagadish Nangineni T.P. Seetharam Chairman Vice Chairman & Managing Director Dy. Managing Director Whole-time Director • Over 37 years of experience in diversified • Over 17 years of experience in the field • Distinguished service as a career • Over 15 y
Slide 30: Annexures
. ANNEXURES 30
Slide 31: Profit & Loss Statement
PROFIT & LOSS STATEMENT Amount Rs.in Millions PARTICULARS Q3-21 Q2-21 9M-21 9M-20 Q3-20 FY-20 Real Estate Revenue 4,641 3,334 10,204 18,494 5,766 22,801 Contractual & Manufacturing Revenue 2,203 1,886 5,360 9,944 3,066 14,738 Other Income 119 239 451 543 180 718 Total Income 6,963 5,459 16,015 28,98
Slide 32: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Amount Rs.in Millions PARTICULARS 31'Dec 2020 31'Dec 2019 PARTICULARS 31'Dec 2020 31'Dec 2019 ASSETS EQUITY & LIABILITIES Non-current assets Equity Property, Plant and equipment 4,487 3,000 Equity Share Capital 948 948 Investment Property 3,469 3,717 Other Equity 23,145 22
Slide 33: Key Financial Indicators
KEY FINANCIAL INDICATORS Total Income (in Rs Bn) EBITDA (in Rs Bn) 38.26 CAGR: 19% 35.16 CAGR: 13% 40.00 8.31 10.00 35.00 28.37 7.47 30.00 22.85 8.00 5.69 25.00 18.78 5.17 6.00 4.58 20.00 15.00 4.00 10.00 2.00 5.00 0.00 0.00 FY-16 FY-17 FY-18 FY-19 FY-20 FY-16 FY-17 FY-18 FY-19 FY-20 PBT (in Rs Bn)
Slide 34: Revenue Trend Analysis: Contractual Vertical
REVENUE TREND ANALYSIS: CONTRACTUAL VERTICAL Contractual vertical revenues Contractual Vertical: 12.00 CAGR: 25% 10.18 10.00 Consistent contributor to the Total Revenues. 8.33 CAGR of 25% Revenue (in Rs. bns) 8.00 6.00 4.14 4.89 4.54 Revenue contribution of the vertical at approx. 26% supports
Slide 35: Revenue Trend Analysis: Manufacturing Divisions
REVENUE TREND ANALYSIS: MANUFACTURING DIVISIONS 30.00 CAGR: 16% Glazing & Metal Works Division CAGR: 25% 22.80 25.00 22.65 20.01 CAGR–18 % Revenue in Rs Bns 2.50 2.19 20.00 1.96 14.88 14.74 1.58 2.00 1.49 Revenue (in Bns) 15.00 12.58 11.77 1.12 1.50 10.00 7.58 7.87 6.07 1.00 5.00 0.50 - FY - 16 FY -
Slide 36: Milestones
MILESTONES • Entered into Furniture business with the launch of metercube brand. • Entered into new residential markets - Hyderabad and Trivandrum. FY20 • Achieved record Sale volume Collections and Income. • Voted as TOP BRAND for the 4th consecutive year by Track2Realty Report 2018. • Successfully
Slide 37: Real Estate Ongoing Projects as of 31st Dec 2020
REAL ESTATE ONGOING PROJECTS AS OF 31st Dec 2020 Total Developable Area Total Saleable Area Sobha Share of Saleable Area Completion Date Sl. No Name of the Project Location Type Classification Business Model (in Mn Sft) (in Mn Sft) (in Mn Sft) as per RERA I Ongoing Projects - Registered under RERA 1
Slide 38: Real Estate Ongoing Projects as of 31st Dec 2020
REAL ESTATE ONGOING PROJECTS AS OF 31st Dec 2020 Total Developable Area Total Saleable Area Sobha Share of Saleable Area Completion Date Sl. No Name of the Project Location Type Classification Business Model (in Mn Sft) (in Mn Sft) (in Mn Sft) as per RERA I Ongoing Projects - Registered under RERA S
Slide 39: Real Estate Ongoing Projects as of 31st Dec 2020
REAL ESTATE ONGOING PROJECTS AS OF 31st Dec 2020 Total Developable Area Total Saleable Area Sobha Share of Saleable Area Completion Date Sl. No Name of the Project Location Type Classification Business Model (in Mn Sft) (in Mn Sft) (in Mn Sft) as per RERA I Ongoing Projects - Registered under RERA 3
Slide 40: Real Estate Ongoing Projects as of 31st Dec 2020
REAL ESTATE ONGOING PROJECTS AS OF 31st Dec 2020 Total Developable Area Total Saleable Area (in Sobha Share of Saleable Area Completion Date as Sl. No Name of the Project Location Type Classification Business Model (in Mn Sft) Mn Sft) (in Mn Sft) per RERA I Ongoing Projects - Registered under RERA 4
Slide 41: Real Estate Ongoing Projects as of 31st Dec 2020
REAL ESTATE ONGOING PROJECTS AS OF 31st Dec 2020 Total Developable Area Total Saleable Area (in Sobha Share of Saleable Area Completion Date as Sl. No Name of the Project Location Type Classification Business Model (in Mn Sft) Mn Sft) (in Mn Sft) per RERA III Ongoing Projects - RERA registration exe
Slide 42: Thank You
THANK YOU Investors Contact : SOBHA Corporate Office - Bangalore Mr.Subhash Mohan Bhat Sobha Limited. Chief Financial Officer ‘SOBHA’, Sarjapur-Marathahalli Outer Ring Mobile: +91- 99801 99088 Road(ORR), Email: subhash.bhat@sobha.com Devarabisanahalli, Bellandur Post, Bangalore-560103 Mr. Tejus Sing