Sobha Limited · NSE:SOBHA

Sobha — Q2 FY2020-21 Earnings Presentation

47 slides from Sobha's earnings presentation, September 2020

  1. Slide 1: Investor Presentation September 2020

    INVESTOR PRESENTATION September 2020

  2. Slide 2: 25 Years of Passion at Work

    25 YEARS OF “ PASSION AT WORK ”  SOBHA Limited, most trusted and admired real estate brand in India since 1995.  Total area Developed since inception 109.74 million square feet.  19,909 homes handed over since inception.  Atmanirbhar model of project execution supported with in-house backward in

  3. Slide 3: 25 Years of Passion at Work: Brand Recognition

    25 YEARS OF “ PASSION AT WORK ” Brand Recognition  Awarded best real estate brand in Real Estate space over the years in a row.  Recognized by the Czars of IT/BT industry for quality product delivery.  Thousands of happy and satisfied customers. Client testimony: Mr. PNC Menon is probably the fin

  4. Slide 4: Highlights

     HIGHLIGHTS (a) Key Highlights (b) Key Financial Highlights (c) Key Operational Highlights  FINANCIAL UPDATE  OPERATIONAL UPDATE  ANNEXURES 4

  5. Slide 5: Key Highlights: Q2 and H1 FY 2020-21

    KEY HIGHLIGHTS: Q2 and H1 FY 2020-21  We have achieved a total sales volume of 891,700 square feet valued at Rs 6.90 billion, with a total average price realization of Rs. 7,737 per square feet during Q2-21, despite lockdown being imposed in Bengaluru in the month of July, no new launch during the

  6. Slide 6: Key Financial Highlights: Q2 FY 2020-21

    KEY FINANCIAL HIGHLIGHTS: Q2 FY 2020-21 Total Income Rs 5.46 billion Real Estate Revenue Contractual and Manufacturing Rs 3.33 billion Revenue: Rs 1.89 billion EBITDA:Rs 1.28 billion Profit Before Tax Margin at 23% Rs 0.23 billion Profit After Tax Rs 0.17 billion 6

  7. Slide 7: Key Financial Highlights: Q2 FY 2020-21

    KEY FINANCIAL HIGHLIGHTS: Q2 FY 2020-21 Amount in Rs. Billions Total Income Real Estate Revenue Contracts and Mfg Revenue GROWTH – 52% GROWTH – 49% GROWTH – 49% 8.00 6.00 3.00 5.46 3.33 1.89 6.00 3.59 4.00 2.23 2.00 1.27 4.00 2.00 1.00 2.00 - - - Q1-21 Q2-21 Q1-21 Q2-21 Q1-21 Q2-21 EBITDA PBT PAT GR

  8. Slide 8: Key Financial Highlights: H1 FY 2020-21

    KEY FINANCIAL HIGHLIGHTS: H1 FY 2020-21 Total Income Rs 9.05 billion Real Estate Revenue Contractual and Manufacturing Rs 5.56 billion Revenue: Rs 3.16 billion EBITDA Rs 2.37 billion Profit Before Tax Margin at 26% Rs 0.28 billion Profit After Tax Rs 0.24 billion 8

  9. Slide 9: Key Operational Highlights: Q2 FY 2020-21

    KEY OPERATIONAL HIGHLIGHTS: Q2 FY 2020-21 Pre Sales Volume Sales Value 0.89 million sqft Rs 6.89 billion Total Cash Inflow Real Estate Cash Inflow Rs 6.86 billion Rs 5.02 billion Contractual and Manufacturing Net Operational Cash flow Cash Inflow: Rs 1.84 billion Rs 1.30 billion 9

  10. Slide 10: Key Operational Highlights: H1 FY 2020-21

    KEY OPERATIONAL HIGHLIGHTS: H1 FY 2020-21 Pre Sales Volume Sales Value 1.54 million sqft Rs 11.78 billion Total Cash Inflow Real Estate Cash Inflow Rs 12.33 billion Rs 8.38 billion Contractual and Manufacturing Net Operational Cash flow Cash Inflow: Rs 3.94 billion Rs 2.22 billion 10

