Shriram Properties Ltd. · NSE:SHRIRAMPPS
Shriram Properties — Q3 FY23 Earnings Presentation
34 slides from Shriram Properties's earnings presentation, Feb 14, 2023
Slide 1: Exchange filing cover letter: Investor Presentation
February 14, 2023 National Stock Exchange of India BSE Limited Limited Dept of Corporate Services The Listing Department Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor Dalal Street, Fort Plot C 1 – G Block Mumbai 400 001 Bandra-Kurla Complex, Bandra ( E) Scrip Code : 543419 Mumbai 400 051 Scrip
Slide 2: Q3FY23 Results Presentation
Shriram Properties Limited Q1FY23 Results Presentation Shriram Properties Limited Q3FY23 Results Presentation August 2022 February 2023 1 1
Slide 3: Disclaimer
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Shriram Properties Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, an
Slide 4: Residential RE Sector Overview
Shriram WYTFIELD Residential RE Sector Overview 3
Slide 5: 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 6: 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 7: Operational Highlights: Q3 & 9M FY23
Shriram 107 Southeast Operational Highlights : Q3 & 9M|FY23 ________________ Note: Data presented herein reflects aggregate for the Company, covering all projects under all development formats viz., Own, JV/JDA and the DM 6
Slide 8: Key Highlights & Developments – 9MFY23
Key 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 multipl
Slide 9: KPI Trends: 9MFY23
KPI Trends : 9MFY23 Pre-Sales Volume (msf) Sales Value (Rs. Mn.) 3.8 14,824 13,524 5% 35% 2.7 2.6 10,033 9MFY23 9MFY22 FY22 9MFY23 9MFY22 FY22 Gross Collections (Rs. Mn.) Construction (Rs. Mn.) 12,631 6,435 8,871 9,024 4,228 3,774 9MFY23 9MFY22 FY22 9MFY23 9MFY22 FY22 Strong operational performance
Slide 10: KPI Trends: Q3 FY23
KPI Trends : Q3|FY23 Sales Volume (Msf*) Sales Value (Rs. Mn.) Avg. Realisation1 (Rs. psf) +3% +39% 4% 1.01 1.04 6,054 4,510 4,344 4,345 Q2FY23 Q3FY23 Q2FY23 Q3FY23 Q2FY23 Q3FY23 ✓ Sales volume up 3% QoQ to 1.04 msf, despite 2 launches deferred to Jan/Feb’23 ✓ Sales value grew 39% QoQ to Rs. 6,054 M
Slide 11: Q3 Launches deferred, but already in EOI/Launch stage
Q3 Launches deferred, but already in EOI/Launch stage… ✓ Certain planned launches for Q3 deferred to Q4 due to delay in obtaining approvals ✓ 2 projects with 1.2 msf saleable area deferred to Q4; Could have supported Q3 volumes significantly ✓ 4 projects ready to launch now; At EOI/Pre-launch and la
Slide 12: Encouraging Response to Ongoing Launch Activity
… Encouraging Response to Ongoing Launch Activity Glimpse of Pristine Estates Launch Event ✓ Shriram Pristine Estates, Plots, Bengaluru - Received strong EOI response in Jan’23 - Formal Launch during first weekend of Feb’23 - 50+ bookings with 86,000+ sft sold already ✓ Shriram Chirping Ridge, Plots
Slide 13: Sales-at-launch Trends: 9MFY23
Sales-at-launch Trends: 9MFY23 Launch Sold at # of project launches 9M FY23 Launches Type Launch % sold Area launch 7 new projects & 2 new phases of ongoing projects Park63 (2B) New Jun’22 376,207 80,764 21% 12 Shriram Golden Acres1 Phase Aug’22 241,646 72,313 30% 9 7 6 6 6 Eden 144 – Phase 21 Phase
Slide 14: Encouraging Pricing Trends: Realisation up 7% from Mar'22 Levels
Encouraging Pricing Trends: Realisation up 7% from Mar’22 levels Price Increase by Project – Top Projects only Development Realisation % Change Realisation % change Project 9MFY23 Type Mar’22 from Sep’21 Dec’22 from Mar’22 Increase in Average SouthEast Phase 2 Apartments 4,294 10% 5,268 23% realizat
Slide 15: Financial Highlights: Q3 FY23
Shriram Southern Crest Financial Highlights : Q3|FY23 14
Slide 16: Financial Highlights: Q3 & 9M FY23
Financial Highlights: Q3 & 9M|FY23 o Strong earnings growth story – sequential quarterly improvement in 9MFY23 o Impact of improving operating leverage and project execution as well as rising share of DM supporting robust financial performance o Revenue recognition from key projects building momentu
Slide 17: Financial Highlights: Profit & Loss Q3 & 9MFY23
Financial Highlights : Profit & Loss|Q3 & 9MFY23 Particulars (Rs. Mn)1 Q3 FY23 Q3 FY22 YoY (%) 9M FY23 9M FY22 YoY (%) FY22 Revenue from operations* 1,758 1,096 60% 5,566 2,278 144% 4,329 Total Revenues Other income 462 205 864 535 849 Rs. 2,220 Mn Total Revenues 2,220 1,301 71% 6,430 2,813 129% 5,1
Slide 18: Financial Highlights (contd.): Profit & Loss Q3FY23
