Sobha Limited · NSE:SOBHA
Sobha — Q3 FY2022 Earnings Presentation
43 slides from Sobha's earnings presentation, December 2021
Slide 1: Sobha Brooklyn Towers Investors Presentation
SOBHA BROOKLYN INVESTORS PRESENTATION TOWERS DEC 2021 Artistic Impression
Slide 2: Sector Trend & Outlook
SECTOR TREND & OUTLOOK ➢ Demand in Housing sector has revived, and the trend continues on upward path. Sale of homes reached 90% of pre covid level in 7 major cities. ➢ Housing sector has shown strong resilience against COVID in the midst of tough macro-economic environment. ➢ Covid has triggered th
Slide 3: Cashflow Highlights – Q3-22
CASHFLOW HIGHLIGHTS –Q3-22: ➢ Achieved total cash inflow of Rs. 10.59 billion during Q3-22 which is the highest ever since inception. ➢ Total cash inflow is up by 22% and 16% as compared to Q3-21 and Q2-22 respectively. ➢ Achieved Real Estate Cash inflow of Rs 8.40 billion during Q3-22 which is the
Slide 4: Cashflow Highlights – 9M-22
CASHFLOW HIGHLIGHTS –9M-22: ➢ Achieved total cash inflow of Rs. 26.91 billion during 9M-22 which is up by 28% as compared to 9M-21. ➢ Achieved Real Estate Cash inflow of Rs 21.12 billion during 9M-22 which is the highest ever since inception, the same is up by 41% as compared to 9M-21. ➢ We have gen
Slide 5: Cash Flow Statement
CASH FLOW STATEMENT Amount Rs.in Millions PARTICULARS Q3-22 Q3-21 Q2-22 9M-22 9M-21 FY-21 Operational cash inflows Real Estate Operations 8,402 6,639 7,245 21,124 15,021 22,169 Contractual & Manufacturing 2,187 2,030 1,898 5,787 5,973 8,600 Total Operational cash inflow (A) 10,589 8,669 9,144 26,911
Slide 6: Cash Flow Statement (Contd)
CASH FLOW STATEMENT (Contd) Amount Rs.in Millions PARTICULARS Q3-22 Q3-21 Q2-22 9M-22 9M-21 FY-21 Financial Outflows Finance Cost 729 824 772 2,232 1,858 2,733 Income Tax 121 48 118 336 131 97 Total Financial Outflows (D) 850 872 890 2,568 1,989 2,830 Cash flow after Financial Outflow : (E=C-D) 1,23
Slide 7: Cashflow Highlights: Q3-22 vs Q2-22
CASHFLOW HIGHLIGHTS: Q3-22 V/s Q2-22 Amount in Rs. Billions Total Cash inflow Real Estate Cash Inflow GROWTH – 16 % GROWTH – 16 % 8.40 10.59 12.00 9.14 10.00 7.25 8.00 8.00 6.00 4.00 4.00 2.00 - - Q2-22 Q3-22 Q2-22 Q3-22 Operating Cash flow Free Cash flow GROWTH – 18 % GROWTH – 215 % 2.09 2.00 3.00
Slide 8: Cashflow Highlights: Q3-22 vs Q3-21
CASHFLOW HIGHLIGHTS: Q3-22 V/s Q3-21 Amount in Rs. Billions Total Cash Inflow Real Estate Cash Inflow GROWTH – 22 % GROWTH – 27 % 10.59 8.40 12.00 8.67 10.00 6.64 10.00 8.00 8.00 6.00 6.00 4.00 4.00 2.00 2.00 - - Q3-21 Q3-22 Q3-21 Q3-22 Operating Cash flow Free Cash flow GROWTH – 15 % GROWTH –64 % 2
Slide 9: Cashflow Highlights: 9M-22 vs 9M-21
CASHFLOW HIGHLIGHTS: 9M-22 V/s 9M-21 Amount in Rs. Billions Total Cash Inflow Real Estate Cash Inflow GROWTH – 28 % GROWTH – 41 % 26.91 21.12 30.00 20.99 25.00 15.02 25.00 20.00 20.00 15.00 15.00 10.00 10.00 5.00 5.00 - - 9M-21 9M-22 9M-21 9M-22 Operating Cash flow Free Cash flow GROWTH – 29 % GROWT
Slide 10: Cash Flow Performance
CASH FLOW PERFORMANCE: Amount in Rs. Millions 12,000 10,589 2,500 2,347 9,775 2,141 2,089 10,000 9,452 9,144 8,669 2,000 1,819 1,769 8,000 7,179 6,859 1,500 1,297 1,344 6,000 5,466 927 1,000 4,000 2,000 500 0 0 Total Cash inflow Operational Cash flow Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q
Slide 11: Movement of Debt, D/E Ratio