  11. Slide 11: Key Operational Highlights: Cashflow Q2 FY 2020-21

    KEY OPERATIONAL HIGHLIGHTS: Cashflow Q2 FY 2020-21 Amount in Rs. Billions Total Operating Cash Inflow Real Estate Operating Cash Inflow GROWTH – 25% GROWTH – 50% 8.00 6.00 5.02 6.86 5.47 3.36 6.00 4.00 4.00 2.00 Q1-21 Q2-21 Q1-21 Q2-21 Contracts & Manufacturing Net Operating Cash flow Operating Cash

  12. Slide 12: Financial Update

     HIGHLIGHTS (a) Key Highlights (b) Key Financial Highlights (c) Key Operational Highlights  FINANCIAL UPDATE  OPERATIONAL UPDATE  ANNEXURES 12

  13. Slide 13: Cash Flow Statement

    CASH FLOW STATEMENT Amount Rs.in Millions PARTICULARS Q2-21 Q1-21 H1-21 H1-20 Q2-20 FY-20 Operational cash inflows Real Estate Operations 5,023 3,359 8,382 11,941 5,836 23,642 Contractual & Manufacturing 1,836 2,107 3,943 6,086 3,287 12,829 Total Operational cash inflow (A) 6,859 5,466 12,325 18,027

  14. Slide 14: Cash Flow Statement (Contd)

    CASH FLOW STATEMENT (Contd) Amount Rs.in Millions PARTICULARS Q2-21 Q1-21 H1-21 H1-20 Q2-20 FY-20 Financial Outflows Finance Cost 655 379 1,034 1,609 887 3,399 Income Tax 41 42 83 256 145 393 Total Financial Outflows (D) 696 421 1,117 1,865 1,032 3,792 Net Cash flow after Financial Outflow : (E=C-D)

  15. Slide 15: Real Estate Projects: Projected Cash Flow

    REAL ESTATE PROJECTS: PROJECTED CASH FLOW Ongoing - Area Ongoing - Area Particulars Completed Total UOM offered for sale not offered for sale Total Saleable area 20.79 18.77 8.04 47.60 Mn. sqft Sobha Share of Saleable area 19.45 17.34 7.20 43.99 Mn. sqft Total area sold till 30th September 2020 19.0

  16. Slide 16: Movement of Debt

    MOVEMENT of DEBT Amount Rs.in Billions Particulars 30th Sept-20 30th Jun-20 31st Mar-20 31st Dec-19 30th Sept-19 Gross Debt 31.56 31.25 31.18 32.08 30.52 Less: Cash & Cash Equivalents 1.06 1.04 0.95 1.14 0.71 Net Debt 30.50 30.21 30.23 30.94 29.80 D/E Ratio Net Debt (Rs Bn) D/E Ratio 1.29 1.30 1.28

  17. Slide 17: Borrowing Cost

    BORROWING COST 11.00% Average cost of borrowing has declined in the last 4 quarters Rate of Interest % 10.00% 9.74% 9.80% 9.81% 9.76% 9.72% 9.69% 9.64% 9.57% 9.39% 9.31% 9.32% 9.30% 9.00% 8.00% Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Finance Cost(Gross) Rs. In Million

  18. Slide 18: Operational Update

     HIGHLIGHTS (a) Key Highlights (b) Key Financial Highlights (c) Key Operational Highlights  FINANCIAL UPDATE  OPERATIONAL UPDATE  ANNEXURES 18

  19. Slide 19: Sales Performance: Q2 FY 2020-21

    SALES PERFORMANCE: Q2 FY 2020-21 Q2 - FY 21 Area Sold Total Sale Value Sobha Share Total Average Area Sold (region  Witnessed near Pre-Covid Region of Sale Value Price Realization in Sq Feet in Rs Mns in Rs Mns Rs / Sq Feet wise contribution) level Sales Volume during Bangalore 538,608 4,049 3,346

