Sobha Limited · NSE:SOBHA

Sobha — Q1 FY2016-17 Earnings Presentation

34 slides from Sobha's earnings presentation, Jun 30, 2016

  1. Slide 1: Investor Presentation 30th June, 2016

    Sobha Morzaria Grandeur – Phase 1 Sobha Forest View - Cedar Investor Presentation 30th June, 2016

  2. Slide 2: Q1 FY 16-17: Financial Highlights (IND-AS)

    Q1 FY 16-17 : FINANCIAL HIGHLIGHTS (IND-AS) Sobha has adopted Ind AS (Indian Accounting Standards) during the 1st quarter of FY16-17. Q1 FY-17 Q1 FY-16 Q4 FY-16 REAL ESTATE OPERATIONS 3,988 3,244 3,567 REVENUE CONTRACTS & MANUFACTURING 1,713 1,332 1,945 OTHER INCOME 81 63 108 REVENUE (RS.MILLION) 5,

  3. Slide 3: Q1 FY 16-17: Financial Highlights (IND-AS)

    Q1 FY 16-17 : FINANCIAL HIGHLIGHTS (IND-AS)  Total collections of Rs.5.81 Billion for Q1 FY-17 as compared to Rs.4.91 Billion during Q1 FY-16. CASH FLOW  Net operational positive cash flow of Rs.714 Million for Q1 FY-17 as compared to negative cash flow of Rs.613 Million for Q1 FY-16 (after meetin

  4. Slide 4: Balance Sheet

    BALANCE SHEET Rs.in Million IGAAP IND AS Adjustment IND AS PARTICULARS Q1-17 Q1-16 FY 15-16 Q1-17 Q1-16 FY 15-16 Q1-17 Q1-16 FY 15-16 ASSETS Non-current assets Property, Plant and equipment 5,458 3,221 5,598 124 124 124 5,582 3,345 5,722 Other Intangible assets 38 80 47 (33) (70) (42) 6 11 5 Capital

  5. Slide 5: Balance Sheet (Continued)

    BALANCE SHEET (Continued) IGAAP IND AS Adjustment IND AS Particulars Q1-17 Q1-16 FY 15-16 Q1-17 Q1-16 FY 15-16 Q1-17 Q1-16 FY 15-16 EQUITY & LIABILITIES Equity Share Capital 981 981 981 - - - 981 981 981 Securities premium account 10,497 10,497 10,497 - - - 10,497 10,497 10,497 Retained Earnings 11,

  6. Slide 6: Profit & Loss Statement

    PROFIT & LOSS STATEMENT Rs. in Million IGAAP IND-AS Adjustments IND-AS Particulars Q1-17 Q1-16 Q4-16 Q1-17 Q1-16 Q4-16 Q1-17 Q1-16 Q4-16 Property Development 4,013 3,283 3,581 (25) (39) (14) 3,988 3,244 3,567 Contractual + Manufacturing 1,713 1,332 1,945 - - - 1,713 1,332 1,945 Other Income 26 14 59

  7. Slide 7: Profit & Loss Statement – FY 15-16

    PROFIT & LOSS STATEMENT – FY 15-16 Profit and Loss Statement for Financial Year 2015-16 Rs. in Million IND-AS Particulars IGAAP IND-AS Adjustments Property Development 11,843 782 12,625 Contractual + Manufacturing 6,807 - 6,807 Other Income 134 209 343 Total Revenue 18,784 991 19,775 Total Expenditu

  8. Slide 8: P&L Statement - Reconciliation

    P & L STATEMENT - RECONCILIATION Rs. in Million PARTICULARS Q1-17 Q1-16 Q4-16 FY 15-16 Net profit as per previous GAAP 382 450 361 1,533 Fair valuation of financial assets and financial liabilities (1) (1) (1) (4) Impact on accounting for Real Estate and Contractual Projects (70) (164) (97) (237) (i

