Shriram Properties Ltd. · NSE:SHRIRAMPPS
Shriram Properties — Q1 FY23 Earnings Presentation
31 slides from Shriram Properties's earnings presentation, Aug 13, 2022
Slide 1: Submission of Investors Presentation to stock exchanges
August 13, 2022 National Stock Exchange BSE Limited of India Limited Dept of Corporate The Listing Department Services Exchange Plaza, 5th Floor Phiroze Jeejeebhoy Plot C 1 – G Block Towers Bandra-Kurla Complex, Dalal Street, Fort Bandra ( E) Mumbai 400 001 Mumbai 400 051 Scrip Code : 543419 Scrip C
Slide 2: Q1FY23 Results Presentation
Shriram Properties Limited Q1FY23 Results Presentation Shriram Properties Limited Q1FY23 Results Presentation August August 2022 2022 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: Industry Overview
Industry Overview Shriram Chirping Woods 3
Slide 5: Industry Operating Environment Positive, despite Rate Hikes
Industry Operating Environment Positive, despite Rate Hikes • Housing demand remained strong across Top-7 markets Housing Sales Trends • Seasonality impact in Q1FY23 (Q2CY22); Strong YoY growth, but lower QoQ • Cost inflation led price hikes by developers and rate hike impacted customer decision mak
Slide 6: Operational Highlights Q1|FY23
Operational Highlights Q1|FY23 Shriram Summit 5
Slide 7: Performance Snapshot: Q1|FY23
Performance Snapshot: Q1|FY23 Sales Volume (Msf*) Sales Value (Rs. Mn.) Collections (Rs. Mn.) Construction (Rs. Mn.) +20% +26% +34% +52% 0.66 3,126 3,242 1,370 0.55 2,476 2,424 899 Q1FY22 Q1FY23 Q1FY22 Q1FY23 Q1FY22 Q1FY23 Q1FY22 Q1FY23 ✓ Strong YoY growth; QoQ trends muted due to seasonality Sales
Slide 8: KPI Quarterly Trends: Q1|FY23 and FY22
KPI Quarterly Trends : Q1|FY23 and FY22 Pre-Sales Volume (msf) Sales Value (Rs. Mn.) 3.8 14,824 1.2 4,792 1.0 1.0 4,159 3,399 3,126 0.6 0.7 2,476 Q1FY22 Q2FY22 Q3FY22 Q4FY22 FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 FY22 Q1FY23 Collections (Rs. Mn.) Construction (Rs. Mn.) 11,835 6,435 2,207 3,399 1,95
Slide 9: Successful New Phase Launch in Q1; 12 Likely Launches in FY23
Successful New Phase Launch in Q1; 12 Likely Launches in FY23 Sold at Q1 FY23 Launches Type Launch Launch Area % sold launch # of project launches Park63 (2B)1 New Jun’22 534,115 56,345 11% 6 new launches & 6 new phases of 12 12 ongoing projects Sold at FY22 Launches Type Launch Launch Area % sold l
Slide 10: Encouraging Pricing Trends: Q1 realization up 4% QoQ
Encouraging Pricing Trends: Q1 realization up 4% QoQ Price Increase by Project – Top Projects only Development Realisation % Change Realisation % change Q1FY23 Project Type Mar’22 from Sep’21 Jun’22 from Mar’22 Increase in realization SouthEast Phase 2 Apartments 4,294 10% 4,382 2% 1%-9% Rainforest
Slide 11: Business Development and Project Pipeline Update
Business Development and Project Pipeline Update Project Pipeline (msf) Upcoming Projects – 29 msf # projects msf Ongoing – 24 msf 10.4 53.3 Pipeline – Mar’22 51 51.3 11.2 0.3 0.9 1.0 Less: Projects Completed (3) (2.2) 5.3 6.5 Less: Project Deletions (3) (2.8) 9.6 Add: Project Additions 8 7.0 8.3 On
Slide 12: Financial Highlights Q1|FY23
Financial Highlights Q1|FY23 Shriram Southern Crest 11
Slide 13: Financial Highlights: Q1|FY23
Financial Highlights: Q1|FY23 o Positive earnings and turnaround momentum continued in Q1FY23, building further on Q4FY22 trends o Improving operating leverage and rising share of DM income supporting strongly o Revenue recognition from more ongoing projects during the remainder of FY23, both in SPL
Slide 14: Financial Highlights: Q1|FY23
Financial Highlights : Q1|FY23 Q1 FY23 Q1 FY22 YoY (%) Q4 FY22 FY22 Particulars (INR Mn) Limited Review Audited Audited Revenue from operations* 1,222 421 190% 2,051 4,329 Other income 229 188 22% 314 849 Total Revenues 1,451 609 138% 2,365 5,178 Cost of revenue 717 173 315% 760 1,823 Employee benef
Slide 15: Financial Performance Highlights: Q1|FY23