  20. Slide 20: Sales Performance: H1 FY 2020-21

    SALES PERFORMANCE: H1 FY 2020-21 H1 FY 2020-21 H1 FY 2019-20 Sobha Share Sobha Share Region Area Sold Total Sale Value Area Sold Total Sale Value of Sale Value of Sale Value in Sq Feet in Rs Mns in Rs Mns in Sq Feet in Rs Mns in Rs Mns Bangalore 1,022,886 7,659 6,299 1,525,165 10,570 8,841 Gurugram

  21. Slide 21: Sales Value Performance Q2 FY 2020-21 (Price Band and Region)

    SALES VALUE PERFORMANCE Q2 FY 2020-21 (Price Band and Region category) % CONTRIBUTION PER PRICE BRACKETS REGION CONTRIBUTION TO TOTAL SALE VALUE Kozhikode Mysore Coimbatore Kochi 0.78% 0.35% GIFT City > Rs.3 Crs < 1 Cr Pune 1.09% 17.21% 0.65% Bangalore 13% 18% 1.80% Rs.2 Crs to 3 Crs 58.69% 18% Thri

  22. Slide 22: Sales Value Performance H1 FY 2020-21 (Price Band and Region)

    SALES VALUE PERFORMANCE H1 FY 2020-21 (Price Band and Region category) % CONTRIBUTION PER PRICE BRACKETS REGION CONTRIBUTION TO TOTAL SALE VALUE Coimbatore Kochi Kozhikode Mysore Pune 13.26% 0.93% 0.53% GIFT City > Rs.3 Crs 1.03% < 1 Cr 1.83% 0.78% Bangalore 12% 18% Thrissur 65.04% Rs.2 Crs to 3 Crs

  23. Slide 23: Buyer Profile: 12 Months Rolling

    BUYER PROFILE: 12 Months Rolling PROFESSION-WISE BREAKUP BUYERS AGE-WISE BREAKUP Others IT/ITES >51 Years 21-30 Years 21% Professional 15% 17% Business/Entrepr 49% eneur 7% 41-50 Years 21% Medical/Phar ma 4% Non IT 31-40 Years Professional 47% 19% FUNDING STATUS Bank Loan 73% Self Fund 27% 0% 20% 40

  24. Slide 24: Real Estate - Projects Portfolio

    REAL ESTATE - PROJECTS PORTFOLIO Total Developable / Leasable Area in Mn sqft DELHI Completed - GURUGRAM Ongoing -  Completed Real Estate projects located across 7 cities, Completed 1.56 with Total development of 58.74 mn sqft and Super Forthcoming 1.03 Ongoing 11.12 Built-up area of 44.62 mn sqft

  25. Slide 25: Future Launches and RERA Status

    FUTURE LAUNCHES AND RERA STATUS Forthcoming Launch Pipeline : Ongoing Projects - RERA registration status : No of projects No of projects LOCATION No of Projects Total Saleable area (Mn Sft) Location applied for RERA approved by RERA Real Estate - Forthcoming Bangalore 67 67 Bangalore 5 6.71 Mysore

  26. Slide 26: Contracts Portfolio

    CONTRACTS PORTFOLIO Overall area delivered since inception: 51 million square feet Order book value as of 30th Sept 2020: Rs 22.58 billion Contractual Ongoing Project Details as of 30th Sept 2020 Contractual Revenue & Collection Details as of 30th Sept 2020 Amount in Rs. Billions Built-up area S.No

  27. Slide 27: Contracts: Completed Projects Region Wise Contribution Details

    CONTRACTS: Completed Projects region wise contribution details Total Developed Area(in Mn Sqft) Order Value (in Mns) 30.00 30,000 26,952 24.37 25.00 25,000 20.00 20,000 15.00 15,000 5,358 6,542 10.00 6.67 10,000 4.45 4.77 5.61 5,337 1,562 5,377 5.00 1.53 1.37 0.70 5,000 1,036 788 0.28 0.08 0.40 0.14

  28. Slide 28: Manufacturing Division Performance

    MANUFACTURING DIVISION PERFORMANCE  SOBHA – Only Real Estate Company in India with Aatma Nirbhar (Self-Reliant) Model  It supports company to achieve world class quality with timely & efficient delivery Glazing & Metal Works Division Interiors & Furnishing Division Concrete Products Division Turno

