Parsvnath Developers Limited · NSE:PARSVNATH
Parsvnath Developers — Non-Deal Roadshow (June 2009)
40 slides from Parsvnath Developers's roadshow presentation, June 2009
Slide 1: A Diversified Real Estate Company with Pan India Presence
A Diversified Real Estate Company with Pan India Presence 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Parsvnath Developers Ltd. (the “Company”) solely for providing information about the Company. This presentation is confidential and may not be copied or disseminated, in whole or part, in any manner This presentation has been prepared by the Company
Slide 3: Contents
Contents • Real Estate Industry – Emerging Trends • Overview of Parsvnath Developers Limited • Key Priorities • g Projects Continued focus on Execution of Existing j • Continued focus on Affordable Housing • Strengthening the Balance Sheet & Deleveraging • Overview of Key Business Segments • Real Es
Slide 4: Real Estate Industry – Emerging Trends
R lE Real Estate t t IIndustry d t – Emerging E i T Trends d 4
Slide 5: The Indian Growth Story
The Indian Growth Story Rapid & Sustainable Economic Growth GDP Growth Rate The average growth Th th rate t in i the th period i d 12 (2004 – 05 to 2007 – 08) has been ~ 9.4 9.6 9.0 8.9% 9 7.5 7.5 6.7 However, growth decelerated in 2008 - 6 09 to 6.7% 6 7% due d to the h adverse d i impact off
Slide 6: Real Estate: Key Demand Drivers
Real Estate: Key Demand Drivers Residential Commercial: Office Space p Rising income levels Strong economic growth Faster urbanization Infrastructure development Nuclear family and younger population Destination for IT/ITeS sector Growing middle & upper class Government Policies to e
Slide 7: Current Industry Dynamics
Current Industry Dynamics India Benchmark Rates (%) The economic slowdown has 9 adversely impacted the real estate 8 sector 7 6 This has prompted developers to 5 d f defer th i decisions their d i i t to acquire i 4 5 4 00 75 additional land reserves 3 16-Jun-08 15-Sep-08 15-Dec-08 16-Mar-09 16-
Slide 8: Overview of Parsvnath Developers Limited
O Overview i off Parsvnath P th D Developers l Limited Li it d 8
Slide 9: Parsvnath Developers Limited: An Overview
Parsvnath Developers Limited: An Overview Over 2 decades of experience in real estate Select Completed Projects development p Completed 37 projects having an area of 11.23 mn sq ft1 Presently 57 projects with a total area of 79.88mn sq ft1 are under development/ construction Out of this, 35.
Slide 10: Diversified Operations
Diversified Operations Completed Projects (Saleable Area) Projects under execution (Saleable Area) Commercial DMRC Hotels Contracts 8% 3% 1% DMRC 2% 1% Commercial 3% Residential 22% Integrated Residential Townships 49% (Plotted Area) IIntegrated d 40% Townships 71% Our focus remains on the residen
Slide 11: Key Priorities
K Key Priorities P i iti 11
Slide 12: Key Priorities
Key Priorities #1 Continue focus on Execution of Existing Projects #2 Continue focus on Affordable Housing #3 Strengthening Balance Sheet & Deleveraging 12
Slide 13: Execution Roadmap: Residential
Execution Roadmap: Residential Select Projects Under Execution Saleable Area Project Name Location (mn Sq ft) Integrated Townships Parsvnath City Sonepat 13.78 Parsvnath City Panipat 6.78 Parsvnath City, Sonepat, Actual Site Photograph Parsvnath City Indore 5.40 Residential Group Housing Projects LA
Slide 14: Execution Roadmap: Commercial
Execution Roadmap: Commercial Select Projects Under Execution Saleable Area Project Name Location (mn Sq ft) Parsvnath City Centre Ahmedabad 0.45 Parsvnath City Centre Sonepat 0.34 Parsvnath City Centre Hyderabad 0.29 Parsvnath City y Centre, Parsvnath City Centre, Parsvnath Mall Rohini, Delhi 0.26
Slide 15: Execution Roadmap: DMRC Projects
