Sobha Limited · NSE:SOBHA
Sobha — Sobha Developers — H1 FY2014 Earnings Presentation
32 slides from Sobha's earnings presentation, Sep 30, 2013
Slide 1: Sobha Developers Ltd Investor Presentation
SOBHA DEVELOPERS LTD INVESTOR PRESENTATION 30th September, 2013 Gurgaon – International City – Model Villa (Actual image)
Slide 2: H1 FY-14: Performance Highlights
H1 FY-14 : PERFORMANCE HIGHLIGHTS ICRA Limited has upgraded the long term rating of the company to ‘A-’ from ‘BBB+’ H1-14 H1-13 GROWTH % VALUE Rs.Mns 12,351 10,068 23% SALES VOLUME Mn.Sqft 1.92 1.78 8% REALIZATION Rs / Sqft 6,420 5,651 14% Total Developable Total Saleable Sobha Name Type Location Ar
Slide 3: H1 FY14: Performance Highlights
H1- FY14 : PERFORMANCE HIGHLIGHTS Sobha received Special Commendation from the Golden Peacock Awards for ‘Excellence in Corporate Governance’ Received 4 prestigious contractual orders from Dell, Bosch, LuLu Mall – MLCP and Manipal CONTRACTUAL University during H1 FY 14, Total order valued at ≈ Rs.2.
Slide 4: H1 FY-14: Financial Highlights (Consolidated)
H1 FY-14 : FINANCIAL HIGHLIGHTS (Consolidated) Revenue of Rs.10.08 Billion during H1 FY-14 as against Rs. 8.51 Billion in H1 FY-13 REVENUE Revenue up by 18.4% Yr-on-Yr Land monetization in H1 FY-14 - NIL ; H1 FY-13 : Rs.1.02 Billion. EBITDA of Rs.2.87 Billion during H1 FY-14 as against Rs.2.51 Billi
Slide 5: H1-14: Financial Highlights
H1-14 : FINANCIAL HIGHLIGHTS Unrecognized revenue from sold units has increased to Rs.21.97 Billion from Rs.17.99 Billion UNRECOGNIZED REVENUE Out of the above Rs.4.97 Billion expected to be recognized in the P&L account during H2 FY 14 Collected Rs.12.49 Billion from operations during H1-14 against
Slide 6: Q2 FY 14 Financial Highlights (Consolidated)
Q2 FY 14, FINANCIAL HIGHLIGHTS (Consolidated) Revenue of Rs.5.45 Billion during Q2 FY-14 as against Rs.4.16 Billion in Q2 FY-13 and Rs.4.63 REVENUE Billion in Q1 FY-14. Revenue up by 31% Yr-on-Yr and 18% on sequential basis. EBITDA of Rs.1.47 Billion during Q2 FY-14 as against Rs.1.31 Billion in Q2
Slide 7: Sales Performance & Price Realization
SALES PERFORMANCE & PRICE REALIZATION Avg. realization Avg. realization Q2 FY 14 H1 FY 14 Locations (Rs/sft) (Rs/sft) in sq. feet Rs/ sq.ft in sq. feet Rs/ sq.ft Bangalore 674,622 6,741 1,277,677 6,986 NCR (Gurgaon) 30,892 11,385 67,147 10,617 Chennai 86,869 5,028 186,832 5,076 Pune 12,716 4,828 35,
Slide 8: Real Estate Projects – Projected Cash Flow
REAL ESTATE PROJECTS – PROJECTED CASH FLOW Ongoing Completed Ref.No Description UOM Projects Projects 1 Total Developable area 27.77 mn.sqft 2 Area of Car Park, Common areas and Amenities etc 8.42 mn.sqft 1-2 Total Saleable area 19.35 mn.sqft 3 Sobha share of Saleable area 16.66 mn.sqft 4 Less: Leas
Slide 9: Location Wise Stock Details
LOCATION WISE STOCK DETAILS Area in Million Sq.ft Opening Projects increase/ Net unsold Area sold Closing stock Area not stock as launched (decrease) Opening stock as on Locations during H1- as on 30th offered on 1st during FY-14 of existing stock 30th Sept- FY-14 Sept 13 for sale Apr-13 (H1) stock*
