Sobha Limited · NSE:SOBHA
Sobha — Q4 FY2023 Earnings Presentation
45 slides from Sobha's earnings presentation, May 29, 2023
Slide 1: SOBHA Investor Presentation cover letter to exchanges
... II SOBHA PASSION A T WORK Date: May 29, 2023 To To The Deputy Manager The Manager Depa!1ment of Corporate Services The National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot No C/1, G Block PJ Towers, Dalal Street Bandra Kurla Complex Mumbai - 400 001 Mumbai - 400 051 Scrip Co
Slide 2: Investor Presentation
... Ii SOBHA PASS I ON AT WORK Investor Presentation Artistic Impression PASSION AT WORKof SOBHA Oakshire, Bangalore 1 March 2023
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 28 years of ‣ 128 mn sft completed in 528 developments till date across 27 cities in delivering international quality res
Slide 4: Snapshot of FY 2023 performance
Snapshot of FY 2023 performance Real Estate Sales (Rs. Bn) Collection (Rs. Bn) Net Cashflow (Rs. Bn) Net Debt (Rs. Bn) 6.97 51.98 52.82 23.37 36% 34% 33% 5.16 -30% 38.70 39.82 16.40 FY-22 FY-23 FY-22 FY-23 FY-22 FY-23 Q4-22 Q4-23 Revenue (Rs. Bn) EBITDA (Rs. Bn) PAT (Rs. Bn) Net D/E Ratio 34.02 29%
Slide 5: Awards and Recognitions in FY 2023
Awards and Recognitions in FY 2023 Track2Realty’s Brand X Report (10th edition) For the 6th time SOBHA topped across several categories: (1) Top National Brand; (2) Top South Indian Brand; (3) Top Residential Brand; (4) Top Super Luxury Brand; (5) Company with Top CSR across India; and (6) Public Pe
Slide 6: Contents
Contents ► Cashflow Sales Performance Financials & Operations Project Updates PASSION AT WORK 5 SOBHA
Slide 7: Highest ever annual net cashflow in FY 2023 with strong operational performance
Highest ever annual net cashflow in FY 2023 with strong operational performance Rs Billion Total Operational Cash Inflow Real Estate Cash Inflow ‣ Net debt reduction of Rs. 6.97 bn, highest ever in a year in company’s history, aided by operational cashflows and proceeds from land 52.82 33% monetizat
Slide 8: Best quarterly collections achieved in Q4 FY 2023
Best quarterly collections achieved in Q4 FY 2023 Rs Billion Total Operational Cash Inflow Real Estate Cash Inflow Key Highlights 14.22 ‣ Total Collections in Q4-FY23 improved by 10.2% compared to Q4-FY22 12.91 10% 11.79 to Rs. 14.22 bn, and 1.1% compared to Q3-FY23 10.60 11% • Real Estate contribut
Slide 9: Cashflow Statement – Q4 & FY 2023
Cashflow Statement – Q4 & FY 2023 Rs Million PARTICULARS Q4-23 Q3-23 Q4-22 FY-23 FY-22 Operational cash inflows Real Estate Operations 11,787 11,571 10,603 43,058 31,728 Contractual & Manufacturing 2,437 2,500 2,307 9,765 8,094 Total Operational cash inflow (A) 14,224 14,071 12,910 52,823 39,822 Ope
Slide 10: Cashflow Statement – Q4 & FY 2023…continued
Cashflow Statement – Q4 & FY 2023…continued Rs Million PARTICULARS Q4-23 Q3-23 Q4-22 FY-23 FY-22 Financial Outflows Finance Outflow 465 528 618 2,056 2,850 Dividend including taxes - - - 285 332 Total Financial Outflows (D) 465 528 618 2,341 3,181 Net Cashflow after Financial & Tax Outflow : (E=C-D)
Slide 11: Net Debt was reduced by Rs. 14.10 bn in ten quarters, from internal accruals alone
Net Debt was reduced by Rs. 14.10 bn in ten quarters, from internal accruals alone 36 1.32 1.31 1.40 1.25 1.23 Net Debt to Equity reduced by half in last ten 1.19 1.11 quarters to 0.66 as on 31st March, 2023 1.20 32 30.50 29.75 28.52 0.97 28.17 27.78 1.00 28 0.87 26.54 0.77 0.72 0.80 23.37 0.66 24 2
Slide 12: Interest rate has marginally increased with increase in repo rate
Interest rate has marginally increased with increase in repo rate Marginal increase in cost of debt despite 250 basis 10.00% points increase in repo rates in since Jan-2022 9.32% 9.17% 9.04% 8.98% 8.93% 8.85% 8.81% 9.00% ♦ 8.65% 8.57% 8.40% 8.45% ♦ r I I 1 I 8.00% 7.00% 6.00% 6.50% 6.25% 5.90% 5.00%
