Sobha Limited · NSE:SOBHA
Sobha — Q1 FY2018 Earnings Presentation
32 slides from Sobha's earnings presentation, Aug 5, 2017
Slide 1: Cover letter to stock exchanges: Investor Presentation Q1 2017
PASSION AT WORK August 05, 2017 To To To The Deputy Manager The Manager Department of Corporate Services The National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot No C/l, G Block PJ Towers, Dalal Street Bandra Kurla Complex Mumbai — 400 001 Mumbai — 400 051 Scrip Code : 532784 Sc
Slide 2: Investor Presentation 30th June, 2017
PASSION AT WORK Investor Presentation 30th June,2017
Slide 3: Recognition
RECOGNITION SOBHA RANKED AS TOP DEVELOPER IN BEST PRACTICES AUDIT REPORT 2016-17 High 5 for Sobha Ltd, by Track2Realty Report. • Only developer to have backward integration model for quality control • In-house technology manual for quality & snag Check list ; 2nd best employer in business • Top of t
Slide 4: Financial Highlights (Ind-AS)
FINANCIAL HIGHLIGHTS (IND-AS) Amount Rs.in Millions Q1-18 Q1-17 Q4-17 REMARKS REAL ESTATE 5,056 4,182 3,722 Highest ever Quarterly revenue. OPERATIONS CONTRACTS & Revenue up by 18% Yr-on-Yr and 14.5% 1,733 1,555 2,166 REVENUE MANUFACTURING sequentially OTHER INCOME 97 81 125 Real Estate and Contract
Slide 5: Financial Highlights (Ind-AS)
FINANCIAL HIGHLIGHTS (IND-AS) Amount Rs.in Millions Q1-18 Q1-17 Q4-17 REMARKS Q1-18 collection up by 23% and 5% respectively as compared to Q1-17 & Q4-17. TOTAL COLLECTIONS 7,296 5,921 6,948 Highest quarterly collections among last 13 quarters. POSITIVE OPERATIONAL CASH • Generated Positive Cash flo
Slide 6: Balance Sheet – Abstract (Ind-AS)
BALANCE SHEET – ABSTRACT (Ind-As) Amount Rs.in Millions IND-AS PARTICULARS 30th JUNE-17 30th JUNE-16 ASSETS Non-current assets 5,909 6,114 Financial assets 5,013 632 Current Assets 78,738 80,364 TOTAL ASSETS 89,660 87,110 EQUITY & LIABILITIES Total Equity 26,915 26,008 Minority Interest - - Non-Curr
Slide 7: Cash Flow Statement - Abstract
CASH FLOW STATEMENT - ABSTRACT Amount Rs.in Millions PARTICULARS Q1 -18 Q1-17 Q4 -17 FY 16-17 Total Operational cash inflow (A) 7,295 5,921 6,948 25,661 Operational cash outflows (B) 5,482 4,392 5,150 19,074 Net Operational Cash flow (C)=(A-B) 1,813 1,529 1,798 6,587 Financial Outflows Interest Paid
Slide 8: Rising Collections
RISING COLLECTIONS Trailing 12 months collections (IGAAP) Rs. in Billion 7.00 27.03 27.00 25.66 6.00 Collections (Rs.Billions) 24.51 24.04 5.74 25.00 5.00 23.55 4.91 4.86 23.00 4.00 4.32 4.33 21.00 3.00 2.09 1.71 1.85 19.00 2.00 1.61 1.56 1.00 17.00 - 15.00 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Real Estate
Slide 9: Real Estate Projects – Projected Cash Flow
REAL ESTATE PROJECTS – PROJECTED CASH FLOW Ongoing Completed Ref Description Area Area not Total UOM Projects released released A Total Developable area 24.69 16.23 42.18 mn.sqft B Area of Car Park, Common areas and Amenities etc 7.31 4.66 11.96 mn.sqft C = A–B Total Saleable area 17.38 11.57 30.22
Slide 10: Movement of Debt (Ind AS)
MOVEMENT OF DEBT (IND AS) CONSOLIDATED: Rs. in Million Increase / Particulars 30th June-17 31st Mar-17 (Decrease) Gross Debt 21,635 22,396 (760) Less: Cash & Cash Equivalents 1,388 1,659 (270) Net Debt 20,247 20,737 (490) Note: Cash and Cash equivalents is inclusive of Mutual Fund investments. Net D
Slide 11: Borrowing Cost
BORROWING COST “ Brought down average interest cost by 244 bps from Q1-2016 ” 13.00% 12.50% 12.14% Sobha had brought down its 11.98% Rate of Interest % 12.00% 11.83% 11.58% average cost of borrowing 11.26% 10.99% cumulatively to 2.44% since 11.00% 10.42% Q1-2016, which is even 10.06% better than RBI
