Sobha Limited · NSE:SOBHA
Sobha — Q4 FY2022 Earnings Presentation
43 slides from Sobha's earnings presentation, May 21, 2022
Slide 1: Investor Presentation March 2022
.... .. ........... ...... ••••• •••• IIUIU SOBHA PASS I ON AT WORK Investor Presentation Artistic Impression of Row Houses at SOBHA Victoria Park March1 2022
Slide 2: Key Performance Highlights – Q4 FY-22
... Key Performance Highlights – Q4 FY-22 II SOB HA Robust Operational Cashflow enabled Debt Reduction ▪ Highest ever quarterly cash inflow of Rs. 12.91 billion in Q4-22, up by 32% from Q4-21 & 22% from Q3-22 ▪ Highest ever Real Estate cash inflow of Rs 10.60 billion in Q4-22, up by 48% from Q4-21 &
Slide 3: Key Performance Highlights – Q4 FY-22
... Key Performance Highlights – Q4 FY-22 II SOB HA Increased Delivery led to higher Revenue ▪ Total Revenue stood at 7.60 billion, up by 34% from Q4-21 ▪ EBITDA is at Rs. 1.19 billion, with an EBITDA margin of 16% ▪ PAT is at Rs. 0.26 billion, up by 40% from Q4-21 ▪ Completed 4.1 mn sft of builtup
Slide 4: Contents
... Contents 1W S OB HA Robust Cashflow Steady Sales Performance Sound Financials and Operations Project Updates 4
Slide 5: Cashflow Highlights (Q4-22)
Cashflow Highlights (Q4-22) - ... S OB HA Total cash inflow Net debt ▪ Rs 12.91 billion - highest since inception ▪ Reduced by Rs. 3.17 billion to Rs. ▪ Up by 32% (Q4-21) and 22% (Q3-22) 23.37 billion ▪ QoQ reduction by 13% Real Estate Cash inflow ▪ Rs 10.60 billion - highest since inception Borrowi
Slide 6: Cashflow Highlights (FY-22)
Cashflow Highlights (FY-22) - ... S OB HA Total cash inflow Net debt ▪ Rs 39.82 billion - highest since inception ▪ Reduced by Rs 5.16 billion, highest ▪ 29% growth in inflow YoY ever reduction in a financial year ▪ YoY reduction by 22% Real Estate Cash inflow ▪ Rs 31.73 billion - highest since ince
Slide 7: Cashflow Statement
... Cashflow Statement II SOB HA Figures in Rs Million PARTICULARS Q4-22 Q4-21 Q3-22 FY-22 FY-21 Operational cash inflows Real Estate Operations 10,603 7,148 8,402 31,728 22,169 Contractual & Manufacturing 2,307 2,627 2,187 8,094 8,600 Total Operational cash inflow (A) 12,910 9,775 10,589 39,822 30,
Slide 8: Cashflow Statement (contd.)
... II Cashflow Statement (contd.) SOB HA Figures in Rs Million PARTICULARS Q4-22 Q4-21 Q3-22 FY-22 FY-21 Financial Outflows Finance Cost 618 875 729 2,850 2,733 Income Tax 154 (34) 121 491 97 Total Financial Outflows (D) 772 841 850 3,341 2,830 Cash flow after Financial Outflow : (E=C-D) 3,229 1,50
Slide 9: Cashflow Highlights (Q4-22 v/s Q3-22)
Cashflow Highlights (Q4-22 v/s Q3-22) = = = = = = = = = = = = = = = = = = = = = = = = = = = ~J I, Figures in Rs. Billion TOTAL CASH INFLOW REAL ESTATE CASH INFLOW 22% 20% 12.91 10.60 10.59 8.40 Q3-22 Q4-22 Q3-22 Q4-22 OPERATING CASH FLOW FREE CASH FLOW 92% 4.00 157% 3.17 2.09 1.23 Q3-22 Q4-22 Q3-22
Slide 10: Cashflow Highlights (Q4-22 V/s Q4-21)
Cashflow Highlights (Q4-22 V/s Q4-21) SOB HA Figures in Rs. Billion TOTAL CASH INFLOW REAL ESTATE CASH INFLOW 32% 48% 12.91 10.60 9.78 7.15 Q4-21 Q4-22 Q4-21 Q4-22 OPERATING CASH FLOW FREE CASH FLOW 71% 4.00 158% 3.17 2.35 1.23 Q4-21 Q4-22 Q4-21 Q4-22 10
Slide 11: Cashflow Highlights (FY-22 V/s FY-21)
Cashflow Highlights (FY-22 V/s FY-21) SOB HA Figures in Rs. Billion TOTAL CASH INFLOW REAL ESTATE CASH INFLOW 29% 43% 31.73 39.82 30.77 22.17 FY-21 FY-22 FY-21 FY-22 OPERATING CASH FLOW FREE CASH FLOW 44% 5.16 9.20 202% 6.39 1.71 FY-21 FY-22 FY-21 FY-22 11