Financial Highlights (contd.): Profit & Loss|Q3FY23 Q3FY23 - Sequential quarterly improvement in net earnings ❑ Revenue from operations up 60% YoY, reflects impact of new projects reaching revenue recognition • Completion certificate (OC) received in Southern Crest (Bangalore) and Grand-1 (Kolkata)
Slide 19: Financial Highlights (contd.): Profit & Loss 9MFY23
Financial Highlights (contd.): Profit & Loss| 9MFY23 Highest ever 9M performance – Encouraging outcome of continued focus on operational leverage, costs and DM income ❑ Revenue from Operations Up 2.4x YoY to Rs.5.56 Bn and Total Revenues Up 129% YoY to Rs. 6.43 Bn • Driven by new projects reaching r
Slide 20: Financial Highlights: Balance Sheet 9MFY23
Financial Highlights : Balance Sheet*|9MFY23 Particulars (Rs Mn)1 31-Dec-22 30-Sep-22 31-Mar-22 ROCE Trends (%) 10.8% 10.5% Fixed Assets 801 816 823 Investments and loans 1,162 1,062 1,810 7.0% Inventories 21,572 21,463 21,882 5.0% 4.0% Cash and Bank Balances 769 1,044 1,405 Other Assets 10,584 10,7
Slide 21: Financial Highlights: SPL CFS Cash Flows Q3FY23
Financial Highlights: SPL CFS Cash Flows | Q3FY23 (Excl. DM & JV cashflows) Collection Trends H1 Q3 9M (In Rs Mn) FY22 SPL Own & JDA / JVs / DM FY23 FY23 FY23 Collections 2,729 1,124 3,853 5,346 12,631 DM Income 366 89 455 721 Other Inflows 3 2 5 6 3,578 Operating Inflow 3,098 1,215 4,313 6,073 8,87
Slide 22: 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 23: Awards & Recognitions: 9MFY23
Awards & Recognitions: 9MFY23 (Economic Times Awards – ET Achievers 2022) Certified as Great Place To Residential Real Estate Senior Citizen Housing Affordable Housing Work by the prestigious Project of the Year – Project of the Year Project of the Year body GPTW World PARK 63 Shriram Golden Cove Sh
Slide 24: Outlook: FY23 & Beyond
Shriram Blue Outlook: FY23 & Beyond 23
Slide 25: Encouraging Earnings Visibility for Q4FY23
Encouraging Earnings Visibility for Q4FY23 A. FY23 Revenues: 5 projects to account for 76% of projected revenues in FY23* and are under control Key Projects Occupancy Certificate status Sale Deed Registrations Commenced registrations in Sep’22. Southern Crest OC received in Sep’22 Significant contri
Slide 26: Strong Income Recognition Outlook (FY23-25e)
Strong Income Recognition Outlook (FY23-25e) Sales Volumes (msf) Likely to handover ~2,000 units in FY23; 3-year cumulative sales of 10msf Already handed over 1,200+ constructed units and ~400 plotted units in 9MFY23 3.8 3.2 3.0 Project Completion Trend (msf) # units 2,093 2,885 2,280 ~10,000 handov
Slide 27: Strategic Objectives & Outlook: FY23 and Beyond
Strategic Objectives & Outlook: FY23 and Beyond ❑ SPL continues to demonstrate its growth momentum delivering strong performance ❑ Operating leverage kicking-in, on the back of scale and improving efficiency ❑ FY23 on track to be a promising year with strengthened long-term fundamentals, for the sec
Slide 28: Project Pipeline Update – Dec'22
Project Pipeline Update – Dec’22 Project Pipeline (msf) Upcoming Projects – 30 # projects msf msf Ongoing – 24 10.3 52.8 msf Pipeline – March’22 51 51.3 11.2 2.2 0.3 0.9 Less: Projects Completed (7) (3.8) 5.3 5.5 Less: Projects Deferred/ (3) (2.8) 9.0 Removed 8.3 Add: Project Additions 10 8.1 Ongoin
Slide 29: DM Model: Stabilised Growth Engine
DM Model : Stabilised Growth Engine Developmen Project Area Sold Area DM Volumes (msf) Residential DM Projects Location Status t Type (msf) (msf) 20% 19% 26% 35% 28% Earth (Mysore Road) Plots Bangalore 0.49 0.48 Completed % of Total sales volume 1.05 1.06 0.83 Raynal Gardens Plots Bangalore 0.39 0.3
Slide 30: Strategies for Unlocking Potential from Kolkata Progressing Well
Strategies for Unlocking Potential from Kolkata Progressing Well Kolkata 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: (2.1 msf, almost entirely sold) FSI sale progressing we
Slide 31: 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 32: Thank You
Thank You Shriram Luxor Shriram Chirping Woods 31
Slide 33: Annexure - Projects Snapshot by Development Models
Annexure - Projects Snapshot by Development Models Development Own Developments Joint Developments Joint Ventures Management Execution Track Record Execution Track Record Execution Track Record Execution Track Record Completed Completed Completed Completed ✓ 6 projects ✓ 23 projects ✓ 3 projects ✓ 4
Slide 34: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Shriram Properties Limited Strategic Growth Advisors Pvt. Ltd. CIN – U72200TN2000PLC044560 CIN - U74140MH2010PTC204285 Mr. Vineel Naidu, General Manager – Finance & Accounts Mr. Rahul Agarwal / Ms. Brinkle Shah Jariwala