Sobha Limited · NSE:SOBHA
Sobha — Q4 FY2024 Earnings Presentation
45 slides from Sobha's earnings presentation, May 17, 2024
Slide 1: Filing letter: Investor Presentation for quarter and year ended March 31, 2024
SOBHA PASSION AT WORK Date: May 17, 2024 To To The Deputy Manager The Manager Department of Corporate Services The National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot No C/1, G Block PJ Towers, Dalal Street Bandra Kurla Complex Mumbai – 400 001 Mumbai – 400 051 Scrip Code: 5327
Slide 2: Investor Presentation March 2024
• SOBHA Investor Presentation Artistic Impression PASSION AT WORKof SOBHA Crystal Meadows, Bangalore 1 March 2024
Slide 3: SOBHA: Leading through excellence, scale and innovation
SOBHA: Leading through excellence, scale and innovation Established on a solid footing Consistent delivery at scale ‣ Bangalore headquartered Real Estate & Construction firm with 29 years of ‣ 136.25 mn sft completed in 546 developments till date across 27 cities delivering international quality res
Slide 4: Snapshot of FY 2024 performance
Snapshot of FY 2024 performance Real Estate Sales (Rs. Bn) Collection (Rs. Bn) Net Operating Cashflow (Rs. Bn) Net Debt (Rs. Bn) 66.44 28% 57.97 52.82 10% 51.98 10.56 3% 10.90 16.40 -23% 12.62 FY-23 FY-24 FY-23 FY-24 FY-23 FY-24 FY-23 FY-24 Revenue (Rs. Bn) EBITDA (Rs. Bn) PAT (Rs. Bn) Net D/E Ratio
Slide 5: Awards and Recognitions in Q4 FY 2024
Awards and Recognitions in Q4 FY 2024 Reality and Excellence Award 2024 Sobha Waterfront Project in Hyderabad has been awarded the best ‘Ultra Luxury – Lifestyle Project’ of the year Haryana State Health and Safety Award (Received in Jan-24) CERTirl<"'.ATE 0~ AU~ llV LMLN I - ... . HUYA!<ol,\ITAl't\
Slide 6: Contents
Contents ► Cashflow Sales Performance Financials & Operations Project Updates PASSION AT WORK 5 SOBHA
Slide 7: Highest ever Net Operational Cashflow generated in FY 2024
Highest ever Net Operational Cashflow generated in FY 2024 Rs Billion ‣ Highest ever Collections in FY24, was up by 9.7% from FY23 Total Operational Cash Inflow Real Estate Cash Inflow • Real Estate collections improved by 16.9% to Rs. 50.34 bn 52.82 10% 57.97 50.34 17% • Contracts & manufacturing c
Slide 8: Collections improved every quarter, Q4 FY24 recording highest quarterly inflows
Collections improved every quarter, Q4 FY24 recording highest quarterly inflows Rs Billion ‣ Total collections in Q4-24 improved marginally over previous quarter Total Operational Cash Inflow Real Estate Cash Inflow and increased by 5.3% compared to Q4-23 to Rs. 14.98 bn, 14.98 5% • Real Estate cont
Slide 9: Cashflow Statement – Q4 & FY 2024
Cashflow Statement – Q4 & FY 2024 Rs Million PARTICULARS Q4-24 Q3-24 Q4-23 FY-24 FY-23 Operational cash inflows Real Estate Operations 13,339 12,929 11,787 50,345 43,058 Contractual & Manufacturing 1,644 2,002 2,437 7,621 9,765 Total Operational cash inflow (A) 14,983 14,931 14,224 57,966 52,823 Ope
Slide 10: Cashflow Statement – Q4 & FY 2024…continued
Cashflow Statement – Q4 & FY 2024…continued Rs Million PARTICULARS Q4-24 Q3-24 Q4-23 FY-24 FY-23 Financial Outflows Finance Outflow 464 515 465 1,951 2,056 Dividend including taxes - - - 284 285 Total Financial Outflows (D) 464 515 465 2,235 2,341 Net Cashflow after Financial & Tax Outflow : (E=C-D)
Slide 11: Net Debt reduction for 14 consecutive quarters, from internal accruals
Net Debt reduction for 14 consecutive quarters, from internal accruals 1.32 1.31 1.40 1.25 Net Debt to Equity reduced from peak of 1.23 32 1.19 30.50 1.32 to 0.50 as on 31st March 2024 29.75 1.11 1.20 28.52 28.17 27.78 0.97 28 26.54 1.00 0.87 0.77 23.37 0.72 0.80 24 0.66 0.63 21.10 0.58 0.54 0.60 0.
