Shriram Properties Ltd. · NSE:SHRIRAMPPS
Shriram Properties — Q1 FY2024 Earnings Presentation
37 slides from Shriram Properties's earnings presentation, Aug 14, 2023
Slide 1: Exchange filing cover letter: Investor Presentation
August 14, 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 Co
Slide 2: Q1FY24 Results Presentation
Shriram ShriramProperties PropertiesLimited Limited Q1FY23 Results Presentation Q1FY24 Results Presentation August 2022 1 August 2023 1
Slide 3: Disclaimer
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 RE Sector Overview
Shriram WYTFIELD Residential RE Sector Overview 3
Slide 5: Robust Sector Dynamics; Strong Demand amidst Macro Uncertainties
Robust Sector Dynamics; Strong Demand amidst Macro Uncertainties • Rising interest rates and fears of Global/US recession had limited KEY EMERGING TRENDS – Largely remain intact impact on demand • Housing affordability remains favorable, despite rate hikes • Strong sequential demand growth across to
Slide 6: SPL's Core Market Trends
SPL’s Core Market Trends Pricing & Segment wise Trends 2023– Core Markets • Strong growth in launches and absorption across SPL’s core markets of Bengaluru, Chennai and Kolkata Bengaluru • Remarkable improvement in inventory levels – at near decade low − Bangalore inventory levels among lowest acros
Slide 7: Operational Highlights: Q1 FY24
Shriram 107 Southeast Operational Highlights : Q1 |FY24 ________________ Note: Data presented herein 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 – Q1FY24
Key Highlights & Developments – Q1FY24 Operational Performance Project Execution • Highest-ever Q1 sales, both in terms of volumes and values • Handed over 350+ units in Q1, despite slowdown in registration since Apr’23 (Election / Kaveri 2.0 issues) • Sales volumes up 17% YoY ; Value up 47% YoY in
Slide 9: Q1FY24 KPI Trends: Sales Mix
Q1FY24 KPI Trends : Sales Mix Pre-Sales Volume (msf) Sales Value (Rs. Mn.) 4.80 4,586 23,300 17% 47% 0.78 4.02 18,461 0.66 3,126 1.31 4,937 1.04 6,054 1.01 +17% 4,345 +47% 0.66 0.78 4,586 3,126 Q1FY23 Q1FY24 FY23 FY24 Q1FY23 Q1FY24 FY23 FY24 Sales by Segment Sales by Dev. Model Region wise Sales Oth
Slide 10: Q1FY24 KPI Trends: Sales-at-launch
Q1FY24 KPI Trends : Sales-at-launch Q1 FY24 Launches Impressive Sales-at-Launch Launch Sold at Projects Type Launch % sold Area launch 48% 44% Shriram Esquire New May’23 1,31,870 46,895 36% 38% 38% 34% Shriram Hebbal 1 New May’23 1,44,328 57,000 39% Average Sales-at-launch* (% of project launched) 3
Slide 11: Encouraging Response to Ongoing Launches
Encouraging Response to Ongoing Launches Glimpse of Shriram Esquire Launch Event ✓ Shriram Esquire, Koramangala, B’lore (Apartments) - Exceptionally strong launch response - EOI since Apr’23; Formally Launched during May’23 - 46,000+ sft (nearly 35% of the project) sold already ✓ Shriram Chirping Ri
Slide 12: Encouraging Pricing Trends: Realisation up 9% from Mar'23 Levels
Encouraging Pricing Trends: Realisation up 9% from Mar’23 levels Price Increase by Project – Top Projects only Avg. Portfolio Price increase Trends Realisation % change % change Dev. from Project from Type FY23 to Q1 H1’22 FY'22 FY'23 Q1 FY'24 H1’22 FY'24 9%* Avg Park 63(2A) Apt 5,630 5,882 6,375 7,
Slide 13: Q1 FY24 KPI Trends: Collection & Construction
Q1 FY24 KPI Trends: Collection & Construction Collection Trends (Rs. Mn) Construction Spending (Rs. Mn) 7,500 1,478 16,000 Rs. 2,910 Mn in Q1F 1,144 1,031 11,942 5,000 3,072 1,227 735 2,486 1,052 3,148 1,351 3,236 1,370 1,305 2,910 April'23 May'23 June'23 July'23 FY23 FY24 FY23 FY24 • Q1FY24 Collect
Slide 14: Project Execution Trends: FY24 Handover Readiness
Project Execution Trends: FY24 Handover Readiness % work • FY24 handover projects on-track Project Name Total Area RERA date % sold Remarks done to deliver on (or) ahead of schedule Ready for Fire NOC, Shriram Greenfield Phase II 7,04,355 30-Dec-23 98% 83% Handover by Dec’23 • Almost all projects ne
Slide 15: Financial Highlights: Q1 FY24
Shriram Southern Crest Financial Highlights : Q1|FY24 14
Slide 16: Financial Highlights | Q1FY24
Financial Highlights | Q1FY24 o After completing one complete cycle of positive earnings last year, FY24 begins with yet another Strong P&L Performance o Strong earnings growth story; Healthy quarterly improvement since IPO/Q3FY22 continues o Driven by improving operating leverage and project execut
Slide 17: Financial Highlights: Profit & Loss | Q1FY24
