Shriram Properties Ltd. · NSE:SHRIRAMPPS
Shriram Properties — Q2 FY24 Earnings Presentation
43 slides from Shriram Properties's earnings presentation, Nov 10, 2023
Slide 1: Exchange filing cover letter: Investor Presentation
November 10, 2023 National Stock Exchange of India Limited BSE Limited The Listing Department Dept of Corporate Services Exchange Plaza, 5th Floor Phiroze Jeejeebhoy Towers Plot C 1 – G Block Dalal Street, Fort Bandra-Kurla Complex, Bandra (E) Mumbai 400 001 Mumbai 400 051 Scrip Code : 543419 Scrip
Slide 2: Shriram Properties Limited Q2FY24 Results Presentation
Shriram ShriramProperties PropertiesLimited Limited Q1FY23 Results Presentation Q2FY24 Results Presentation August 2022 1 November 2023 1
Slide 3: This presentation and the accompanying slides (the “Presentation”), which have been prepared by Shriram
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Shriram Properties Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, an
Slide 4: Residential Real Estate Sector Overview
Shriram WYTFIELD Residential Real Estate Sector Overview 3
Slide 5: Residential Real Estate Sector: Strong Undercurrent Continues
Residential Real Estate Sector: Strong Undercurrent Continues… Growth momentum strong despite ambivalent global economy * KEY EMERGING TRENDS – Largely remain intact • Top-7 City sales at decade high - 1.20 lac units, Up 36% YoY • Housing affordability favorable, Rate hike impact minimal • Supply gr
Slide 6: SPL's Core Market Trends
SPL’s Core Market Trends • Positive absorption trends in SPL’s core markets Pricing & Segment wise Trends 2023– Core Markets Bengaluru Chennai Kolkata • Remarkable drop in inventory levels, at a near decade low − Chennai & Kolkata among lowest across Tier-1 cities − Bengaluru inventory levels have r
Slide 7: Operational Highlights: Q2 FY24
Shriram 107 Southeast Operational Highlights : Q2 |FY24 ________________ Note: Data presented herein reflects aggregate for the Company, covering all projects under all development formats viz., Own, JV/JDA and the DM 6
Slide 8: Key Highlights & Developments – Q2 FY24
Key Highlights & Developments – Q2 | FY24 Operational Performance Project Execution • Sales volumes up 14% YoY; Sales Value up 40% YoY in Q2. • Customer handover at 470+ units in Q2, pushing H1 • Successful pre-launch of Shriram Paradiso, Chennai. handover to 830+ units. 2 phase launches done with e
Slide 9: Performance Snapshot: Q2 FY24
Performance Snapshot: Q2|FY24 Sales Volume (Msf*) Sales Value (Rs. Cr.) Collections (Rs. Cr.) Construction (Rs. Cr.) +48% +32% +48% +12% 146 QoQ Trends 1.15 430 608 0.78 459 131 291 Q1FY24 Q2FY24 Q1FY24 Q2FY24 Q1FY24 Q2FY24 Q1FY24 Q2FY24 +8% +37% YoY Trends +14% +40% 146 430 608 135 1.15 315 1.01 43
Slide 10: Performance Snapshot: H1 FY24
Performance Snapshot: H1|FY24 Pre-Sales Volume (msf) Sales Value (Rs. Cr.) 2,330 14% 4.8 43% 1,066 1.9 1,846 4.0 1.7 747 494 1.3 +43% 605 1.0 +14% 1.7 1.9 107 747 H1FY23 H1FY24 FY23A FY24P H1FY23 H1FY24 FY23A FY24P Sales by Segment Sales by Dev. Model Sales by Region Others 1% Others DM 10% Kolkata
Slide 11: Launch Outlook & Launch updates
