Sunteck Realty Limited · NSE:SUNTECK
Sunteck Realty — H1 FY24 Earnings Presentation
33 slides from Sunteck Realty's earnings presentation, Oct 22, 2023
Slide 1: Exchange filing cover letter
Sunteck Realty Ltd. Date: 21st October, 2023 SRL/SE/48/23-24 National Stock Exchange of India Ltd BSE Limited Exchange Plaza, Plot no. C/1, G Block, Phiroze Jeejeebhoy Tower, Bandra-Kurla Complex, Bandra (East), Dalal Street, Mumbai- 400 051 Mumbai – 400 001 Symbol: SUNTECK Scrip Code: 512179 Sub: I
Slide 2: Sunteck Realty Limited Investor Presentation Q2 & H1 FY24
Sunteck Realty Limited Investor Presentation Q2 & H1 FY24 October 2023 NSE: SUNTECK | BSE: 512179 | Bloomberg: SRIN: IN | Reuters: SUNT.NS / SUNT.BO 1
Slide 3: Disclaimer
Disclaimer By attending the meeting where this presentation is made and any additional material is provided (“Presentation”) or by reading the Presentation, you (“Recipient”), agree to be bound by the following limitations. This Presentation has been prepared on the basis of the estimates of the man
Slide 4: Key Strengths - Why Sunteck?
Key Strengths - Why Sunteck? 3
Slide 5: Key Strengths – Why Sunteck?
Key Strengths – Why Sunteck? 1 2 3 Well-timed Capital Strong Foothold in Luxury portfolio in every Allocation for MMR market - largest segment & across micro- acquisitions - Acquired & fastest growing markets - from uber luxury more than ~50 mn sq ft & market in India to aspirational luxury GDV of ~
Slide 6: Snapshot
Snapshot Strong Operational Foothold One of the large Well-timed developers in MMR INR~30,000 cr+ of ~50 MSF+ total 17 projects capital allocation – largest & fastest GDV from ~7 large development successfully with JDA & growing market projects acquisitions delivered outright model 5 Rs 1 cr = Rs 10
Slide 7: Strong Foothold in MMR Market – largest & fastest growing in India
1 Strong Foothold in MMR Market – largest & fastest growing in India MMR-Focused Luxury Real Estate Developer (1/2) By Location Volume By Project Brands 6
Slide 8: MMR is the most attractive real estate market in India
1 Strong Foothold in MMR market – largest & fastest growing in India MMR is the most attractive real estate market in India (2/2) MMR commands 45%+ market share Indian Real Estate Market is Growing MMR RE Market expected to grow at among 7 key macro markets 20% + in next decade 1,000 15% 16% 450 10%
Slide 9: Luxury portfolio in every segment & across micro-markets
2 Luxury portfolio in every segment & across micro-markets From Uber Luxury to Aspirational Luxury Premium positioning by creating different luxury brands across segments 8
Slide 10: Well-timed Capital Allocation for acquisitions (1/2)
3 Well-timed Capital Allocation for acquisitions Acquired more than ~50 mn sq ft & GDV of ~Rs 30,100 cr (1/2) 9
Slide 11: Well-timed Capital Allocation for acquisitions (2/2)
3 Well-timed Capital Allocation for acquisitions Acquired more than ~50 mn sq ft & GDV of ~Rs 30,100 cr (2/2) Total GDV of ~Rs 30,100 cr across 7 large projects Extended Western Suburbs Extended Western Suburbs Vasai Naigaon Area : ~3.6 MSF Area : ~7.0 MSF GDV : ~Rs. 4,000 Crs GDV : Rs. 5,000 Crs Ex
Slide 12: Strong Operational Cash Flow Visibility (1/2)
4 Strong Operational Cash Flow Visibility US$ 3.6 bn of GDV to be generated from the projects pipeline (1/2) ~Rs 16,000 cr of net surplus to be generated from 7 large projects Unsold Inventory Receivables from sales booked Pending Costs Net Surplus 6% 4% 9% 13% 20% 8% 13% 11% 59% 17% 77% 80% 83% ~Rs
Slide 13: High revenue & profits visibility (2/2)
4 Strong Operational Cash Flow Visibility High revenue & profits visibility (2/2) Follows Project Completion Method of Accounting wherein P&L recognition happens once the project is delivered 2 large projects will get delivered in the coming years leading to strong revenue recognition in P&L Key Tar
Slide 14: Robust Financial Performance
5 Robust Financial Performance Amongst industry best financials 0.09x Net Debt ~22% 5-year ~20%+ AA- Long term INR 750 cr to Equity Ratio Pre-sales Operating credit rating from partnership with CAGR Cashflow Surplus Fitch and CARE IFC – World Bank Yield Group 13 Rs 1 cr = Rs 10 mn
Slide 15: Net Debt to Equity @ 0.09x
Robust Financial Performance 5 Net Debt to Equity @ 0.09x Sunteck’s Long-Term Credit Rating is AA- with Positive Outlook from FITCH & CARE As on 30th Sep, 2.00x Particulars (~Rs cr) 23# 1.80x > ~38.5 mn sq ft of projects acquired since Total Debt 537 1.60x 2018 Less: Cash, Bank, Liquid Investments 9
Slide 16: Strong Operational Growth
5 Robust Financial Performance Strong Operational Growth Yearly Pre-sales (~Rs cr) Yearly Collections (~Rs cr) 1,800 1,400 1,602 1,250 1,600 1,200 1,303 1,053 1,400 1,000 1,200 1,022 780 1,000 800 800 600 600 400 400 200 200 0 0 FY21 FY22 FY23 FY21 FY22 FY23 Quarterly Pre-sales (~Rs cr) Quarterly Co
