Arihant Superstructures Limited · NSE:ARIHANTSUP
Arihant Superstructures — Q1 FY19 Earnings Presentation
43 slides from Arihant Superstructures's earnings presentation, Sep 7, 2018
Slide 1: Arihant Superstructures – Continuing Stability
™ ARIHANT SUPERSTRUCTURES LTD. CONTINUING STABILITY CONTINUING STABILITY 7 September, 2018 Corporate Relations Department Listing Compliance Department BSE Limited National Stock Exchange of India Limited PhirozeJeejeebhoy Towers, Exchange Plaza, Dalal Street, Mumbai - 400 001 Plot No. C/1, G Block,
Slide 2: ASL Investor Presentation Aug 2018
ASL Investor Presentation Aug 2018 COMMODITY COAL DREDGING TRANSPORTATION OIL & GAS NSE : ARIHANTSUP BSE : 506194 ASL believes REAL ESTATE is a retail product with a BLOOMBERG : ARSU IN flavour of an Asset Class.
Slide 3: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness, reasonableness or reliability of this information. Any forwa
Slide 4: Table of Contents
PAGE TABLE OF CONTENTS NUMBERS CMD‟s message 4 Introduction to Arihant 5-8 Key Investment Highlights 9 Our Value Creation Journey 10 Projects in pipeline & track record 11-12 De-risked And Scalable Business Model 13 Best Practices 14 The ASL Differentiator 15 Industry Dynamics 16-19 Corporate Social
Slide 5: CMD's message
CMD‟s message Commenting on the results of Q1FY19 Mr. Ashok Chhajer, CMD of Arihant Superstructures Limited said, The industry environment has been challenging this quarter, however, Arihant continues to deliver consistent performance. We have delivered 221 units at Arihant Aarohi located at Kalyan-
Slide 6: "Arihant" – The Institution
“Arihant” – The Institution • One of the Largest real estate player in Affordable Housing since 2009 consisting 66% of its portfolio in affordable housing and having projects in hand for next 7 years • ASL has an edge in its operational areas – Navi Mumbai, MMR and Jodhpur regions • Delivered 8863 h
Slide 7: Arihant Superstructures Ltd (ASL): At A Glance
Arihant Superstructures Ltd (ASL): At A Glance Company Profile CATEGORY-WISE PROJECT PROFILE 1. A leading real estate company focused on Affordable & Upper Medium Luxury Segment Income Group (INR 7,000+ psf) 2. Strong execution track record of project completion 5% Low cost affordable 3. Strong bran
Slide 8: Arihant Focus on housing sector demand
Arihant Focus on housing sector demand Navi Mumbai • Tenders invited for Kharghar Corporate Park spread on 200 Acre on the lines of BKC-2, adjoining to 180 Acre ready Golf Course and 240 Acre Central Park with Amusement Park in Kharghar. Potential to generate ~200,000 employment • GVK-led consortium
Slide 9: Infrastructure Status assigned to Affordable Housing Projects
Real Estate (Housing) – Infrastructure Status assigned to Affordable Housing Projects Benefits to MIG Flat Buyers by Government • Interest subsidy upto Rs 267,000 on purchase of house for a family having income upto Rs 1.8 Mn per year • No processing fee • Change in base year from 1981 to 2001 as we
Slide 10: Key Investment Highlights
Key Investment Highlights Strategically Significant Large Land Bank Project Strong Focus On Superior Well-positioned Monetization Acquired At Funding Corporate Growth In High Growth Yet To Come Low Cost Secured Governance Profile Markets 3 • Navi Mumbai – • At an inflexion • Average • INR 1.20 Billi
Slide 11: Our Value Creation Journey
Our Value Creation Journey 2000 2014 2017 1994 Achieved a 2007 Successfully completes Successfully launched Launch of significant milestone Successfully and delivers 4 mn flagship project “Arihant Real Estate of completing 10 Completes and square feet; Crossed Aspire” and sold ~40% of Division proje
