Slide 1: Exchange filing cover letter: Investor update presentation
24th April, 2021 Corporate Relations Department Listing Compliance Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Mumbai - 400 001 Plot No. C/1, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051 Scrip Code: 506194
Slide 2: Investor Presentation April 2021
INVESTOR PRESENTATION April 2021
Slide 3: Disclaimer
DISCLAIMER This presentation has been prepared by Arihant Superstructures Limited (the Company) for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person. This presentation does not solicit any action based
Slide 4: Company Overview
COMPANY OVERVIEVV
Slide 5: Key Highlights for FY21
KEY HIGHLIGHTS FOR FY21 Strong all-round performance demonstrated by Arihant Superstructures Limited (ASL) in FY21 Net sales crossed 1,100+ units for the full year FY21(P) for the first time in Company’s history showcasing strength of Brand Arihant With record sales, ASL was able to reduce its debt
Slide 6: Overview
OVERVIEW Arihant Superstructures Limited (ASL) is one of the largest real estate player in affordable and mid-income housing consisting of 96% of its portfolio in affordable and mid-income housing Geographically well diversified portfolio across Navi Mumbai, MMR and Jodhpur regions Ongoing & upcomin
Slide 7: Geographical Spread - MMR
GEOGRAPHICAL SPREAD - MMR 13 Lifestyle Defining Projects Region No of Projects Vashi 1 Kalyan Badlapur Taloja 6 Mumbai Kharghar Kharghar 1 Taloja Panvel 1 Vashi Kalyan 1 Panvel Karjat Badlapur 1 Karjat 1 Khopoli 1 Khopoli
Slide 8: Geographical Spread – Jodhpur
GEOGRAPHICAL SPREAD – JODHPUR 4 Market Defining Projects Region No of Projects Dali Bai Circle 3 Pal Gangana 1 Road Dali Bai Circle Pal Gangana Road
Slide 9: Portfolio Mix
PORTFOLIO MIX Category-wise portfolio mix Upper Mid income / Luxury (>INR 10,000/sft) 4% Diversified portfolio mix across geographies with focus on affordable and mid income housing Affordable (<INR7,000/sft) 54% Mid income (INR 7,000- 10,000/sft) Area-wise Portfolio Mix 42% Jodhpur Kharghar / Taloj
Slide 10: Strengths & Business Model
STRENGTHS & BUSINESS MODEL Land Acquisition Product Strategy Fully paid-up land bank for projects to be To have products across various stages of executed in the seven years; Direct purchase construction to serve varied customer needs from individual landowners to keep costs in check Effective gover
Slide 11: Value Creation Journey
VALUE CREATION JOURNEY 1994 2000 2007 2014 2017 2021 Launch Achieved a Successfully Successfully Successfully Record sales of of Real significant Completes and completes and launched flagship 1100+ units Estate milestone of delivers 25 delivers 4 Mn project “Arihant Division completing 10 projects s
Slide 12: Board of Directors
BOARD OF DIRECTORS Ashok Chhajer, Nimish Shah, Virendra Mittal, Promoter, CMD Whole-Time Director Independent Director ● Over 4 decades experience including 2 decades in ● A civil engineer with over 17 years experience in ● IIT Alumnus and a fellow chartered engineer the real estate business constru
Slide 13: Management Team
MANAGEMENT TEAM Akshay Agarwal, Abhishek Shukla, Deepak Lohia, Director - Procurement Chief Strategy Officer Chief Financial Officer ● Seasoned business and finance professional with ● CA having 23 years of experience in the areas of over 15 years experience in P&L Management, Taxation, Accounts & F