Slide 13: Residential Real Estate Portfolio: Projected Cashflow as on 31st March 2023
Residential Real Estate Portfolio: Projected Cashflow as on 31st March 2023 Completed - with Ongoing - Area Ongoing - Area Particulars Total Unit unsold inventory offered for sale not offered for sale Total Saleable area 16.00 20.52 2.86 39.38 Mn sft Sobha’s share of Saleable area 15.14 19.07 2.86 3
Slide 14: Inventory Visibility – Ongoing and Forthcoming Real Estate Projects
Inventory Visibility – Ongoing and Forthcoming Real Estate Projects Forthcoming Projects Total Residential Inventory – Ongoing and Forthcoming Location SBA (Mn sft) No. of Projects Inventory status Mn sft Residential Projects Bangalore 6.52 5 Unsold Area - Completed projects 0.08 NCR 4.32 3 Chennai
Slide 15: Contents
Contents Cashflow ► Sales Performance Financials & Operations Project Updates PASSION AT WORK 14 SOBHA
Slide 16: Historic best Sales performance achieved in FY 2023
Historic best Sales performance achieved in FY 2023 Sales Volume (Mn sft) ‣ FY 2023 has recorded historic best Sales year – across all parameters ‣ Sales SBA growth of 15.0% from FY22 to 5.65 mn sft 5.65 15% ‣ Average Realization improved by 16.7% compared to FY22 4.91 ‣ Sales value growth of 34.3%
Slide 17: Sales performance improved upon every quarter in FY 2023
Sales performance improved upon every quarter in FY 2023 Sales Value (Rs. Mn) Q4-23 Sales Highlights 14.25 14.63 11.46 11.64 ‣ Achieved highest ever quarterly Sales value of Rs 14.63 bn, best average 11.10 10.30 10.48 realization of Rs. 9,898/sft with highest SBA sold of 1.48 mn sft 6.83 ‣ Launched
Slide 18: Real Estate Sales Performance – FY 2023
Real Estate Sales Performance – FY 2023 Historic Sales achieved across all parameters – SBA, Average Realization & Sales value Area Sold Total Sale Value Sobha’s Share Value Average Price Realization Sales Value (Rs. Bn) Region (sft) (Rs. Mn) (Rs. Mn) (Rs. / sft) Bangalore 3,917,412 32,980 27,557 8,
Slide 19: Real Estate Sales Performance – Q4 FY 2023
Real Estate Sales Performance – Q4 FY 2023 Launched our first project in Hyderabad, SOBHA Waterfront Average Price Sales Value (Rs. Bn) Area Sold Total Sale Value Sobha Share Value Region Realization (Rs. / (sft) (Rs. Mn) (Rs. Mn) 14.63 sft) 32% Bangalore 929,575 8,071 6,650 8,683 11.10 NCR 185,439
Slide 20: Consistent Sales performance with improving realization
Consistent Sales performance with improving realization Quarterly Sales Volume (Mn sft) 1.48 1.48 1.35 1.32 1.34 1.36 1.34 0.90 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Quarterly Sales Value (Rs. Mn) 14,247 14,634 11,455 11,642 11,096 10,302 10,475 6,829 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3
Slide 21: Sales Value classification - Q4 & FY 2023 - Price Band & Region Wise
Sales Value classification - Q4 & FY 2023 - Price Band & Region Wise Price bucket wise contribution to sales value • Luxury segment (> Rs 2 Cr.) contribution has Q4 – FY23 FY-23 Rs. 2 - 3 Cr. Rs. 2 - 3 Cr. 11% < Rs. 1 Cr. grown from 25% in FY22 to 36% in FY23 7% < Rs. 1 Cr. 24% 26% • Contribution to
Slide 22: Contents
Contents Cashflow Sales Performance ► Financials & Operations Project Updates PASSION AT WORK 21 SOBHA
Slide 23: Financial & Operational Highlights – FY 2023
Financial & Operational Highlights – FY 2023 Total Income (Rs. Bn) Real Estate Income (Rs. Bn) Key Highlights 34.02 ‣ Total revenue for FY23 is at Rs. 34.02 bn, up by 28.6% compared to FY22 29% 26.45 ‣ Real estate revenue was Rs. 25.24 bn, increased 36.9% from FY22 25.24 38% 18.44 ‣ We handed over 2
