Shriram Properties Ltd. · NSE:SHRIRAMPPS
Shriram Properties — Investor Presentation (April 2023)
24 slides from Shriram Properties's investor presentation, April 2023
Slide 1: Shriram Properties Limited Corporate Presentation
Shriram Properties Limited Corporate Presentation April 2023 STRICTLY PRIVATE AND CONFIDENTIAL
Slide 2: SPL : An Introduction
SPL : An Introduction Top 5 c. 90% players in core markets of portfolio2 in Among the Top 5 in South India1 Affordable housing About Us Part of the well known c.20% Shriram Group of Equity held by globally and Mid Market renowned PEs housing segment c. 20.6 msf c. 53 msf 3 c. 21 msf over 36 projects
Slide 3: SPL : Significant Competitive Strengths
SPL : Significant Competitive Strengths Leadership in Core Focus on Mid Market Markets and Affordable Housing Strong Parentage and Established Beneficiary of RERA- Partnerships led industry consolidation Experienced & Asset Light Business Professional Model Management Team Demonstrated Execution Tra
Slide 4: Shriram Properties: The Journey so far
Shriram Properties (‘SPL’): The Journey so far… • Creation of credible residential real estate growth platform, over the last 2 decades – Among the Top-5 players in core markets of Bangalore, Chennai and Kolkata – Focused Mid-Market & Affordable housing player (84% of completed projects; 91% of Proj
Slide 5: SPL – Building Scale in the Post-RERA Environment
SPL – Building Scale in the Post-RERA Environment Sales Volume (msf) Sales Value (Rs. Mn) 3.8 14,824 3.6 14,318 13,524 3.2 3.0 12,443 11,726 11,486 2.7 2.4 1.3 4,718 3,318 0.7 FY16 FY17 FY18 FY19 FY20 FY21 FY22 9MFY23 FY16 FY17 FY18 FY19 FY20 FY21 FY22 9MFY23 Collections (Rs. Mn) Construction (Rs. M
Slide 6: Demonstrated Capabilities in Project Execution
Demonstrated Capabilities in Project Execution Shriram Properties has delivered 36 completed projects | c.20.6msf of Saleable Area 2 Completed no. of projects Total saleable area for completed projects 7 Significant project 1 6 area delivered in the 6.9 5 2 years before 4 4 COVID 3.5 3.8 2.4 1.1 FY1
Slide 7: Recent Highlights & Developments: 9MFY23
Recent Highlights & Developments: 9MFY23 Operational Performance Project Execution • Highest-ever 9M sales, both Volume and Value • Handed-over 1200+ units, apart from ~400 plots • 1.0+ msf quarterly sales run rate • On-track to hand-over ~2,000 units in FY23; to drive • Q4 stronger, backed by multi
Slide 8: Impressive 'Sales-at-Launch'
Impressive ‘Sales-at-Launch’* Impressive Sales-at-Launch # of project launches 4 new projects & 3 52% new phases of 48% 43% 12 ongoing projects 38% 35% 34% 7 7 6 6 4 3 9MFY23 3 3 FY18 FY19 FY20 FY21 FY22 9MFY23 FY18 FY19 FY20 FY21 FY22 FY23P 9MFY23 Launches and Sales-at-launch FY23 Launches Type Seg
Slide 9: Encouraging Pricing Trends: Realization up 7% from Mar'22 levels
Encouraging Pricing Trends: Realization up 7% from Mar’22 levels Price Increase by Project – Top Projects only Development Realisation % Change Realisation % change Project Type Mar’22 from Sep’21 Dec’22 from Mar’22 9MFY23 SouthEast Phase 2 Apartments 4,294 10% 5,268 23% Increase in Average Southern
Slide 10: Strong Project Pipeline; Growing Further
Strong Project Pipeline; Growing Further Project Pipeline (msf) Upcoming Projects – 30 msf 10.3 52.8 Ongoing – 23 msf 11.2 2.2 0.3 0.9 5.3 5.5 9.0 8.3 Ongoing Ongoing Ongoing PuD PuD PuD FC FC FC Total Owned JV / JDA DM Owned JV / JDA DM Owned JV / JDA DM # 7 7 9 3 1 1 4 12 7 51 Note: FC : Forthcomi
Slide 11: Financial Highlights : P&L Trends
Financial Highlights : P&L Trends Particulars (Rs. Mn)1 FY20 FY21 FY22 9M FY23 Revenue from operations* 5,667 4,315 4,329 5,566 9MFY23 Total Revenues Other income 651 699 849 864 Rs. 6,430 Mn Total Revenues 6,318 5,014 5,178 6,430 Cost of revenue 3,524 2,387 1,823 3,899 1.2x FY22 Employee benefit ex
Slide 12: Financial Highlights : Balance Sheet