  9. Slide 9: Cash Flow Statement

    CASH FLOW STATEMENT Rs. in Million IGAAP IND AS Adjustment IND AS PARTICULARS Q1-17 Q1-16 FY 15-16 Q1-17 Q1-16 FY 15-16 Q1-17 Q1-16 FY 15-16 Operational cash inflows Real Estate Operations 4,315 3,472 15,591 (184) (234) (698) 4,131 3,238 14,893 Contractual & Manufacturing 1,606 1,448 6,957 71 223 35

  10. Slide 10: Cash Flow Statement

    CASH FLOW STATEMENT Rs. in Million IGAAP IND AS Adjustment IND AS PARTICULARS Q1-17 Q1-16 FY 15-16 Q1-17 Q1-16 FY 15-16 Q1-17 Q1-16 FY 15-16 Income Taxes 119 100 608 (12) (3) (2) 107 97 606 Total Financial Outflows (D) 758 786 3,365 (45) (42) (164) 713 744 3,201 Net Cash flow after Financial 772 (65

  11. Slide 11: Movement of Debt (Ind AS)

    MOVEMENT OF DEBT (IND AS) CONSOLIDATED: Rs. in Million Increase / Particulars 30th June-16 31st March-16 (Decrease) Gross Debt 21,538 22,049 (511) Less: Cash & Cash Equivalents 1,288 1,457 (169) Net Debt 20,250 20,592 (342) Net Debt & D/E Ratio Movement: 24.00 1.00 21.14 20.85 20.59 20.49 20.25 0.90

  12. Slide 12: Borrowing Cost

    BORROWING COST AVERAGE INTEREST COST 13.00% 12.74% 12.75% 12.64% 12.68% 12.60% 12.50% 12.50% 12.25% 12.14% 11.98% 12.00% 11.83% 11.75% 11.58% 11.50% 11.25% 11.00% Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Finance Cost (Gross) : Rs.in Million June-16 March-16 Dec-15 Sept-15 June-15 704 70

  13. Slide 13: Q1 FY 16-17: Performance Highlights

    Q1 FY 16-17 : PERFORMANCE HIGHLIGHTS Q1-17 Q1-16 VALUE (Incl. JD Share) Rs.Mns 5,131 5,318 NEW SALES VALUE (Sobha Share) Rs.Mns 4,698 5,039 VOLUME Square Feet 809,249 841,399 REALIZATION (Sobha Share) Rs / Sqft 5,806 5,988  Completed and handed over 2 Real Estate projects measuring 0.91 mn.sqft dur

  14. Slide 14: Sales Performance & Price Realization

    SALES PERFORMANCE & PRICE REALIZATION Q1 FY-17 Q1 FY-16 Sales Sales Sales Sales Locations Area Sold Realization Realization Area Sold Realization Realization (Incl.JD share) (Sobha Share) (Incl.JD share) (Sobha Share ) in sq. feet Rs/ sq.ft Rs/ sq.ft in sq. feet Rs/ sq.ft Rs/ sq.ft Bangalore 606,633

  15. Slide 15: Price Band Category

    PRICE BAND CATEGORY Q1-17 Q1-16 Total Area Sold Square Feet 809,249 841,399 Total Sales Value (incl. JD share value) Rs. Million 5,131 5,318 Average Price Realization Rs/ Sq.ft 6,340 6,321 Area sold (square feet) Value sold (Rs.Million) Category Q1-17 % Q1-16 % Q1-17 % Q1-16 % < Rs.50 lakhs 39,328 5

  16. Slide 16: Real Estate Projects – Projected Cash Flow

    REAL ESTATE PROJECTS – PROJECTED CASH FLOW Ongoing Completed Ref Description Area Area not Total UOM Projects released released A Total Developable area 26.54 13.88 40.42 mn.sqft B Area of Car Park, Common areas and Amenities etc 8.06 3.96 12.02 mn.sqft C = A–B Total Saleable area 18.48 9.92 28.40 m