Execution Roadmap: DMRC Projects Projects Under Execution Saleable Area Project Name Location (mn Sq ft) Parsvnath Metro Mall, Delhi 0.40 Welcome Parsvnath Metro Mall, Delhi 0.32 Azadpur Parsvnath Metro Mall – Delhi 0.31 Parsvnath Metro Mall, Azadpur Akshardham Projects in Planning Saleable Area Pro
Slide 16: Execution Roadmap: Hotels
Execution Roadmap: Hotels Select Projects Under Execution Hotel, Ahmedabad Saleable Area (mn Project Name Location Sq ft) Hotel Hyderabad 0.18 Hotel Ahmedabad 0.14 Hotel Mohali 0.09 Hotel Lucknow 0.07 Hotel Shirdi 0.04 Artistic Impression Actual Site Photograph Hotel, Mohali Hotel, Lucknow Artistic
Slide 17: Possession Schedule
Possession Schedule Parsvnath City, Sonepat Plots P Parsvnath th City, Cit P Paliwal li l Pl Plots t Parsvnath City, Indore Plots Parsvnath Exotica, Gurgaon Parsvnath Planet, Lucknow Parsvnath Regalia, Ghaziabad Next 6 Months 6 Months - 1 Year 1 - 2 Years 5.1 mn Sq ft 16.15 mn Sq ft 7.45
Slide 18: Key Priorities
Key Priorities #1 Continue focus on Execution of Existing Projects #2 Continue focus on Affordable Housing #3 Strengthening Balance Sheet & Deleveraging 18
Slide 19: Continue Focus on "Affordable Housing"
Continue Focus on “Affordable Affordable Housing” Housing Parsvnath’s major focus was on mid income and affordable housing even before the downturn in the real estate sector started Strong Portfolio of mid income and affordable houses K Key affordable ff d bl housing h i projects j t launched
Slide 20: Case Study: Parsvnath Regalia, Ghaziabad
Case Study: Parsvnath Regalia, Ghaziabad Location/Accommodation Located on G T Road, NCR 30 mins drive from Connaught Place Proximity to upcoming metro station 8 acres of landscaped society 2 – 3 bedroom apartments/penthouses Sales Performance 471 flats were sold out of 480 flats S
Slide 21: Case Study: Parsvnath Pratibha, Moradabad
Case Study: Parsvnath Pratibha, Moradabad Location/Accommodation 9 kms from Railway Station and Main City 2 – 3 bedroom apartments Sales Performance 775 flats were sold out of 808 flats Saleable Area of 1050 sq ft (2 BHK)/1260 1450 & 1550 sq ft (3 BHK) BHK)/1260, Flats starting from Rs
Slide 22: Recent Launch: Parsvnath Royale Floors, Lucknow
Recent Launch: Parsvnath Royale Floors, Lucknow Location/Accommodation Spread over 35 acres on Lucknow – Faizabad Road 6 kms from Gomti Nagar 2 – 3 bedroom b d apartments t t Sales Performance 510 flats launched in Phase 1. Out of this 492 were sold on the date of Parsvnath Royale Floors
Slide 23: Advertising Campaign Around Affordable Housing Theme
Advertising Campaign Around Affordable Housing Theme 23
Slide 24: Key Priorities
Key Priorities #1 Continue focus on Execution of Existing Projects #2 Continue focus on Affordable Housing #3 Strengthening Balance Sheet & Deleveraging 24
Slide 25: Strengthening Balance Sheet & Deleveraging
Strengthening Balance Sheet & Deleveraging Key steps taken include: Focus on execution of existing projects & No further additions to land reserves Monetizing delayed projects Group Housing Project in Sector 116, Noida as Government was not able to provide clear title and got back deposit am
Slide 26: Strengthening Balance Sheet & Deleveraging
Strengthening Balance Sheet & Deleveraging Redfort Capital Funding Parsvnath Developers Limited (PDL) recently inked an agreement with leading international real estate private equity fund Red Fort Capital to invest in its 16.84 acres, premium luxury residential project “Parsvnath La Tropicana” in
Slide 27: Overview of Key Business Segments
Overview of Key Business Segments 27
Slide 28: Residential and Integrated Township Projects
