Shriram Properties Ltd. · NSE:SHRIRAMPPS
Shriram Properties — Q4 FY23 Earnings Presentation
35 slides from Shriram Properties's earnings presentation, May 29, 2023
Slide 1: Exchange filing cover letter: Investor Presentation
May 29, 2023 National Stock Exchange of India Limited BSE Limited The Listing Department Dept of Corporate Services Exchange Plaza, 5th Floor Phiroze Jeejeebhoy Towers Plot C 1 – G Block Dalal Street, Fort Bandra-Kurla Complex, Bandra (E) Mumbai 400 001 Mumbai 400 051 Scrip Code : 543419 Scrip Code:
Slide 2: Q4 & 12M FY23 Results Presentation
Shriram Properties Limited Shriram Properties Limited Results Presentation Q1FY23 Results Presentation Q4 & 12M FY23 August 2022 May 2023 1 1
Slide 3: This presentation and the accompanying slides (the “Presentation”), which have been prepared by Shriram
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: Residential Real Estate Sector Overview
Shriram Chirping Woods, Bangalore Residential Real Estate Sector Overview 3
Slide 5: Robust Sector Dynamics; Housing Demand Strong
Robust Sector Dynamics; Housing Demand Strong • Strong sequential growth in demand in key markets (+28% YoY in CY22) • Supply growth robust as well (+15% YoY in CY2022) • Pan India inventory on downward spiral – at ~12 months in Dec’22 • Absorption outweighs supply by 25% in Q4FY23; Inventory declin
Slide 6: SPL's Core Markets' Trends
SPL’s Core Markets’ Trends Pricing & Segment wise Trends 2022– Core Markets • Strong growth in launches and absorption seen across our core markets Bengaluru Chennai Kolkata • Inventory levels in Bengaluru is among lowest across Tier-1 cities • Chennai and Kolkata inventory overhang levels down to 1
Slide 7: Operational Highlights: Q4 & 12M FY23
Shriram Park63, Chennai Actual Image at Site Operational Highlights : Q4 &12M|FY23 ________________ Note: Data presented in this section reflects aggregate for the Company, covering all projects under all development formats viz., Own, JV/JDA and the DM 6
Slide 8: Key Highlights & Developments – FY23
Key Highlights & Developments – FY23 Operational Performance Project Execution • Sales volumes at 4.0 msf (net) - a new high for SPL • Handed-over 2,000+ units/plots - new record for SPL • Highest-ever sales, both Volume and Value • Completed 7 projects- 3 resi. & 4 plotted; TSA* of 3.8msf • Realisa
Slide 9: KPI Trends: FY23
KPI Trends : FY23 Pre-Sales Volume (msf) Sales Value (Rs. Mn.) 7% 18,461 25% 4.0 3.8 14,824 13,524 2.7 1.3 4,937 9MFY23 Q4FY23 FY23 FY22 9MFY23 Q4FY23 FY23 FY22 Gross Collections (Rs. Mn.) Construction (Rs. Mn.) 12,631 6,435 11,943 5,001 8,871 3,774 3,072 1,227 9MFY23 Q4FY23 FY23 FY22 9MFY23 Q4FY23
Slide 10: Sales-at-launch Trends: FY23
Sales-at-launch Trends: FY23 Impressive Sales-at-Launch # of project launches Key Challenges 52% 48% 12 44% 38% • 2 projects (1 in Chennai and 1 in 35% 34% 7 7 Bangalore) deferred to FY24** 6 6 • Pristine Estates and Chirping Ridge 3 deferred to Q4FY23 from Q3FY23 • Negative impact on volumes and DM
Slide 11: Encouraging Pricing Trends: Realisation up 8% from Mar'22 Levels
Encouraging Pricing Trends: Realisation up 8% from Mar’22 levels Price Increase by Project – Top Projects only Development Realisation % Change Realisation % change Project FY23 Increase Type Mar’22 from Sep’21 Mar’23 from Mar’22 in Average realization on SouthEast Phase 2 Apartments 4,294 10% 5,176
Slide 12: KPI Quarterly Trends | FY23
KPI Quarterly Trends|FY23 Sales volume (msf) Sales value (Rs. Mn) 1.3 1.2 6,054 1.0 1.0 1.0 1.0 4,792 4,937 4,159 4,345 0.7 3,399 3,126 0.6 2,476 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Gross Collections (Rs. Mn) Construction (R
Slide 13: KPI Quarterly Trends | FY23 (contd.)
