Sunteck Realty Limited · NSE:SUNTECK
Sunteck Realty — Q1 FY24 Earnings Presentation
23 slides from Sunteck Realty's earnings presentation, Aug 9, 2023
Slide 1: Exchange filing cover letter for Investor Presentation Q1 FY24
Sunteck Realty Ltd. Date: 9th August, 2023 SRL/SE/ 26 /23-24 National Stock Exchange of India Ltd BSE Limited Exchange Plaza, Plot no. C/1, G Block, Phiroze Jeejeebhoy Tower, Bandra-Kurla Complex, Bandra (East), Dalal Street, Mumbai- 400 051 Mumbai – 400 001 Symbol: SUNTECK Scrip Code: 512179 Sub: I
Slide 2: Sunteck Realty Limited Investor Presentation Q1 FY24
Sunteck Realty Limited Investor Presentation Q1 FY24 NSE: SUNTECK | BSE: 512179 | Bloomberg: SRIN: IN | Reuters: SUNT.NS / SUNT.BO 1
Slide 3: Disclaimer
Disclaimer By attending the meeting where this presentation is made and any additional material is provided (“Presentation”) or by reading the Presentation, you (“Recipient”), agree to be bound by the following limitations. This Presentation has been prepared on the basis of the estimates of the man
Slide 4: Quarterly Results
Quarterly Results Pre-sales, collections, margins & D/E on strong track > Pre-sales grew by 16% YoY to ~Rs 387 cr > Collections remained strong at ~Rs 288 cr > Operating Cash Flow Surplus yielding ~22% on Networth > Core EBITDA margin in P&L stands at ~43% > Net Debt stands at strong level at ~Rs 26
Slide 5: Key Highlights (FY18 - FY23)
Key Highlights (FY18 - FY23) Pre-sales growth targeted @ 20%-30% year-on-year Compounded growth in Pre-sales and Collections Rs 2000 cr Rs 1602 cr Rs 1500 cr Rs 1250 cr Rs 1022 cr Rs 1000 cr Rs 780 cr Rs 588 cr Rs 531 cr Rs 500 cr Rs 0 cr Pre-sales Collections Rs 1 cr = Rs 10 mn FY18 FY21 FY23 4
Slide 6: Operational Performance Trend
Operational Performance Trend Q1 FY24 numbers on solid footing > Pre-sales in Q1 FY24 were focused on the new launch at Sunteck Sky Park, Mira Road as well as activations from other upper mid-income projects > Collections were robust and broad-based in Q1 FY24 with all segments performing well in th
Slide 7: Operational Performance Trend
Operational Performance Trend Quarter-wise growth on strong footing Pre-sales (~Rs cr) Collections (~Rs cr) 600 450 404 537 503 400 500 331 330 350 321 387 396 304 400 371 300 285 288 270 333 337 349 352 253 272 250 207 300 200 172 200 141 200 176 150 101 100 65 100 50 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY
Slide 8: Strong OCF surplus coming through
Strong OCF surplus coming through OCF Surplus Yield @~22% OCF Surplus (~Rs cr) OCF Surplus Yield 450 428 25.00% 22.00% 400 350 20.00% 300 281 15.00% 14.50% 250 239 12.21% 200 10.00% 150 100 5.00% 50 0 0.00% FY21 FY22 FY23 FY21 FY22 FY23 #As the company follows Project Completion Method of Accounting
Slide 9: Strong OCF crosses Rs 1,000 cr in 3.25 years
Strong OCF crosses Rs 1,000 cr in 3.25 years Q1 FY24 OCF Surplus stands @ ~Rs 76 cr Particulars Q1 FY24 Q1 FY23 FY 2023 Cumulative OCF Surplus ~Rs cr ~Rs cr ~Rs cr (~Rs cr) 1200 Gross Customer Collections 288 285 1,250 1024 1000 948 Less: Project Expenses 145 150 590 800 Less: JDA Revenue Share 23 1
Slide 10: Disciplined Return on Invested Capital on leased assets
Disciplined Return on Invested Capital on leased assets Case Study - Sunteck BKC 51 RoIC stands @ ~30% > In FY23, SRL expanded its rental portfolio by signing a 29-year lease at its commercial project Sunteck BKC 51 at BKC Junction for an average rental of ~Rs 66 cr per year during the lease tenure.
