Sobha Limited · NSE:SOBHA
Sobha — Q1 FY2023 Earnings Presentation
34 slides from Sobha's earnings presentation, Aug 9, 2022
Slide 1: Exchange filing cover letter for investor presentation
... SOBHA PASSION AT WORK Date: August 09, 2022 To To The Deputy Manager The Manager Department of Corporate Services The National Stock Exchange oflndia Limited BSE Limited Exchange Plaza, Plot No C/1, G Block PJ Towers, Dalal Street Bandra Kurla Complex Mumbai - 400 00 l Mumbai - 400 051 Scrip Cod
Slide 2: Investor Presentation June 2022
:• .. :: •• :: :: ··: lilil SOBHA PASS I ON AT WORK Investor Presentation June 2022 Artistic impression of SOBHA Royal Crest, Bangalore
Slide 3: SOBHA: Leading through excellence, scale and innovation
SOBHA: Leading through excellence, scale and innovation Established on a solid footing Consistent delivery at scale ‣ Bangalore headquartered Real Estate & Construction firm with 27 years of ‣ 120+ mn sft of developable area completed across 27 cities in 14 delivering international quality residenti
Slide 4: We have been recognized for Sustainability & being a Top National Brand
We have been recognized for Sustainability & being a Top National Brand Sobha City, Thrissur: India’s first Net water positive ‘Platinum’ rating for an operational residential project (March’22) ‣ A new benchmark in India; Meets 100% of its freshwater requirements through rainwater ‣ ~20% of excess
Slide 5: Contents
Contents ► Sustained Debt Reduction Consistent Sales Performance Sound Financials and Operations Project Updates L __ _ _ _ _ _ _ _ _ l ~soBHA PASSION AT WORK 4
Slide 6: Key Cashflow Highlights
Key Cashflow Highlights Rs Billion Total Operational Cash inflow Real Estate Cash inflow Sustained Debt Reduction ‣ Steady operational cashflows in Q1-FY 23, combined with 11.18 8.88 proceeds from monetization of land (executed in FY 22) has 56% 62% reduced net debt further by Rs. 227.2 crore 7.18 _
Slide 7: Cashflow Statement (Q1-FY23)
Cashflow Statement (Q1-FY23) Rs Million Particulars Q1-23 Q1-22 Q4-22 FY-22 Operational cash inflows Real Estate Operations 8,883 5,477 10,603 31,728 Contractual & Manufacturing 2,293 1,702 2,307 8,094 Total Operational cash inflow (A) 11,176 7,179 12,910 39,821 Operational cash outflows Real Estate
Slide 8: Cashflow Statement (Q1-FY23)…continued
Cashflow Statement (Q1-FY23)…continued Rs Million Particulars Q1-23 Q1-22 Q4-22 FY-22 Financial Outflows Finance Cost 529 731 618 2,850 Income Tax 293 97 154 491 Total Financial Outflows (D) 822 828 772 3,340 Cashflow after Financial Outflow : (E=C-D) 1,047 516 3,230 5,864 Capital Outflows Land Paym
Slide 9: Consistent Debt reduction over last seven quarters
Consistent Debt reduction over last seven quarters 36 32 1.24 30.21 1.28 30.50 1.23 -1.17 Net Debt (Rs Bn) 1.15 1.13 D/E Ratio 1.07 1.40 1.20 29.75 28.52 28.17 0.93 27.78 1.00 28 26.54 0.84 0.80 23.37 24 21.10 0.60 20 0.40 16 0.20 12 0.00 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Rs Bill
Slide 10: Borrowing Cost – one of industry's lowest
Borrowing Cost – one of industry’s lowest 11% Rate of Interest 10% Marginal increase in cost of debt, despite 90 basis 9.64% points raise in repo rates by RBI in Q1-23 9.32% 9.17% 9.04% 8.98% 9% 8.85% 8.65% 8.40% 8.45% 8% Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Gross Finance Cost (Rs.