Slide 12: Performance Highlights: Q1 FY 17-18
PERFORMANCE HIGHLIGHTS : Q1 FY 17-18 Q1 FY-18 Q1 FY-17 Q4 FY17 VOLUME Mns.sqft 0.82 0.81 0.72 NEW SALES VALUE (Incl. JD Share) Rs.Mns 6,234 5,131 5,572 VALUE (Sobha Share) Rs.Mns 5,627 4,698 5,048 REALIZATION (Sobha Share) Rs / Sqft 6,903 5,806 6,980 Additional area released for Sale from Sobha Drea
Slide 13: Sales Performance & Price Realization
SALES PERFORMANCE & PRICE REALIZATION Q1 FY-18 Q1 FY-17 Sales Sales Sales Sales Locations Area Sold Realization Realization Area Sold Realization Realization (Incl.JD share) (Sobha Share) (Incl.JD share) (Sobha Share ) in sq. feet Rs/ sq.ft Rs/ sq.ft in sq. feet Rs/ sq.ft Rs/ sq.ft Bangalore 592,936
Slide 14: Price Band Category
PRICE BAND CATEGORY Q1 FY-18 Q1 FY-17 Total Area Sold Square Feet 815,230 809,249 Total Sales Value (incl. JD share value) Rs. Million 6,234 5,131 Average Price Realization Rs/ Sq.ft 7,647 6,340 Area sold (Million Sq.ft) Value sold (Rs.Million) Category Q1-18 % Q1-17 % Q1-18 % Q1-17 % < ` 50 lakhs 0
Slide 15: Buyers Profile – Rolling 12 Months
BUYERS PROFILE – ROLLING 12 MONTHS Profession-wise breakup Buyers Age-wise breakup Non-IT professionals, Business/ Age > 50; Age 21-30; 36% Entrepreneur, 17% 20% 8% Medical / Pharma, 5% Age 31-40; IT/ITES 40% Professional, Age 41-50; 45% Others, 6% 23% * Others includes Housewives, Agriculturist, Re
Slide 16: Real Estate – Completed Projects
REAL ESTATE – COMPLETED PROJECTS Completed 118 projects in 7 cities. Apartments Total Developed area of 42.44 mn.sqft and Super Built-up area of 32.87 mn.sqft. Product mix includes Multi Storied Apartments (Dreams, Luxury, Super Luxury & Presidential category), Row Houses, Villas, Plotted Developmen
Slide 17: Real Estate – Ongoing Projects
REAL ESTATE – ONGOING PROJECTS 38 projects measuring Total Developable area of about 40.92 mn.sqft and Super Built-up area of 28.95 mn.sqft, located at 9 cities in India. Location-wise 28.00 24.00 Area in Mn.sqft 20.00 16.00 12.00 8.00 4.00 - Gurgao BLR Chennai Pune Thrissur CBE Calicut Cochin Mysor
Slide 18: Contracts - Overview
CONTRACTS - OVERVIEW REVENUE (Rs.Millions) COLLECTIONS (Rs.Millions) REVENUE* Q1-18 Q1-17 COLLECTIONS Q1-18 Q1-17 CONTRACTS 862 1,060 (19%) CONTRACTS 849 1,048 (19%) MANUFACTURING 871 495 76% MANUFACTURING 708 558 27% 1,733 1,555 11.4% 1,557 1,606 (3%) * Excludes Inter divisions transfer EXECUTION C
Slide 19: Contracts – Projects Break-up
CONTRACTS – PROJECTS BREAK-UP Contractual projects status as on 30th June,2017 PROJECTS UNDER PROGRESS S.NO DESCRIPTION No of ≈ Built-up area The unbilled value of projects under progress is Projects (Mn.Sft ) about Rs.5.50 Billion 1 Bangalore 11 2.36 2 Cochin 2 2.11 Non-Infosys clients includes LuL
Slide 20: Execution Delivery Track Record
EXECUTION DELIVERY TRACK RECORD 7.00 86.73 87.41 Developed Area - Track record 81.64 90.00 6.00 80.00 70.54 5.00 70.00 62.93 Area in Mn.sqft 56.25 60.00 4.00 51.80 46.58 50.00 3.00 38.99 33.11 40.00 2.00 30.00 1.00 20.00 - 10.00 FY-09 FY-10 FY-11 FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 Q1-FY 18 Real Est
Slide 21: Land Bank Status
LAND BANK STATUS Total Extent of Land 2,444 Acres Total Developable Area 209.20 Mn.sqft Sobha Share 203.23 Mn.sqft Sobha Share of Land 2,358 Acres GURGAON (14.70 acres) Total Cost consideration 23,704 Rs.Mns Developable Area 1.04 BANGALORE Sobha Share 0.54 Balance amount payable 2,509 Rs.Mns (766.06
Slide 22: Backward Integration (World Class Manufacturing Facilities)