Slide 10: Unsold Inventory Break-up
UNSOLD INVENTORY BREAK-UP Area in Million Sq.ft Category % Unsold Area Below 50 lakhs (1BHK / Plots) 1% 0.06 Between 50 lakhs to 1 crore 10% 0.79 Between 1 cr to 2 crs 37% 2.83 Above 2 crs 52% 4.00 Unsold area (Mn.sqft) 100% 7.68 Note: • Above stock includes 0.17 mn.sqft of unsold inventory from com
Slide 11: Price Band Category
PRICE BAND CATEGORY H1 FY-14 Total Area Sold - Sq.ft 1,923,708 Total Sales Value – Rs.Mns 12,351 Average Price Realization – Rs/sq.ft 6,420 H1 FY-14 Category Sale Value SBA (Sq.ft) % % (Rs.Mns) < 50 lakhs* 18,285 1% 91 1% 50 to75 lakhs 135,904 7% 555 4% 75 lakhs to 1cr 364,520 19% 1,926 16% 1 cr to
Slide 12: Financial Highlights
FINANCIAL HIGHLIGHTS Revenue (Rs.Mns) EBITDA (Rs.Mns) 20,000 18,701 6,000 5,538 17,000 5,000 4,730 13,996 14,144 14,000 4,000 3,652 10,621 10,076 2,873 11,000 3,000 2,674 2,511 8,509 8,000 2,000 5,000 1,000 2,000 - (1,000) FY 10 FY 11 FY 12 FY 13 H1 13 H1 14 FY 10 FY 11 FY 12 FY 13 H1 13 H1 14 PROFI
Slide 13: Balance Sheet
BALANCE SHEET Rs.in Million Particulars 30th Sept-13 30th Sept-12 30th Sept-13 30th Sept-12 EQUITY AND LIABILITIES ASSETS Shareholders’ funds Non-current assets Share capital 981 981 Fixed assets Tangible assets 3,149 2,875 Reserves and surplus 21,453 19,966 Intangible assets 48 49 22,433 20,947 Goo
Slide 14: Profit & Loss Statement
PROFIT & LOSS STATEMENT Rs. in Million % of Growth Particulars H1-14 H1-13 Q2-14 Q2-13 FY-13 H1-14 on Q2-14 on H1-13 Q2-13 Property Development 7,170.00 6,537.52 3,696.78 3,164.39 14,155.28 10% 17% Contractual + Manufacturing 2,854.11 1,942.02 1,711.17 983.70 4,490.13 47% 74% Other Income 51.42 29.8
Slide 15: Cash Flow Statement
CASH FLOW STATEMENT Rs. in Million PARTICULARS H1 FY-14 H1 FY-13 Q2 FY-14 Q2 FY-13 FY 12-13 Operational cash inflows Real Estate 9,475 6,935 4,552 3,687 16,111 Contractual 3,018 1,562 1,788 798 4,093 Total Operational cash inflow –(A) 12,493 8,497 6,340 4,485 20,204 Operational cash outflows Real Es
Slide 16: Cash Flow Statement (Continued)
CASH FLOW STATEMENT (Continued) Rs. in Million PARTICULARS H1 FY-14 H1 FY-13 Q2 FY-14 Q2 FY-13 FY 12-13 Financial Outflows Interest Paid (Net of interest received) 977 897 501 409 2,000 Income Taxes 314 517 184 417 910 Deposits - 31 - 23 - Total Financial Outflows (D) 1,291 1,445 685 849 2,910 Net P
Slide 17: Improving Collections
IMPROVING COLLECTIONS Quarterly Collections (Rs.Mns) 7,000 6,329 6,153 6,340 6,000 5,377 5,293 4,978 4,923 5,000 4,549 4,552 3,687 3,883 4,000 3,249 3,000 2,000 1,495 1,788 965 1,230 798 1,037 1,000 764 64 - - - - - Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Real Estate Land Monetization Contractual Total
Slide 18: Movement of Loans
MOVEMENT OF LOANS Consolidated Rs. in Million Increase Particulars 30th Sept-13 30th June-13 /(Decrease) Gross Debt 13,513 13,011 502 Less: Cash & Cash Equivalents 832 716 116 Net Debt 12,681 12,295 386 Note: Net Debt excludes debentures of JV partner and lease obligation D/E Ratio - Consolidated 2.
