Parsvnath Developers Limited · NSE:PARSVNATH
Parsvnath Developers — Q2 FY2010 Earnings Presentation
52 slides from Parsvnath Developers's earnings presentation, October 2009
Slide 1: Q2FY10 Investors' Update
A Diversified Real Estate Company with Pan India Presence Q2FY10 – Investors Investors’ Update October 2009 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Parsvnath Developers Ltd. (the “Company”) solely for providing information about the Company. This presentation is confidential and may not be copied or disseminated, in whole or part, in any manner This presentation has been prepared by the Company
Slide 3: Contents
Contents • Real Estate Industry – Emerging Trends • Overview of Parsvnath Developers Limited • Key Priorities • g Projects Continued focus on Execution of Existing j • Continued focus on Affordable Housing • Strengthening the Balance Sheet & Deleveraging • Overview of Key Business Segments • Real Es
Slide 4: Real Estate Industry – Emerging Trends
R lE Real Estate t t IIndustry d t – Emerging E i T Trends d 4
Slide 5: The Indian Growth Story
The Indian Growth Story Rapid & Sustainable Economic Growth GDP Growth Rate The average growth Th th rate t in i the th period i d 12 (2004 – 05 to 2007 – 08) has been ~ 9.4 9.6 9.0 8.9% 9 7.5 7.5 6.7 However, growth decelerated in 2008 - 6 09 to 6.7% 6 7% due d to the h adverse d i impact off
Slide 6: Real Estate: Key Demand Drivers
Real Estate: Key Demand Drivers Residential Commercial: Office Space p Rising income levels Strong economic growth Faster urbanization Infrastructure development Nuclear family and younger population Destination for IT/ITeS sector Growing middle & upper class Government Policies to e
Slide 7: Current Industry Dynamics
Current Industry Dynamics India Benchmark Rates (%) The economic slowdown has 9 adversely impacted the real estate 8 sector 7 6 This has prompted developers to 5 d f defer th i decisions their d i i t to acquire i 4 5 4 00 75 additional land reserves 3 16-Jun-08 15-Sep-08 15-Dec-08 16-Mar-09 16-
Slide 8: Overview of Parsvnath Developers Limited
O Overview i off Parsvnath P th D Developers l Limited Li it d 8
Slide 9: Parsvnath Developers Limited: An Overview
Parsvnath Developers Limited: An Overview Over 2 decades of experience in real estate Select Completed Projects development p Completed 37 projects having an area of 11.46 mn sq ft1 Presently 57 projects with a total area of 79.88mn sq ft1 are under development/ construction Out of this, 37.
Slide 10: Diversified Operations
Diversified Operations Completed Projects (Saleable Area) Projects under execution (Saleable Area) Commercial DMRC Hotels Contracts 8% 3% 1% DMRC 2% 1% Commercial 3% Residential 22% Integrated Residential Townships 49% (Plotted Area) IIntegrated d 40% Townships 71% Our focus remains on the residen
Slide 11: Pan India Presence
Pan India Presence DERABASSI MOHALI DHARUHERA RAJPURA (REWARI) AMRITSAR FARIDABAD CHANDIGARH GURGAON J&K ROHTAK KURUKSHETRA JAMMU DEHRADUN SONEPAT PANCHKULA PATNA PUNJAB KARNAL UTTARANCHAL PANIPAT HARYANA DELHI UTTAR PRADESH RAJASTHAN BHIWADI BIHAR JODHPUR JAIPUR GUJARAT MADHYA PRADESH AGRA NOIDA GR
Slide 12: Diversified Business Model
Diversified Business Model SALEABLE PROJECTS NO. AREA ( (mn. sq. fft.)) Residential 47 Group Housing & Built up Houses 67 75 67.75 Plots 30.25 98.00 Commercial/Offices/IT Parks 25 14.90 DMRC ( (BOT Projects) j ) 5 1.86 Hotels 14 1.92 SEZs 7 76.64 Total 98 193.32 12
Slide 13: Project Portfolio – Percentage wise
Project Portfolio – Percentage wise Based on saleable area 13
Slide 14: Key Priorities
K Key Priorities P i iti 14
Slide 15: Key Priorities
Key Priorities #1 Continue focus on Execution of Existing Projects #2 Continue focus on Affordable Housing #3 Strengthening Balance Sheet & Deleveraging 15