BACKWARD INTEGRATION (World Class Manufacturing Facilities) Interiors & Furnishing Division Glazing & Metal Works Division Concrete Products Division Turnover* : Q1 FY-18 Rs.415 Mns Turnover *: Q1 FY-18 Rs.666 Mns Turnover *: Q1 FY-18 Rs.126 Mns Factory area 0.80 Mn sq ft Factory area 0.30 Mn sq ft
Slide 23: Share Holding Pattern
SHARE HOLDING PATTERN Top FII’s Top Insurance & Mutual Funds FII's, • Platinum Investment 32.23% • Franklin Templeton • Nordea • ICICI Prudential • Adawi Investments Mutual • L&T Mutual Fund Funds, • Invesco 6.31% • LIC India • Schroder International • HDFC – Standard Life • HSBC Global Investment P
Slide 24: Sobha – Stock Performance
SOBHA – STOCK PERFORMANCE Status as on: 30th June,2017 1 Year Chart - Sobha vs NSE Realty vs Nifty 100 % Change in Closing Price No. of Shares 96.30 Million 80 60 Market Capitalization Rs.35.59 Billion 40 Stock Price : 52 week High / Low 429 / 234 20 0 Avg. Daily volume (12 months) 195,436 (20) (40)
Slide 25: Detailed break-up as of 30th June, 17
Detailed break-up as of 30th June,17 • Consolidated Balance Sheet • Profit and Loss Statement • Cash Flow Statement • Real Estate Ongoing Projects Slide no : 24
Slide 26: Consolidated Balance Sheet (Ind-As)
CONSOLIDATED BALANCE SHEET (Ind-As) PARTICULARS JUNE-17 JUNE-16 PARTICULARS JUNE-17 JUNE-16 ASSETS EQUITY & LIABILITIES Non-current assets Equity Share Capital 963 981 Property, Plant and equipment 3,065 5,458 Securities premium account 25,952 25,027 Other Intangible assets 2 6 Total Equity 26,915 2
Slide 27: Profit & Loss Statement (Ind-As)
PROFIT & LOSS STATEMENT (Ind-As) Rs. in Million Particulars Q1-18 Q1-17 Q4-17 FY 16-17 Property Development 5,056 4,182 3,722 14,884 Contractual + Manufacturing 1,733 1,555 2,166 7,577 Other Income 97 81 125 386 Total Revenue 6,886 5,818 6,013 22,847 Total Expenditure 5,574 4,765 4,686 18,264 EBITDA
Slide 28: Cash Flow Statement
CASH FLOW STATEMENT Rs. in Million PARTICULARS Q1-18 Q1-17 Q4-17 FY 16-17 Operational cash inflows Real Estate Operations 5,738 4,315 4,856 18,409 Contractual & Manufacturing 1,557 1,606 2,092 7,252 Total Operational cash inflow –(A) 7,295 5,921 6,948 25,661 Operational cash outflows Real Estate pro
Slide 29: Cash Flow Statement
CASH FLOW STATEMENT Rs. in Million PARTICULARS Q1-18 Q1-17 Q4-17 FY 16-17 Capital Outflows Land Payments 361 240 344 1,365 Buy Back of Shares - - - 582 Dividend including tax - - - 232 Donation / CSR Contribution 48 58 22 152 Capex – General 12 25 22 75 Capex – Commercial Real Estate 88 48 52 180 To
Slide 30: Real Estate – Details of Ongoing Projects as on 30th June, 2017
Real Estate – Details of Ongoing projects as on 30th June, 2017 Total Total Sobha Sobha Share of Developable Total No Saleable Share of Sl.No Projects Location Type Saleable Area Remarks area of Units Area Saleable (Mn.Sqft) (Mn.Sqft) (Mn.Sqft*) Units Bangalore – Residential 1 Sobha Palladian Yamlur
Slide 31: Real Estate – Details of Ongoing Projects (continued)
Total Total Sobha Total Sobha Share Developable Saleable Share of Sl.No Projects Location Type No of of Saleable Remarks area Area Saleable Units Area (Mn.Sqft) (Mn.Sqft) (Mn.Sqft*) Units Gurgaon (NCR) - Residential International City - Ph 1 (B & B3) Villas 0.98 100 0.67 62 0.41 26 International Cit
Slide 32: Thank You
THANK YOU Corporate Office Investors Contact : Sobha Limited. Mr.Subhash Mohan Bhat K.Bala Murugan ‘SOBHA’, Sarjapur-Marathahalli Outer Ring Chief Financial Officer Senior Manager – Investor Relations Road(ORR), Mobile: +91- 99801 99088 Mobile: +91- 98807 30459 Devarabisanahalli, Bellandur Post, Ema