Slide 12: Average Cost of borrowing in Q4 FY 2024 was at 9.35%
Average Cost of borrowing in Q4 FY 2024 was at 9.35% Marginal increase in borrowing cost compared to previous quarter 1. ........... ................. ................. ................. .......... ....... .......... .................. ................. ................. ................. ..........
Slide 13: Residential Real Estate Portfolio: Projected Cashflow as on 31st March 2024
Residential Real Estate Portfolio: Projected Cashflow as on 31st March 2024 Completed - with Ongoing - Area Ongoing - Area Particulars Total Unit unsold inventory offered for sale not offered for sale Total Saleable area 18.74 22.21 2.16 43.11 Mn sft Sobha’s share of Saleable area 17.42 21.30 2.16 4
Slide 14: Contents
Contents Cashflow ► Sales Performance Financials & Operations Project Updates PASSION AT WORK 13 SOBHA
Slide 15: Historic best Sales performance achieved in FY 2024, across all metrics
Historic best Sales performance achieved in FY 2024, across all metrics Sales Volume (Mn sft) ‣ Achieved highest annual sales, supported by suitable inventory catering to robust demand • Sales Value registered growth of 27.8% to clock Rs. 66,441 mn 6.08 5.65 8% • Sobha Share grew by 28.0% over FY23
Slide 16: Sales performance improved every quarter in FY 2024 compared to FY 2023
Sales performance improved every quarter in FY 2024 compared to FY 2023 Sales Value (Rs. Mn) Quarterly Highlights ■ FY-24 FY-23 ‣ We sold 856 homes with SBA of 1,339,319 sft and value of Rs. 15.04 bn 19.52 ‣ Average price realization was up by 13.4% from Q4-23 to Rs. 11,230 / sft 17.24 15.04 14.63 1
Slide 17: Real Estate Sales Performance – FY 2024 – Region wise
Real Estate Sales Performance – FY 2024 – Region wise Historic Sales achieved across all parameters – SBA, Average Realization & Sales value Area Sold Total Sale Value Sobha’s Share Value Average Price Realization Sales Value (Rs. Bn) Region (sft) (Rs. Mn) (Rs. Mn) (Rs. / sft) 66.44 Bangalore 4,105,
Slide 18: Real Estate Sales Performance – Q4 FY 2024 – Region wise
Real Estate Sales Performance – Q4 FY 2024 – Region wise Kerala recorded highest ever quarterly sales performance in Q4-24 Area Sold Total Sale Value Sobha Share Value Average Price Realization Sales Value (Rs. Bn) Region (sft) (Rs. Mn) (Rs. Mn) (Rs. / sft) 14.63 3% 15.04 Bangalore 1,005,697 11,662
Slide 19: Consistent and sustained Sales performance over last 10 quarters
Consistent and sustained Sales performance over last 10 quarters Quarterly Sales Volume (Mn sft) 1.69 1.66 1.48 1.48 1.34 1.36 1.34 1.39 1.34 1.32 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Quarterly Sales Value (Rs. Mn) 19,516 17,238 14,634 14,647 15,040 14,247 11,096 11,455 11,642
Slide 20: Sales Value classification - Q4 & FY 2024 - Price Band & Region Wise
Sales Value classification - Q4 & FY 2024 - Price Band & Region Wise Price bucket wise contribution to sales value • Luxury segment (> Rs 2 Cr.) contribution grown Q4 – FY24 FY-24 <Rs. 1 Cr. Rs. 2 Cr. To <Rs. 1 Cr. from 25% in FY22 to 36% in FY23 to 58% in FY24 23% Rs. 3 Cr. 18% Rs. 2 Cr. To 30% • 7
Slide 21: Inventory Visibility – Ongoing and Forthcoming Real Estate Projects
Inventory Visibility – Ongoing and Forthcoming Real Estate Projects Forthcoming Projects Total Residential Inventory – Ongoing and Forthcoming Location SBA (Mn sft) No. of Projects Inventory status Mn sft Residential Projects Bangalore 6.88 6 Unsold Area - Completed projects 0.22 Gurgaon 6.56 5 Pune
Slide 22: Contents
Contents Cashflow Sales Performance ► Financials & Operations Project Updates PASSION AT WORK 21 SOBHA
Slide 23: Financial & Operational Highlights – FY 2024
Financial & Operational Highlights – FY 2024 Total Income (Rs. Bn) Real Estate Income (Rs. Bn) Key Highlights ‣ Total revenue for FY24 is at Rs. 32.18 bn, reduced by 5.4% compared to FY23 34.02 -5% 32.18 ‣ Real estate revenue was Rs. 24.14 bn, decreased by 4.3% from FY23 25.24 -4% 24.14 ‣ We handed
