Shriram Properties Ltd. · NSE:SHRIRAMPPS
Shriram Properties — Q2 FY23 Earnings Presentation
33 slides from Shriram Properties's earnings presentation, Nov 14, 2022
Slide 1: Exchange filing cover letter: Investor Presentation
November 14, 2022 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: Q2FY23 Results Presentation
Shriram Properties Limited Q1FY23 Results Presentation Shriram Properties Limited Q2FY23 Results Presentation August 2022 November 2022 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: Industry Overview
Shriram WYTFIELD Industry Overview 3
Slide 5: Industry Operating Environment Positive; Housing Demand Strong
Industry Operating Environment Positive; Housing Demand Strong PAN India (Top 7 cities) – Key Trends • Housing demand remained strong across Top-7 markets Sales Supply Sales & Supply Trends • Supply growth robust as well; Inventory down to 21 months in Top-7 cities • 4% QoQ drop in Bangalore & Chenn
Slide 6: Operational Highlights Q2 & H1 FY23
Shriram 107 Southeast Operational Highlights Q2 & H1|FY23 5
Slide 7: Key Highlights & Developments
Key Highlights & Developments Operational Performance Project Execution • Best-ever sales volume and sales value in H1FY23 • Handed-over 700+ units, apart from 300+ plots • Back at 1.0+ run-rate, supported by launches and • On-track to hand-over ~2,000 units in FY23; to drive seasonal trends. H2 is
Slide 8: Performance Snapshot: Q2 FY23
Performance Snapshot: Q2|FY23 Sales Volume (Msf*) Sales Value (Rs. Mn.) Collections (Rs. Mn.) Construction (Rs. Mn.) +52% +39% -3% -1% 1.01 4,345 1 3,242 3,148 0.66 3,126 1,370 1,351 0.5 0 Q1FY23 Q2FY23 Q1FY23 Q2FY23 Q1FY23 Q2FY23 Q1FY23 Q2FY23 ✓ Strong QoQ growth trends - Sales volume up 52% QoQ, s
Slide 9: KPI Half-yearly Trends: H1FY23 and FY22
KPI Half-yearly Trends : H1FY23 and FY22 Pre-Sales Volume (msf) Sales Value (Rs. Bn.) 2.2 8,950 7% 7,470 27% 1.7 1.6 5,874 H1FY23 H1FY22 H2FY22 H1FY23 H1FY22 H2FY22 Gross Collections (Rs. Bn.) Construction (Rs. Bn.) 6,975 3,578 6,385 13% 5,656 2,722 2,857 H1FY23 H1FY22 H2FY22 H1FY23 H1FY22 H2FY22 Co
Slide 10: 3 Successful Launches during H1 FY23
3 Successful Launches during H1 FY23 Launch Sold at # of project launches 9 new projects & 3 H1 FY23 Launches Type Launch % sold Area launch new phases of ongoing projects Park63 (2B) New Jun’22 534,115 56,345 21% 12 12 Shriram Golden Acres1 Phase Aug’22 241,646 54,804 23% 7 9 6 6 Eden 144 – Phase 2
Slide 11: Encouraging Pricing Trends: H1FY23 realization up 5% over H2FY22
Encouraging Pricing Trends: H1FY23 realization up 5% over H2FY22 Price Increase by Project – Top Projects only Development Realisation % Change Realisation % change H1FY23 Project Type Mar’22 from Sep’21 Sep’22 from Mar’22 Increase in Average realization SouthEast Phase 2 Apartments 4,294 10% 4,639
Slide 12: Financial Highlights Q2 FY23
Financial Highlights Q2|FY23 Shriram Southern Crest 11
Slide 13: Financial Highlights: Q2 & H1 FY23
Financial Highlights: Q2 & H1|FY23 o Strong earnings growth story – 4th consecutive quarter of improvement since initial turnaround post listing o Impressive growth in key financial metric – both on QoQ and YoY basis o Impact of improving operating leverage and project execution as well as rising sh
Slide 14: Financial Highlights: Profit and Loss Q2 & H1 FY23
Financial Highlights : Profit and Loss|Q2 & H1 FY23 Particulars (INR Mn) Q2 FY23 Q1 FY23 QoQ (%) Q2 FY22 YoY (%) H1 FY23 H1 FY22 YoY (%) FY22 Revenue from operations* 2,586 1,222 112% 760 240% 3,807 1,182 222% 4,329 Other income 173 229 182 402 370 849 Total Revenues 2,758 1,451 90% 942 193% 4,209 1
Slide 15: Financial Performance Highlights: Q2 | H1 FY23
Financial Performance Highlights: Q2 | H1 FY23 ❑ H1FY23 YoY Growth Impressive: Revenues more than tripled; EBITDA up 2.6x and PAT at 1.7x FY22 earnings ❑ Strong Quarterly performance in Q2 FY23, both on QoQ and YoY basis ❑ Quarterly Revenue from Operations more than tripled on YoY basis (Rs.2.6 bill