Slide 16: Execution Roadmap: Residential
Execution Roadmap: Residential Select Projects Under Execution Saleable Area Project Name Location (mn Sq ft) Integrated Townships Parsvnath City Sonepat 13.78 Parsvnath City Panipat 6.78 Parsvnath City, Sonepat, Actual Site Photograph Parsvnath City Indore 5.40 Residential Group Housing Projects LA
Slide 17: Execution Roadmap: Commercial
Execution Roadmap: Commercial Select Projects Under Execution Saleable Area Project Name Location (mn Sq ft) Parsvnath City Centre Ahmedabad 0.45 Parsvnath City Centre Sonepat 0.34 Parsvnath City Centre Hyderabad 0.29 Parsvnath City y Centre, Parsvnath City Centre, Parsvnath Mall Rohini, Delhi 0.26
Slide 18: Execution Roadmap: DMRC Projects
Execution Roadmap: DMRC Projects Projects Under Execution Saleable Area Project Name Location (mn Sq ft) Parsvnath Metro Mall, Delhi 0.40 Welcome Parsvnath Metro Mall, Delhi 0.32 Azadpur Parsvnath Metro Mall – Delhi 0.31 Parsvnath Metro Mall, Azadpur Akshardham Projects in Planning Saleable Area Pro
Slide 19: Execution Roadmap: Hotels
Execution Roadmap: Hotels Select Projects Under Execution Hotel, Ahmedabad Saleable Area (mn Project Name Location Sq ft) Hotel Hyderabad 0.18 Hotel Ahmedabad 0.14 Hotel Mohali 0.09 Hotel Lucknow 0.07 Hotel Shirdi 0.04 Artistic Impression Actual Site Photograph Hotel, Mohali Hotel, Lucknow Artistic
Slide 20: Possession Schedule
Possession Schedule Parsvnath City, Sonepat Plots P Parsvnath th City, Cit P Paliwal li l Pl Plots t Parsvnath City, Indore Plots Parsvnath Exotica, Gurgaon Parsvnath Planet, Lucknow Parsvnath Regalia, Ghaziabad Next 6 Months 6 Months - 1 Year 1 - 2 Years 5.1 mn Sq ft 16.15 mn Sq ft 7.45
Slide 21: Key Priorities
Key Priorities #1 Continue focus on Execution of Existing Projects #2 Continue focus on Affordable Housing #3 Strengthening Balance Sheet & Deleveraging 21
Slide 22: Continue Focus on Affordable Housing
Continue Focus on “Affordable Affordable Housing” Housing Parsvnath’s major focus was on mid income and affordable housing even before the downturn in the real estate sector started Strong Portfolio of mid income and affordable houses K Key affordable ff d bl housing h i projects j t launched
Slide 23: Case Study: Parsvnath Regalia, Ghaziabad
Case Study: Parsvnath Regalia, Ghaziabad Location/Accommodation Located on G T Road, NCR 30 mins drive from Connaught Place Proximity to upcoming metro station 8 acres of landscaped society 2 – 3 bedroom apartments/penthouses Sales Performance 474 flats were sold out of 480 flats S
Slide 24: Case Study: Parsvnath Pratibha, Moradabad
Case Study: Parsvnath Pratibha, Moradabad Location/Accommodation 9 kms from Railway Station and Main City 2 – 3 bedroom apartments Sales Performance 775 flats were sold out of 808 flats Saleable Area of 1050 sq ft (2 BHK)/1260 1450 & 1550 sq ft (3 BHK) BHK)/1260, Flats starting from Rs
Slide 25: Recent Launch: Parsvnath Royale Floors, Lucknow
Recent Launch: Parsvnath Royale Floors, Lucknow Location/Accommodation Spread over 35 acres on Lucknow – Faizabad Road 6 kms from Gomti Nagar 2 – 3 bedroom b d apartments t t Sales Performance 510 flats launched in Phase 1. Out of this 501 were sold on the date of Parsvnath Royale Floors
Slide 26: Overview of Key Business Segments
Overview of Key Business Segments 26
Slide 27: Some of the Completed Projects (Residential and Integrated Township)
Some of the Completed Projects (Residential and Integrated Township Projects Select Completed Projects Saleable Area Project Name Location (mn Sq ft) Integrated Townships Parsvnath City1 Dharuhera 1.53 Parsvnath Prestige, Noida Parsvnath King City1 Rajpura, Punjab 1.21 Parsvnath Majestic, Ghaziabad