Slide 24: Financial & Operational Highlights – Q4 & FY 2024
Financial & Operational Highlights – Q4 & FY 2024 Key Highlights Total Income (Rs. Bn) Real Estate Income (Rs. Bn) ‣ The total revenue for Q4-FY24 is Rs. 7.91 bn, improved by 10.9% over 12.40 Q3-24 and reduced by 36.2% compared to Q4-23 -36% 9.56 7.91 ‣ Real estate business contributed Rs. 6.08 bn,
Slide 25: Profit & Loss Statement – Q4 & FY 2024
Profit & Loss Statement – Q4 & FY 2024 Rs Million Particulars Q4-24 Q3-24 Q4-23 FY-24 FY-23 Real Estate Revenue 6,080 5,212 9,557 24,138 25,238 Contractual & Manufacturing Revenue 1,549 1,638 2,542 6,831 7,863 Other Income 284 288 302 1,209 923 Total Income 7,913 7,137 12,401 32,179 34,024 Total Exp
Slide 26: Consolidated Balance Sheet as on 31st March 2024
Consolidated Balance Sheet as on 31st March 2024 ASSETS (in Rs. Mn) 31-Mar-24 31-Mar-23 EQUITY & LIABILITIES (in Rs. Mn) 31-Mar-24 31-Mar-23 Non-current Assets Equity Property, Plant and equipment 4,653 4,130 Equity Share Capital 948 948 Investment Property 4,433 4,519 Other Equity 24,192 23,999 Inv
Slide 27: Contracts Portfolio & Operational Overview – FY 2024
Contracts Portfolio & Operational Overview – FY 2024 Revenue & Collection Rs Billion JANA SEVA TRUST PARAM - Bangalore Particulars FY24 FY23 ‣ The Project was started in Nov’21 with a development of Revenue Convention Centre and Science Exhibition Building. The Contracts 3.09 3.62 scope of work perf
Slide 28: Manufacturing & Retail Performance - FY 2024
Manufacturing & Retail Performance - FY 2024 ‣ SOBHA – Only Real Estate company in India with complete vertical integration across the value chain ‣ It supports company to take up turn-key projects and deliver world class quality in timely & efficient manner Glazing & Metal Works Interiors, Matresse
Slide 29: Commercial portfolio: Completed, Ongoing & Forthcoming projects
Commercial portfolio: Completed, Ongoing & Forthcoming projects Total Sobha Share Total Income Project Name Status Leasable Area (sft) Leasable area (sft) Sobha City Mall, Thrissur Operational 322,983 280,798 0.73 One Sobha, Bangalore Operational 227,274 153,351 24% 0.59 Sub Total 550,257 434,149 So
Slide 30: Contents
Contents Cashflow Sales Performance Financials & Operations ► Project Updates PASSION AT WORK 29 SOBHA
Slide 31: New Projects Launched in FY 2024
New Projects Launched in FY 2024 7.02 mn sft of new residential projects launched in FY 2024, of which 3.18 mn sft was launched in Q4 Project Location Launch Period Product Type Configuration SBA Sobha Neopolis Bangalore Q3-24 Apartments 1 BHK , 3 BHK & 4 BHK 3,440,634 Sobha Metropolis Phase 3 Thris
Slide 32: New Project Launches during Q4 FY 2024
New Project Launches during Q4 FY 2024 SOBHA Crystal Meadows Super Luxury Row House project is located at Mullur (SE Bangalore). The project spans over 27.27 acres along Sarjapura – Bellandur road, a bustling Tech Hub. ➢ Project has a total saleable area of 1,251,549 sft comprising 290 units, all 4B
Slide 33: New Project Launches during Q4 FY 2024 … continued
New Project Launches during Q4 FY 2024 … continued SOBHA Atlantis Phase II Phase II of Sobha Atlantis project is located at Thykoodam, Kochi, the busiest hub with easy connectivity to Vytilla Mobility Hub, Thykoodam metro, Kochi – Trivandrum NH. The project spans over 2.35 acres ➢ Project has a tota
Slide 34: Projects completed in Q4 and FY 2024
Projects completed in Q4 and FY 2024 2,659 homes (4.40 mn sft) delivered in FY 2024, out of which 1,020 homes (1.69 mn sft) were completed in Q4-FY24 Project Location Product Type No. of units SBA (sft) Sobha Royal Pavilion Bangalore Apartments 491 863,813 Sobha Dream Gardens Bangalore Apartments 63
Slide 35: Real Estate - Projects portfolio – Completed, Ongoing & Forthcoming