Residential and Integrated Township Projects Select Completed Projects Saleable Area Project Name Location (mn Sq ft) Integrated Townships Parsvnath City1 Dharuhera 1.53 Parsvnath Prestige, Noida Parsvnath King City1 Rajpura, Punjab 1.21 Parsvnath Majestic, Ghaziabad Residential Group Housing Projec
Slide 29: Commercial Projects
Commercial Projects Select Completed Projects Saleable Area Project Name Location (mn Sq ft) Parsvnath Mall Faridabad 0.21 Manhattan Parsvnath City Mall Faridabad 0.17 Parsvnath City Mall, Faridabad Parsvnath Mall Manhattan, Parsvnath Plaza I & II Moradabad 0.13 Faridabad Parsvnath Plaza Saharanpur
Slide 30: DMRC Projects
DMRC Projects Completed Projects Saleable Area Project Name Location (mn Sq ft) Parsvnath Metro Tower, Delhi 0.11 Shahdra Parsvnath Metro Mall, Delhi 0.09 Inderlok Parsvnath Metro Mall, Parsvnath Metro Mall, Parsvnath Metro Mall, Inderlok Delhi 0.05 Inderlok Annexe Kashmere Gate Parsvnath Metro Mall
Slide 31: Hotels: A Diversified Portfolio
Hotels: A Diversified Portfolio Strong Portfolio of 18 hotel properties Type of Hotel Properties across India All hotels to be developed in a 100% Subsidiary, Parsvnath Hotels Limited (“PHL”) Hotels H t l tto b be ownedd by b PHL and d managed d Services by leading national and international h
Slide 32: SEZs: New Growth Opportunity
SEZs: New Growth Opportunity SEZ Development is undertaken through a 100% Subsidiary, Parsvnath SEZ Ltd (“PSL”) Approval Status: Notified: 4 SEZs at Indore, Gurgaon, Dehradun and Nanded Formally Approved: 2 SEZs at Kochi & Hyderabad In Principle Approval: 6 SEZs at Kancheepuram, Kundli, Mo
Slide 33: Third Party Construction
Third Party Construction In order to leverage our well-established in-house construction and purchase division we have decided to take the outside construction contracts division, contracts. Following projects have been bagged. Total Built-up Value of the S. Details Location Area Contract No. (sq.
Slide 34: Strong Execution Capability
Strong Execution Capability Construction Construction C t ti off all ll major j projects j t isi done d in-house i h Team established for construction 300+ Engineers 40+ Architects Arrangements with leading Architects like Hafeez Contractor, C P Kukreja, Mohit Gujral, Gian Mathur, Kamal
Slide 35: Financial Overview
Fi Financial i lOOverview i 35
Slide 36: Financial Highlights
Financial Highlights Revenue (Rs. million) EBITDA & PAT (Rs. million) 20,000 8,000 18,371 18,000 , 7,000 6,802 16,000 15,345 6,000 14,000 12 000 12,000 5,000 4,416 4,244 10,000 4,000 8,000 7,292 2,922 3,000 6,000 2,385 2,000 4,000 1,128 1,000 2 000 2,000 0 0 FY07 FY08 FY 09 FY07 FY08 FY 09 Source: C
Slide 37: Financial Highlights
Financial Highlights Net Worth (Rs. million) Net Debt/Equity (x) 25,000 0.9 0.83 0.8 0,0 20,047 0 74 0.74 18,896 20,000 0.7 0.6 14,918 15,000 , 0.5 0.42 0.4 10,000 0.3 5,000 0.2 0.1 0 0.0 FY07 FY08 FY 09 FY07 FY08 FY 09 Source: Company 37
Slide 38: Financial Highlights
Financial Highlights Figures are in Rs. million FY09 FY 08 FY07 KEY RATIOS EBIDTA MARGIN 32.70% 37.03% 28.79% NET MARGIN 15.47% 23.10% 19.02% RETURN ON EQUITY 5.63% 22.46% 19.57% NET DEBT EQUITY RATIO 0.83x 0.74x 0.42x FINANCIAL HIGHLIGHTS REVENUE 7,292.1 18,371.2 15,350.0 EBITDA 2 384 7 2,384.7 6 8
Slide 39: Debt Position
Debt Position Debt Composition (Rs million) Term Loan Composition (Rs million) Overdraft Others against FD 3% 8% Corporate Working Project 47% Capital Related 7% 53% Term L T Loans 82% Note: Others include interest accrued and loans from directors Term Loan Maturity Schedule (Rs million) 7,000 6,470
Slide 40: Growth Strategies
Growth Strategies Continue focus on metros (including NCR) and “A” – category cities Concentrate on Affordable Housing Projects costing ~ INR 3 million Provide Grade – A office space to existing/new clients in upcoming IT d ti ti destinations Extend the organized retail concept to “A” catego