Slide 24: Financial & Operational Highlights – Q4 & FY 2023
Financial & Operational Highlights – Q4 & FY 2023 Key Highlights Total Income (Rs. Bn) Real Estate Income (Rs. Bn) ‣ The total revenue for Q4-FY23 is Rs. 12.40 bn, up by 66.7% compared to 12.40 9.56 Q4-FY22 and 38.1% compared to Q3-FY23 67% 84% 7.44 ‣ Real estate business contributed Rs. 9.56 bn (77
Slide 25: Profit & Loss Statement – Q4 & FY 2023
Profit & Loss Statement – Q4 & FY 2023 Rs Million Particulars Q4-23 Q3-23 Q4-22 FY-23 FY-22 Real Estate Revenue 9,557 6,735 5,204 25,238 18,437 Contractual & Manufacturing Revenue 2,542 1,946 1,900 7,863 7,176 Other Income 302 298 334 923 839 Total Income 12,401 8,980 7,438 34,024 26,453 Total Expen
Slide 26: Consolidated Balance Sheet as on 31-Mar-2023
Consolidated Balance Sheet as on 31-Mar-2023 ASSETS (in Rs. Mn) 31-Mar-23 31-Mar-22 EQUITY & LIABILITIES (in Rs. Mn) 31-Mar-23 31-Mar-22 Non-current Assets Equity Property, Plant and equipment 4,130 4,111 Equity Share Capital 948 948 Investment Property 4,519 3,962 Other Equity 23,999 23,282 Investm
Slide 27: Contracts Portfolio & Operational Overview – FY 2023
Contracts Portfolio & Operational Overview – FY 2023 Revenue & Collection Rs Billion Azim Premji University Campus, Bangalore Particulars FY23 FY22 Development of all structures across 50 acre university campus in Revenue Sarjapur, Bangalore, on initiative of Azim Premji Foundation Contracts 3.62 4.
Slide 28: Contracts - Completed Projects - Region wise contribution details
Contracts - Completed Projects - Region wise contribution details Total Developed Area(in Mn Sqft) Order Value (in Mns) 26.54 29,022 11,117 7.31 7.10 4.92 6.29 6,411 5,607 7,634 1.65 0.08 0.76 1.55 0.70 0.14 0.45 0.19 1,325 11 I 755 1,759 788 I 328 200 120 Total Developed Area Contribution Order Val
Slide 29: Manufacturing & Retail Performance - FY 2023
Manufacturing & Retail Performance - FY 2023 ‣ SOBHA – Only Real Estate company in India with complete vertical integration across the value chain ‣ It supports company to take up turn-key projects and deliver world class quality in timely & efficient manner Glazing & Metal Works Interiors, Matresse
Slide 30: Commercial portfolio: Completed, Ongoing & Forthcoming projects
Commercial portfolio: Completed, Ongoing & Forthcoming projects Total Sobha Share Sobha City Mall, Thrissur Project Name Status Leasable Area (sft) Leasable area (sft) Sobha City Mall, Thrissur Operational 322,983 280,798 One Sobha, Bangalore Operational 221619 195,987 Sub Total 544,602 476,785 Sobh
Slide 31: Contents
Contents Cashflow Sales Performance Financials & Operations ► Project Updates PASSION AT WORK 30 SOBHA
Slide 32: Real Estate - Projects portfolio – Completed, Ongoing & Forthcoming
Real Estate - Projects portfolio – Completed, Ongoing & Forthcoming Total Developable / Leasable area and Saleable area (Mn sft) Completed Ongoing Region Forthcoming Developable Saleable Built-up Developable Saleable Built-up Area Area Area Area Note: Bangalore* 57.43 41.46 17.19 11.71 6.81 ‣ Real E
Slide 33: New Projects Launched in FY 2023
New Projects Launched in FY 2023 3.96 mn sft of new residential projects launched in FY 2023, of which 1.06 mn sft was launched in Q4 Project Location Launch Period Product Type Configuration SBA Sobha Sentosa Bangalore Q1-23 Apartments 3 BHK , 3.5 BHK & 4 BHK 779,066 Sobha Royal Crest Bangalore Q1-
Slide 34: 1.06 mn sft launched during Q4 FY 2023 including SOBHA’s first project in Hyderabad
1.06 mn sft launched during Q4 FY 2023 including SOBHA’s first project in Hyderabad SOBHA Galera, Bangalore • Located before Hoskote, off Old Madras Road • Total SBA of 131,101 sft. • Comprises of 40 rowhouses with G+1 (Duplex, 32 nos.) and G+2 ( Triplex, 8 nos.) • Unit size ranges from 3,009 sft to