Slide 12: Strong Project Pipeline
Strong Project Pipeline 0.3 mn sq.ft. ARIHANT AAROHI - I Nearly ready 11.7 mn sq.ft. 3.6 mn sq.ft. Saleable Under construction ARIHANT ADITA – I, II, III 7.8 mn sq.ft. 13.5 mn sq.ft. projects Construction yet to start Arihant Arshiya – I, Arihant Adita – I,II,III, 1.8 mn sq. ft. Arihant Ayati, Ariha
Slide 13: Proven Track Record (Some Key Group Projects)
Proven Track Record (Some Key Group Projects) Saleable Units Location Projects area Sold (sq.ft.) Airoli 1 32,500 40 Badlapur 2 349,125 490 CBD Belapur 2 166,000 185 Akriti (Badlapur) Aksh (Badlapur) Ghansoli 5 261,100 355 Kharghar 7 1,071,494 1012 Koperkhairane 3 140,000 228 Nerul 7 159,900 215 Pan
Slide 14: De-risked And Scalable Business Model
De-risked And Scalable Business Model Product Strategy Land Acquisition To have products across various stages of Fully paid up land bank for projects to be construction to serve varied customer needs executed in the next seven years; Land back acquired at historical cost levels Sales and Marketing
Slide 15: Best Practices
Best Practices For Customer For Sustainable Development Water Preservation Social Development No lock-in No transfer by supporting Rural by Rain water harvesting & STP and period charges infrastructure, School etc Energy Conservation measures No Economic Participation in Full cheque Development by G
Slide 16: The ASL Differentiator
The ASL Differentiator Customer Centric Approach • The Company follows a customer centric approach in the entire Awards lifecycle of the project Excellence in Quality • Some of the customer-centric policies that the Company adopts is Construction o No lock in period for buyers – 94.3 MY FM Jodhpur o
Slide 17: Industry Dynamics
Industry Dynamics Retail / Consumer is the biggest Wealth Creating sector ASL believes REAL ESTATE is a retail product with a flavour of an asset class. Opportunity of Vision – Housing for all by 2022 All India Demand Pattern 1 The Central Government has a stated vision to provide Housing Particular
Slide 18: Business Region In Focus - MMR
Business Region In Focus - MMR Key Factors Population (mn) Growth Households in mn Growth 2008 2025 CAGR Income Level 2010 2020 2032 MMR 22 34 2.6% 0.09 Mn – 0.2 Mn 2.53 1.61 0.51 Greater Mumbai 14 17 1.1% 0.2 Mn – 0.5 Mn 2.79 4.35 6.22 RoMMR 8 17 4.5% 0.5 Mn – 1 Mn 0.12 1.34 2.8 Kalyan Source: Hous
Slide 19: Navi Mumbai Second In List Of Best Cities To Live In India
Navi Mumbai Second In List Of Best Cities To Live In India • The 'Ease of Living' index is an initiative of the Ministry of Housing and Urban Affairs to assess the most livable cities all over India and rank them on a 100 point scale. • The report evaluated 111 cities on a 100-point scale across 78
Slide 20: Business Region In Focus - Jodhpur
Business Region In Focus - Jodhpur Key Factors • 2nd largest 'Metropolitan City' of Rajasthan • Industrial cluster and export hub of Gaur Gum, Textiles, SS utensils, Stone processing, Handicrafts & Solid Wooden Furniture, Jodhpur • Population base of 1.29 mn (source census, Wikipedia) • Tourism boom
Slide 21: A Few Cases Reflecting ASL's Business Strategies
A Few Cases Reflecting ASL‟s Business Strategies Case 1: Arihant Aalishan: Turnaround from a Distressed Asset to a Marquee Project Land Acquisition Approvals Project Launched Construction Begins Current Status Jan 2016 Feb 2016 Mar 2016 Mar 2016 May 2018 Case 2: Arihant Anaika – Phase 2: Deep Dive S
