Sobha Limited · NSE:SOBHA
Sobha — Q4 FY2021 Earnings Presentation
49 slides from Sobha's earnings presentation, March 2021
Slide 1: Staying Resilient - Investor Presentation March 2021
STAYING RESILIENT INVESTOR PRESENTATION March 2021
Slide 2: COVID-19: Real Estate Outlook
COVID-19: REAL ESTATE OUTLOOK ➢ India’s GDP witnessed a contraction of 7.3% for FY-21. However, it moved swiftly from a contraction of 23.90% during Q1-21 to growth of 1.6% in Q4-21, with the projection of 9.5% for FY 2021-22. ➢ Fiscal support measures by the Government of India and the Reserve Bank
Slide 3: COVID-19: Real Estate Outlook (Contd)
COVID-19: REAL ESTATE OUTLOOK (Contd) ➢ Sobha is resilient due to its presence in geographies with good demand for residential real estate, backed by its unique backward integrated business model and digitized sales and marketing functions. ➢ Established developers with well-managed balance sheets w
Slide 4: Cashflow Highlights
CASHFLOW HIGHLIGHTS: ➢ SOBHA, with its relentless focus on cash flow and cost saving measures, has stayed resilient during FY 20-21. ➢ Our key focus area during these turbulent times remains, managing cash flows and the results are evident in our performance. ➢ Achieved total cash inflow of Rs 30.77
Slide 5: Cashflow Highlights (Contd)
CASHFLOW HIGHLIGHTS: (Contd) ➢ Generated net positive Cash flow of Rs 2.27 billion during FY-21 which is the highest ever since inception. ➢ Generated net positive Cash flow of Rs 1.23 billion during Q4-21 which is the highest in the last 11 successive Quarters. ➢ Net debt has come down by Rs. 1.71
Slide 6: Cash Flow Statement
CASH FLOW STATEMENT Amount Rs.in Millions PARTICULARS Q4-21 Q4-20 Q3-21 FY-21 FY-20 Operational cash inflows Real Estate Operations 7,148 6,001 6,639 22,169 23,642 Contractual & Manufacturing 2,627 3,451 2,030 8,600 12,829 Total Operational cash inflow (A) 9,775 9,452 8,669 30,769 36,471 Operational
Slide 7: Cash Flow Statement (Contd)
CASH FLOW STATEMENT (Contd) Amount Rs.in Millions PARTICULARS Q4-21 Q4-20 Q3-21 FY-21 FY-20 Financial Outflows Finance Cost 875 924 824 2,733 3,399 Income Tax (34) 75 48 97 393 Total Financial Outflows (D) 841 999 872 2,830 3,792 Net Cash flow after Financial Outflow : (E=C-D) 1,506 1,142 947 3,560
Slide 8: Cashflow Highlights: Q4-20 vs Q4-21
CASHFLOW HIGHLIGHTS: Q4-20 V/s Q4-21 Amount in Rs. Billions Total Cash Inflow Real Estate Cash Inflow GROWTH – 3% GROWTH – 19% 9.78 12.00 9.45 10.00 7.15 6.00 8.00 9.00 6.00 4.00 6.00 2.00 3.00 - Q4-20 Q4-21 Q4-20 Q4-21 Net Operating Cash flow Net Cash flow GROWTH – 10% 1.23 1.40 GROWTH – 73% 2.60 2
Slide 9: Cashflow Highlights: Q3-21 vs Q4-21
CASHFLOW HIGHLIGHTS: Q3-21 V/s Q4-21 Amount in Rs. Billions Total Cash inflow Real Estate Cash Inflow GROWTH – 13% GROWTH – 8% 12.00 9.78 9.00 7.15 8.67 6.64 9.00 7.00 6.00 5.00 3.00 3.00 Q3-21 Q4-21 Q3-21 Q4-21 Net Operating Cashflow Net Cash flow GROWTH – 29% GROWTH – 64% 2.35 1.23 3.00 1.50 1.82
Slide 10: Movement of Debt
MOVEMENT of DEBT Amount Rs.in Billions Particulars 31st Mar-21 31st Dec-20 30th Sept-20 30th Jun-20 31st Mar-20 Gross Debt 30.62 31.34 31.56 31.25 31.18 Less: Cash & Cash Equivalents 2.10 1.59 1.06 1.04 0.95 Net Debt 28.52 29.75 30.50 30.21 30.23 D/E Ratio Net Debt (Rs Bn) D/E Ratio 36 1.40 1.24 1.2
Slide 11: Borrowing Cost
BORROWING COST 11% Average cost of borrowing has declined in the last 6 quarters Rate of Interest % 10% 9.80% 9.81% 9.76% 9.72% 9.69% 9.57% 9.64% 9.31% 9.30% 9.32% 9.17% 9.04% 9% 8% Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Finance Cost(Gross) Rs. In Million Q4-21 Q3-21
Slide 12: Real Estate (Residential) Projects: Projected Cash Flow
