Arihant Superstructures Limited · NSE:ARIHANTSUP
Arihant Superstructures — Investor Presentation (November 2018)
45 slides from Arihant Superstructures's investor presentation, Nov 19, 2018
Slide 1: Arihant Superstructures Ltd. – Continuing Stability
TM ARIHANT SUPERSTRUCTURES LTD. CONTINUING STABILITY CONTINUING STABILITY 19th November, 2018 Corporate Relations Department Listing Compliance Department BSE Limited National Stock Exchange of India Limited PhirozeJeejeebhoy Towers, Exchange Plaza, Dalai Street, Mumbai - 400 001 Plot No. C/1, G Blo
Slide 2: ASL Investor Presentation Nov 2018
ASL Investor Presentation Nov 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 real estate sector, Mr. Ashok Chhajer, CMD of Arihant Superstructures said, “The recent developments relating to NBFCs had cast a shadow on real estate with doubts being raised about availability of funds for construction as well as home finance. Arihant has always de
Slide 6: "Arihant" – The Institution
“Arihant” – The Institution • One of the Largest real estate player in Affordable Housing since 2009 consisting 63% 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 8,863+
Slide 7: Arihant Superstructures Ltd (ASL): At A Glance
Arihant Superstructures Ltd (ASL): At A Glance Company Profile CATEGORY-WISE PROJECT PROFILE Upper Medium 1. A leading real estate company focused on Affordable & Income Luxury Segment Group (INR 7,000+ psf) 2. Strong execution track record of project completion 5% 3. Strong brand recognition in hig
Slide 8: Arihant Focus on housing sector demand
Arihant Focus on housing sector demand Navi Mumbai • Kharghar Corporate Park - Auction of plots for in 2019 spread on 300 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 and housi
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 • Navi Mumbai – 2nd Best Place in terms 2 of ease of living In
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 2.1 mn sq.ft. ARIHANT AAROHI - I Nearly ready 11.9 mn sq.ft. 2.0 mn sq.ft. Saleable Under construction ARIHANT ADITA – I, II, III 7.8 mn sq.ft. 13.71 mn sq.ft. projects Construction yet to start Arihant Arshiya – I, Arihant Adita – I,II,III, 1.8 mn sq. ft. Arihant Ayati, Arih
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 infrastructure, School period charges etc Energy Conservation measures Economic Participation in No 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 lifecycle of the project • Some of the customer-centric policies that the Company adopts is o No lock in period for buyers o No transfer charges on re-sale of property High Level of Stand
Slide 17: Industry Dynamics
Industry Dynamics Retail / Consumer is the biggest Wealth Creating sectors 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 Particula
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 2nd in List Of Best Cities To Live In India
Navi Mumbai 2nd 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 ind
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 Oct 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 BSE Scrip Code 506194 FPIs/Banks & FIs Public 2% 19% NSE Trading Symbol ARIHANTSUP Mutual Funds 5% Promoters Bloomberg Code ARSU IN 74% GICS Sector Real Estate Comparative Stock Price Performance - BSE Market Cap as on BSE ASL 30th Sept
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 Fant a Bal Sete! project tection — [waatalAree | areasota | scarce | rota |ooeecoa| unite | seunies | Proisct,| avernee | “Yaimcat |sate vatue| Amount | "Yume com ‘sara vera” | Onis unecta | sera | Compters | SIS" | “Gneota |ocnnent | NESSES | pacenentt ‘nee Siem arinencanshuls Foloje
Slide 28: Potential Recognizable Revenue
Potential Recognizable Revenue Expected Revenue: Geographical Split Thane 1% Panvel Sales Kharghar 40% recognised 21% completed 13% Jodhpur 11% Sales ongoing part recognised Sales yet to 18% commence MMR 59% 27% Revenue Recognition Method Sales not recognised Revenue has been recognized as per IND A