Slide 12: Consistent Growth in Cashflow in FY 2022
... Consistent Growth in Cashflow in FY 2022 II SOB HA Figures in Rs. Million TOTAL CASHFLOW OPERATIONAL CASHFLOW FREE CASHFLOW 12,910 4,001 3,172 10,589 9,144 7,179 2,089 1,234 1,769 392 1,344 356 Q1-22 Q2-22 Q3-22 Q4-22 Q1-22 Q2-22 Q3-22 Q4-22 Q1-22 Q2-22 Q3-22 Q4-22 12
Slide 13: Net Debt has been reducing consistently in the past six quarters
Net Debt has been reducing consistently in the past six quarters Figures in Rs. Billion • SOB HA 36 32 1.24 30.23 1.24 30.21 1.28 30.50 - Net Debt (Rs Bn) 1.23 1.17 1.15 D/E Ratio 1.13 1.07 1.40 1.20 29.75 28.52 28.17 0.93 27.78 ~ 1.00 Net Debt (Rs. Bn) 28 26.54 D/E Ratio 0.80 24 23.33 0.60 20 0.40
Slide 14: Borrowing Cost has been declining since last quarters
... Borrowing Cost has been declining since last 9 quarters II SOB HA AVERAGE BORROWING COST (%) 9.69% 9.64% 9.32% Rate of Interest % 9.17% 9.04% 8.98% 8.85% 8.65% 8.40% Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Gross Finance Cost (Rs. Mn) Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22
Slide 15: Real Estate (residential) projects: projected cash flow
... Real Estate (residential) projects: projected cash flow II SOB HA Completed Ongoing - Area Ongoing - Area Particulars projects with not offered for Total Unit offered for sale unsold inventory sale Total Saleable area 16.83 19.70 9.41 45.94 Mn. sqft Sobha Share of Saleable area 15.94 19.25 8.32
Slide 16: Contents
... Contents 1W S OB HA Robust Cashflow Steady Sales Performance Sound Financials and Operations Project Updates 16
Slide 17: Sales Highlights (Q4-22)
... Sales Highlights (Q4-22) II SOB HA ▪ Highest ever total sales volume (super built-up area) since inception ▪ 1.34 million square feet, valued at Rs 11.10 billion ▪ Best ever price realization* of Rs 8,265 per square feet achieved ▪ Average price realization improved by 4.4% QoQ ▪ Consistent dema
Slide 18: Sales Highlights (FY-22)
... Sales Highlights (FY-22) II SOB HA ▪ Achieved best ever sales performance ▪ Volume of 4.91 million square feet across India ▪ Sale value of Rs 38.70 billion ▪ Sobha’s share of sales value stood at highest ever since inception - Rs. 32.68 billion ▪ Bengaluru, Gurugram and GIFT City regions have a
Slide 19: Sales performance (Q4–22)
Sales performance (Q4–22) SOB HA TOTAL SALE VALUE (IN RS BN) BEST EVER QUARTERLY SALE VALUE RECORDED DURING Q4 – FY22 3% Sobha Share of Sale Total Average Price 11.10 Area Sold Total Sale Value Region Value Realization 10.72 in Sq Feet in Rs Mns in Rs Mns Rs / Sq Feet Bengaluru 932,215 7,046 6,405 7
Slide 20: Sales performance (FY-22)
... Sales performance (FY-22) II SOB HA Best ever total sale value of Rs. 38.70 billion achieved in current financial year FY 2021-22 FY 2020-21 Total Average Sobha Total Average Total Sale Sobha Share Region Area Sold Total Sale Value Price Share of Area Sold Price Value of Sale Value Realization S
Slide 21: Consistent Sales performance over the Quarters
... Consistent Sales performance over the Quarters II SOB HA QUARTERLY SALES VOLUME (MN SQFT.) 1.34 1.35 1.32 1.34 1.13 0.91 0.89 0.90 0.65 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 QUARTERLY SALES VALUE (RS. IN MN) 10,720 11,096 10,302 10,475 8,876 6,946 6,899 6,829 4,877 Q4-20 Q1-21 Q2