REAL ESTATE (RESIDENTIAL) PROJECTS: PROJECTED CASH FLOW Completed Ongoing - Area Ongoing - Area Particulars projects with not offered for Total UOM offered for sale unsold inventory sale Total Saleable area 6.35 21.90 7.94 36.19 Mn.sqft Sobha Share of Saleable area 6.26 20.49 7.10 33.85 Mn.sqft Tota
Slide 13: Credit Rating Update
CREDIT RATING UPDATE: ✓ We are pleased to inform that India Ratings and Research (Ind-Ra) has rated Sobha Limited for the first time and has assigned a Long-Term Issuer Rating of ‘IND AA-’ (Stable) ➢ KEY RATING DRIVERS: ✓ Strong Credit Metrics ✓ Diversified Revenue ✓ Healthy Sales Velocity ✓ Large L
Slide 14: Sales Highlights
SALES HIGHLIGHTS: ➢ SOBHA has performed considerably well during FY-21 despite the real estate sector witnessing overall contraction as mentioned in various research reports and Government of India’s official data. ➢ Best ever quarterly sales volume of 1.34 million square feet (Super Built up Area)
Slide 15: Sales Highlights (Contd)
SALES HIGHLIGHTS: (Contd) ➢ Sales volume, total sale value and Sobha share of sale value during Q4-21 were up by 48% ,54% ,58% respectively versus Q4-20. ➢ We were able to achieve 9% higher sales in value terms and 10% higher average price realization as compared to FY-19-20. ➢ Excluding Bengaluru,
Slide 16: Sales Performance: Q4 FY 2020-21
SALES PERFORMANCE: Q4 FY 2020-21 ➢ BEST EVER QUARTERLY SALES PERFORMANCE RECORDED DURING Q4 - FY21 Q4 - FY 21 Area Sold (in Mn sqft) Sobha Share Total Average Area Sold Total Sale Value Region of Sale Value Price Realization GROWTH – 48 % in Sq Feet in Rs Mns in Rs Mns Rs / Sq Feet 1.80 1.34 Bangalo
Slide 17: Sales Performance: FY 2020-21
SALES PERFORMANCE: FY 2020-21 FY 2020-21 FY 2019-20 Total Sale Total Average Sobha Share Total Sale Total Average Sobha Share Region Area Sold Area Sold Value Price Realization of Sale Value Value Price Realization of Sale Value in Sq Feet in Rs Mns Rs / Sq Feet in Rs Mns Bangalore in Sq Feet 2,702,
Slide 18: Sales Value Performance Q4-21 (Price Band and Region)
SALES VALUE PERFORMANCE Q4 - 21 (Price Band and Region category) % CONTRIBUTION PER PRICE BRACKETS REGION CONTRIBUTION TO TOTAL SALE VALUE Coimbatore Kochi GIFT City Pune 1% 1% Bangalore 11% 5% 62% > Rs.3 Crs 12% < 1 Cr 20% Thrissur 3% Rs.2 Crs to 3 Crs Chennai 21% 2% Gurugram 15% Rs. 1 Cr to 2 Crs
Slide 19: Sales Value Performance FY 2020-21 (Price Band and Region)
SALES VALUE PERFORMANCE FY 2020-21 (Price Band and Region category) % CONTRIBUTION PER PRICE BRACKETS REGION CONTRIBUTION TO TOTAL SALE VALUE Coimbatore Kochi Kozhikode Mysore Pune 0.85% 12% 0.35% 0.23% > Rs.3 Crs 3% GIFT City < 1 Cr 1% 11% 20% Thrissur Bangalore 3% 65% Rs.2 Crs to 3 Crs 20% Chennai
Slide 20: Buyer Profile: 12 Months Rolling
BUYER PROFILE: 12 Months Rolling PROFESSION-WISE BREAKUP BUYERS AGE-WISE BREAKUP Others 24% IT/ITES >51 Years 21-30 Years Professional 15% 16% Business/Entrepre 49% neur 7% 41-50 Years 23% Medical/Pharma 4% 31-40 Years Non IT 46% Professional 16% RESIDENTIAL STATUS Indian 89% NRI 11% 0% 50% 100% 20
Slide 21: Financial Highlights
FINANCIAL HIGHLIGHTS: ➢ During FY-21, real estate revenues were lower due to IND AS115 revenue recognition methodology followed by Sobha under which, revenues are recognised on unit handover after 100% project completion. ➢ Out of the cumulative sales done in residential business as on 31.03.2021 th
Slide 22: Financial Highlights (Contd)
FINANCIAL HIGHLIGHTS: (Contd) ➢ Total income for Q4-21 stands at Rs 5.66 billion. ➢ Contractual and manufacturing vertical revenue for Q4-21 stands at Rs. 2.64 billion which is up by 20% compared to Q3-21. ➢ EBITDA for the Q4-21 stands at Rs. 1.16 billion. Margin at 21% and PAT for the Q4-21 stands