Slide 14: Awards & Accolades (Since 2017)
AWARDS & ACCOLADES (SINCE 2017) Over 25 Awards & Recognitions over the last decade 2019 2018 Zee Business Award – Developer of Iconic Award by Radio the Year ( Affordable Housing) IGBC Pre-certified Platinum Affordable Housing Project of City for Arihant the Year for Arihant Arshiya Rating for Aspir
Slide 15: Select Project Elevations
SELECT PROJECT ELEVATIONS Arihant Advika, Vashi Arihant Aspire, Panvel Arihant Anaika, Taloja Arihant Aalishan, Kharghar * Images are Artist’s impressions and for representational purposes only
Slide 16: Select Project Elevations
SELECT PROJECT ELEVATIONS Arihant Aloki, Karjat Arihant Adita, Jodhpur Arihant Arshiya, Khopoli Arihant Ayati, Jodhpur * Images are Artist’s impressions and for representational purposes only
Slide 17: Sustainable Development
SUSTAINABLE DEVELOPMENT Water preservation by rain Solar water heating system, Social development by water harvesting & STP and energy efficient lighting and supporting rural energy conservation use of low VOC paints & infrastructure, school etc. measures adhesives Economic development by Participat
Slide 18: CSR Initiatives
CSR INITIATIVES Providing Ration to all laborers & their families staying at the sites during the Lockdown Grant to Shri Maruti Mandir Trust (Palaspe) for education & livelihood enhancement projects Construction of Road at Ekatpada village Construction of Road at Koynaville village
Slide 19: Growth Drivers
GROWTH DRIVERS
Slide 20: Robust Foundation
ROBUST FOUNDATION Financial Stability Dynamic Sales Infrastructure • Strong sales collections in FY21 – • Sustainable sales growth ~27% growth over FY20 despite momentum pandemic impact • Expanded sales team to 100+ to • Thorough cost control – a capitalize on market opportunity competitive advantag
Slide 21: Readiness for the Upcycle
READINESS FOR THE UPCYCLE • Real Estate is characterized with 5-year cycles. With over 2 decades of experience, ASL’s strategy incorporates such cyclicality • The slowdown experienced in the property markets provided an opportunity to consolidate Creating ready • ASL could envision the need for read
Slide 22: Readiness for the Upcycle
READINESS FOR THE UPCYCLE • With record sales, the monthly collections have doubled from ~INR 19 Cr in Feb-20 to ~INR 40 Cr in Feb 21 (P) • This enabled us to further double our engineering spends and expedite the Strong collections and construction activity on all its sites construction spends • We
Slide 23: Acquisitions in Last 5 Years
ACQUISITIONS IN LAST 5 YEARS Saleable Area Est. Revenue Type of Land Area Year Location Project Potential Potential Acquisition (Sqm) (Sft) (INR Cr) 2016-17 Rohinjan, Aalishan Joint Development 20,470 1,001,432 820 Kharghar, Navi Mumbai 2017-18 Taloja Amber Land purchase 1,560 32,547 15 2018-19 Panv
Slide 24: Sales Track-Record
SALES TRACK-RECORD No. of Units Sold Avg Sale Rate (INR/Sft) 4,559 1200 1,103 4600 4500 1000 4400 800 712 4300 4,252 600 537 4200 4100 4,061 400 4000 200 3900 0 3800 FY19 FY20 FY21 (P) FY19 FY20 FY21 (P) 12 Area Sold (Lakh Sft) ASL has lodged a strong sales 10.18 10 performance crossing 8 6.45 1100+
Slide 25: Consistent Pace of Delivery
CONSISTENT PACE OF DELIVERY We move forward with a strong belief that timely delivery with superior quality will be the key differentiator in the future ASL has consistently delivered 700-900 units year on year since past many years and is working towards improving the pace While construction activi