MOVEMENT of DEBT Amount Rs.in Billions Particulars 31st Mar-20 30th Jun-20 30th Sept-20 31st Dec-20 31st Mar-21 30th June-21 30th Sept-21 31th Dec-21 Gross Debt 31.18 31.25 31.56 31.34 30.62 30.21 29.33 28.04 Less: Cash & Cash 0.95 1.04 1.06 1.59 2.10 2.04 1.55 1.50 Equivalents Net Debt 30.23 30.21
Slide 12: Borrowing Cost
BORROWING COST 11% Average cost of borrowing has declined in the last 8 quarters Rate of Interest % 10% 9.69% 9.64% 9.32% 9.17% 9.04% 8.98% 8.85% 9% 8.65% 8% Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Finance Cost(Gross) Rs. In Million Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 840 848 851
Slide 13: Real Estate (Residential) Projects: Projected Cash Flow
REAL ESTATE (RESIDENTIAL) PROJECTS: PROJECTED CASH FLOW Completed projects Ongoing - Area Ongoing - Area Particulars with unsold Total UOM offered for sale not offered for sale inventory Total Saleable area 16.15 19.97 8.71 44.83 Mn.sqft Sobha Share of Saleable area 15.32 19.32 7.63 42.27 Mn.sqft To
Slide 14: Sales Highlights: Q3-22 & 9M-22
SALES HIGHLIGHTS: Q3-22 & 9M-22 ➢ Achieved highest ever nine months total sales volume and sale value of 3,567,087 square feet and Rs.27.61 billion, respectively. ➢ Achieved best ever Sobha Share of sale value of Rs 23.33 billion since inception. ➢ Achieved highest ever Sales volume in Bengaluru dur
Slide 15: Sales Performance: Q3-22
SALES PERFORMANCE: Q3 - 22 Q3 - FY 22 Area Sold (in Mn sqft) Total Average Price Area Sold Total Sale Value Sobha Share of Sale Value Region Realization GROWTH – 17 % in Sq Feet in Rs Mns in Rs Mns Rs / Sq Feet Bengaluru 958,814 7,214 6,502 7,524 1.32 1.60 Kozhikode 4,612 30 24 6,612 1.13 Chennai 16
Slide 16: Sales Performance: 9M FY-22
SALES PERFORMANCE: 9M FY -22 9M - FY 22 9M - FY 21 Total Average Total Sale Total Average Sobha Share Total Sale Sobha Share Area Sold Region Area Sold Area Sold Price Value Price Realization of Sale Value Value of Sale Value (region wise Realization contribution) in Sq Feet in Rs Mns Rs / Sq Feet i
Slide 17: Sales Performance
SALES PERFORMANCE: Quarterly Sales volume (in Mn. Sqft.) 1.50 1.34 1.35 1.32 1.13 1.00 0.91 0.89 0.90 0.65 0.50 - Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q1-21 – First wave of Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Covid-19 Quarterly Sales Value (Rs Million) Q1-22 – Second wave 12,0
Slide 18: Sales Performance: Region wise contribution
SALES PERFORMANCE: Area Sold: Region wise contribution GIFT City 100% Pune 90% Mysore 80% Kozhikode 70% 60% Coimbatore 50% Thrissur 40% Kochi 30% Chennai 20% Gurugram 10% 0% Bengaluru Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 18
Slide 19: Sales Value Performance Q3-22 (Price Band and Region)
SALES VALUE PERFORMANCE Q3 - 22 (Price Band and Region category) % CONTRIBUTION PER PRICE BRACKETS REGION CONTRIBUTION TO TOTAL SALE VALUE Pune , 4.20% Coimbatore ,0.94% Kochi , Kozhikode ,0.29% 0.93% Thrissur , 2.20% GIFT City , > Rs.3 Crs Rs.2 Crs to 3 5% 2.80% < 1 Cr Crs 20% Chennai , 18% 0.75% G
Slide 20: Sales Value Performance 9M-22 (Price Band and Region)
SALES VALUE PERFORMANCE 9M - 22 (Price Band and Region category) % CONTRIBUTION PER PRICE BRACKETS REGION CONTRIBUTION TO TOTAL SALE VALUE > Rs.3 Crs Coimbatore , 1% Kochi , 6% GIFT City , 3% Pune , 5% 6% Thrissur , 3% Rs.2 Crs to 3 Crs < 1 Cr 15% 21% Chennai , 2% Gurugram , 16% Bengaluru , 64% Rs.