Slide 16: Financial Highlights: Balance Sheet H1FY23
Financial Highlights : Balance Sheet|H1FY23 Particulars (INR Mn) 30-Sep-22 31-Mar-22 30-Sep-21 ROCE Trends (%) 11% Fixed Assets 816 823 728 10% Investments and loans 1,062 1,810 1,918 7% Inventories 21,463 21,882 20,626 5% 4% Cash and Bank Balances 1,044 1,405 422 Other Assets 10,713 10,418 9,240 To
Slide 17: Q2FY23 SPL Consolidated Cash Flows
Q2FY23 SPL Consolidated Cash Flows (Excl. DM & JV cashflows) Overall Enterprise Collection Trends Q1 Q2 H1 (In Rs Mn) FY22 (SPL Own& JDA / JVs / DM FY23 FY23 FY23 Collections 1,339 1,390 2,729 5,346 12,631 DM Income 113 253 366 721 3,578 Other Inflows 2 1 3 6 Operating Inflow 1,454 1,664 3,098 6,073
Slide 18: 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 0.7 0.7 14.1% 8,047 13.7% 8,000 603 13.5% 6,724 6,558 494 6,000 864 4,811 4,788 0.3 0.3 1,044 12.5% 12.5% 4,000 7,444 1,405 6,230 5,694 2,000 3,407 3,744 - Mar'19 Mar'20 Mar'2
Slide 19: Awards & Recognitions: Q2 FY23
Awards & Recognitions: Q2 | FY23 (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
Slide 20: Outlook: FY23 & Beyond
Outlook: FY23 & Beyond Shriram Blue Shriram Blue 19
Slide 21: Encouraging Earnings Visibility for H2FY23
Encouraging Earnings Visibility for H2FY23 A. FY23 Revenues: 5 projects to account for 76% of projected full year revenues* and are under control Key Projects Occupancy Certificate status Sale Deed Registrations Commenced registrations in Sep’22. Southern Crest OC received in Sep’22 Likely to be a s
Slide 22: 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 700+ constructed units in H1FY23 3.8 3.2 3.0 Project Completion Trend (msf) # units handover 2,093 2,885 2,280 ~10,000 FY20 FY21 FY22 10.7 On
Slide 23: 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 24: Long Term Strategy and Growth Outlook
Long Term Strategy and Growth Outlook SPL Competitive Strengths SPL Forward Strategy Stay focused on mid- Leadership in Focus on Mid Enhanced focus on DM Build scale and enhance market and affordable Core Markets Market and model execution capabilities housing Affordable Housing Strong Beneficiary o
Slide 25: Project Pipeline Update – Sep'22
Project Pipeline Update – Sep’22 Project Pipeline (msf) Upcoming Projects – 30 msf Ongoing – 24 msf 10.3 53.8 # Msf 11.2 projects 2.2 0.3 0.9 Pipeline – June’22 53 53.3 5.3 Less: Projects Completed (1) (0.6) 6.6 9.0 Add: Project Additions 2 1.1 8.3 Pipeline –Sep’22 54 53.8 Ongoing Ongoing Ongoing Pu
Slide 26: Thrust on DM Model as New Growth Engine Paying Off
Thrust on DM Model as New Growth Engine Paying Off Development Project Area Sold Area DM Volumes (msf) Project Location Status Type (msf) (msf) 20% 19% 26% 35% 28% Shriram Gateway Commercial Chennai 2.03 22.03 Completed % of Total sales volume 1.05 1.06 Blue Apartments Bangalore 0.71 0.70 Nearly Com
Slide 27: Strategies for Unlocking Potential from Kolkata Progressing Well
Strategies for Unlocking Potential from Kolkata Progressing Well Kolkata - Integrated township in Uttarapara – 314 acres, 33.5 msf saleable area Development Strategy Own development of c.10msf over next 3-5 years Monetising remaining land bank c.22msf Development Status Update Monetisation Update ❑
Slide 28: 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 29: Thank You
Thank You Shriram Luxor Shriram Chirping Woods 28
Slide 30: Annexure
Annexure Shriram Summit 29
Slide 31: Projects Snapshot by Development Models | Ongoing Projects
Projects Snapshot by Development Models | Ongoing Projects Joint Development Development Ongoing Projects(June 2022) Own Developments Joint Ventures Agreements Management Saleable Area (msf) 8.2 5.4 3.7 6.5 SPL Share (msf) 8.2 4.2 3.7 6.5 Sold Area (msf) 6.9 4.1 2.7 4.4 To be Sold (msf) 1.3 0.1 1.0
Slide 32: Projects Snapshot by Development Models
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 ✓ 1 project ✓
Slide 33: 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 Email Id – vineel@shrirampr