Shriram Properties Ltd. · NSE:SHRIRAMPPS
Shriram Properties — Q4 FY22 Earnings Presentation
29 slides from Shriram Properties's earnings presentation, May 30, 2022
Slide 1: Shriram Properties – Submission of Investor Presentation
~ . Shriram Properties Homes that live in you May 30, 2022 National Stock Exchange of India Limited BSE Limited The Listing Department Dept of Corporate Services Exchange Plaza, 5 th Floor Phiroze Jeejeebhoy Towers Plot C 1 - G Block Dalal Street, Fort Bandra-Kurla Complex, Bandra ( E) Mumbai 400 00
Slide 2: Q4 FY22 & FY22 Performance Highlights
Shriram Properties Limited Q4 FY22 & FY22 Performance Highlights Analyst / Investor Presentation 30 May 2022 STRICTLY PRIVATE AND CONFIDENTIAL
Slide 3: Residential RE Sector: Sustained Growth Momentum
Residential RE Sector : Sustained Growth Momentum Housing Sales Trend ❑ Housing markets remain robust across top 7 markets ❑ Pan-India quarterly housing sales at a new high since 2015 ❑ New launches outpaced pre-covid, despite 3rd wave fears ❑ Mid-market and affordable remains strong performers; • 6
Slide 4: Rising Input Costs & Interest Rates – Key Concerns for the Sector
Rising Input Costs & Interest Rates – Key Concerns for the Sector Rising Input Costs ❑ Rising costs of cement, steel and other materials due to raw material shortage, logistic challenges and rising fuel prices – Likely Impact on construction costs by ~ Rs.250-375 per sq.ft ❑ Expect costs to stabiliz
Slide 5: Operational Highlights Q4 | FY22
Budget Housing Budget Housing Property Awards of Best Gated Visionary Leader Integrated Best Efficient & Lifetime Most Admired Developer Project of the Community of the Sustainable Smart MD of the Year Project of the year – the Year Plotted of the year (1) Township Project of Achievement Upcoming Pr
Slide 6: KPI Snapshot: Q4 | FY22
KPI Snapshot : Q4 | FY22 Pre-Sales Volume (msf) Sales Value (INR mn) 14% 3.8 25% 15% 14,824 19% 12,443 3.0 1.2 4,792 1.0 1.0 4,159 3,399 2,476 0.6 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY22 FY21 Collections (INR mn) Construction (INR mn) 42% 61% 157% 8% 11,835 6,4
Slide 7: Operational Highlights (KPIs): Q4 | FY22
Operational Highlights (KPIs): Q4 | FY22 Sales Volume (msf) 25% • FY22 Net sales of 3.76 msf – SPL’s highest ever 3.8 - Despite Covid 2.0 led lockdown for 6-8 weeks during Q1FY22 3.0 - Average run rate of 1.0+ msf net sales in Q2, Q3 & Q4 1.6 - Supported by 12 good launches (8 in Bangalore, 3 in Che
Slide 8: Successful Launches; Impressive 'Sales-at-Launch'
Successful Launches; Impressive ‘Sales-at-Launch’* FY22 Launches1 3 (Area in sft) Type Launch Launch Sold at % # of project launches3 Includes 6 new Area launch sold 12 launches & 6 new phases of Chirping Grove – Phase 11 New Q1FY22 250,421 103,793 41% ongoing 7 6 6 projects Suvilas Palms New Q1FY22
Slide 9: Improving Sales Realisation Trends
Improving Sales Realisation Trends Price Increase by Project – Top Projects only Amounts in INR Project Development Realisation Realisation % Type Sep’21 Mar’22 Increase Across development Average Southeast Phase 1 Apartments 3,803 4,208 11% types and locations realisation Southeast Phase 2 Apartmen
Slide 10: Strong Project Pipeline; Growing Further
