Slide 1: Arihant Superstructures Ltd. – Continuing Stability
- ARIHNT A CONTI NUI NG STABI LI TY SUPERSTRUCTURES LTD. C O NT IN LUI NG STABI LI TY 21July, 2021 Corporate Relations Department Listing Compliance Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Plot No. C/1,G Block, Mumbai -
Slide 2: Investor Presentation Q1 – FY 2022
INVESTOR PRESENTATION Q1 – FY 2022
Slide 3: Disclaimer
DISCLAIMER This presentation has been prepared by Arihant Superstructures Limited (the Company) for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person. This presentation does not solicit any action based
Slide 4: CMD's Message
CMD’S MESSAGE “First wave of COVID has taught us important lessons which has helped us navigate the second wave of COVID unscathed. As a result, we have achieved one of the best Q1 performance in our history in terms of Sales & Profitability. Our new launches have also helped us in achieving better
Slide 5: Key Highlights for Q1-FY22
KEY HIGHLIGHTS FOR Q1-FY22 4
Slide 6: Quarterly Highlights – Q1 FY22
QUARTERLY HIGHLIGHTS – Q1 FY22 Successful digital launches of two projects - Arihant Advika at Vashi, Navi Mumbai targeted at High Income Group and Arihant 5Anaika at Taloja, Navi Mumbai in the affordable category Sales bookings of 368 units aggregating 3.07 lac sft in Q1 FY22 owing to successful di
Slide 7: Quarterly Sales Trend
QUARTERLY SALES TREND No. of Units Sold Area Sold (Lakh Sft) 3.6 3.6 403 373 368 3.07 2.62 283 0.35 38 Q1-FY21 Q2-FY21 Q3-FY21 Q4-FY21 Q1-FY22 Q1-FY21 Q2-FY21 Q3-FY21 Q4-FY21 Q1-FY22 Particulars Q1 FY22 Q4 FY21 Q1 FY21 Q1 FY20 Units Sold (No.) 368 373 38 149 Area Sold (Lakh Sft) 3.07 3.60 0.35 1.45
Slide 8: Quarterly Results – Q1 FY22
QUARTERLY RESULTS – Q1 FY22 Particulars (INR Cr) Q1 FY22 Q1 FY21 % change Q4 FY21 % change Total Revenue 84.66 10.15 733.84% 124.26 31.86% Total Operating Expenses 69.28 8.81 103.42 EBITDA 15.38 1.34 1043.88% 20.84 26.15% Interest 5.35 7.90 6.49 Depreciation 0.47 0.52 0.48 PBT 9.57 (7.08) 13.87 31.0
Slide 9: Key Highlights for FY21
KEY HIGHLIGHTS FOR FY21 8
Slide 10: Operational Highlights
OPERATIONAL HIGHLIGHTS Sales Sales bookings crossed 1,097 units for the full year FY21 for the first time in Company’s history showcasing strength of Brand Arihant In area terms, sales bookings crossed 1 million Sft, a growth of ~59% over FY20 with an aggregate value of bookings rising to INR 463 Cr
Slide 11: Financial Highlights
FINANCIAL HIGHLIGHTS Strong all-round performance demonstrated by Arihant Superstructures Limited (ASL) in FY21 With record sales & collections, ASL was able to reduce its debt by INR 91 Cr on a Y-o-Y basis which will enable us to reduce finance costs substantially The weighted average cost of capit
Slide 12: Readiness for the Upcycle
READINESS FOR THE UPCYCLE • Real Estate is characterized with 5-year cycles. With over 2 decades of experience, ASL’s strategy incorporates such cyclicality • The slowdown experienced in the property markets provided an opportunity to consolidate Creating ready • ASL could envision the need for read
Slide 13: Readiness for the Upcycle
READINESS FOR THE UPCYCLE • Two new projects were added in FY21 – one in affordable housing admeasuring ~24,130 sqm and one redevelopment project in upper mid income/luxury segment on a land area admeasuring 14,996 sqm Healthy & expanding • These projects will add more than 1.1 mn sft to the overall
Slide 14: Company Overview
COMPANY OVERVIEVV 13
Slide 15: Overview
OVERVIEW Arihant Superstructures Limited (ASL) is one of the largest real estate player in affordable and mid-income housing consisting of 96% of its portfolio in affordable and mid-income housing Geographically well diversified portfolio across Navi Mumbai, MMR and Jodhpur regions Ongoing & upcomin
Slide 16: Geographical Spread – MMR
GEOGRAPHICAL SPREAD - MMR 13Lifestyle Defining Projects Region No of Projects Vashi 1 Kalyan Badlapur Taloja 6 Mumbai Kharghar Kharghar 1 Taloja Panvel 1 Vashi Kalyan 1 Panvel Badlapur 1 Karjat Karjat 1 Khopoli 1 Khopoli 15