Slide 11: Strong acquisition over the last 5 years - ~38.5 mn sq ft acquired since 2018
Strong acquisition over the last 5 years - ~38.5 mn sq ft acquired since 2018 Projects with major capital allocation 10
Slide 12: Strong Balance Sheet
Strong Balance Sheet Net Debt to Equity @ 0.09x Sunteck’s Long-Term Credit Rating is AA- with Positive Outlook from FITCH & CARE As on 30th As on 31st 2.00x Particulars (~Rs cr) June, 23# Mar, 23 1.80x > ~38.5 mn sq ft of projects acquired since Total Debt 505 593 1.60x 2018 Less: Cash & Bank Balanc
Slide 13: Core EBITDA Margin in P&L strong @ 43%
Core EBITDA Margin in P&L strong @ 43% > SRL follows Project Completion Method of Accounting – Direct (Attributable) Costs pertains to projects from which revenue has been recognized in respective quarter > Indirect (Non-attributable) Costs pertains to expenses from which revenue recognition has not
Slide 14: Sunteck's Intrinsic Value
Sunteck’s Intrinsic Value > Sunteck’s intrinsic value is not a precise number. Different people analyzing Sunteck would come up with various valuations. We are providing you broad GDV dataset - we would like if our roles were reversed. > We believe the intrinsic value of Sunteck is a function of exp
Slide 15: 7 Growth Engines to fire up pre-sales growth by FY25E
7 Growth Engines to fire up pre-sales growth by FY25E Sunteck has achieved a pre-sales growth of ~25% between FY21 and FY23 GDV – Gross Development Value excluding cash flows from completed & ongoing launched projects/phases GDV – ~Rs 303 bn Rs 1 bn = Rs 100 cr 7 Nepean Sea Road GDV – ~Rs 278 bn GDV
Slide 16: Sunteck's Intrinsic Value – 7 Growth Engines + Annuity Income
Sunteck’s Intrinsic Value – 7 Growth Engines + Annuity Income 1st Component: Rs 1 cr = Rs 10 mn S. No. Projects Location Gross Development Value* (~ Rs crores) 1. Nepean Sea Road South Mumbai 2,500 2. Sunteck Kalyan Kalyan 9,000 3. Sunteck Sky Park Mira Road 2,300 4. Sunteck Beach Residences Vasai W
Slide 17: Sunteck's Intrinsic Value – Future Opportunities
Sunteck’s Intrinsic Value – Future Opportunities 2nd Component: > Selling prices are likely to rise over the next few years, leading to higher margins than illustrated in the 1st component estimates. > The estimation excludes upside from other large possible projects already acquired but not conside
Slide 18: Key Takeaways
Key Takeaways > Luxury Developments across various micro-markets of MMR. > Strong visibility of cash flows from 7 growth engines and other acquired projects over the next 7-8 years. > JDA approach of acquisition ensures capital at risk is always negligible & limited and are funded largely via intern
Slide 19: ESG Highlights for FY 2022-23
ESG Highlights for FY 2022-23 >90% 31% Women Representation in organization Of our properties are green building pre- certified (EDGE IFC) Sunteck Head office is LEED Existing building Gold certified 4.3 times Increase in employee trainings hours Zero Waste to landfill & Plastic neutrality at Signat
Slide 20: Sustainability Awards
I Sustainability Awards Best ESG Initiative in Biodiversity Impact Reduction award. Our Company was proudly recognized at the 2022 ESG Summit and Awards, securing the Best ESG Initiative in Biodiversity Impact Reduction award. This highlights our efforts in promoting sustainable practices to preserv
Slide 21: MMR Focused Luxury Developer
MMR Focused Luxury Developer By Project Brands By Location Volume 20
Slide 22: Our Brands
Our Brands Premium positioning by creating different luxury brands across all the segments 21
Slide 23: Thank you
Thank you ir@sunteckindia.com 22