Slide 19: Borrowing Cost
BORROWING COST AVERAGE INTEREST COST 14.50% 14.09% 14.00% 13.90% 13.88% 13.65% 13.56% 13.58% 13.51% 13.45% 13.50% 13.00% 12.93% 12.73% 12.50% 12.00% Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Note: The average cost of borrowing excludes interest payable on debentures. Financing Cost
Slide 20: Real Estate – Completed Projects
REAL ESTATE – COMPLETED PROJECTS Apartments Completed 88 projects in 5 cities Total Developed area of 27.68 mn.sqft and Super Built-up area of 21.83 mn.sqft Product mix includes Multi Storied Apartments (Dreams, Luxury, Super Luxury & Presidential category), Row Houses, Villas, Plotted Developments
Slide 21: Real Estate – Ongoing Projects
REAL ESTATE – ONGOING PROJECTS 45 projects measuring Total Developed area of about 27.77 mn.sqft and Super Built-up area of 19.35 mn.sqft, located at 7 cities in India. Location wise Product - mix 11.47 Bangalore 12.03 15.69 Apartments 15.39 4.23 Gurgaon 6.88 4.25 Villas 7.60 1.40 Thrissur 1.76 0.98
Slide 22: Real Estate – Future Launches
REAL ESTATE – FUTURE LAUNCHES Proposed new launches in the next 4 quarters SITE Area ~Total SBA Sobha share S.No Projects Location Type (in Acres) (sq.ft) of SBA (sq.ft) BANGALORE 1 Hosakerehalli Property Mysore Road L+SL Apartments 15.70 1,473,354 1,172,053 2 Kanakapura Road property Thalaghattapur
Slide 23: Real Estate – Future Launches (continued)
REAL ESTATE – FUTURE LAUNCHES (continued) Proposed new launches in the next 4 quarters SITE Area ~Total SBA Sobha share S.No Projects Location Type (in Acres) (sqft) of SBA (sqft) COCHIN 10 Vyttila property Silver Sand Island Residential Apartments 5.94 1,149,986 975,570 COIMBATORE 11 Harishree Gard
Slide 24: Buyers Profile
BUYERS PROFILE Profession-wise breakup Customers funding status Business/ Non-IT professionals, Entreprenuer, Customers opted for Bank Loan 49% 12% 42% Self Funding 51% Medical/ Note: The funding position is considered for cumulative sales period Pharmaceutical from April-12 to Mar-13. 6% IT/ITES Pr
Slide 25: Contracts - Overview
CONTRACTS - OVERVIEW Completed Projects Projects Under Progress 234 Projects aggregating to 30.19 mn.sqft of area 38 Projects aggregating to 11.11 mn.sqft of area Completed projects located in 21 cities across India Ongoing contractual projects located in 10 cities across India Infosys, Infosys, 25.
Slide 26: Contracts – Projects Break-up
CONTRACTS – PROJECTS BREAK-UP Contractual projects status as on 30th September-13 PROJECTS UNDER PROGRESS S.NO DESCRIPTION No of Built-up area Share of Non-Infosys Contractual orders has Projects (Mn.Sft ) increased to 38 % - All time high. 1 Bangalore 15 2.92 Bagged 4 prestigious orders from Dell,
Slide 27: Execution Track Record
EXECUTION TRACK RECORD Developed Area - Track record 60 50 Area in Mn.sqft 40 30 20 10 0 FY 96- FY - 00 FY-01 FY-02 FY-03 FY-04 FY-05 FY-06 FY-07 FY-08 FY-09 FY-10 FY-11 FY-12 FY-13 H1- 99 FY14 Real Estate 0 0.13 2.08 0.43 0.19 0.49 1.54 2.12 1.63 2.69 3.50 2.13 5.39 3.14 1.47 0.75 Contracts 0 - 0.0
Slide 28: Land Bank Status
LAND BANK STATUS Total Extent of Land 2,626 Acres Total Developable Area 232.13 Mn.sqft Sobha Share of Land 2,539 Acres Sobha Share 226.88 Mn.sqft GURGAON (10.45 acres) Total Cost consideration 19,662 Rs.Mns Developable Area 0.20 Balance amount payable 2,167 Rs.Mns BANGALORE (871.63 Sobha Share 0.10
Slide 29: Backward Integration (World Class Manufacturing Facilities)
BACKWARD INTEGRATION (World Class Manufacturing Facilities) Interiors & Furnishing Division Glazing & Metal Works Division Concrete Products Division Turn over : H1 FY-14 Rs.285 Mn Turn over : H1 FY-14 Rs.539 Mn Turn over : H1 FY 14 Rs.102 Mn Total Factory area 0.8 Mn sq ft Factory area 0.3 Mn sq ft
Slide 30: Share Holding Pattern
SHARE HOLDING PATTERN Mutual FII's, Funds, No. of shareholders as on 30th Sept, 2013 - 33.16% 1.98% 56,396 Market capitalization as on 30th Sept, 2013 - Rs.27.56 Billion. Others, Promoters, 4.32% 60.54% 30th Sept-13 30th June-13 31st Mar-13 31st Dec 12 30th Sept-12 Promoters Holding 60.54% 60.55% 60
Slide 31: Sobha – Stock Performance
SOBHA – STOCK PERFORMANCE 1 year Chart – Sobha vs Nifty vs NSE Realty Status as on: 30th September-13 160 140 % Change in Closing Price 120 No. of Shares 98.06 Million 100 80 60 Market Capitalization Rs 27.56 Billion 40 20 Stock Price : 52 week High / Low Rs. 498 / 213 0 -20 -40 Avg. Daily volume (1
Slide 32: Thank You
THANK YOU Corporate Office Investors Contact : Sobha Developers Ltd. Mr. Ganesh Venkataraman K.Bala Murugan ‘SOBHA’, Sarjapur-Marathahalli Outer Ring Chief Financial Officer Senior Manager – VC & MD’s Office Road(ORR), Mobile: +91- 96635 61144 Mobile: +91- 98807 30459 Devarabisanahalli, Bellandur Po