Launch Outlook & Launch updates FY24 Launches Impressive Sales-at-Launch Launch Sold at Projects Type Launch % sold Area launch 48% 44% 44% Shriram Esquire New May’23 1,31,870 57,835 44% 38% 34% Shriram Hebbal 1 New May’23 1,44,328 63,750 44% Shriram Paradiso New Sep’23 6,07,243 ^^ ^^ Average Sales-
Slide 12: Encouraging Response to Ongoing Launches – New Phases
Encouraging Response to Ongoing Launches – New Phases ✓ Shriram Esquire, Koramangala, B’lore (Apartments) - Exceptionally strong launch response - EOI since Apr’23; Formal Launch in May’23 - 75,000+ sft - Nearly 57% sold already ✓ Shriram Pristine Estates, Bengaluru (Plots) - New Phase (premium plot
Slide 13: Encouraging Response to Ongoing Launches – New Projects
Encouraging Response to Ongoing Launches – New Projects ✓ Shriram Paradiso, Chennai (Apartments) - Launch efforts commenced during End-Sep’23. - Encouraging initial response. - Likely to boost Q3 sales volumes ✓ Shriram 122 West (Apartments) - Pre launch activities under full swing - EOI to commence
Slide 14: Encouraging Pricing Trends: Realisation up 14% from Mar'23 Levels
Encouraging Pricing Trends: Realisation up 14% from Mar’23 levels Price Increase by Project – Top Projects only Avg. Portfolio Price increase Trends % chg. Project Development Type from Sep'22 (H1) FY'23 Sep'23 (H1) FY'23 Shriram 107 Southeast -Phase 3 Apartment 4,175 4,300 5,055 18% 14%* Shriram So
Slide 15: Project Execution trends: H2FY24 Handover Readiness
Project Execution trends: H2FY24 Handover Readiness % work Project Name Total Area RERA date % sold Project Current Status done Shriram Greenfield Phase II 7,04,355 30-Dec-23 100% 83% OC Ready, Handover by Dec’23 Chirping Wood Tower 5 2,20,740 30-Mar-24 99% 94% FIRE NOC applied & OC Application stag
Slide 16: Financial Highlights: Q2 & H1 FY24
Shriram Southern Crest Financial Highlights : Q2 &H1|FY24 15
Slide 17: Financial Highlights | Q2FY24
Financial Highlights | Q2FY24 o Earnings growth exhibits a consistent and remarkable upward trajectory. o Healthy quarterly improvement since IPO/Q3FY22 continues; Driven by improving operating leverage and project execution. o Revenue recognition momentum strong, helped by robust execution and hand
Slide 18: Financial Highlights: Profit & Loss | Q2 & H1FY24
Financial Highlights : Profit & Loss|Q2 & H1FY24 H1FY24 Particulars (Rs. Crores) Q2FY24 Q1FY24 QoQ (%) Q2 FY23 YoY (%) H1FY24 H1FY23 YoY (%) FY23 EBIDTA Total Revenues 231.3 157.2 47% 275.9 -16% 388.5 420.9 -8% 813.9 Rs. 118.6 Cr Cost of revenue 120.8 60.7 185.8 181.5 257.5 453.2 Employee benefit ex
Slide 19: Financial Highlights (contd.): Profit & Loss | H1 FY24
Financial Highlights (contd.): Profit & Loss|H1 FY24 ❑ Total Revenues marginally lower in H1, but has grown sequentially between quarters (Q2 vs Q1). • Higher base of H1/Q2 last year impacted YoY growth - Shriram Southern Crest (B’lore) received OC in Q2FY23. • H2 Revenue growth will be stronger wit
Slide 20: Financial Highlights (contd.): Profit & Loss | Q2 FY24
Financial Highlights (contd.): Profit & Loss|Q2 FY24 ❑ Sequential growth trends encouraging (Q2 vs Q1 FY24): • Total Revenues higher by 47% QoQ – at Rs.231crs. • Catch-up in registration & handover lost in Q1 due to Kaveri2.0 snag issue and continued registration in recently completed projects. • DM