Strong Project Pipeline; Growing Further Project pipeline (msf) Project pipeline Movement – Dec’21 to Mar’22 6.9 51.2 # projects msf Pipeline – Dec’21 (RHP) 35 46.7 8.9 Add: Project Additions 2.4 0.3 0.9 - Own 3 2.5 5.3 - JV/JDA 7 6.4 6.7 - DM 7 4.7 Sub-total 17 13.6 13.7 Less: Project Deferred - DM
Slide 11: Financial Highlights Q4 | FY22
Budget Housing Budget Housing Property Awards of Best Gated Visionary Leader Integrated Best Efficient & Lifetime Most Admired Developer Project of the Community of the Sustainable Smart MD of the Year Project of the year – the Year Plotted of the year (1) Township Project of Achievement Upcoming Pr
Slide 12: Financial Highlights: Q4|FY22
Financial Highlights : Q4|FY22 ❑ FY22 is the ‘turnaround year’, in line with investor guidance ❑ Improved margins and earnings – ROCE at 11%, sustained improvement in last 3 years ❑ Improving operating leverage and rising share of DM income supporting higher margins ❑ Thrust on reducing debt and cos
Slide 13: Financial Highlights: P&L Quarterly Trends
Financial Highlights : P&L Quarterly Trends H1 FY22 Q3 FY22 9M FY22 Q4 FY22 FY22 INR Mn QoQ (%) RHP Audited Audited Audited Audited Revenue from operations* 1,182 1,096 2,278 2,051 91% 4,329 Other income 330 205 535 314 849 Total Revenues 1,512 1,301 2,813 2,365 85% 5,178 Cost of revenue 603 460 1,0
Slide 14: Q4FY22: Financial Performance Highlights
Q4FY22 : Financial Performance Highlights ❑ Aggregate revenues nearly doubled QoQ in Q4 • Improved Revenue from Operations, driven by starting of handover and income recognition in Grand-1 (Kolkata) and Panorama Hills (Vizag) as well as Earth (Whitefield), and Chirping Woods • Income recognition fro
Slide 15: Financial Highlights: P&L Annual Trends FY19-FY22
Financial Highlights : P&L Annual Trends FY19-FY22 INR Mn FY19 FY20 FY21 FY22 YoY % Revenue from operations 6,117 5,667 4,315 4,329 (Of which, DM Revenues) 571 871 1,142 1,043 Other income 1,121 651 698 849 22% Total Revenues 7,238 6,318 5,013 5,178 3% Cost of revenue 4,854 3,524 2,387 1,823 Employe
Slide 16: FY22: Financial Performance Highlights
FY22 : Financial Performance Highlights ❑ Revenues and Cost of revenues • Revenue growth 3% YoY despite postponed revenues in key projects: Southern Crest and Grand One • Top 6 projects contribute 84% of revenues; Key projects: Panorama Hills, Earth (Whitefield), One City, Luxor, Chirping Woods • Hi
Slide 17: Financial Highlights: Cashflows Q4 | FY22
Financial Highlights : Cashflows Q4 | FY22 SPL Consolidated Cashflows (INR mn) 9M FY22 Q4 FY22 FY22 Collections 3,397 1,948 5,346 DM Income 553 168 722 Other Inflows 5 1 6 Operating Inflow 3,955 2,118 6,073 Construction 2,553 1,123 3,645 Marketing & Admin Overheads 884 445 1,329 Other Operating outf
Slide 18: Financial Highlights: Balance Sheet | FY22
Financial Highlights : Balance Sheet | FY22 Consolidated Summary Balance Sheet Particulars (INR mn) 31-Mar-21 30-Sep-21 31-Mar-22 Fixed Assets 758 728 823 Investments and loans 1,899 1,918 1,810 Inventories 20,261 20,626 22,630 Cash and Bank Balances 814 422 1,405 Other Assets 9,264 9,240 10,746 Tot
Slide 19: Improving Gearing Ratio and Cost of Debt – Consolidated
Improving Gearing Ratio and Cost of Debt – Consolidated1 Net Debt movement 8,000 7,000 6,724 6,558 494 6,000 864 4,811 5,000 4,000 1,405 3,000 6,230 5,694 2,000 3,407 1,000 - Mar'20 Mar'21 Mar'22 Net Debt C & CE Gross External Debt Debt Equity Ratio 2 0.70 0.69 0.70 0.60 0.50 0.30 0.40 0.30 0.20 0.1