Slide 17: Geographical Spread – Jodhpur
GEOGRAPHICAL SPREAD – JODHPUR 4Market Defining Projects Region No of Projects Dali Bai Circle 3 Pal Gangana Road 1 Dali Bai Circle Pal Gangana Road 16
Slide 18: Portfolio Mix
PORTFOLIO MIX Category-wise portfolio mix High Income Group (> INR 8,000/sft) Diversified portfolio mix across geographies 4% with focus on affordable and mid income housing Affordable (INR 3,000- 5,000/sft) 57% Mid Income Group (INR 5,000-8,000/sft) Area-wise Portfolio Mix 39% Jodhpur Kharghar / Ta
Slide 19: Strengths & Business Model
STRENGTHS & BUSINESS MODEL Land Acquisition Product Strategy Fully paid-up land bank for projects to be To have products across various stages of executed in the seven years; Direct purchase construction to serve varied customer needs from individual landowners to keep costs in check Sales and Marke
Slide 20: Value Creation Journey
VALUE CREATION JOURNEY 1994 2000 2007 2014 2017 2021 Launch Achieved a Successfully Successfully Successfully Record sales of of Real Estate significant milestone of Completes and delivers 25 completes and delivers 4 Mn launched flagship project “Arihant 1,097 units Division completing 10 projects s
Slide 21: Board of Directors
BOARD OF DIRECTORS AshokChhajer, NimishShah, Virendra Mittal, Promoter, CMD Whole-Time Director Independent Director ● Over 4 decades experience including 2 decades in the real ● A civil engineer with over 17 years experience in ● IIT Alumnus and a fellow chartered engineer estate business construct
Slide 22: Management Team
MANAGEMENT TEAM Akshay Agarwal, AbhishekShukla, DeepakLohia, Director - Procurement Chief Strategy Officer Chief Financial Officer ● CA having 23 years of experience in the areas of Taxation, ● Seasoned business and finance professional with over 15 Accounts & Finance. ● Young and dynamic leader, he
Slide 23: Awards & Accolades (Since 2017)
AWARDS & ACCOLADES (SINCE 2017) Over 25 Awards & Recognitions over the last decade 2019 2018 Zee Business Award – Developer of Iconic Award by Radio the Year ( Affordable Housing) IGBC Pre-certified Platinum Affordable Housing Project of City for Arihant the Year for Arihant Arshiya Rating for Aspir
Slide 24: Select Project Elevations
SELECT PROJECT ELEVATIONS Arihant Advika, Vashi Arihant Aspire, Panvel Arihant Anaika, Taloja Arihant Aalishan, Kharghar * Images are Artist’s impressions and for representational purposes only 23
Slide 25: Select Project Elevations
SELECT PROJECT ELEVATIONS Arihant Aloki, Karjat Arihant Adita, Jodhpur Arihant Arshiya, Khopoli Arihant Ayati, Jodhpur * Images are Artist’s impressions and for representational purposes only 24
Slide 26: Sustainable Development
SUSTAINABLE DEVELOPMENT Water preservation by rain Solar water heating system, Social development by water harvesting & STP and energy efficient lighting and supporting rural energy conservation use of low VOC paints & infrastructure, school etc. measures adhesives Economic development by Participat
Slide 27: CSR Initiatives
CSR INITIATIVES Providing Ration to all laborers & their families staying at the sites during the Lockdown Grant to Shri Maruti Mandir Trust (Palaspe) for education & livelihood enhancement projects Construction of Road at Ekatpada village Construction of Road at Koynaville village 26
Slide 28: Growth Drivers
GROWTH DRIVERS 27
Slide 29: Robust Foundation
ROBUST FOUNDATION Financial Stability Dynamic Sales Infrastructure • Strong sales collections in FY21 –~24% • Sustainable sales growth momentum growth over FY20 despite pandemic impact • Expanded sales team to 100+ to capitalize on market opportunity • Thorough cost control – a competitive advantage
Slide 30: Consistent Pace of Delivery
CONSISTENT PACE OF DELIVERY We move forward with a strong belief that timely delivery with superior quality will be the key differentiator in the future ASL has consistently delivered 700-900 units year on year since past many years and is working towards improving the pace While construction activi
Slide 31: Acquisitions in Last 5 Years