Real Estate - Projects portfolio – Completed, Ongoing & Forthcoming Total Developable / Leasable area and Saleable area (Mn sft) Completed Ongoing Region Forthcoming Note: Developable Saleable Built-up Developable Saleable Built-up Area Area Area Area ‣ Real Estate product mix includes Multi Storied
Slide 36: Completed Residential Projects during Q4 FY 2024
Completed Residential Projects during Q4 FY 2024 SOBHA Dream Garden – Wing 9A & 9B SOBHA Sentosa – Wing 7 SOBHA Windsor – Wing 3 Bangalore Bangalore Bangalore Wing 9A and 9B comprising of 2 tower G+23 floors Wing 7 comprising 1 Tower of G+17 floors Wing 3 comprising of 1 tower G+14 floors Total SBA
Slide 37: Completed Residential Projects during Q4 FY 2024...continued
Completed Residential Projects during Q4 FY 2024...continued Rajvilas – Wing 1 Sobha Lifestyle Legacy SOBHA Royal Pavilion – Wing 1,2,16 Bangalore Bangalore Bangalore Wing 1 comprising 1 Tower of G+25 floors 3 Villas completed in Q4-FY24. Wing 1 , 2 and 16 - comprising 3 towers with G+18 floors Tota
Slide 38: Completed Residential Projects during Q4 FY 2024...continued
Completed Residential Projects during Q4 FY 2024...continued Sobha Bela Encosta Sobha Gardenia Annexe SOBHA Dream Heights – Tower 2A And 2B Calicut Chennai GIFT City 2 Villas completed in Q4-FY24. 2 Villas completed in Q4-FY24. Tower 2A and 2B comprising of G+33 floors Total SBA completed in Q4-FY24
Slide 39: Completed Residential Projects during Q4 FY 2024...continued
Completed Residential Projects during Q4 FY 2024...continued International City Sobha City – Tower C4 SOBHA Silver Estate Gurgaon Gurgaon Thrissur 17 Villas completed in Q4-FY24. Tower C4 with G+24 floors Villa completed in Q4 is 7 Nos Total SBA completed in Q4-FY24 – 77,181 sft Total SBA completed
Slide 40: Ongoing Residential Projects
Ongoing Residential Projects SOBHA Galera - Bangalore SOBHA Dream Garden - Bangalore SOBHA Royal Crest - Bangalore Development details Development details Development details Duplex and Triplex House with 40 units (4 BHK) 12 wing of G+23 floors with 1,052 units ( 1/2 BHK) 3 towers of G+31 floors wit
Slide 41: Ongoing Residential Projects…continued
Ongoing Residential Projects…continued SOBHA Windsor - Bangalore SOBHA Sentosa - Bangalore SOBHA Brooklyn Towers - Bangalore Development details Development details Development details 4 Phase with 11 Tower of G+ 14 /17 floors with 681 units. ( 2/3 BHK) 3 phases with 6 Wings of G+17 floors with 462
Slide 42: Ongoing Residential Projects ….. continued
Ongoing Residential Projects ….. continued SOBHA Atlantis - Kochi SOBHA Meadows Whispering Hills - Trivandrum SOBHA Avalon - Gift City Development details Development details Development details Phase 1 & 2 with G+27 floors with 384 units ( 3/4 BHK) 2 Blocks of G+12 floors with 98 units ( 3 BHK) 2 T
Slide 43: Ongoing Residential Projects…continued
Ongoing Residential Projects…continued SOBHA Arbor - Chennai SOBHA Metropolis - Thrissur SOBHA Nesara - Pune Development details Development details Development details 7 Wing of G+5 floors with 163 units (3/34 BHK) 6 Towers of G+21/23/25 floors with 504 units ( 3/4 BHK) 3 Block of G+27 floors with
Slide 44: Board of Directors
Board of Directors Ravi PNC Menon, Chairman Jagadish Nangineni, Managing Director ‣ 18+ years of experience in the real estate and ‣ 23 years of experience across diverse sectors - real construction business estate, consulting & technology ‣ Bachelor of Science in Civil Engineering from ‣ B.Tech in
Slide 45: Thank you
Thank you SOBHA Corporate Office ‘SOBHA’, Sarjapur-Marathahalli Outer Ring Road (ORR), Devarabisanahalli, Bellandur Post, Bangalore-560103 Phone: +91-80- 49320000 www.sobha.com Investor’s Contact Mr. Soumyadeep Saha Investor Relations Tel: +91-80-49320000 Ext. 5024 Email: soumyadeep.s@sobha.com Disc