Slide 20: Strategy and Outlook
Budget Housing Budget Housing Property Awards of Best Gated Visionary Leader Integrated Best Efficient & Lifetime Most Admired Developer Project of the Community of the Sustainable Smart MD of the Year Project of the year – the Year Plotted of the year (1) Township Project of Achievement Upcoming Pr
Slide 21: Strategy and Outlook | FY23 and Beyond
Strategy and Outlook | FY23 and Beyond ❑ SPL standing firm on its growth path – proven sales and execution machine delivering strong performance ❑ Operating leverage kicking-in, on the back of scale and improving efficiency ❑ FY23 to be a promising year with strengthened long-term fundamentals, for
Slide 22: Long Term Strategy & Growth Outlook
Long Term Strategy & Growth Outlook SPL Competitive Strengths SPL Forward Strategy 1 3 5 Focus on Mid Stay focused on mid- Leadership in Enhanced focus on DM Build scale and enhance Market and market and affordable Core Markets model execution capabilities Affordable housing Strong Housing Parentage
Slide 23: FY23 Encouraging Earnings Visibility
FY23 Encouraging Earnings Visibility A. Project Revenues – Current status of key drivers Projects Current Status • 62% of FY23 revenues Southern Crest In the process of obtaining Occupancy Certificate (‘OC’) likely from 4 Projects Grand One OC Obtained. Only Sale Deeds to be registered • 83% revenue
Slide 24: Strong Income Recognition Outlook (FY23-25e)
Strong Income Recognition Outlook (FY23-25e) Sales Volume (msf) Ongoing Projects – By Region (msf) 3-year cumulative sales of 10msf 19 4 2 3.8 12.0 4.0 3.2 3.0 3.5 10.0 11.3 3.0 8.0 2.5 6.0 2.0 6.0 1.5 4.0 … 1.0 2.0 0.5 - - FY20 FY21 FY22 Bangalore Chennai Kolkata # No. of projects # No. of units ha
Slide 25: Unlock Potential from Kolkata
Unlock Potential from Kolkata Project Overview ❑ Integrated township in Uttarapara, Kolkata – 314 acres of land parcel with 33.54msf of estimated total saleable area Development Strategy ❑ Focused on developing c.10msf over the next 3-5 years; and ❑ Simultaneous focus on monetising remaining land ba
Slide 26: Development Management (DM) Model Update
Development Management (DM) Model Update ❑ Successfully stabilised development model, now account ~30% of Pipeline DM Portfolio # projects Area (msf) ❑ Sustainable Opportunity: Completed 1 2.0 – RERA-led changes in the industry are irreversible Ongoing 12 6.7 – Large opportunity from existing player
Slide 27: Entry into New Market | Hyderabad Residential Market Overview
Entry into New Market | Hyderabad Residential Market Overview ❑ Hyderabad was the best performing residential market in 2021 with sales growing by a resounding 142% YoY to 24,318 units in 2021. ❑ The mid segment of INR 5-10 Mn has constituted the bulk of sales and accounted for 48% in H2 2021 which
Slide 28: Investment Summary
Investment Summary 8. Access to Capital 1. Corporate Governance ➢ Strategic relationships with domestic and ➢ Shriram Group DNA and marquee investor international financial investors presence for a decade contribute to strong ➢ Early recipient of FDI in the sector governance and transparency practic
Slide 29: Thank You
THANK YOU 27