  29. Slide 29: Board of Directors

    BOARD OF DIRECTORS Ravi PNC Menon J.C. Sharma Jagadish Nangineni T.P. Seetharam Chairman Vice Chairman & Managing Director Dy. Managing Director Whole-time Director • Over 37 years of experience in diversified • Distinguished service as a career • Over 15 years of experience in the real • Over 17 ye

  30. Slide 30: Our Presence

    OUR PRESENCE Residential Contractual Baddi Chandigarh Panchkula Roorkee Gurugram Gurugram Noida Jaipur GIFT City Durgapur Indore Kolkata Bhubaneswar Nagpur Pune Mumbai Pune Hyderabad Bangalore Bangalore Mangalore Mysore Mysore Chennai Chennai Salem Kozhikode Coimbatore Kozhikode Ooty Contractual Pre

  31. Slide 31: Snapshots of Few Ongoing Projects

    SNAPSHOTS OF FEW ONGOING PROJECTS Sobha Royal Pavilion marketing office, Bangalore Sobha Gardenia Villas, Chennai – at different stages of construction Sobha Royal Pavilion wings 4,5,6&7, Bangalore 25 Richmond, Bangalore 31

  32. Slide 32: Snapshots of Few Ongoing Projects (Contd)

    SNAPSHOTS OF FEW ONGOING PROJECTS (Contd) Sobha Palm Court, Bangalore Marina One, Kochi. North Wing 03 Marina One, Kochi. East Wing 01 32

  33. Slide 33: Sobha Dream Acres Project Status

    SOBHA DREAM ACRES PROJECT STATUS Total SBA launched for sale as on Sept-2020 5 mn sqft Total Developable Area Launched 7.09 mn sqft Total SBA Sold till Sept-2020 4.64 mn sqft Area Completed till Sept-2020 4.91 mn sqft Percentage sold 93 % Wing 35-38 of Tropical Greens, SOBHA Dream Acres Wing 25-28 o

  34. Slide 34: Commercial Portfolio: Completed and Forthcoming Projects

    COMMERCIAL PORTFOLIO: Completed and forthcoming projects Total Leasable Area (in Sobha Share of Leasable Project Name Status % of area Leased sqft) Area (in sqft) Sobha City Mall, Thrissur Completed 94% 338,493 258,247 One Sobha, Bangalore Completed 80% 225,334 150,974 Sub Total 563,827 409,221 Bhog

  35. Slide 35: Annexures

     HIGHLIGHTS (a) Key Highlights (b) Key Financial Highlights (c) Key Operational Highlights  FINANCIAL UPDATE  OPERATIONAL UPDATE  ANNEXURES 35

  36. Slide 36: Profit & Loss Statement

    PROFIT & LOSS STATEMENT Amount Rs.in Millions PARTICULARS Q2-21 Q1-21 H1-21 H1-20 Q2-20 FY-20 Real Estate Revenue 3,334 2,229 5,563 12,728 4,276 22,801 Contractual & Manufacturing Revenue 1,886 1,271 3,157 6,878 3,563 14,738 Other Income 239 93 332 363 199 718 Total Income 5,459 3,593 9,052 19,969 8

  37. Slide 37: Consolidated Balance Sheet

    CONSOLIDATED BALANCE SHEET Amount Rs.in Millions PARTICULARS 30'Sept 2020 30'Sept 2019 PARTICULARS 30'Sept 2020 30'Sept 2019 ASSETS EQUITY & LIABILITIES Non-current assets Equity Property, Plant and equipment 4,600 2,822 Equity Share Capital 948 948 Capital work-in-progress 0 73 Other Equity 22,936

  38. Slide 38: Key Financial Indicators

    KEY FINANCIAL INDICATORS Total Income (in Rs Bn) EBITDA (in Rs Bn) 38.26 CAGR: 19% 35.16 CAGR: 13% 40.00 8.31 10.00 35.00 28.37 7.47 30.00 22.85 8.00 5.69 25.00 18.78 5.17 6.00 4.58 20.00 15.00 4.00 10.00 2.00 5.00 0.00 0.00 FY-16 FY-17 FY-18 FY-19 FY-20 FY-16 FY-17 FY-18 FY-19 FY-20 PBT (in Rs Bn)