KPI Quarterly Trends|FY23 (contd.) Sales Volume (Msf*) Sales Value (Rs. Mn.) Sales volume – By Segment Villa +26% 1% 6,054 1.31 4,937 1.04 Apartment 46% Plots 53% Q3FY23 Q4FY23 Q3FY23 Q4FY23 ✓ Sales volume up 26% QoQ to 1.31 msf, despite 2 launches deferred to FY24 ✓ Sales value lower sequentially -
Slide 14: Financial Highlights: Q4 & 12M FY23
Shriram Summit, Bangalore Actual Image at Site Financial Highlights : Q4 & 12M FY23 13
Slide 15: Financial Highlights | FY23
Financial Highlights | FY23 o Strong full year performance, in line with guidance o Strong earnings growth story – healthy quarterly improvement since IPO/Q3FY22 o Driven by improving operating leverage and project execution as well as rising DM share o Revenue recognition momentum strong, helped by
Slide 16: Financial Highlights: Profit & Loss | Q4 & 12M FY23
Financial Highlights : Profit & Loss|Q4 & 12M FY23 Particulars (Rs. Mn) 9M FY23 Q4 FY23 FY23 FY22 YoY (%) Total Revenues 6,430 1,710 8,139 5,178 57% Total Revenues Rs. 8,139 Mn Cost of revenue 3,899 633 4,532 1,823 Employee benefit expense 595 193 787 730 57% Other expenses 560 431 991 807 YoY Total
Slide 17: Financial Highlights (contd.): Profit & Loss | FY23
Financial Highlights (contd.): Profit & Loss| FY23 ❑ Total Revenues Up 57% YoY to Rs. 8.14 Bn • New projects reached revenue recognition threshold - Southern Crest (B’lore) & Grand-1 (Kolkata) • 80% of revenue from operations from Southern Crest, Grand-1, Shreshta, Summit & Temple Bells (Phase III)
Slide 18: Annual P&L Trends
Annual P&L Trends Total Revenues (Rs. Mn) PBT & PAT Trends (Rs.Mn) PBT PAT 683 8,139 552 687 7,238 6,318 180 5,013 5,178 FY19* FY20 FY21 FY22 FY23 (120) (303) (408) (680) (735) (864) FY19* FY20 FY21 FY22 FY23 EPS (Rs) Peer Group Trailing PER** PE Ratio (X) on LTM Earnings 10.1 20.6 7.8 8.7 12.6 15.7
Slide 19: Financial Highlights: Balance Sheet | FY23
Financial Highlights : Balance Sheet|FY23 Particulars (Rs Mn) 31-Mar-23 31-Mar-22 ROCE Trends (%) 11% Fixed Assets 813 823 10% Investments and loans 1,526 1,810 7% Inventories 22,208 21,882 5% 4% Cash and Bank Balances 1,204 1,405 Other Assets 10,679 10,418 FY19 FY20 FY21 FY22 FY23 Total Assets 36,4
Slide 20: SPL CFS Cash Flows | Q4FY23
Financial Highlights: SPL CFS Cash Flows | Q4FY23 (Excl. DM & JV cashflows) Gross Collection Trends 9M Q4 (In Rs Mn) FY23 FY22 SPL Own & JDA / JVs / DM FY23 FY23 Collections 3,853 1,390 5,243 5,346 12,631 DM Income 455 117 572 721 11,943 Other Inflows 5 2 7 6 2,506 3,578 8,871 Operating Inflow 4,313
Slide 21: 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 0.70 0.70 14.1% 8,047 13.5% 13.7% 8,000 603 6,724 6,558 494 6,000 864 5,526 12.5% 4,811 0.36 1,204 0.30 11.9% 4,000 7,444 1,405 6,230 5,694 2,000 4,322 3,407 - Mar'19 Mar'20 M
Slide 22: Awards & Recognitions: FY23
Awards & Recognitions: 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 Shri
Slide 23: Outlook: FY24 & Beyond
Shriram Luxor, Bangalore Outlook: FY24 & Beyond 22
Slide 24: FY24 Outlook | Context & Strategic Objectives