Slide 23: Profit & Loss Statement
PROFIT & LOSS STATEMENT Amount Rs.in Millions PARTICULARS Q4-21 Q4-20 Q3-21 FY-21 FY-20 Real Estate Revenue 2,899 4,307 4,641 13,103 22,801 Contractual & Manufacturing Revenue 2,635 4,794 2,203 7,995 14,738 Other Income * 129 108 91 499 391 Total Income 5,663 9,209 6,935 21,597 37,930 Total Expendit
Slide 24: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Amount Rs.in Millions PARTICULARS 31'Mar 2021 31'Mar 2020 PARTICULARS 31'Mar 2021 31'Mar 2020 ASSETS EQUITY & LIABILITIES Non-current assets Equity Property, Plant and equipment 4,415 4,631 Equity Share Capital 948 948 Investment Property 3,529 1,881 Other Equity 23,329 23
Slide 25: Real Estate - Projects Portfolio
REAL ESTATE - PROJECTS PORTFOLIO Total Developable / Leasable Area in Mn sqft CITY COMPLETED ONGOING FORTHCOMING ➢ Completed Real Estate projects located across 7 cities, with Total development of 58.97 mn sqft and Super Bengaluru * 46.32 15.74 7.03 Built-up area of 44.84 mn sqft Mysore 1.58 - - ➢ U
Slide 26: Future Launches and RERA Status
FUTURE LAUNCHES AND RERA STATUS Forthcoming Launch Pipeline : Ongoing Projects - RERA registration status : Total Saleable area No of projects No of projects LOCATION No of Projects Location (Mn Sft) applied for RERA approved by RERA Real Estate - Forthcoming Bangalore 74 72 Bangalore 8 6.74 Mysore
Slide 27: Contracts Portfolio
CONTRACTS PORTFOLIO Overall area delivered since inception: 53.33 million square feet Order book value as of 31st March 2021: Rs 20.69 billion Contractual Ongoing Project Details as of 31st March 2021 Contractual Revenue & Collection Details as of 31st March 2021 Amount in Rs. Billions Built-up area
Slide 28: Contracts: Completed Projects Region Wise Contribution
CONTRACTS: Completed Projects region wise contribution details Total Developed Area(in Mn Sqft) Order Value (in Mns) 30.00 25.98 35,000 28,608 25.00 30,000 20.00 25,000 20,000 15.00 15,000 7,764 10.00 6.67 5,358 4.46 4.80 6.29 10,000 5,337 5,514 5.00 1,578 0.28 0.08 0.40 1.54 1.37 0.70 0.14 0.45 0.1
Slide 29: Manufacturing Division Performance
MANUFACTURING DIVISION PERFORMANCE ▪ SOBHA – Only Real Estate Company in India with Aatma Nirbhar (Self-Reliant) Model ▪ It supports company to achieve world class quality with timely & efficient delivery Glazing & Metal Works Division Interiors & Furnishing Division Concrete Products Division Turno
Slide 30: Commercial Portfolio: Completed and Forthcoming Projects
COMMERCIAL PORTFOLIO: Completed and forthcoming projects Total Leasable Area Sobha Share of Leasable Project Name Status % of area Leased (in sqft) Area (in sqft) Sobha City Mall, Thrissur Completed 94% 338,493 258,247 One Sobha, Bangalore Completed 80% 225,334 150,974 Sub Total 563,827 409,221 Sobh
Slide 31: Sobha Dream Acres Project Status
SOBHA DREAM ACRES PROJECT STATUS Total SBA launched for sale as on Mar – 2021 5.66 mn sqft Total Developable Area Launched 7.43 mn sqft Total SBA Sold till Mar – 2021 5.30 mn sqft Area Completed till Mar - 2021 5.12 mn sqft Percentage sold 94 % Sobha Dream Acres Wing 25 & 26, Bangalore Sobha Dream A
Slide 32: New Launches During Q4-21
NEW LAUNCHES DURING Q4-21: Sobha Windsor, Bangalore. 32
Slide 33: New Launches During Q4-21 (Contd)
NEW LAUNCHES DURING Q4-21: (Contd) Sobha Windsor, Bangalore. Co-Working space at Sobha Windsor, Bangalore. Chronos Crossway Sobha Windsor, Bangalore. Amphitheatre at Sobha Windsor, Bangalore. 33
Slide 34: New Launches During Q4-21 (Contd)