Slide 21: Buyer Profile: 12 Months Rolling
BUYER PROFILE: 12 Months Rolling PROFESSION-WISE BREAKUP BUYERS AGE-WISE BREAKUP Others IT/ITES >51 Years 21-30 Years 19% Professional 15% 15% Business/Entrepreneur 52% 8% 41-50 Years 24% Medical/Pharma 3% 31-40 Years Non IT 46% Professional 18% RESIDENTIAL STATUS Indian 88% NRI 12% 0% 50% 100% 21
Slide 22: Financial Highlights: Q3-22
FINANCIAL HIGHLIGHTS: Q3-22 ➢ Total Income for Q3 -22 stands at Rs. 6.89 billion. ➢ Real Estate Revenue for Q3 -22 stands at Rs. 4.47 billion. ➢ Contractual & manufacturing vertical revenue stands at Rs. 2.22 billion up by 35% & 1% compared to Q2-22 & Q3-21 respectively. ➢ EBITDA for Q3 -22 stands a
Slide 23: Financial Highlights: 9M-22
FINANCIAL HIGHLIGHTS : 9M-22 ➢ Total Income for 9M -22 stands at Rs. 20.29 billion up by 27% as compared to 9M -21. ➢ Real Estate Revenue for 9M -22 stands at Rs. 14.78 billion up by 45% as compared to 9M -21. ➢ Contractual & manufacturing vertical revenue for 9M -22 stands at Rs. 5.22 billion. ➢ EB
Slide 24: Financial Highlights: Q3-21 vs Q3-22
FINANCIAL HIGHLIGHTS: Q3-21 V/s Q3-22 Amount in Rs. Billions Contracts and Mfg Revenue Contracts and Mfg Revenue GROWTH – 1 % GROWTH – 35 % 2.22 4.00 2.20 2.22 3.00 1.65 2.00 2.00 1.00 - - Q3-21 Q3-22 Q2-22 Q3-22 PBT PAT 0.85 GROWTH – 37 % GROWTH – 59 % 0.44 0.33 0.60 0.60 0.32 0.21 0.40 0.35 0.20 -
Slide 25: Financial Highlights: 9M-22 vs 9M-21
FINANCIAL HIGHLIGHTS: 9M-22 V/s 9M-21 Amount in Rs. Billions Total Income Real Estate Revenue GROWTH – 27 % GROWTH – 45 % 20.29 14.78 25.00 20.00 15.93 15.00 10.20 15.00 10.00 10.00 5.00 5.00 - 9M-21 9M-22 - 9M-21 9M-22 PBT PAT GROWTH – 101 % GROWTH – 102 % 1.22 1.50 0.90 1.00 1.00 0.61 0.45 0.50 0.
Slide 26: Profit & Loss Statement
PROFIT & LOSS STATEMENT Amount Rs.in Millions PARTICULARS Q3-22 Q3-21 Q2-22 9M-22 9M-21 FY-21 Real Estate Revenue 4,466 4,641 6,544 14,778 10,204 13,103 Contractual & Manufacturing Revenue 2,216 2,203 1,647 5,218 5,360 7,995 Other Income * 206 91 40 294 370 499 Total Income 6,888 6,935 8,231 20,291
Slide 27: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Amount Rs.in Millions PARTICULARS 31'Dec 2021 31'Dec 2020 PARTICULARS 31'Dec 2021 31'Dec 2020 ASSETS EQUITY & LIABILITIES Non-current assets Equity Property, Plant and equipment 4,097 4,487 Equity Share Capital 948 948 Investment Property 3,435 3,469 Other Equity 23,897 23
Slide 28: Real Estate - Projects Portfolio
REAL ESTATE - PROJECTS PORTFOLIO Total Developable / Leasable Area in Mn sqft ➢ Completed Real Estate projects located across 7 cities, CITY COMPLETED ONGOING FORTHCOMING with Total development of 61.53 mn sqft and Super Built-up area of 46.66 mn sqft Bengaluru * 47.59 17.07 8.55 Mysore 1.33 0.25 1.