Financial Highlights : Balance Sheet Particulars (Rs Mn)1 31-Mar-21 31-Mar-22 31-Dec-22 ROCE Trends (%) 10.8% 10.5% Fixed Assets 758 823 801 Investments and loans 1,885 1,810 1,162 7.0% Inventories 20,261 21,882 21,572 5.0% 4.0% Cash and Bank Balances 828 1,405 769 Other Assets 9,262 10,418 10,584 T
Slide 13: Financial Highlights : SPL CFS Cashflow Trends
Financial Highlights : SPL CFS Cashflow Trends (Excl. DM & JV cashflows) 9M Collection (Gross) Trends (In Rs Mn) FY21 FY22 SPL Own & JDA / JVs / DM FY23 Collections 3,202 5,346 3,853 12,631 DM Income 61 721 455 Other Inflows 202 6 5 3,578 9,247 8,871 Operating Inflow 3,465 6,073 4,313 2,930 1899 Con
Slide 14: 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 (%)** Rs. Mn 10,000 0.70 0.70 14.1% 8,047 13.7% 8,000 603 13.5% 6,724 6,558 494 6,000 864 4,811 5,045 0.36 769 0.30 12.5% 12.5% 4,000 7,444 1,405 6,230 5,694 2,000 4,276 3,407 - Mar'19 Mar'20 Mar
Slide 15: Growth Outlook Going Forward: Awards
Budget Housing Budget Housing Property Awards of Best Gated Visionary Leader Integrated Best Efficient & Lifetime Most Admired Developer Project of the Community of the Sustainable Smart MD of the Year Project of the year – the Year Plotted of the year (1) Township Project of Achievement Upcoming Pr
Slide 16: Robust Sector Dynamics; Housing Demand Strong
Robust Sector Dynamics; Housing Demand Strong • Strong sequential growth in demand across top markets (+28% YoY KEY EMERGING TRENDS – Largely remain intact in CY2022) • Housing affordability remains favorable, despite rate hikes • Supply growth robust as well (+15% YoY in CY2022) • Large branded pla
Slide 17: SPL's Core Markets' Trends
SPL’s Core Markets’ Trends Pricing & Segment wise Trends 2022– Core Markets • Strong growth in launches and absorption seen across SPL’s core Bengaluru Chennai Kolkata markets – Bengaluru, Chennai and Kolkata • Inventory levels in Bengaluru is among lowest across Tier-1 cities • Chennai and Kolkata
Slide 18: Key Strategies
Key Strategies 6 1 Leverage established Stay focused on mid-market and relationships with financial affordable housing investors for growth funding 2 5 Continued focus on core Build scale and enhance markets of South India execution capabilities 4 3 Unlock value from ongoing Enhance focus on Develop
Slide 19: Strategy and Outlook | FY24 and Beyond
Strategy and Outlook | FY24 and Beyond ➢ SPL continues to demonstrate its growth momentum delivering strong performance ➢ Operating leverage kicking-in, on the back of scale and improving efficiency ➢ FY24 on track to be a promising year with strengthened long-term fundamentals, for the sector and S
Slide 20: Development Management (DM) Model: Stabilised Growth Engine for SPL
Development Management (DM) Model: Stabilised Growth Engine for SPL DM Launches (msf) | FY18-9MFY23 DM Volumes (msf) 8 4 2 20% 19% 26% 35% 28% 2.5 % of total sales volume 1.05 1.06 2.2 No. of projects 0.83 0.69 0.49 1.1 FY18 FY19 FY20 FY21 FY22 Plots Apartments Villas DM Pipeline Growth DM Project P
Slide 21: Strategies for Unlocking Potential from Kolkata Progressing Well
Strategies for Unlocking Potential from Kolkata Progressing Well Development Strategy Own development of c.10msf over next 3-5 years Monetising remaining land bank c.22msf Development Status Update Monetisation Update ❑ Shriram Grand-1: (2.1msf, almost entirely sold) FSI sale progressing well; MoU w
Slide 22: Strong Income Recognition Outlook (FY23-25e)
Strong Income Recognition Outlook (FY23-25e) Sales Volume (msf) Ongoing Projects – By Region (msf) 3-year cumulative sales of 10msf 15 4 2 3.8 3.2 3.0 8.1 5.6 4.3 FY20 FY21 FY22 Bangalore Chennai Kolkata # No. of projects Project Completion Trend1 (msf) # No. of units handed over 10.7 2,093 2,885 Mo
Slide 23: Investment Summary
Investment Summary 8. Access to Capital 1. Corporate Governance ➢ Strategic relationships with domestic and ➢ Shriram Group DNA and marquee investor international financial investors presence for a decade contribute to strong ➢ Early recipient of FDI in the sector governance and transparency practic
Slide 24: Thank You
THANK YOU 23
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