  17. Slide 17: Location Wise Inventory Details

    LOCATION WISE INVENTORY DETAILS Area in Million Sq.Feet Increase/ Opening Projects Stock Area sold Closing stock Area not Net unsold (decrease) of th Locations stock as on launched available during as on 30 offered for stock as on existing 1st Apr-16 during Q1-17 for sale Q1-17 June-16 sale 30th Jun

  18. Slide 18: Unsold Inventory Break-up

    UNSOLD INVENTORY BREAK-UP Area offered for sale Area not offered for sale Particulars Area (Mn.sqft) % Area (Mn.sqft) % Below Rs.50 lakhs 0.49 7% 0.04 0.5% Between Rs.50 lakhs to 1 cr 1.14 16% 4.53 49% Between Rs.1 cr to 1.5 crs 1.62 22% 2.08 22% Between Rs.1.5 crs to 2 crs 0.87 12% 1.08 11.5% Betwe

  19. Slide 19: Buyers Profile – Rolling 12 Months

    BUYERS PROFILE – ROLLING 12 MONTHS Profession-wise breakup Buyers Age-wise breakup Non-IT Age 21-30; professionals, Business/ Age > 50; Entrepreneur, 19% 34.5% 17% 8.4% Medical / Pharma, 4.0% IT/ITES Age 41-50; Professional, 22% Age 31-40; Others, 7.7% 45.4% 42% * Others includes Housewives, Agricul

  20. Slide 20: Real Estate – Completed Projects

    REAL ESTATE – COMPLETED PROJECTS  Completed 113 projects in 7 cities. Apartments  Total Developed area of 40.14 mn.sqft and Super Built-up area of 31.10 mn.sqft.  Product mix includes Multi Storied Apartments (Dreams, Luxury, Super Luxury & Presidential category), Row Houses, Villas, Plotted Deve

  21. Slide 21: Real Estate – Ongoing Projects

    REAL ESTATE – ONGOING PROJECTS  38 projects measuring Total Developable area of about 40.42 mn.sqft and Super Built-up area of 28.40 mn.sqft, located at 9 cities in India. Location-wise 28.00 24.00 Area in Mn.sqft 20.00 16.00 12.00 8.00 4.00 - BLR NCR Chennai Pune Thrissur CBE Calicut Cochin Mysore

  22. Slide 22: Real Estate – Going Forward

    REAL ESTATE – GOING FORWARD  Total unsold inventory as on 30th June-16 is 16.54 mn sqft across all location.  Plan to launch new projects in Bangalore, Cochin, Chennai and Coimbatore regions in next 4 to 6 quarters, measuring total area of about 9.10 mn.sqft, of which Sobha share of saleable area

  23. Slide 23: Contracts - Overview

    CONTRACTS - OVERVIEW Completed Projects Projects Under Progress  278 Projects aggregating to 42.41 mn.sqft of area  30 Projects aggregating to 8.70 mn.sqft of area  Completed projects located in 24 cities across India  Ongoing contractual projects located in 10 cities across India Infosys, Infos

  24. Slide 24: Contracts – Projects Break-up

    CONTRACTS – PROJECTS BREAK-UP Contractual projects status as on 30th June,2016 PROJECTS UNDER PROGRESS S.NO DESCRIPTION No of ≈ Built-up Projects area (Mn.Sft ) 1 Bangalore 14 2.35  The unbilled value of projects under progress is about Rs.6.98 Billion 2 Cochin 2 2.11  Non-Infosys clients includes

  25. Slide 25: Execution Delivery Track Record

    EXECUTION DELIVERY TRACK RECORD 7.00 90.00 Developed Area - Track record 81.64 82.55 6.00 80.00 70.54 70.00 5.00 62.93 56.25 60.00 Area in Mn.sqft 4.00 51.80 46.58 50.00 3.00 38.99 33.11 40.00 2.00 23.88 30.00 1.00 20.00 - 10.00 FY-08 FY-09 FY-10 FY-11 FY-12 FY-13 FY-14 FY-15 FY-16 Q1-17 Real Estate