Slide 28: Some of the completed projects (Commercial)
Some of the completed projects (Commercial) Select Completed Projects Saleable Area Project Name Location (mn Sq ft) Parsvnath Mall Faridabad 0.21 Manhattan Parsvnath City Mall Faridabad 0.17 Parsvnath City Mall, Faridabad Parsvnath Mall Manhattan, Parsvnath Plaza I & II Moradabad 0.13 Faridabad Par
Slide 29: Some of the completed projects (DMRC)
Some of the completed projects(Delhi Metro Rail Corporation (DMRC)) Completed Projects Saleable Area Project Name Location (mn Sq ft) Parsvnath Metro Tower, Delhi 0.11 Shahdra Parsvnath Metro Mall, Delhi 0.09 Inderlok Parsvnath Metro Mall, Parsvnath Metro Mall, Parsvnath Metro Mall, Inderlok Delhi 0
Slide 30: Hotels: A Diversified Portfolio
Hotels: A Diversified Portfolio Strong Portfolio of 18 hotel properties Type of Hotel Properties across India All hotels to be developed in a 100% Subsidiary, Parsvnath Hotels Limited (“PHL”) Hotels H t l tto b be ownedd by b PHL and d managed d Services by leading national and international h
Slide 31: SEZs: New Growth Opportunity
SEZs: New Growth Opportunity SEZ Development is undertaken through a 100% Subsidiary, Parsvnath SEZ Ltd (“PSL”) Approval Status: Notified: 4 SEZs at Indore, Gurgaon, Dehradun and Nanded Formally Approved: 2 SEZs at Kochi & Hyderabad In Principle Approval: 6 SEZs at Kancheepuram, Kundli, Mo
Slide 32: Third Party Construction
Third Party Construction In order to leverage our well-established in-house construction and purchase division, we have decided to take the outside construction contracts. Following projects have been bagged. Total Built-up Value of the S. Details Location Area Contract No. (sq. ( q ft.) ) (Rs. mi
Slide 33: Strong Execution Capability
Strong Execution Capability Construction C t ti Construction of all major projects is done in-house Team established for construction 300+ Engineers 40+ Architects Arrangements with leading Architects like Hafeez Contractor, Contractor C P Kukreja, Kukreja Mohit Gujral, Gian Mathur, Kama
Slide 34: Strong Execution Capability
Strong Execution Capability A Area under d construction/ t ti / Development ((mn. sq. q ft.)) Residential Group Housing & Built‐up Houses 45.62 Plots 23.99 Commercial/Offices/IT C i l/Offi /IT Parks P k 6 58 6.58 Delhi Metro Rail Corp. (BOT Projects) 1.03 Hotels 0.87 C t t l Business Contractual B i
Slide 35: Highlights of Q2FY10
Hi hli ht off Q2FY10 Highlights 35
Slide 36: Major highlights of Q2FY10
Major highlights of Q2FY10 • Has sold 816 units, comprising an area of 19,02,088 sq. ft. in this quarter. • Launched and Bhoomi Pujan j done on 6 projects, p j , comprising an area of 31,93,256 sq. ft. • Possession of 108 units, comprising an area of 1,90,310 sq. ft., handed over to customers. 36
Slide 37: Launches/Bhoomi Pujans performed during Q2FY10
Launches/Bhoomi Pujans performed during Q2FY10 S. No. Project Name Vertical Launch/ Area Bhoomi Pujan (Sq. ft.) 1 1. Elite Floors, Elit Fl Dh h Dharuhera, Fl Floors L Launch h 7 09 185 7,09,185 Haryana 2. La-Tropicana, Khyber Group Housing Launch 19,70,573 Pass Delhi Pass, 3. Royale Floors, Panipat,
Slide 38: Forthcoming Launches
Forthcoming Launches S No. S. No Project Name City A Area ( ft.) (sq. ft ) 1 1. Parsvnath City Karnal 57 66 599 57,66,599 2. Parsvnath IT Park Gurgaon 7,00,000 3. Parsvnath City Rohtak 31,21,080 4. Parsvnath Group Housing Kundli, Sonepat 8,76,645 5. Parsvnath Eleganza Commercial Mall Dehradun 98,757
Slide 39: Possession handed over to customers in Q2FY10
Possession handed over to customers in Q2FY10 S. No. Project Name Vertical Units Area (Sq. ft.) 1 Parsvnath Panchvati, Agra Group Housing 50 64,165 2 Parsvnath Prestige, Noida Group Housing 3 5,632 3 Parsvnath Green Ville,, Gurgaon g Group p Housing g 1 1,925 , 4 Parsvnath City, Jodhpur Plots 17 43,
