Sunteck Realty Limited · NSE:SUNTECK
Sunteck Realty — FY2024 Earnings Presentation
31 slides from Sunteck Realty's earnings presentation, May 31, 2024
Slide 1: Exchange filing cover letter for investor presentation
Sunteck Realty Ltd. Date: 31st May, 2024 SRL/SE/18/24-25 National Stock Exchange of India Ltd BSE Limited Exchange Plaza, Plot no. C/1, G Block, Phiroze Jeejeebhoy Tower, Bandra-Kurla Complex, Bandra (East), Dalal Street, Mumbai- 400 051 Mumbai – 400 001 Symbol: SUNTECK Scrip Code: 512179 Sub: Inves
Slide 2: Investor Presentation Q4 & Full Year FY2024
Sunteck Realty Limited Investor Presentation Q4 & Full Year FY2024 May 2024 NSE: SUNTECK | BSE: 512179 | Bloomberg: SRIN: IN | Reuters: SUNT.NS / SUNT.BO 1
Slide 3: Disclaimer
Disclaimer By attending the meeting where this presentation is made and any additional material is provided (“Presentation”) or by reading the Presentation, you (“Recipient”), agree to be bound by the following limitations. This Presentation has been prepared on the basis of the estimates of the man
Slide 4: Key Strengths - Why Sunteck?
Key Strengths - Why Sunteck? 3
Slide 5: Key Strengths – Why Sunteck?
Key Strengths – Why Sunteck? 1 2 3 Well-timed Capital Strong Foothold in Luxury portfolio in every Allocation for MMR market - largest segment & across micro- acquisitions - Acquired & fastest growing markets - from uber luxury more than ~50 mn sq ft & market in India to aspirational luxury GDV of ~
Slide 6: Snapshot
Snapshot Strong Operational Foothold One of the large Well-timed developers in MMR INR~28,965 cr of ~50 MSF+ total 18 projects capital allocation – largest & fastest GDV from ~7 large development successfully with JDA & growing market projects acquisitions delivered outright model 5 Rs 1 cr = Rs 10
Slide 7: Strong Foothold in MMR Market – largest & fastest growing in India
1 Strong Foothold in MMR Market – largest & fastest growing in India MMR-Focused Luxury Real Estate Developer (1/2) By Location Volume By Project Brands 6
Slide 8: MMR is the most attractive real estate market in India
1 Strong Foothold in MMR market – largest & fastest growing in India MMR is the most attractive real estate market in India (2/2) MARKET SHARE BY VALUE Others NUMBER OF UNITS SOLD IN-FY24 90,314 28% MMR 60,137 39% 53,789 50,730 34,130 15,448 16,561 Bengaluru NCR MMR Bengaluru NCR Pune Hyderabad Kolk
Slide 9: Luxury portfolio in every segment & across micro-markets
2 Luxury portfolio in every segment & across micro-markets From Uber Luxury to Aspirational Luxury Premium positioning by creating different luxury brands across segments 8
Slide 10: Well-timed Capital Allocation for acquisitions
3 Well-timed Capital Allocation for acquisitions Acquired more than ~50 mn sq ft & GDV of ~Rs.28,965 cr (1/2) (ESKAY RESORTS) 9
Slide 11: GDV - Growth Engines to drive Pre-sales growth
3 GDV - 7 Growth Engines to drive Pre-sales growth (as of Q4’FY24) Achieved pre-sales growth of ~23% between FY21 and FY24 (2/2) GDV – Balance Gross Development Value excluding sales already done GDV – ~Rs 28,965 cr Rs 1 cr = Rs 10 mn GDV – ~Rs 26,465 cr Nepean Sea Road 7 GDV – Rs 2,500 cr ***Launch
Slide 12: Expanding Annuity Income Portfolio
4 Expanding Annuity Income Portfolio Rs 300 cr+ rental, capital value creation of ~Rs 5,000 cr Sunteck Icon and Sunteck BKC 51 at BKC Junction has been pre-leased for a tenure of 29 years Both commercial assets have generated an ROIC of ~30% Launched Upcoming Capital Value – ~Rs 5,000 cr 5th Avenue,
Slide 13: Strong Financial Performance
5 Strong Financial Performance Amongst industry best financials Net Debt to Pre-sales ~20%+ Cashflow AA Long term INR 750 cr Equity @ Zero CAGR @~23% Surplus Yield credit rating from partnership with (21-24) India Ratings IFC – World Bank (Fitch) Group 12 Rs 1 cr = Rs 10 mn
Slide 14: Robust growth in revenue and profitability
5 Strong Financial Performance Robust growth in revenue and profitability (1/5) Revenue from Operations grew by 56% YoY in FY24 to ~Rs 565 cr Core EBITDA grew by 63% YoY to ~Rs 266 cr in FY24 and Core operating margin expanded by 211 bps to 47% in FY24 PAT has registered fifty-fold increase to ~Rs 7
Slide 15: Net Debt to Equity @ Zero
Strong Financial Performance 5 Net Debt to Equity @ ZERO (Net Cash Positive) Sunteck’s Long-Term Credit Rating upgraded from AA- to AA from India Ratings (Fitch) (2/5) 2.00x Particulars (~Rs cr) FY22 FY23 FY24 1.80x > ~38.6 mn sq ft of projects acquired since Gross Debt 700 593 295 1.60x 2018 Less:
Slide 16: Pre-sales and Collections registering strong CAGR growth
5 Strong Financial Performance Pre-sales and Collections registering strong CAGR growth of 23% & 17% (3/5) Proforma Profitability (basis operating performance) Pre-sales (~Rs cr) 2,500 FY24 2,000 1,915 1,602 Particulars 1,500 1,303 Rs cr % 1,022 1,000 Pre-sales 1,915 500 0 Embedded EBITDA 672 35.1%
Slide 17: High growth leading to robust leverage ratios
5 Strong Financial Performance High growth in pre-sales and collections leading to robust leverage ratios (4/5) Net Debt/Pre-Sales Net Debt/Collections 0.41x 0.51x 0.17x 0.22x -0.01x -0.00x FY-22 FY-23 FY-24 FY22 FY23 FY24 Particulars Sunteck NSE Realty Index Net Debt/ Pre Sales -0.00x 0.57x Net Deb
Slide 18: Cashflow Surplus Yield @~21%
5 Strong Financial Performance Cashflow Surplus Yield @~21%(5/5) Net CF Surplus (~Rs cr) Net CF Surplus Yield 600 25% 22% 21% 500 484 20% 428 400 15% 15% 281 12% 300 239 10% 200 5% 100 0 0% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 • As the company follows Project Completion Method of Accounting, CF S
Slide 19: Successful Equity Partnerships
6 Successful Equity Partnerships Recent Partnership • Sunteck & IFC – World Bank Group form Joint Investment Platform of up to ~Rs 750 cr • Key highlights of the partnership • MMR focused platform to build high-quality green urban large-scale housing projects targeting the mid-income demographic • U
Slide 20: Q4 & Full Year FY24 Highlights
Q4 & Full Year FY24 Highlights 19
Slide 21: Summary of Quarterly & Full Year Results
Summary of Quarterly & Full Year Results Key Highlights Consolidated Results FY24: • Revenue grew by 56% YoY to Rs 565 cr • Core EBITDA grew by 63% YoY to Rs 266 • PAT grew by 4934% YoY to Rs 71 cr • Core EBITDA Margin stood at 47% • Net Profit Margin stood at 13% Key Highlights Consolidated Results
Slide 22: P&L Statement
P&L Statement Strong Revenue & PAT growth with robust core margins PROFIT & LOSS STATEMENT (Consol) Particulars Q4 FY24 Q4FY23 YoY % Q3FY24 QoQ % FY24 FY23 YoY % Operating Revenue 427 49 774% 42 906% 565 362 56% Core EBITDA 199 21 845% 18 1003% 266 163 63% Margin % 46% 43% 353 bps 42% 409 bps 47% 45
Slide 23: Balance Sheet
Balance Sheet Sunteck upgraded to AA from AA- by India Ratings (Fitch) BALANCE SHEET – FY24 Liabilities Rs Cr Assets Rs Cr Networth 3,124 Receivables 293 Borrowings 375 Inventories 5,966 Non-Current Liabilities 17 Loans & Advances 291 Current Liabilities 1,192 Cash & Bank 106 Others 3,215 Others 1,2
Slide 24: Strong Net Cash Flow Surplus crosses Rs 1,400 cr
Strong Net Cash Flow Surplus crosses Rs 1,400 cr Particulars (~Rs cr) FY24 Cumulative NCF Surplus (~Rs cr) 1600 Gross Cash Inflows 1,236 1,432 1400 Less: Project Expenses 502 1200 Less: JDA Revenue Share 79 1000 948 Gross Cash Flow Surplus 655 800 Less: Other Expenses 171 600 520 Net Cash Flow Surpl
Slide 25: Operational Performance Break-up
Operational Performance Break-up FY24 Q4 FY24 Pre-sales Collections Pre-sales Collections Segment Projects (~Rs cr) (~Rs cr) (~Rs cr) (~Rs cr) Uber Luxury Signature, Signia 245 220 116 161 Sunteck City, High Mid-income 968 413 300 85 SBR, Sky Park Low Mid-Income Sunteck World 487 177 196 31 Others 2
Slide 26: ESG & Awards
ESG & Awards 25
Slide 27: GRESB 5-star rating
> Sunteck Realty has received the prestigious 5-star rating from GRESB (Global Real Estate Sustainability Benchmark) in its second year of submission with a strong score of 95 > Sunteck Realty has been ranked 3rd rank in Asia-pacific Diversified Office/ Residential Peer comparison
Slide 28: ESG Highlights
ESG Highlights >90% 31% Women Representation in organization Of our properties are green building pre- certified (EDGE IFC) Sunteck Head office is LEED Existing building Gold certified 4.3 times Increase in employee trainings hours Zero Waste to landfill & Plastic neutrality at Signature Island, Sig
Slide 29: Green Building Initiatives
Green Building Initiatives • Four projects, 4th Avenue, SunteckCity, ODC Goregaon W; Sunteck • Our HO Sunteck Centre Maxxworld & Sunteck Oneworld, Naigaon and Sunteck Beach has been awarded LEED Residences (SBR), Vasai W has been awarded with EDGE (Excellence GOLD certification by US in Design for G
Slide 30: Awards
Awards ‘International Asia Pacific Property Awards’ UK 2024-25 in the category of ‘Sustainable Residential Development’ for the prestigious project ‘4th Avenue, Sunteck City’ 29
Slide 31: Thank you
Thank you ir@sunteckindia.com 30