  26. Slide 26: Land Bank Status

    LAND BANK STATUS Total Extent of Land 2,425 Acres Total Developable Area 209.11 Mn.sqft Sobha Share 202.37 Mn.sqft Sobha Share of Land 2,334 Acres NCR (14.70 acres) Total Cost consideration 22,531 Rs.Mns Developable Area 1.04 BANGALORE Sobha Share 0.54 Balance amount payable 2,251 Rs.Mns (770.81 acr

  27. Slide 27: Backward Integration (World Class Manufacturing Facilities)

    BACKWARD INTEGRATION (World Class Manufacturing Facilities) Interiors & Furnishing Division Glazing & Metal Works Division Concrete Products Division Turnover* : Q1 FY-17 Rs.282 Mns Turnover *: Q1 FY-17 Rs.273 Mns Turnover *: Q1 FY-17 Rs.136 Mns Factory area 0.80 Mn sq ft Factory area 0.30 Mn sq ft

  28. Slide 28: Share Holding Pattern

    SHARE HOLDING PATTERN Top FII’s Top Insurance & Mutual Funds FII's, • Platinum Investment 29.84% • Franklin Templeton • Nordea • ICICI Prudential • NT Asian Discovery Fund Mutual • LIC India Funds, • College Retirement Equity fund 4.49% • HDFC – Standard Life • Schroder International Insurance Promo

  29. Slide 29: Sobha – Stock Performance

    SOBHA – STOCK PERFORMANCE Status as on: 30th June, 2016 Sobha vs Nifty vs NSE Realty 20 No. of Shares 98.06 Million 10 % Change in Closing Price 0 Market Capitalization Rs.32.04 Billion ‐10 Stock Price : 52 week High / Low Rs.383 / Rs.230 ‐20 Avg. Daily volume (12 months) 155,723 ‐30 ‐40 Source : NS

  30. Slide 30: Recognition

    RECOGNITION  Sobha Limited was included an independent study on ‘Board Evaluation in India: Disclosures and Practices’ which was carried out by National Stock Exchange of India Limited (NSE) in association with Institutional Investor Advisory Services (IiAS), a proxy advisory firm.  Institutional

  31. Slide 31: Thank You

    THANK YOU Corporate Office Investors Contact : Sobha Limited. Mr.Subhash Mohan Bhat K.Bala Murugan ‘SOBHA’, Sarjapur-Marathahalli Outer Ring Chief Financial Officer Senior Manager – Investor Relations Road(ORR), Mobile: +91- 99801 99088 Mobile: +91- 98807 30459 Devarabisanahalli, Bellandur Post, Ema

  32. Slide 32: Real Estate – Details of Ongoing Projects as on 30th June 16

    Real Estate – Details of Ongoing projects as on 30th June 2016 Annexure slide

  33. Slide 33: Real Estate – Details of Ongoing Projects as on 30th June 16

    Real Estate – Details of Ongoing projects as on 30th June 2016 Total Total Sobha Sobha Share of ≈ Avg.Price Developabl Total No Saleable Share of Sl.No Projects Location Type Saleable Area Realisation Remarks e area of Units Area Saleable (Mn.Sqft) (Rs/sft) (Mn.Sqft) (Mn.Sqft*) Units Bangalore - Res

  34. Slide 34: Annexure slide 2

    Total Total Sobha Sobha Share of ≈ Avg.Price Developabl Total No Saleable Share of Sl.No Projects Location Type Saleable Area Realisation Remarks e area of Units Area Saleable (Mn.Sqft) (Rs/sft) (Mn.Sqft) (Mn.Sqft*) Units Gurgaon (NCR) - Residentials International City - Ph 1 (B & B3) Villas 0.98 10

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