ACQUISITIONS IN LAST 5 YEARS Saleable Area Est. Revenue Type of Land Area Year Location Project Potential Potential Acquisition (Sqm) (Sft) (INR Cr) 2016-17 Rohinjan, Aalishan Land purchase 20,470 10,01,432 820 Kharghar, Navi Mumbai 2017-18 Taloja Amber Land purchase 1,560 32,547 15 2018-19 Panvel F
Slide 32: Ongoing Projects
ONGOING PROJECTS No. of Est. Sale Potential Project Location Area (Sft) Category units (INR Cr) 2Anaika Taloja 279 2,03,384 92 Affordable 4Anaika Taloja 396 2,69,694 121 Affordable Aarohi Kalyan 37 72,381 38 Affordable Aloki Ph 2 Karjat 297 1,96,003 68 Affordable Aalishan Ph 1 Kharghar 542 6,32,047
Slide 33: New Launches
NEW LAUNCHES No. of Est. Sale Potential Project Location Timeline Area (Sft) Category units (INR Cr) 5Anaika Taloja Q1 FY22 433 3,62,272 167 Affordable Advika Vashi Q1 FY22 327 4,21,260 632 Upper Mid-Income Anmol Ph 4 Badlapur Q2 FY22 31 22,412 8 Affordable Aalishan Ph 2 Kharghar Q2 FY22 271 3,69,38
Slide 34: Future Projects
FUTURE PROJECTS No. of Est. Sale Potential Project Location Area (Sft) Category units (INR Cr) Aloki Karjat 265 1,72,769 60 Affordable Arshiya Khopoli 985 7,88,500 260 Affordable Aspire Panvel 1,648 19,53,599 1,368 Mid-Income Akarshan Taloja 1,756 11,25,505 450 Affordable Anchal Jodhpur 1848 16,63,2
Slide 35: Infrastructure Development
INFRASTRUCTURE DEVELOPMENT Navi Mumbai International Airport • The 16,000-crore Navi Mumbai airport is touted to be one of the world’s largest Greenfield airports with a capacity to handle 20 Mn passengers per annum in the first phase and 90 Mn final capacity • Takeover by Adani Group recently is ex
Slide 36: Infrastructure Development
INFRASTRUCTURE DEVELOPMENT Multi Modal Corridor • Virar-Alibaug Multi Modal Corridor is a 126 kms road network connecting NH-8, Bhiwandi bypass, NH-3, NH-4 and NH-4B, Mumbai-Pune Expressway, NH-17, etc. • Designed to promote 7 growth centers in MMR such as Virar, Bhiwandi, Kalyan, Dombivali, Panvel,
Slide 37: Market Attractiveness
MARKET ATTRACTIVENESS Ranking among 111 cities – Ministry of Housing and Urban Affairs (2020) Navi Mumbai has 45 consistently ranked in top 10 out of a total 38 36 of 111 cities ranked 33 30 through the Ease of 25 26 25 Living Index 16 16 17 12 It is also ranked in top 11 10 11 11 9 9 15 for all the
Slide 38: Construction Progress
CONSTRUCTION PROGRESS 37
Slide 39: Project Status – Aalishan (Kharghar)
PROJECT STATUS – AALISHAN (KHARGHAR) Kaveh Baraz-I Terrace slab completed 49th floor completed in Baraz I Finishing work in progress Blockwork completed till 40th floor 38
Slide 40: Project Status – Aspire (Panvel)
PROJECT STATUS – ASPIRE (PANVEL) Iliana Hortensia 22nd floor completed in Iliana 22nd floor completed in Hortensia 39
Slide 41: Project Status – Anaika (Taloja)
PROJECT STATUS – 3 ANAIKA (TALOJA) M Wing K Wing Internal finishing in progress External painting and finishing in progress 40
Slide 42: Project Status – Anaika (Taloja)
PROJECT STATUS – 4 ANAIKA (TALOJA) O Wing P Wing 10, 8, 7 and 9 floors completed in N, O, P & Q Wings respectively; Internal works in progress 41
Slide 43: Project Status – Amber & Aloki
PROJECT STATUS – AMBER & ALOKI Amber, Taloja Aloki, Karjat Painting, flooring, firefighting works in progress Internal finishing work in progress in Wing-B2 42
Slide 44: Project Status – Arohi & Anmol
PROJECT STATUS – AROHI & ANMOL Arohi, Kalyan Anmol, Badlapur 14th floor completed 43
Slide 45: Project Status – Anchal (Jodhpur)
PROJECT STATUS – ANCHAL (JODHPUR) A1 to A4, B1 to B7, C1 to C3, D1 to D5 under construction 44
Slide 46: Project Status – Adita (Jodhpur)
PROJECT STATUS – ADITA (JODHPUR) RCCnearing completion & Internal finishing works in progress 45
Slide 47: Financial Snapshot
FINANCIAL SNAPSHOT 46
Slide 48: Capital Market Data
CAPITAL MARKET DATA BSEScrip Code 506194 NSE Trading Symbol ARIHANTSUP Shareholding Pattern Bloomberg Code ARSU:IN FPIs/Banks/Fis Public 0.35% 23.96% GICSSector Real Estate Promoters Mutual Funds 74.31% 1.38% Market Cap as on INR 3,733 Mn 18th June 2021 52 Week High INR 102.4 52 Week Low INR 18.5 47