Slide 29: Future Launches and RERA Status
FUTURE LAUNCHES AND RERA STATUS Forthcoming Launch Pipeline : Ongoing Projects - RERA registration status : No of projects No of projects LOCATION No of Projects Total Saleable area (Mn Sft) Location applied for RERA approved by RERA Real Estate - Forthcoming Bengaluru 77 75 Mysore 1 1 Bengaluru 10
Slide 30: Contracts Portfolio
CONTRACTS PORTFOLIO Overall area delivered since inception: 54.40 million square feet Order book value as of 31st Dec 2021 : Rs 23.48 billion Contractual Ongoing Project Details as of 31st Dec 2021 Contractual Revenue & Collection Details as of 31st Dec 2021 Amount in Rs. Billions Built-up area Part
Slide 31: Contracts: Completed Projects region wise contribution details
CONTRACTS: Completed Projects region wise contribution details Total Developed Area(in Mn Sqft) Order Value (in Mns) 30.00 26.31 35,000 28,907 25.00 30,000 20.00 25,000 20,000 15.00 15,000 10.00 6.67 7,764 5.07 4.92 6.29 10,000 5899 5,358 5,607 5.00 0.28 0.08 0.40 1.54 1.37 0.70 0.14 0.45 0.19 5,000
Slide 32: Manufacturing Division Performance
MANUFACTURING DIVISION PERFORMANCE Amount in Rs. Billions ▪ 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
Slide 33: Commercial Portfolio: Completed and forthcoming projects
COMMERCIAL PORTFOLIO: Completed and forthcoming projects Total Leasable Area Sobha Share of Leasable Project Name Status % of area Leased (in sqft) Area (in sqft) Sobha City Mall, Thrissur Completed 94% 338,493 258,247 One Sobha, Bangalore Completed 80% 225,334 150,974 Sub Total 563,827 409,221 Sobh
Slide 34: Sobha Dream Acres Project Status
SOBHA DREAM ACRES PROJECT STATUS Total SBA launched for sale as on Dec – 2021 5.78 mn sqft Total Developable Area Launched 7.58 mn sqft Total SBA Sold till Dec – 2021 5.46 mn sqft Area Completed till Dec - 2021 5.12 mn sqft Percentage sold 94 % Dream Acres Tropical Greens Wing 50 Bangalore Sobha Dre
Slide 35: Ongoing Projects
ONGOING PROJECTS Sobha Dream Gardens, Bangalore 35
Slide 36: Ongoing Projects (Contd)
ONGOING PROJECTS: (Contd) Sobha Royal Pavilion Wing 1-4, Bangalore Sobha Royal Pavilion Wing 5, Bangalore 36
Slide 37: Ongoing Projects (Contd)
ONGOING PROJECTS (Contd) Sobha HRC Pristine - Wing 5, Bangalore Sobha HRC Pristine - Wing 4, Bangalore 37
Slide 38: Ongoing Projects (Contd)
ONGOING PROJECTS: (Contd) Sobha Lake Garden, Bangalore Sobha Lake Gardens Wings 8, Bangalore 38
Slide 39: Completed Residential Projects During Q3-22
COMPLETED RESIDENTIAL PROJECTS DURING Q3-22: SOBHA Silicon Oasis Wing 11, Bangalore 39
Slide 40: Completed Residential Projects During Q3-22
COMPLETED RESIDENTIAL PROJECTS DURING Q3-22: Sobha City - Tower C1, Gurugram Sobha Dream Acres Tropical Green Wing 38 Bangalore 40
Slide 41: Launched Residential Projects During Q3-22
LAUNCHED RESIDENTIAL PROJECTS DURING Q3-22: SOBHA AVALON, Gift City Artistic Impression 41
Slide 42: Board of Directors
BOARD OF DIRECTORS Ravi PNC Menon J.C. Sharma T.P. Seetharam Chairman Vice Chairman & Managing Director Whole-time Director • Over 16 years of experience in the real • Over 38 years of experience in diversified • Distinguished service as a career estate and construction business industries such as a
Slide 43: Thank You
THANK YOU Investors Contact : SOBHA Corporate Office - Bangalore Mr. Yogesh Bansal Sobha Limited. Chief Financial Officer ‘SOBHA’, Sarjapur-Marathahalli Outer Ring Tel: +91-80-49320000 Ext. 5026 Road(ORR), Email: yogesh.bansal@sobha.com Devarabisanahalli, Bellandur Post, Bangalore-560103 Mr. Tejus S