Slide 22: Sales value classification (Q4 – 22) - Price band & region wise
... Sales value classification (Q4 – 22) - Price band & region wise II SOB HA % CONTRIBUTION PER PRICE BRACKETS REGION CONTRIBUTION TO TOTAL SALE VALUE GIFT City Kochi 2.45% 5.25% Coimbatore 0.32% > Rs.3 Crs < 1 Cr Pune Rs.2 Crs to 3 1.79% Bengaluru Crs 63.51% Thrissur Between 1 cr to 2 0.94% Gurugr
Slide 23: Sales value classification (FY – 22) - Price band & region wise
... Sales value classification (FY – 22) - Price band & region wise II SOB HA % CONTRIBUTION PER PRICE BRACKETS REGION CONTRIBUTION TO TOTAL SALE VALUE Kozhikode, 0% GIFT City , 3% Kochi , 6% > Rs.3 Crs Rs.2 Crs to 7% < 1 Cr 22% 3 Crs 18% Coimbatore , 1% Bengaluru , 64% Pune , 4% Rs. 1 Cr to 2 Gurug
Slide 24: Buyer Profile (12 months rolling)
... Buyer Profile (12 months rolling) II SOB HA PROFESSION-WISE Indian 87% IT/ITES Professional 45% NRI Medical/Pharma 13% 4 Others Non IT 0% 50% 100% 17% Professional 24% AGE-WISE Business/Entrepreneur 10% >51 Years 21-30 Years 16% 14% 41-50 Years 24% 31-40 Years 46% 24
Slide 25: Contents
... Contents 1W S OB HA Robust Cashflow Steady Sales Performance Sound Financials and Operations Project Updates 25
Slide 26: Financial Highlights (Q4-22)
Financial Highlights (Q4-22) - ... S OB HA ▪ Total Income of Rs. 7.60 billion ▪ Real Estate Revenue : Rs. 5.33 billion ▪ Growth of 19% QoQ & 84% YoY ▪ EBITDA is at Rs. 1.19 billion; Margin of ~16% ▪ PBT at Rs. 0.36 billion; Margin at 5%. | PAT at Rs. 0.26 billion; Margin at 3% ▪ Debt Equity stands a
Slide 27: Financial Highlights (FY-22)
Financial Highlights (FY-22) - ... S OB HA ▪ Total Income at Rs. 27.89 billion | 29% growth from FY-21 ▪ Real Estate Revenue at Rs. 20.10 billion | growth of 53% YoY ▪ Contractual & manufacturing vertical revenue at Rs. 7.20 billion ▪ EBITDA at Rs. 5.20 billion; Margin of 19%. ▪ PBT at Rs. 1.58 bill
Slide 28: Financial Highlights (FY-22 V/s FY-21)
Financial Highlights (FY-22 V/s FY-21) SOB HA Amount in Rs. Billions TOTAL INCOME REAL ESTATE REVENUE 29% 53% 27.89 20.10 21.60 13.10 FY-21 FY-22 FY-21 FY-22 PBT PAT 84% 113% 1.58 1.16 0.63 0.75 FY-21 FY-22 FY-21 FY-22 28
Slide 29: Profit & Loss Statement
... Profit & Loss Statement II SOB HA Amount Rs.in Millions PARTICULARS Q4-22 Q4-21 Q3-22 FY-22 FY-21 Real Estate Revenue 5,326 2,899 4,466 20,104 13,103 Contractual & Manufacturing Revenue 1,986 2,635 2,216 7,204 7,995 Other Income * 288 129 206 582 499 Total Income 7,600 5,663 6,888 27,890 21,597
Slide 30: Contracts Portfolio
... Contracts Portfolio II SOB HA Figures in Rs. Billion ▪ Overall area delivered since inception: 57.04 million square feet CONTRACTUAL ONGOING PROJECTS (31 MAR 2022) CONTRACTUAL REVENUE & COLLECTION Built-up area Particulars FY - 22 FY - 21 Sl No Location (Mn Sqft) Revenue 1 Bengaluru 2.20 Contrac
Slide 31: Consolidated Balance Sheet
... Consolidated Balance Sheet II SOB HA Figures in Rs. Million PARTICULARS 31'Mar 2022 31'Mar 2021 PARTICULARS 31'Mar 2022 31'Mar 2021 ASSETS EQUITY & LIABILITIES Non-current assets Equity Property, Plant and equipment 4,080 4,415 Equity Share Capital 948 948 Investment Property 3,677 3,529 Other E
Slide 32: Contracts: Completed Projects region wise contribution details