Financial Performance Highlights: Q1|FY23 ❑ Strong financial performance: Revenue & EBITDA more than doubled; Earnings turnaround momentum continued ❑ Revenue from Operations nearly tripled – Rs.1.2 billion in Q1FY23 vs. Rs.421mn in Q1FY22 • Driven by increased handover momentum in Grand-1 (Kolkata)
Slide 16: Q1FY23 SPL Consolidated Cash Flows
Q1FY23 SPL Consolidated Cash Flows (Excl. DM & JV cashflows) Q1 Q1 Q4 Overall Enterprise Collection Trends (In Rs Mn) FY22 (SPL Own& JDA / JVs / DM FY23 FY22 FY22 Collections 1,339 636 1,948 5,346 12,631 DM Income 113 195 168 721 Other Inflows 2 2 1 6 3,607 Operating Inflow 1,454 834 2,118 6,073 3,2
Slide 17: 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 0.7 14.1% 0.7 13.5% 13.7% 13.0% 8,000 8,047 12.5% 603 6,724 6,558 494 6,000 864 4,811 4,512 0.3 0.3 4,000 7,444 1,405 871 6,230 5,694 2,000 3,407 3,641 - Mar'19 Mar'20 Mar'21 Mar'
Slide 18: Awards & Recognitions: Q1 | FY23
Awards & Recognitions: Q1 | FY23 Fastest Growing Developer of the Year Shriram Developer of The year Properties Limited Shriram Properties Limited By Times Business Award, Bengaluru 2022 The Economic Times Real Estate Awards 2022 SOUTH - Residential Project 17
Slide 19: Outlook: FY23 & Beyond
Outlook: FY23 & Beyond Shriram Blue Shriram Blue 18
Slide 20: Encouraging Earnings Visibility – Remainder of FY23
Encouraging Earnings Visibility – Remainder of FY23 A. Project Revenues – Current status of key drivers • 62% of FY23 revenues to Projects Current Status from 4 Projects Southern Crest Occupancy Certificate (‘OC’) likely in Aug’22 • Rises to 83% share if Grand One Only Sale Deeds to be registered Ga
Slide 21: Strong Income Recognition Outlook (FY23-25e)
Strong Income Recognition Outlook (FY23-25e) Sales Volumes (msf) 3-year cumulative sales of 10msf 3.8 3.2 3.0 Project Completion Trend (msf) # units handover 2,093 2,885 2,280 ~10,000 FY20 FY21 FY22 10.7 Ongoing Projects – By Region (msf) 3.8 3.2 3.0 # Projects 17 4 2 9.8 FY14-16 FY17-19 FY20-22 FY2
Slide 22: Strategic Objectives & Outlook: FY23 and Beyond
Strategic Objectives & Outlook: FY23 and Beyond ❑ SPL standing firm on its growth path – proven sales and execution machine delivering strong performance ❑ Operating leverage kicking-in, on the back of scale and improving efficiency ❑ FY23 to be a promising year with strengthened long-term fundament
Slide 23: Long Term Strategy and Growth Outlook
Long Term Strategy and Growth Outlook SPL Competitive Strengths SPL Forward Strategy Stay focused on mid- Leadership in Focus on Mid Enhanced focus on DM Build scale and enhance market and affordable Core Markets Market and model execution capabilities housing Affordable Housing Strong Beneficiary o
Slide 24: DM Model: New Growth Engine for SPL
DM Model: New Growth Engine for SPL Development Project Area Sold Area DM Volumes (msf) Project Location Status Type (Msf) (sft) 20% 19% 26% 35% 28% Shriram Gateway Commercial Chennai 2.03 2,033,904 Completed 1.06 % of Total sales volume 1.05 Blue Apartments Bangalore 0.71 699,465 Nearly Complete 0.
Slide 25: Unlock potential from Kolkata
Unlock potential from Kolkata Project Overview & Development Strategy ❑ Integrated township in Uttarapara, Kolkata – 314 acres, 33.5 msf saleable area ❑ Focused on developing c.10msf over the next 3-5 years; and ❑ Simultaneous focus on monetising remaining land bank Development Status Update ❑ Shrir
Slide 26: 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 27: Thank You
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Slide 28: Annexure
Annexure Shriram Greenfield 27
Slide 29: Projects Snapshot by Development Models | Ongoing Projects
Projects Snapshot by Development Models | Ongoing Projects Joint Development Development Ongoing Projects(June 2022) Own Developments Joint Ventures Agreements Management Saleable Area (msf) 8.3 5.9 3.7 6.5 SPL Share (msf) 8.3 4.7 3.7 6.5 Sold Area (msf) 6.6 4.5 2.6 4.0 To be Sold (msf) 1.6 0.2 1.1
Slide 30: Projects Snapshot by Development Models
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 ✓ 22 projects ✓ 3 projects ✓ 1 project ✓
Slide 31: 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 Email Id – vineel@shrirampr