  39. Slide 39: Revenue Trend Analysis: Contractual Vertical

    REVENUE TREND ANALYSIS: CONTRACTUAL VERTICAL Contractual vertical revenues Contractual Vertical: 12.00 CAGR: 25% 10.18 10.00  Consistent contributor to the Total Revenues. 8.33  CAGR of 25% Revenue (in Rs. bns) 8.00 6.00 4.14 4.89 4.54  Revenue contribution of the vertical at approx. 26% supports

  40. Slide 40: Revenue Trend Analysis: Manufacturing Divisions

    REVENUE TREND ANALYSIS: MANUFACTURING DIVISIONS 30.00 CAGR: 16% Glazing & Metal Works Division CAGR: 25% 22.80 25.00 22.65 20.01 CAGR–18 % Revenue in Rs Bns 2.50 2.19 20.00 1.96 14.88 14.74 1.58 2.00 1.49 Revenue (in Bns) 15.00 12.58 11.77 1.12 1.50 10.00 7.58 7.87 6.07 1.00 5.00 0.50 - FY - 16 FY -

  41. Slide 41: Milestones

    MILESTONES • Entered into Furniture business with the launch of metercube brand. • Entered into new residential markets - Hyderabad and Trivandrum. FY20 • Achieved record Sale volume Collections and Income. • Voted as TOP BRAND for the 4th consecutive year by Track2Realty Report 2018. • Successfully

  42. Slide 42: Real Estate Ongoing Projects as of 30th Sept 2020

    REAL ESTATE ONGOING PROJECTS AS OF 30th Sept 2020 Total Developable Area Total Saleable Area Sobha Share of Saleable Area Completion Date as S.No Name of the Project Location Type Classification Business Model (in Mn Sft) (in Mn Sft) (in Mn Sft) per RERA I Ongoing Projects - Registered under RERA 1

  43. Slide 43: Real Estate Ongoing Projects as of 30th Sept 2020

    REAL ESTATE ONGOING PROJECTS AS OF 30th Sept 2020 Total Developable Area Total Saleable Area (in Sobha Share of Saleable Area Completion Date as S.No Name of the Project Location Type Classification Business Model (in Mn Sft) Mn Sft) (in Mn Sft) per RERA I Ongoing Projects - Registered under RERA 15

  44. Slide 44: Real Estate Ongoing Projects as of 30th Sept 2020

    REAL ESTATE ONGOING PROJECTS AS OF 30th Sept 2020 Total Developable Area Total Saleable Area (in Sobha Share of Saleable Area Completion Date as S.No Name of the Project Location Type Classification Business Model (in Mn Sft) Mn Sft) (in Mn Sft) per RERA I Ongoing Projects - Registered under RERA 30

  45. Slide 45: Real Estate Ongoing Projects as of 30th Sept 2020

    REAL ESTATE ONGOING PROJECTS AS OF 30th Sept 2020 Total Developable Area Total Saleable Area (in Sobha Share of Saleable Area Completion Date as S.No Name of the Project Location Type Classification Business Model (in Mn Sft) Mn Sft) (in Mn Sft) per RERA II Ongoing Projects - DM Model 1 Sobha Sterli

  46. Slide 46: Real Estate Ongoing Projects as of 30th Sept 2020

    REAL ESTATE ONGOING PROJECTS AS OF 30th Sept 2020 Total Developable Area Total Saleable Area (in Sobha Share of Saleable Area Completion Date as S.No Name of the Project Location Type Classification Business Model (in Mn Sft) Mn Sft) (in Mn Sft) per RERA IV Ongoing Projects - RERA registration are e

  47. Slide 47: Thank You

    REAL ESTATE ONGOING PROJECTS AS OF 30th Sept 2020 Total Developable Area Total Saleable Area (in Sobha Share of Saleable Area Completion Date as S.No Name of the Project Location Type Classification Business Model (in Mn Sft) Mn Sft) (in Mn Sft) per RERA VI Projects received Plan approvals -- Not re

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