Financial Highlights : Profit & Loss|Q1FY24 Particulars (Rs. Mn) Q1FY24 Q1FY23 YoY (%) Q4 FY23 FY23 Total Revenues 1,572 1,451 8% 1,710 8,139 Total Revenues Cost of revenue 607 717 633 4,532 Rs. 1,572 Mn Employee benefit expense 188 192 193 787 8% Other expenses 243 188 431 991 YoY Total Operating E
Slide 18: Financial Highlights (contd.): Profit & Loss | Q1FY24
Financial Highlights (contd.): Profit & Loss|Q1FY24 ❑ Revenue from operations up 10% YoY, reflects continued registration momentum in FY23 completed projects ( mainly driven by Southern crest, Temple Bells, Shriram One City) ❑ DM Fee income at ~12% of total Revenues ❑ Cost of Revenue dropped 15%, to
Slide 19: Financial Highlights: Consolidated Cash Flows | Q1FY24
Financial Highlights: Consolidated Cash Flows | Q1FY24 (Excl. DM & JV cashflows) Collection Trends Q1 Q1 SPL Own & JDA / JVs / DM (In Rs Mn) FY23 FY24 FY23 Collections 1,392 1,339 5,243 11,943 DM Income 703 113 572 3,236 2,506 Other Inflows 2 2 7 2,911 301 857 Operating Inflow 2,097 1,454 5,822 Cons
Slide 20: 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 6,558 13.7% 7,000 0.70 12.5% 12.8% 5,526 11.9% 6,000 864 11.1% 4,811 4,880 5,000 1,204 847 4,000 1,405 0.36 0.30 0.33 3,000 5,694 2,000 4,322 4,033 3,406 1,000 - FY21 FY22 FY23 Q1FY2
Slide 21: Outlook: FY24 & Beyond
Shriram Blue Outlook: FY24 & Beyond 20
Slide 22: 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 23: Strong Income Recognition Outlook (FY24-25e)
Strong Income Recognition Outlook (FY24-25e) Sales Volumes (msf) 4-year cumulative sales of 14msf Handed over Completed ~2,000 units in FY23 4.0 3.8 msf in ~3,000 units in FY24 3.8 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 Ong
Slide 24: FY24 Outlook | Context & Strategic Objectives
FY24 Outlook | Context & Strategic Objectives Strategic Objectives ➢ Sustain 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 Cont
Slide 25: Project Pipeline Update – June'23
Project Pipeline Update – June’23 Project Pipeline (msf) Upcoming – 20 msf # projects msf 8.6 51.6 Ongoing – 23 msf 43.0 5.8 Pipeline – March’23 52 52.9 3.4 10.6 Less: Projects Completed (3) (1.3) 3.0 11.8 Pipeline – Mar’23 49 51.6 8.5 Ongoing Ongoing Ongoing Upcoming Upcoming Upcoming Sub-Total Def
Slide 26: Business Model Dynamics
Business Model Dynamics Land Design Delivery Mainte Approv nance als Handov er Development Sales Market CRM ing Constru ction Development Capital Scalability Return Risk Rewards to LO Risk to LO Model Intensivity Own Low High High High Least/NA Least/NA JDA Moderate High High High Better than Sale L
Slide 27: DM Model: Stabilised Growth Engine
DM Model : Stabilised Growth Engine Development Project Area Sold Area Residential DM Projects Location Status Type (msf) (msf) Earth (Mysore Road) Plots Bangalore 0.49 0.48 Completed Raynal Gardens Plots Bangalore 0.39 0.33 Completed Elite Sai Garden Plots Bangalore 0.20 0.20 Completed Blue Apartme
Slide 28: 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 msf, almost entirely sold) • FSI sale progressing we
Slide 29: Shareholding Pattern as at 30th June 2023
Shareholding Pattern as at 30th June 2023 Category No.of Holders Total Shares % Share Holding Pattern as at 30 June 23 Promoters (*) 3 47,597,070 28% Ins. Investors 6% Body Corporate - Domestic 199 40,437,119 24% Public Promoters 18% 28% Body Corporate - Foreign (PEs) 11 40,401,076 24% Body Corporat
Slide 30: 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 31: Thank You
Thank You Shriram Luxor Shriram Chirping Woods 30
Slide 32: Annexure-1: Projects Snapshot by Development Models
Annexure-1: 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 ✓
Slide 33: Annexure-2: Development Model Business Dynamics
Annexure-2: Development Model Business Dynamics Land Project Launch & Execution Delivery Financials Developement Ownership Project & Approval Branding Sales & CRM Project Delivery & RERA Maintenance Overall Economics Revenue Construction Costs Marketing Costs Debt & Interest Costs Free Cashflow Shar
Slide 34: Our Project Presence: Bangalore
Our Project Presence: Bangalore 33
Slide 35: Our Project Presence: Chennai
Our Project Presence: Chennai 34
Slide 36: Our Project Presence: Kolkata
Our Project Presence: Kolkata 35
Slide 37: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Shriram Properties Limited Strategic Growth Advisors Pvt. Ltd. CIN – L72200TN2000PLC044560 CIN - U74140MH2010PTC204285 Mr. Shrikanth D S, Senior Manager – Finance & Accounts Mr. Rahul Agarwal / Ms. Brinkle Shah Jariwala