Slide 21: Financial Highlights: Consolidated Cash Flows | Q2 & H1 FY24
Financial Highlights: Consolidated Cash Flows | Q2 & H1 FY24 (Excl. DM & JV cashflows) Amount in Rs. Crores Q2FY24 Q1FY24 H1 FY24 H1 FY23 FY23 Collection Trends Collections 171 139 310 273 524 SPL Own & JDA / JVs / DM DM Income 26 70 97 37 57 Other Inflows 1 0 1 0 1 430 1,194 721 Operating Inflow 19
Slide 22: Financial Highlights: Balance Sheet | H1FY24
Financial Highlights : Balance Sheet|H1FY24 Particulars (INR Cr) 30-Sep-23 31-Mar-23 ROCE Trends (%) 11% 12% Fixed Assets 82 81 10% Investments and loans 187 153 7% Inventories 2,635 2,221 5% Cash and Bank Balances 100 120 Other Assets 1,028 1,068 Total Assets 4,024 3,643 FY20 FY21 FY22 FY23 FY24e L
Slide 23: Ongoing efforts to reduce debt and cost of debt
Ongoing efforts to reduce debt and cost of debt Gross & Net Debt trends Debt Equity Ratio* Cost of Debt (%)** Cr. 13.7% 700 656 0.7 12.5% 86 553 532 11.9% 600 11.4% 481 500 120 100 400 141 0.4 0.4 0.3 300 569 200 432 432 341 100 - Mar-21 Mar-22 Mar-23 Q2FY24 Mar'21 Mar'22 Mar'23 Sep'23 Mar'21 Mar'22
Slide 24: Outlook: FY24 & Beyond
Shriram Blue Outlook: FY24 & Beyond 23
Slide 25: Encouraging Earnings Visibility for H2FY24
Encouraging Earnings Visibility for H2FY24 A. FY24 Revenues: 5 projects to account for 90% of projected revenues in H2FY24 and are under control Key Projects Occupancy Certificate status Sale Deed Registrations Over 6.8 lacs sft registered. Grand One Partial OC Received Registrations to gain further
Slide 26: Strong Income Recognition Outlook (FY24-25e)
Strong Income Recognition Outlook (FY24-25e) Sales Volumes (msf) 4-year cumulative sales of 14msf Completed 3.8 msf in FY23 To Hand over ~2,000 units Handover in ~3,000 units in FY24 4.0 FY23 3.8 3.2 3.0 Project Completion Trend (msf) # units handover 2,093 2,885 2,280 2,000+ ~8,000 FY20 FY21 FY22 F
Slide 27: FY24 Outlook | Context & Strategic Objectives
FY24 Outlook | Context & Strategic Objectives Strategic Objectives ➢ Sustain growth momentum: Target 20%+ CAGR in sales over the next 2-3 years ➢ Ensure sustained profitability; Positive net earnings with Improving profitability and returns; and ➢ Progress towards ‘Zero Net debt’ objective FY24 Cont
Slide 28: Awards & Recognitions: H1 FY24
Awards & Recognitions: H1 | FY24 Certified as Great Place To Work by the prestigious body GPTW World L&D Excellence Award – USB forums Shiram Properties Best Gated Community of the year - REISA Shriram Park 63 Iconic brands of the year – Prime Insights Shriram Properties 27
Slide 29: Project Pipeline Update – September'23
Project Pipeline Update – September’23 Project Pipeline (msf) Upcoming – 18 msf # projects Msf 8.6 51.1 Ongoing – 24 msf 5.3 42.5 Pipeline – March’23 53 52.9 2.1 10.6 Less: Projects Completed (4) (1.8) 3.0 13.0 Pipeline – September’23 49 51.1 8.5 Ongoing Ongoing Ongoing Upcoming Upcoming Upcoming Su
Slide 30: Strategies for Unlocking Potential from Kolkata Progressing Well