Slide 49: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Particulars (INR Cr) FY18 FY19 FY20 FY21 Total Revenue 189.3 242.2 237.6 272.3 Cost of Construction, Land & Development 128.5 195.5 119.2 149.2 Changes in Inventories -16.1 -51.1 33.6 33.4 Employee Benefits Expense 12.7 13.8 12.1 11.9 Other Expenses 25.6 27.1 25.2 27.6
Slide 50: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Equity and Liabilities (INR Cr) FY18 FY19 FY20 FY21 Share Capital 41.2 41.2 41.2 41.2 Reserves and Surplus 76.4 80.7 85.6 97.5 Net worth 117.6 121.9 126.8 138.7 Non-Controlling Interest 9.8 13.9 20.0 24.6 Long Term Borrowings 171.9 237.7 316.8 249.9 Short Term Borrowings 1
Slide 51: Consolidated Debt – 30 June 2021
CONSOLIDATED DEBT - 30 JUNE 2021 TH Debt attributable as Entity Debt Entity % holding per % holding (INR Cr) (INR Cr)* ASL 14.70 100% 14.70 Effective debt of ASL is worked out based on Arihant Vatika 1.25 60% 0.75 ASL’s shareholding in subsidiaries Arihant Aashiyana 39.18 60% 23.51 Any liability of
Slide 52: Financial Performance
FINANCIAL PERFORMANCE Income Statement (INR Cr) Return Ratios Revenues EBITDA PAT ROE ROCE 272 16.0% 15.0% 242 238 14.0% 12.0% 12.0% 10.1% 11.0% 189 10.0% 10.9% 8.0% 10.… 84.7 6.0% 4.5% 8.4% 56.9 47.5 50.2 4.0% 38.5 14.7 18.3 11 15.7 15.4 8.3 2.0% 0.0% FY18 FY19 FY20 FY21 Q1FY22 FY18 FY19 FY20 FY21
Slide 53: Industry Outlook
INDUSTRY OUTLOOK 52
Slide 54: Macro-Economic Indicators
MACRO-ECONOMIC INDICATORS Negative real rates pushing preference towards physical assets - India is witnessing negative real rates after many years which boosts the attractiveness of owning physical assets over the financial assets. As per an analysis by Jefferies, 1 year G-Sec yields less CPI is pe
Slide 55: Key Reforms & Interventions
KEY REFORMS & INTERVENTIONS 2017 2019 2021 RERA & GST GST Reduction Structural Upcycle RERA & GST are arguably the GST reduction to 5% for The last 5 years have laid the most important landmark under-construction housing foundation for a structural structural reforms post the and 1% for affordable h
Slide 56: Residential Market
RESIDENTIAL MARKET Early signs of recovery Gaining Momentum GDP showed higher than expected Opening up of the economy recovery; Housing sales grew 34% coupled up with pent up on sequential basis – significant demand resulted into new indicator considering job and launches and sales registering incom
Slide 57: Declining Inventory Levels
DECLINING INVENTORY LEVELS Unsold Inventory (units in lakhs) 9 7.91 8 7.26 6.73 7 6.48 6.38 6 Limited launches in last two years and sales pickup 5 has resulted in unsold inventory declining ~20% 4 3 since 2016 at 6.38 lakh units in top 7 cities. 2 1 0 Unsold inventory in MMR at 2 lakh units is down
Slide 58: Key Trends
KEY TRENDS 1 2 3 4 Ownership vs Rent Historically low Government Accelerating interest rates Initiatives Consolidation Lockdown Central bank Stamp duty The crisis reinforced the need continues to hold reduction of 2-3% in precipitated by the of owning the house the low interest rate states like pand
Slide 59: Key Trends
KEY TRENDS 5 6 7 Peripheral markets Affordable Housing Technology Adoption As many companies 80% of the new The success of digital embrace remote launches were in the adoption among the working model, the sub INR 10 Mn market leaders as peripheral markets category* reflected in the sales and satelli
Slide 60: Best Ever Affordability
BEST EVER AFFORDABILITY Best affordability in 25 years Stable Property prices and all-time low mortgage rates have resulted in the best affordability in past two and a half 25 decades. 22 20 15 15.6 It is expected to be even more favourable in satellite cities 10 11.1 established peripheral micro ma
Slide 61: Thank you!
Thank you! For further Information please contact: Abhishek Shukla Chief Strategy Officer Tel: +91 22 6249 3333 Cell: +91 9619195775 Email: abhishek.shukla@asl.net.in Corporate Office: Arihant Aura, Floor No. 25, B wing, Plot no 13/1, TTC Industrial Area, Thane Belapur Road, Turbhe, Navi Mumbai – 40