Slide 40: Possession expected to be handed over in coming months
Possession expected to be handed over in coming months S. S Area No. Project Name City Vertical Units (Sq. ft.) Parsvnath 1 Narayan 1. N Cit City J i Jaipur Pl t Plots 704 15 66 072 15,66,072 Parsvnath Royal 2 Floors 2. Fl J dh Jodhpur Fl Floors 18 24 100 24,100 Parsvnath Green 3. Ville Gurgaon g Gr
Slide 41: New Licences granted/Sanctions received in Q2FY10
Execution of Roadmap: New Licences granted/Sanctions received in Q2FY10 for our existing land bank (A) LOI for grant of licences from The Director, Town & Country Planning, Haryana, Chandigarh g for Development p of the following g Projects:- j Project Name Area in Acres Parsvnath City, City Rohtak,
Slide 42: Key Priorities
Key Priorities #1 Continue focus on Execution of Existing Projects #2 Continue focus on Affordable Housing #3 Strengthening Balance Sheet & Deleveraging 42
Slide 43: Strengthening Balance Sheet & Deleveraging
Strengthening Balance Sheet & Deleveraging Key steps taken include: Focus on execution of existing projects & No further additions to land reserves Monetizing delayed projects Group Housing Project in Sector 116, Noida as Government was not able to provide clear title and got back deposit am
Slide 44: Strengthening Balance Sheet & Deleveraging
Strengthening Balance Sheet & Deleveraging Redfort Capital Funding Parsvnath Developers Limited (PDL) recently inked an agreement with leading international real estate private equity fund Red Fort Capital to invest in its 16.84 acres, premium luxury residential project “Parsvnath La Tropicana” in
Slide 45: Financial Overview
Fi Financial i lOOverview i 45
Slide 46: Financial Highlights
Financial Highlights All Figures g in Rs. Mn. Q2FY10 Q1FY10 FY09 FY 08 FY07 KEY RATIOS EBIDTA MARGIN 39.80% 39.16% 32.70% 37.03% 28.79% NET MARGIN 30.89% 11.64% 15.47% 23.10% 19.02% RETURN ON EQUITY 11.97%* 2.7% * 5.63% 22.46% 19.57% NET DEBT EQUITY RATIO 0.83X 0.84X 0.83x 0.74x 0.42x FINANCIAL HIGH
Slide 47: Financial Highlights
Financial Highlights Revenue (Rs. million) EBITDA & PAT (Rs. million) 8000 20000 18371 18000 7000 6803 16000 15350 6000 14000 5000 4420 12000 4244 10000 4000 8000 7292 3000 2920 2385 6000 2000 4000 3195 1128 1264 2000 1000 758 0 0 FY07 FY08 FY09 Half year FY07 FY08 FY09 Half year ended ended FY10 FY
Slide 48: Financial Highlights
Financial Highlights Net Worth (Rs. million) Net Debt/Equity (x) 25000 0.9 0.83 0.83 20718 0.8 20047 0 74 0.74 20000 18897 0.7 0.6 14920 15000 0.5 0.42 0.4 10000 0000 0.3 0.2 5000 0.1 0 0 FY07 FY08 FY09 As on 30th FY07 FY08 FY09 As on 30th Sept. 2009 Sept 2009 48
Slide 49: Profile and Usage of Debt
Amount in Rs. Cr. Profile and Usage of Debt Consolidated Standalone Figures Figures Total Debt *1925.10 *1779.95 Less ess : Cash Cas aand d Bank a Balance a a ce 206 67 206.67 189 77 189.77 Net Debt 1718.43 1590.18 Less : Self Funding Debts : Receivables of 11 DMRC Projects 95.78 95.78 Balance B l D
Slide 50: Debt Position
Debt Position Debt Composition (Rs million) Term Loan Composition (Rs million) Overdraft Others against FD 3% 6% 8% 6% Corporate Working Project 47% Capital 38% Related 7% 53% 6% 62% Term L T Loans 82% 82% Note: Others include interest accrued and loans from directors Term Loan Maturity Schedule (Rs
Slide 51: Growth Strategies
Growth Strategies Continue focus on metros (including NCR) and “A” – category cities Concentrate on Affordable Housing Projects costing ~ INR 3 million Provide Grade – A office space to existing/new clients in upcoming IT d ti ti destinations Extend the organized retail concept to “A” catego
Slide 52: Thank You
Th k You Thank Y 52
Parsvnath Developers — Q2 FY2010 Earnings Presentation on 6ix