Slide 22: Corporate Social Responsibility – Key Projects
Corporate Social Responsibility – Key Projects Contributing to the construction of school building, Jodhpur • Construction of school building to replace open classrooms • The building would have basic infrastructure such as 10 classrooms and multi-purpose hall Village Infrastructure Development, Nav
Slide 23: Financial Snapshot
FINANCIAL SNAPSHOT Arihant Superstructures Limited (ASL)
Slide 24: Capital Market Data
Capital Market Data Capital Market Details Shareholding Pattern FPIs/Banks & BSE Scrip Code 506194 FIs Public 2% 19% NSE Trading Symbol ARIHANTSUP Mutual Funds 5% Promoters 74% Bloomberg Code ARSU IN GICS Sector Real Estate Comparative Stock Price Performance - BSE Market Cap as on INR 3,027 Mn 30th
Slide 25: Superior Track Record With Strong Brand Recall
Superior Track Record With Strong Brand Recall Key Strengths Average Realizations (INR per sq.ft.) 4070 4026 3845 3795 3582 13-14 14-15 15-16 16-17 17-18 Area Booked (mn sq.ft) Units Sold 1.01 1157 0.84 931 0.66 727 0.48 0.47 580 527 13-14 14-15 15-16 16-17 17-18 13-14 14-15 15-16 16-17 17-18 24
Slide 26: Prudent Financial Management Leading To Superior Shareholder Value
Prudent Financial Management Leading To Superior Shareholder Value Strong Risk Superior cash flow Strategic Land Acquisition Management and management Internal Audits • Land acquired at historical • 15% pre-launch sales target • Strong and independent prices • 100% sales completed before board with
Slide 27: Project Status
Project Status , ; Tan | Areasota | scares | Total uy ces || coe || Se | eee | SESS bee | ee | aed Location common (sro) ‘sold | units [Y= S9I4) Geto | “soa | complet) “are | unsold | nmin | Seesived | peccivent ‘Are ‘ares ein MN) COMPLETED PROJECTS ONGOING PROIECTS arinant Aalishan =i inarshar Sr 5
Slide 28: Potential Recognizable Revenue
Potential Recognizable Revenue Expected Revenue: Geographical Split Thane 1% Sales recognised Kharghar Panvel 40% completed 21% 13% Jodhpur 11% Sales ongoing part recognised 19% MMR Sales yet to 27% commence 58% Revenue Recognition Method Sales not Revenue has been recognized as per IND AS 115 „Reve
Slide 29: Income Statement – INR Mn
Income Statement – INR Mn Particulars FY 14 FY 15 FY 16 FY 17 FY18 Total Revenue 1,005 1,098 1,238 1,862 1,893 Cost of materials consumed 1,128 1,208 1,144 2,074 1,285 Changes in inventories -461 -543 -480 -1130 -161 Employee benefits expense 61 65 79 85 127 Other Expenses 71 102 133 190 256 Total E
Slide 30: Balance Sheet – INR Mn
Balance Sheet – INR Mn Equity and Liabilities FY14 FY15 FY16 FY17 FY18 Share Capital 412 412 412 412 412 Reserve and Surplus 101 206 397 724 764 Net worth 513 617 809 1136 1176 Minority Share 15 27 47 79 98 Long Term Borrowings 403 971 1778 2013 1745 Short Term Borrowings 1065 489 327 545 1022 Advan
Slide 31: Financial Performance
Financial Performance Total Revenues (Rs Mn) EBITDA (Rs Mn) Net Debt/Equity (x) 1,862 1,893 643 2.03 2.07 1,238 1,098 362 385 1.93 1,005 716 266 206 1.66 97 1.59 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 Return on Equity (%) Return on Capital Employed (%) I
Slide 32: Entity-Wise Net Worth & PAT for the Quarter ended 30th June 2018
Entity-Wise Net Worth & PAT for the Quarter ended 30th June 2018 Company (INR Mn) Net Worth PAT Arihant Superstructures Limited 1152.08 12.13 Arihant Vatika Realty Private Limited 157.95 18.46 Arihant Abode Limited 1.57 0.07 Arihant Gruhnirman Private Limited (1.57) 0.09 Arihant Aashiyana Private Li