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 *The debt on holding company is 100% liability of AS
Slide 32: Net Worth & PAT for the Quarter ended 30th September 2018
Net Worth & PAT for the Quarter ended 30th September 2018 Company (INR Mn) Net Worth PAT Arihant Superstructures Limited 1154.87 2.80 Arihant Vatika Realty Private Limited 162.37 4.42 Arihant Abode Limited 1.59 0.02 Arihant Gruhnirman Private Limited (1.68) (0.11) Arihant Aashiyana Private Limited 1
Slide 33: Q2-FY19 - Overview
Q2-FY19 - Overview Sales Overview 1. Total Saleable area booked for Q2 at 2,14,649 sq. ft. (249 Units) with value of INR 875.1 Mn and for H1 FY19 booked at 3,25,529 sq. ft. (354 Units) with booking value INR 1379.10 Mn. 2. 215 units sold (173,679 sq. ft.). INR 757.2 Mn at MMR / Navi Mumbai 3. 34 uni
Slide 34: Q2-FY19 - Income Statement
Q2-FY19 - Income Statement Amount in INR Mn except as stated Particulars Q2 FY19 Q2 FY18 Q1 FY19 Tota l Re ve nue 503.33 451.13 438.19 Tota l e xpe ns e s 403.54 360.34 285.03 EBI TDA 99.79 90.80 153.16 EBI TDA Ma rgi n (%) 19.83% 20.13% 34.95% I nte re s t 66.81 36.53 84.09 De pre ci a ti on 4.45 3
Slide 35: FY18 - Income Statement
FY18 - Income Statement INR Mn (except FY18 - Operating Overview 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 units
Slide 36: The Road Ahead – FY19
The Road Ahead – FY19 REVENUE DRIVERS MARGIN DRIVERS FUTURE PLANS Fast tracking of Navi Mumbai To infuse funds for land purchase Efficiency in low cost land airport to boost demand from to take current developable purchase home buyers area from 13.7 mn sq. ft. to 25 mn sq. ft. To add more projects i
Slide 37: Holding Company Debt Liability
Holding Company Debt Liability Entity Debt Liability of ASL Entity Holding (INR mn) (INR mn)* • The company accounts for & ASL 100% 822.02 822.02 have adopted the method of liabilities V/s Shareholding Vatika 60% 262.41 157.45 percentage. The debt on holding company is 100% liability of ASL. Aashiya
Slide 38: Board Of Directors
Board Of Directors ● Over 4 decades experience includes 2 decades 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
Slide 39: 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 40: Arihant Aspire – Iconic Award & Platinum IGBC Certificate
Arihant Aspire – Iconic Award & Platinum IGBC Certificate Iconic Award by Radio City for Arihant Aspire, IGBC PreCertified Platinum Rating for Aspire project, Sept 2018 July 2018 39
Slide 41: Awards and accolades
Awards and accolades 2015 2016 Best Business Winner of Mumbai Best Corporate Most Esteemed Ongoing NDTV awards Arihant as Practice Award in Hot 50 Brands by Brands 2016- Real Project of the Year – the best developer in 2015 for 2014 One India and Estate by the Navbharat Realty Business affordable ca
Slide 42: Mumbai Hot 50 Brands (2 Times) - 2015 and 2014
Mumbai Hot 50 Brands (2 Times) - 2015 and 2014 41
Slide 43: Recent Jodhpur Awards
Recent Jodhpur Awards Dainik Bhaskar (94.3 MYFM) – Arihant Adita – Jodhpur‟s no1 Housing Award for Excellence in Quality Society Award, Red FM Construction • In their drive to promote cleanliness in Jodhpur city, RED FM 93.5 had organized a contest among the Award for Excellence in Quality Construct
Slide 44: MMR – Navi Mumbai Awards, 2018
MMR – Navi Mumbai Awards, 2018 Affordable Housing Project of Affordable Low Cost Quality the Year – 2018 Housing - 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) Award for Quality construc
Slide 45: Thank you !!
Thank you !! For further Information please contact Pradeep Mehta Umesh Jhawar CFO VP – Strategy & IR Tel: +91 22 6249 3333 Tel: +91 22 6249 3333 Email: cfo@asl.net.in Email: umesh.j@asl.net.in Corporate Office: Arihant Aura, Floor No. 25, B wing, Plot no 13/1, TTC Industrial Area, Thane Belapur Roa
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