Slide 11: Real Estate (residential) projects: projected cash flow (Q1-FY23)
Real Estate (residential) projects: projected cash flow (Q1-FY23) Completed - with Ongoing - Area Ongoing - Area Particulars Total UOM unsold inventory offered for sale not offered for sale Total Saleable area 15.36 19.81 8.71 43.88 Mn. sft Sobha Share of Saleable area 14.22 19.07 8.45 41.75 Mn. sft
Slide 12: Contents
Contents Sustained Debt Reduction ► Consistent Sales Performance Sound Financials and Operations Project Updates PASSION AT WORK 11 SOBHA
Slide 13: Sales Highlights (Q1-FY23)
Sales Highlights (Q1-FY23) Consistent Sales Performance Total Sale Volume (Mn sft) ‣ Highest ever quarterly Sales performance: Sold 1.36 million sft for Rs 11.45 billion. 1.36 ‣ Sales volume has been in the range of 1.3 million sft for the past four quarters showing sustained demand post COVID impac
Slide 14: Real Estate Sales Performance (Q1-FY23)
Real Estate Sales Performance (Q1-FY23) Highest ever quarterly sales volume & value Sobha Share of Sale Total Average Price Total Sale Value (Rs. Bn) Area Sold Total Sale Value Region Value Realization Sft Rs. Mn Rs. Mn Rs. / Sft 11.45 Bangalore 1,060,172 8,577 7,335 8,090 68% Chennai 34,367 141 143
Slide 15: Consistent Sales Performance Over The Quarters
Consistent Sales Performance Over The Quarters Quarterly Sales Volume (Mn sft) 1.34 1.35 1.32 1.34 1.36 1.13 0.89 0.90 0.65 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Quarterly Sales Value (Rs. Mn) 11,096 11,455 10,720 10,302 10,475 8,876 6,899 6,829 4,877 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2
Slide 16: Sales Value classification (Q1-FY23) - Price Band & Region Wise
Sales Value classification (Q1-FY23) - Price Band & Region Wise % Contribution per price bracket Region contribution to total sale value GIFT City , 4% > Rs.3 Crs 10% Kochi , 2% < 1 Cr Rs.2 Crs to 3 Crs 29% 17% Bangalore, 77% Coimbatore , 1% Rs. 1 Cr to 2 Crs Pune , 2% 44% Gurugram , 13% Thrissur ,
Slide 17: Buyer Profile (12 months rolling)
Buyer Profile (12 months rolling) Profession-wise Age wise Others, 18% >51 Years, 21-30 Years, 16% 14% Business, 9% IT, 45% Medical, 4% 41-50 Years, 25% 31-40 Years, 45% Non IT, 25% Indian – NRI split Customer mix for our homes across cities have remained similar for past several years Indian 88% La
Slide 18: Inventory available to maintain sales steady growth
Inventory available to maintain sales steady growth Forthcoming projects Total inventory in pipeline Total Saleable Area Inventory Type Mn sft Location No of Projects (Mn Sft) Unsold Area in Completed projects 0.44 Residential - Forthcoming Unsold Area in ongoing projects - Area offered for Bangalor
Slide 19: Contents
Contents Sustained Debt Reduction Consistent Sales Performance ► Sound Financials and Operations Project Updates PASSION AT WORK 18 SOBHA
Slide 20: Financial & Operational Highlights (Q1-FY23)
Financial & Operational Highlights (Q1-FY23) Sound Financials & Operations Total Income Real Estate Revenue ‣ The total revenue for Q1-FY23 is at Rs. 4.80 billion, including real 4.80 26% estate revenue of Rs. 3.67 billion. Revenue has increased by 26% 3.80 3.67 from Q1-FY22 53% 2.40 ‣ Completed pro
Slide 21: Profit & Loss Statement (Q1-FY23)
Profit & Loss Statement (Q1-FY23) Rs Million Particulars Q1-23 Q1-22 Q4-22 FY-22 Real Estate Revenue * 3,669 2,402 4,273 15,593 Contractual & Manufacturing Revenue 1,080 1,355 1,986 7,204 Other Income * 51 48 288 582 Total Income 4,800 3,805 6,547 23,379 Total Expenditure 3,844 2,750 5,358 18,179 EB
Slide 22: Consolidated Balance Sheet (Q1-FY23)