Strategies for Unlocking Potential from Kolkata Progressing Well Kolkata Development Strategy Own development of c.10msf over next 3-5 years Monetising remaining land bank c.22msf Development Status Update Monetisation Update ❑ Shriram Grand-1: (2 msf, almost entirely sold) • FSI sale progressing we
Slide 31: Shareholding Pattern as at 30th September 2023
Shareholding Pattern as at 30th September 2023 Category No.of Holders % Share Holding Pattern as at 30 September 23 Promoters 3 28% Private Equity Investors 1 10% Public Promoters Institutional Investors 23 9% 28% 28% Body Corporates 401 25% Public 74,161 28% PE Investors 10% Body Corporates Total 7
Slide 32: 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 33: Thank You
Thank You Shriram Luxor Shriram Chirping Woods 32
Slide 34: Annexures
Annexures 33
Slide 35: Annexure-1: Projects Snapshot by Development Models
Annexure-1: Projects Snapshot by Development Models Development Own Developments Joint Developments Joint Ventures Management Execution Track Record Execution Track Record Execution Track Record Execution Track Record Completed Completed Completed Completed ✓ 7 projects ✓ 23 projects ✓ 3 projects ✓
Slide 36: Annexure-2: Consolidated Cash Flows – With and Without JV Cashflows
Annexure-2: Consolidated Cash Flows – With and Without JV Cashflows Particulars SPL Consolidated (CFS) SPL Enterprise (100%)1 (Excl DM) Amount in Rs. Crores Q1FY24 Q2FY24 H1 FY24 Q1FY24 Q2FY24 H1 FY24 Collections 139 171 310 261 347 608 DM Income 70 26 97 70 26 97 Other Inflows 0 1 1 0 0 1 Operating
Slide 37: Annexure-3: Business Model Dynamics
Annexure-3: Business Model Dynamics Range of Services offered by SPL under DM Model DESIGN APPROVALS SALES MARKETING CONSTRUCTION CRM HANDOVER MAINTENANCE Development Capital Scalability Return Risk Rewards to LO Risk to LO Model Intensivity Own Low High High High Least/NA Least/NA JDA Moderate High
Slide 38: Annexure-3: Business Model Dynamics (Contd.)
Annexure-3: Business Model Dynamics (Contd.) Land Project Launch & Execution Delivery Financials Developement Ownership Project & Approval Branding Sales & CRM Project Delivery & RERA Maintenance Overall Economics Revenue Construction Costs Marketing Costs Debt & Interest Costs Free Cashflow Sharing
Slide 39: Annexure-4: Our Project Presence - Bangalore
Annexure-4: Our Project Presence - Bangalore 38
Slide 40: Annexure-4: Our Project Presence - Chennai
Annexure-4: Our Project Presence - Chennai 39
Slide 41: Annexure-4: Our Project Presence - Kolkata
Annexure-4: Our Project Presence - Kolkata 40
Slide 42: Annexure-5: KPI Half-yearly Trends: H1FY24
Annexure-5: KPI Half-yearly Trends : H1FY24 Pre-Sales Volume (msf) Sales Value (Rs. Cr.) 2.4 1,099 1,066 1.9 15% 43% 1.7 747 H1FY24 H1FY23 H2FY23 H1FY24 H1FY23 H2FY23 Gross Collections (Rs. Cr.) Construction (Rs. Cr.) 721 276 2% 272 13% 639 228 556 H1FY24 H1FY23 H2FY23 H1FY24 H1FY23 H2FY23 Continuin
Slide 43: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Shriram Properties Limited Strategic Growth Advisors Pvt. Ltd. CIN – L72200TN2000PLC044560 CIN - U74140MH2010PTC204285 Mr. Shrikanth D S, AGM – Finance Mr. Rahul Agarwal / Ms. Brinkle Shah Jariwala Email Id – ir.spl@shr