NEW LAUNCHES DURING Q4-21: (Contd) Sobha Metropolis, Thrissur. Sobha Chartered Woodpecker, Bangalore. 34
Slide 35: metercube: Flagship Store Launched at 1 SOBHA, St Marks Road
“metercube”: Flagship store launched at 1 SOBHA, St Marks Road, Bangalore. 35
Slide 36: Ongoing Projects
ONGOING PROJECTS Sobha Dream Gardens, Wing 06, Bangalore Sobha Winchester Block 3 & 4, Chennai (Near Completion) 36
Slide 37: Ongoing Projects (Contd)
ONGOING PROJECTS (Contd) Sobha HRC Pristine, Wing 1 to 5, Bangalore Sobha Palm Court, Block 2, Bangalore (Near completion) 37
Slide 38: Ongoing Projects (Contd)
ONGOING PROJECTS (Contd) Sobha Lake Gardens, Tower 8, Bangalore Sobha Royal Pavilion Wings 4 to 7, Bangalore 38
Slide 39: Completed Residential Projects During FY-21
COMPLETED RESIDENTIAL PROJECTS DURING FY-21: SOBHA 25 Richmond, Bangalore SOBHA Arena - The Square, Bangalore SOBHA Dream Acres Wing 27 & 28 Bangalore 39
Slide 40: Completed Contractual Projects During FY-21
COMPLETED CONTRACTUAL PROJECTS DURING FY-21: Infosys SEZ, Bangalore Biocon Biologics Manufacturing Plant (B3), Bangalore Infosys SEZ Bangalore 40
Slide 41: Board of Directors
BOARD OF DIRECTORS Ravi PNC Menon J.C. Sharma T.P. Seetharam Chairman Vice Chairman & Managing Director Whole-time Director • Over 16 years of experience in the real • Over 38 years of experience in diversified • Distinguished service as a career estate and construction business industries such as a
Slide 42: Awards and Recognitions FY 2020-21
AWARDS AND RECOGNITIONS FY 2020-21: 42
Slide 43: Milestones
MILESTONES • Recorded one of the best Sales performance despite challenging Macro environment. • Recorder best Cashflows despite the impact of Pandemic on business operations. FY21 Launched exclusive showroom of metercube brand at One Sobha mall Bangalore. • Entered into Furniture business with the
Slide 44: Annexures
ANNEXURES 44
Slide 45: Real Estate Ongoing Projects as of 31st Mar 2021
REAL ESTATE ONGOING PROJECTS AS OF 31st Mar 2021 Total Developable Area Total Saleable Area Sobha Share of Saleable Area Completion Date Sl. No Name of the Project Location Type Classification Business Model (in Mn Sft) (in Mn Sft) (in Mn Sft) as per RERA I Ongoing Projects - Registered under RERA 1
Slide 46: Real Estate Ongoing Projects as of 31st Mar 2021
REAL ESTATE ONGOING PROJECTS AS OF 31st Mar 2021 Total Developable Area Total Saleable Area Sobha Share of Saleable Area Completion Date Sl. No Name of the Project Location Type Classification Business Model (in Mn Sft) (in Mn Sft) (in Mn Sft) as per RERA I Ongoing Projects - Registered under RERA 1
Slide 47: Real Estate Ongoing Projects as of 31st Mar 2021
REAL ESTATE ONGOING PROJECTS AS OF 31st Mar 2021 Total Developable Area Total Saleable Area Sobha Share of Saleable Area Completion Date Sl. No Name of the Project Location Type Classification Business Model (in Mn Sft) (in Mn Sft) (in Mn Sft) as per RERA I Ongoing Projects - Registered under RERA 3
Slide 48: Real Estate Ongoing Projects as of 31st Mar 2021
REAL ESTATE ONGOING PROJECTS AS OF 31st Mar 2021 Total Developable Area Total Saleable Area Sobha Share of Saleable Area Completion Date Sl. No Name of the Project Location Type Classification Business Model (in Mn Sft) (in Mn Sft) (in Mn Sft) as per RERA I Ongoing Projects - Registered under RERA 4
Slide 49: Thank You
THANK YOU Investors Contact : SOBHA Corporate Office - Bangalore Mr.Subhash Mohan Bhat Sobha Limited. Chief Financial Officer ‘SOBHA’, Sarjapur-Marathahalli Outer Ring Mobile: +91-80-49320000 Ext. 5026 Road(ORR), Email: subhash.bhat@sobha.com Devarabisanahalli, Bellandur Post, Bangalore-560103 Mr. T