Slide 17: OCF Surplus Yield @~22%
5 Robust Financial Performance OCF Surplus Yield @~22% Net OCF Surplus (~Rs cr) Net OCF Surplus Yield 450 428 25.00% 22.00% 400 350 20.00% 300 281 14.50% 239 15.00% 250 12.21% 200 10.00% 150 100 5.00% 50 0 0.00% FY21 FY22 FY23 FY21 FY22 FY23 As the company follows Project Completion Method of Accoun
Slide 18: Successful Equity Partnerships
6 Successful Equity Partnerships Recent Partnership • Sunteck & IFC – World Bank Group form Joint Investment Platform of up to ~Rs 750 cr • Key highlights of the partnership • MMR focused platform to build high-quality green urban large-scale housing projects targeting the mid-income demographic • U
Slide 19: GDV - Growth Engines to drive Pre-sales growth
GDV - 7 Growth Engines to drive Pre-sales growth Achieved pre-sales growth of ~25% between FY21 and FY23 GDV – Gross Development Value excluding cash flows from completed & ongoing launched projects/phases GDV – ~Rs 30,100 cr Rs 1 bn = Rs 100 cr Nepean Sea Road 7 GDV – Rs 2,500 cr GDV – ~Rs 27,600 c
Slide 20: ESG
ESG 19
Slide 21: GRESB 5-star rating
> Sunteck Realty has received the prestigious 5-star rating from GRESB (Global Real Estate Sustainability Benchmark) in its second year of submission with a strong score of 95 > Sunteck Realty has been ranked 3rd rank in Asia-pacific Diversified Office/ Residential Peer comparison
Slide 22: ESG Highlights
ESG Highlights >90% 31% Women Representation in organization Of our properties are green building pre- certified (EDGE IFC) Sunteck Head office is LEED Existing building Gold certified 4.3 times Increase in employee trainings hours Zero Waste to landfill & Plastic neutrality at Signature Island, Sig
Slide 23: Green Building Initiatives
Green Building Initiatives • Four projects, 4th Avenue, SunteckCity, ODC Goregaon W; Sunteck • Our HO Sunteck Centre Maxxworld & Sunteck Oneworld, Naigaon and Sunteck Beach has been awarded LEED Residences (SBR), Vasai W has been awarded with EDGE (Excellence GOLD certification by US in Design for G
Slide 24: Q2 & H1 FY24 Highlights
Q2 & H1 FY24 Highlights 23
Slide 25: Quarterly & Half Yearly Results
Quarterly & Half Yearly Results Strong Operational Performance • Pre-sales grew by 17.2% YoY to ~Rs 395 cr in Q2 FY24 • Collections remained strong at ~Rs 214 cr in Q2 FY24 • Pre-sales grew by 16.7% YoY to ~Rs 782 cr in H1 FY24 • Collections remained strong at ~Rs 502 cr in H1 FY24 • Net Debt stands
Slide 26: Operational Performance Break-up
Operational Performance Break-up Q2 FY24 H1 FY24 Pre-sales Collections Pre-sales Collections Segment Projects (~Rs cr) (~Rs cr) (~Rs cr) (~Rs cr) Uber Luxury Signature, Signia 45 8 45 55 Sunteck City, High Mid-income 188 132 489 244 SBR, Sky Park Low Mid-Income Sunteck World 96 55 147 109 Others Sun
Slide 27: Strong Net OCF crosses Rs 1,000 cr in 3.5 years
Strong Net OCF crosses Rs 1,000 cr in 3.5 years Particulars (~Rs cr) H1 FY24 Cumulative NOCF Surplus (~Rs cr) 1200 Gross Customer Collections 502 1038 1000 948 Less: Project Expenses 300 Less: JDA Revenue Share 47 800 Gross Operating Cash Flow Surplus 155 600 520 Less: Other Expenses 65 400 281 Net
Slide 28: Strong Core EBITDA margin in P&L
Strong Core EBITDA margin in P&L • SRL follows Project Completion Method of Accounting – Direct (Attributable) Costs pertains to projects from which revenue has been recognized in respective quarter • Indirect (Non-attributable) Costs pertains to expenses from which revenue recognition has not start
Slide 29: Appendix
Appendix 28
Slide 30: Experience Leadership
Experience Leadership 200+ years of combined experience across RE, banking & finance, law & compliance Kamal Khetan ~3 decades of experience in the Real Estate industry. Formulate Chairman & MD corporate strategy, acquisition, execution & diversification plans. Atul Poopal >3 decades of experience i
Slide 31: Sunteck projects have delivered disciplined return on invested capital (1/2)
Case Study Sunteck projects have delivered disciplined return on invested capital (1/2) • Initial Investment - ~Rs 157 cr • ~4 acres land parcel • Total GDV (Sold+Unsold Inventory) - ~Rs 5,300 cr • Implied Project IRRs - ~30% range • Operating Margins - ~40%+ • ~80% sold out of launched inventory •
Slide 32: Case Study (2/2)
Case Study (2/2) Sunteck projects have delivered disciplined return on invested capital (2/2) • Investment - ~Rs 50 cr • ~150 acres land parcel • Total GDV (Sold+Unsold Inventory) - ~Rs 8,000 cr • Operating Margins - ~30% range • ~90% sold out of launched inventory • Launch price - ~Rs 5,000/sq ft,
Slide 33: Thank you
Thank you ir@sunteckindia.com 32