Contracts: Completed Projects region wise contribution details SOB HA TOTAL DEVELOPED AREA(IN MN SQFT) ORDER VALUE (IN RS. MN) 26.46 29,132 11,034 7.20 6.68 7,764 4.92 6.29 5,607 0.28 0.08 I 0.76 I -- 1.53 1.37 0.70 I I 0.14 0.45 0.19 290 11 I 755 5,358 I - 1,578 1,036 788 I I 328 200 120 TOTAL DEVE
Slide 33: Manufacturing division performance
... Manufacturing division performance II SOB HA ▪ 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
Slide 34: Commercial portfolio: completed & upcoming projects
Commercial portfolio: completed & upcoming projects c::============================================================================================================dSOBHA SOBHA CITY MALL, THRISSUR - OPERATIONAL Sobha Share of Total leasable area Project Name Status leasable area (in sqft) (sqft) Sobh
Slide 35: Contents
... Contents 1W S OB HA Robust Cashflow Steady Sales Performance Sound Financials and Operations Project Updates 35
Slide 36: Real Estate - Projects portfolio – Completed & Ongoing
... Real Estate - Projects portfolio – Completed & Ongoing II SOB HA CITY COMPLETED ONGOING FORTHCOMING ▪ Completed Real Estate projects located across 7 cities, with total development of Bengaluru * 49.11 16.24 8.35 63.04 mn sqft and Super Built-up area of Mysore 1.33 0.25 - 47.63 mn sqft Gurugram
Slide 37: Real Estate - Projects portfolio - Forthcoming
... Real Estate - Projects portfolio - Forthcoming II SOB HA FORTHCOMING LAUNCH PIPELINE ONGOING PROJECTS - RERA REGISTRATION STATUS LOCATION No of Projects Total Saleable area (Mn Sft) No of projects No of projects Location applied for RERA approved by RERA Real Estate - Forthcoming Bengaluru 83 83
Slide 38: Project status: Sobha Dream Acres, Bengaluru
Project status: Sobha Dream Acres, Bengaluru • SOB HA Total SBA launched for sale as on Mar 2022 5.78 mn sqft Total Developable Area Launched 7.58 mn sqft Total SBA Sold till Mar 2022 5.64 mn sqft Area Completed till Mar 2022 5.48 mn sqft Percentage sold 97 % Dream Acres-Tropical Greens Wing 29 & 30
Slide 39: Ongoing projects
Ongoing projects SOBHA Dream Acres, Bengaluru SOBHA Royal Pavilion, Bengaluru (Wing 3-5 & Tower 6-8) SOBHA HRC Pristine, Bengaluru SOBHA City, Gurugram (Tower A2, B2, C2 ) 39
Slide 40: Completed residential projects during Q4-22
Completed residential projects during Q4-22 SOB HA SOBHA Dream Acres Tropical SOBHA City, Gurugram SOBHA Palm Court, Bengaluru Greens, Bengaluru (Wing 37,& 50) (Towers B1 & A1) (Wings 1,2,3, & 4) Wing 3 Wing 4 II 40
Slide 41: New launches during Q4-22
New launches during Q4-22 c::============================================================================================================dSOBHA SOBHA Brooklyn Towers, Bengaluru 41
Slide 42: Board of Directors
Board of Directors • SOB HA Ravi PNC Menon Jagadish Nangineni R.V.S. Rao Chairman Managing Director Independent Director • Over 16 years of experience in the real estate • Over 20 years of experience in diversified industries such • Over 48 years of experience in banking and finance and construction
Slide 43: THANK YOU
... THANK YOU II SOB HA SOBHA Corporate Office - Bangalore Investors Contact Sobha Limited. Mr. Yogesh Bansal ‘SOBHA’, Sarjapur-Marathahalli Outer Ring Chief Financial Officer Road(ORR), Tel: +91-80-49320000 Ext. 5026 Devarabisanahalli, Bellandur Post, Email: yogesh.bansal@sobha.com Bangalore-560103