Consolidated Balance Sheet (Q1-FY23) Rs Million PARTICULARS 30-Jun-22 30-Jun-21 PARTICULARS 30-Jun-22 30-Jun-21 ASSETS EQUITY & LIABILITIES Non-current assets Equity Property, Plant and equipment 4,047 4,348 Equity Share Capital 948.46 948.46 Investment Property 3,640 3,494 Other Equity 24,302 23,44
Slide 23: Contracts Portfolio (Q1-FY23)
Contracts Portfolio (Q1-FY23) Ongoing projects (30 June 2022) Revenue & Collection Rs Billion Built-up area Particulars Q1 - 23 Q1 - 22 Sl No Location (Mn sft) Revenue 1 Bangalore 2.12 Contracts 0.29 0.80 2 Nagpur 0.41 Manufacturing 0.79 0.55 Total 1.08 1.35 3 Pune 0.07 Collections 4 Sonepat 0.49 Co
Slide 24: Contracts: Completed Projects Region Wise Contribution Details
Contracts: Completed Projects Region Wise Contribution Details Developed area (Mn Sft) Value (Rs. Mn) 26.54 29,194 7.31 11,117 6.68 4.92 6.29 5,358 5,607 7,764 1.65 0.08 0.76 1.55 - 0.70 0.14 0.45 0.19 1,325 755 1,589 788 11 - 328 200 120 0.79% Total developed area contribution Order value contribut
Slide 25: Manufacturing Division – Performance (Q1-FY23)
Manufacturing Division – Performance (Q1-FY23) ‣ 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 Di
Slide 26: Commercial portfolio: completed & upcoming projects
Commercial portfolio: completed & upcoming projects Total Leasable Area Sobha Share Sobha city mall, Thrissur Project Name Status (sft) Leasable area (sft) Sobha City Mall, Thrissur Operational 323,064 283,101 One Sobha, Bangalore Operational 225,081 151,140 Sub Total 548,145 434,241 Sobha City, Ath
Slide 27: Contents
Contents Sustained Debt Reduction Consistent Sales Performance Sound Financials and Operations ► Project Updates PASSION AT WORK 26 SOBHA
Slide 28: Real Estate - Projects portfolio – Completed, Ongoing & Forthcoming
Real Estate - Projects portfolio – Completed, Ongoing & Forthcoming Total Developable / Leasable Area in Mn sqft CITY Completed Under construction Forthcoming ‣ Completed Real Estate projects located across Bangalore 49.43 19.74 6.77 7 cities, with total development of 63.36 mn Mysore 1.33 0.25 - sf
Slide 29: Completed residential projects during Q1-23
Completed residential projects during Q1-23 SOBHA Blossom, Chennai, SOBHA City, Gurgaon (Plotted development) (Block A1, B1, C1) HRC Pristine, Bangalore (Row House) Shot at project sites PASSION AT WORK 28 SOBHA
Slide 30: New Project Launches during Q1-FY23
New Project Launches during Q1-FY23 SOBHA Royal Crest, Bangalore SOBHA Sentosa, Bangalore SOBHA Victoria Park, Bangalore Artistic Impressions of projects. Not shot at site. PASSION AT WORK 29 SOBHA
Slide 31: Ongoing Residential Projects
Ongoing Residential Projects SOBHA Royal Pavilion, Bangalore Wing7 Wing6 D SOBHA Lake Garden, Bangalore HRC Pristine (Apts.), Bangalore Shot at project sites PASSION AT WORK 30 SOBHA
Slide 32: Sobha Dream Acres in Bangalore has sustained its rapid pace of development
Sobha Dream Acres in Bangalore has sustained its rapid pace of development Total SBA launched for sale (as on June 2022) 5.84 mn sft Total developable area launched 7.50 mn sft Total SBA sold till June 2022 5.78 mn sft Area completed till June 2022 4.48 mn sft SBA Sold (%) 99% Dream Acres-Tropical G
Slide 33: Board of Directors
Board of Directors Ravi PNC Menon Jagadish Nangineni R.V.S. Rao Chairman Managing Director Independent Director ‣ Over 16 years of experience in the ‣ Over 20 years of experience in ‣ Over 48 years of experience in real estate and construction diversified industries such as real banking and finance
Slide 34: Thank you
Thank you SOBHA Corporate Office Sobha Limited ‘SOBHA’, Sarjapur-Marathahalli Outer Ring Road(ORR), Devarabisanahalli, Bellandur Post, Bangalore-560103 Phone: +91-80- 49320000 www.sobha.com Investor’s Contact Mr. Soumyadeep Saha Investor Relations Tel: +91-80-49320000 Ext. 5024 Email: soumyadeep.s@s