Slide 35: Projects completed in Q4 and FY 2023
Projects completed in Q4 and FY 2023 2,326 homes (3.97 mn sft) delivered in FY 2023, out of which 1,080 homes (1.68 mn sft) were completed in Q4-FY23 Project Location Product Type No. of units SBA (sft) Sobha HRC Pristine Bangalore Apartments 381 758,831 Sobha Dream Acres – Tropical Greens Bangalore
Slide 36: Completed Residential Projects during Q4 FY 2023
Completed Residential Projects during Q4 FY 2023 SOBHA Dream Acres – Tropical Green Wing 25 SOBHA Dream Acres – Tropical Green Wing 34 SOBHA Dream Garden – Wing 6A Bangalore Bangalore Bangalore .1~ r~ ~ 11- 3~ ?' 11 ' Wing 25 comprising of 1 tower of G+14 floors Wing 34 comprising 1 Tower of G+14 fl
Slide 37: Completed Residential Projects during Q4 FY 2023...continued
Completed Residential Projects during Q4 FY 2023...continued SOBHA Forest Edge Block 1 International City Phase 2 SOBHA Royal Pavilion – Wing 6,7 Bangalore NCR Bangalore Block 1 comprising 1 Tower of G+24 floors 10 Villas completed in Q4-FY23. Total 71 Villas completed till date. Wing 6 & Wing 7 - c
Slide 38: Completed Residential Projects during Q4 FY 2023...continued
Completed Residential Projects during Q4 FY 2023...continued SOBHA Arena – Pebble Court – Wing 2 SOBHA HRC Pristine Block 1– Wing 1 & 2 SOBHA Silver Estate Bangalore Bangalore Thrissur Wing 2 comprising 1 Tower of G+17 floors Wing 1 & 2 comprising of G+19 floors Villa completed in Q4 is 3 Nos and to
Slide 39: Ongoing Residential Projects
Ongoing Residential Projects SOBHA Lake Gardens - Bangalore SOBHA Royal Pavilion - Bangalore SOBHA City Gurgaon - NCR Development details Development details Development details 8 Towers of G+13/18 floors with 597 units (1/2/2.5/3BHK) 16 towers of G+18 floors with 1,133 units (2/3/4 BHK) 14 towers o
Slide 40: Ongoing Residential Projects…continued
Ongoing Residential Projects…continued SOBHA Victoria Park - Bangalore SOBHA Sentosa - Bangalore SOBHA Brooklyn Towers - Bangalore Development details Development details Development details Phase I - 5 Towers of G+9 floors with 300 units & SBA of 538,026 sft 4 phases with 7 Wings of G+17 floors wit
Slide 41: Ongoing Residential Projects ….. continued
Ongoing Residential Projects ….. continued SOBHA Marina One - Kochi SOBHA Meadows Whispering Hills - Trivandrum SOBHA Avalon - Gift City Development details Development details Development details 8 Wing with G+25/27/28 floors with 779 units (2.5/3/3.5/4 BHK) 2 Blocks of G+12 floors with 98 units (
Slide 42: Ongoing Residential Projects…continued
Ongoing Residential Projects…continued SOBHA Arbor - Chennai SOBHA Metropolis - Thrissur SOBHA Westhill Part C - Coimbatore Development details Development details Development details 7 Wing of G+5 floors with 163 units (3/34 BHK) 6 Towers of G+21/23/25 floors with 504 units (2/3/4 BHK) 6 villas of
Slide 43: SOBHA Dream Acres – fully released and approaching sales completion
SOBHA Dream Acres – fully released and approaching sales completion SBA launched for sale as on 31st Mar 2023 6.50 Developable area launched till Mar 2023 8.17 SBA released in Q4-FY23 0.35 Developable area completed till Mar 2023 6.53 SBA sold till 31st Mar 2023 6.23 Area in mn sft Dream Acres-Tropi
Slide 44: Board of Directors
Board of Directors Ravi PNC Menon, Chairman Jagadish Nangineni, Managing Director ‣ 17+ years of experience in the real estate and ‣ 22 years of experience across diverse sectors - real construction business estate, consulting & technology ‣ Bachelor of Science in Civil Engineering from ‣ B.Tech in
Slide 45: Thank you
Thank you SOBHA Corporate Office ‘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@sobha.com Disc