Slide 33: Q1-FY19 - Income Statement
Q1-FY19 - Income Statement Q1FY19 - Operating Highlights Q1FY19 - Financial Highlights 1. Total 120 units sold amounting to INR 550.70 Million 1. Total Revenue recorded INR 439 Mn 2. MMR / Navi Mumbai: 94 units sold (85,859 sq. ft.) 2. EBITDA increased by 67% to INR 188 Mn 3. Jodhpur: 26 units sold
Slide 34: FY18 - Income Statement
FY18 - Income Statement INR Mn (except FY18 - Operating Highlights FY18 FY17 as stated) Revenue 1892.52 1862.46 1. Total units launched – 1,293 units equivalent to Total 1,279,051sq. ft. 1507.62 1218.94 Expenditure 2. Launch of Flagship Project, Arihant Aspire – Phase 1 (622 EBITDA 384.90 643.52 uni
Slide 35: Holding Company Debt Liability as on Q1FY19
Holding Company Debt Liability as on Q1FY19 • The debt on holding company is Entity Debt Liability of ASL 100% liability of ASL. The debt on Entity ASL Holding (INR mn) (INR mn) subsidiary company is worked out to the extent of ASL share ASL 807.09 807.09 holding of 60%. Vatika 60% 282.85 169.71 • E
Slide 36: The Road Ahead – FY19
The Road Ahead – FY19 REVENUE DRIVERS MARGIN DRIVERS FUTURE PLANS Efficiency in low cost land To infuse funds for land purchase Fast tracking of Navi Mumbai purchase to take current developable airport to boost demand from area from 13.5 mn sq. ft. to 25 mn home buyers sq. ft. Low overheads To add m
Slide 37: Board Of Directors
Board Of Directors ● Over 2 decades experience in the real estate business Ashok Chhajer, ● Prior experience ranging from textile, oil refinery to real estate financing Promoter, CMD ● At Arihant, he oversees corporate strategy, project design and land acquisition functions Nimish Shah, Virendra Mit
Slide 38: Experienced and dedicated management team
Experienced and dedicated management team Akshay Agarwal, Piyush Dosi, Pradeep Mehta, Sarabjeet Kukreja Director - Procurement Director - Jodhpur CFO CSO ● A CA with over 22 years ● MBA with 14+ years of hands- ● Dual specialization in ● A civil engineer with over 20 experience in cement, steel on e
Slide 39: Mumbai Hot 50 Brands (2 Times) - 2015 and 2014
Mumbai Hot 50 Brands (2 Times) - 2015 and 2014 38
Slide 40: Awards
Awards Dainik Bhaskar (94.3 MYFM) – Affordable Low Cost Quality Award for Excellence in Quality Housing - 2018 Construction Award for Excellence in Quality Construction Award for Quality construction affordable – D B corp ltd.(Dainik Bhaskar) organised housing – Recognition by The Economic by 94.3 M
Slide 41: MCHI-CREDAI award - Affordable Housing
MCHI-CREDAI award - Affordable Housing Project of the Year award” 2018 The MCHI CREDAI in their prestigious GOLDEN PILLAR award 2018 has given Affordable Housing Project of the Year award to Arihant Superstructures Ltd (ASL)
Slide 42: Arihant Adita – Jodhpur's no1 Housing Society Award, Red FM
Arihant Adita – Jodhpur‟s no1 Housing Society Award, Red FM • In their drive to promote cleanliness in Jodhpur city, RED FM 93.5 had organized a contest among the societies in Jodhpur. • In the Online Voting contest, citizens were asked to vote for the Best Township in Jodhpur on cleanliness and bei
Slide 43: Thank you !!
Thank you !! For further Information please contact Umesh Jhawar VP – Strategy & IR Tel: +91 22 6249 3333 Email: umesh.j@asl.net.in Corporate Office: Arihant Aura, Floor No. 25, B wing, Plot no 13/1, TTC Industrial Area, Thane Belapur Road, Turbhe, Navi Mumbai – 400705, Maharashtra 42
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