FY24 Outlook | Context & Strategic Objectives Strategic Objectives ➢ Ensure growth momentum: Target 20%+ CAGR in sales over the next 2-3 years ➢ Ensure sustained profitability; Positive net earnings with Improving profitability and returns; and ➢ Progress towards ‘Zero Net debt’ objective FY24 Conte
Slide 25: FY24 Outlook | Annual KPI Trends
FY24 Outlook | Annual KPI Trends Sales Volume (Msf) Sales Value (Rs. Mn) CAGR 17% ~ 4.8 CAGR 23% ~23,000 4.0 3.8 18,461 14,824 3.0 12,443 FY21 FY22 FY23 FY24P FY21 FY22 FY23 FY24P Net Collections (Rs. Mn) Construction (Rs. Mn) CAGR 24% CAGR 44% ~7,500 ~16,000 6,435 11,835 10,936 5,001 8,309 2,505 FY
Slide 26: FY24 – Launch Pipeline Profile
FY24 – Launch Pipeline Profile • Launch pipeline of 11-13 projects with 7.0 Msf saleable area across regions o 7 projects at the fag end of the approval process, incl 1.1 msf awaiting for only RERA for Q1 launch o Reflect robustness and reliability on launch timelines planned through the quarters •
Slide 27: Encouraging Earnings Visibility for FY24
Encouraging Earnings Visibility for FY24 A. FY24 Revenues: 4 projects to account for 70% of projected revenues in FY24 and are under control Key Projects Occupancy Certificate status Sale Deed Registrations Over 420,000 sft registered. Grand One Sale Deed registration pending Registrations to gain f
Slide 28: Strong Income Recognition Outlook (FY24-25e)
Strong Income Recognition Outlook (FY24-25e) Sales Volumes (msf) 4-year cumulative sales of 14msf Completed Handed over 4.0 3.8 msf in ~2,000 units 3.8 FY23 in FY23 3.2 3.0 Project Completion Trend (msf) # units handover 2,093 2,885 2,280 ~10,000 FY20 FY21 FY22 FY23 10.7 6.9 Ongoing Projects – By Re
Slide 29: Project Pipeline Update – Mar'23
Project Pipeline Update – Mar’23 Project Pipeline (msf) Upcoming – 20 msf 8.6 52.8 ✓ Completed 7 projects - Park63 (1A), Summit, Earth Whitefield, Southern Crest, Earth Mysore Road, Ongoing – 24 msf 44.1 7.6 Raynal Gardens & Elite Sai Gardens 3.6 ✓ Added 10 new projects – with aggregate saleable 8.7
Slide 30: DM Model: Stabilised Growth Engine
DM Model : Stabilised Growth Engine Project Sold Area Residential DM Projects Dev. Type Location Status Area (msf) (msf) Earth (Mysore Road) Plots Bangalore 0.49 0.48 Completed ✓Profitable, Sustainable growth opportunity that is value accretive to LO Raynal Gardens Plots Bangalore 0.39 0.33 Complete
Slide 31: Strategies for Unlocking Potential from Kolkata Progressing Well
Strategies for Unlocking Potential from Kolkata Progressing Well Kolkata Development Strategy Own development of c.10msf over next 3-5 years Monetising remaining land bank c.22msf Development Status Update Monetisation Update ❑ Shriram Grand-1: (2.1 msf, almost entirely sold) FSI sale progressing we
Slide 32: 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 33: Thank You
Shriram Greenfield, Bangalore Thank You 32
Slide 34: Annexure - Projects Snapshot by Development Models
Annexure - 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 ✓ 4
Slide 35: 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 / Ms. Brinkle Shah Jariwala