Slide 26: New Launches
NEW LAUNCHES Consistent launch pipeline with readiness to scale up in line with market response as and when required Project Location Timeline No. of units Category 5Anaika Taloja Q1 FY22 250 Affordable Anmol Badlapur Q2 FY22 80 Affordable Advika Vashi Q2 FY22 325 Luxury Arshiya Khopoli Q2 FY22 150
Slide 27: Infrastructure Development
INFRASTRUCTURE DEVELOPMENT Navi Mumbai International Airport • The 16,000-crore Navi Mumbai airport is touted to be one of the world’s largest Greenfield airports with a capacity to handle 20 Mn passengers per annum in the first phase and 90 Mn final capacity • Takeover by Adani Group recently is ex
Slide 28: Infrastructure Development
INFRASTRUCTURE DEVELOPMENT Multi Modal Corridor • Virar-Alibaug Multi Modal Corridor is a 126 kms road network connecting NH-8, Bhiwandi bypass, NH-3, NH-4 and NH-4B, Mumbai-Pune Expressway, NH-17, etc. • Designed to promote 7 growth centers in MMR such as Virar, Bhiwandi, Kalyan, Dombivali, Panvel,
Slide 29: Market Attractiveness
MARKET ATTRACTIVENESS Ranking among 111 cities – Ministry of Housing and Urban Affairs (2020) Navi Mumbai has 45 consistently ranked in top 10 out of a total 38 36 of 111 cities ranked 33 30 through the Ease of 25 26 25 Living Index 16 16 17 11 12 It is also ranked in top 11 10 11 6 8 9 8 8 9 15 for
Slide 30: Construction Progress
GONSTERUGTION- PROGRESS
Slide 31: Project Status – Aalishan (Kharghar)
PROJECT STATUS – AALISHAN (KHARGHAR) Mar-20 Mar-21 46th floor completed in Baraz I 29th floor completed in Baraz I Finishing work in progress
Slide 32: Project Status – Aalishan (Kharghar)
PROJECT STATUS – AALISHAN (KHARGHAR) Mar-20 Mar-21 37th floor completed in Kaveh Finishing work in progress
Slide 33: Project Status – Aspire (Panvel)
PROJECT STATUS – ASPIRE (PANVEL) Mar-20 Mar-21 6th floor completed in Iliana 18th floor completed in Iliana 8th th floor 37floor completed completed in Kaveh in Hortensia 18th floor completed in Hortensia
Slide 34: Project Status – Anaika (Taloja)
PROJECT STATUS – 3 ANAIKA (TALOJA) Mar-20 Mar-21
Slide 35: Project Status – Anaika (Taloja)
PROJECT STATUS – 4 ANAIKA (TALOJA) Mar-20 Mar-21
Slide 36: Project Status – Amber (Taloja)
PROJECT STATUS – AMBER (TALOJA) Mar-20 Mar-21
Slide 37: Project Status – Anmol (Badlapur)
PROJECT STATUS – ANMOL (BADLAPUR) Mar-20 Mar-21
Slide 38: Project Status – Aloki (Karjat)
PROJECT STATUS – ALOKI (KARJAT) Mar-20 Mar-21
Slide 39: Project Status – Adita (Jodhpur)
PROJECT STATUS – ADITA (JODHPUR) Mar-20 Mar-21
Slide 40: Project Status – Anchal (Jodhpur)
PROJECT STATUS – ANCHAL (JODHPUR) Mar-20 Mar-21
Slide 41: Financial Snapshot
FINANCIAL SNAPSHOT
Slide 42: Capital Market Data
CAPITAL MARKET DATA BSE Scrip Code 506194 NSE Trading Symbol ARIHANTSUP Shareholding Pattern Bloomberg Code ARSU:IN FPIs/Banks/Fis Public 0.45% 22.32% Mutual Funds GICS Sector Real Estate 2.92% Promoters 74.31% Market Cap as on 31st INR 1,455 Mn March 2021 52 Week High INR 43.7 52 Week Low INR 16.50
Slide 43: Quarterly Results
QUARTERLY RESULTS Particulars (INR Mn) Q3 FY21 Q3 FY20 % change Q2 FY21 % change Total Revenue 736.17 641.58 14.7% 647.83 13.6% Total Operating Expenses 587.85 502.79 516.38 EBITDA 148.32 138.79 6.9% 131.45 12.8% Interest 60.57 71.84 76.43 Depreciation 5.10 4.89 5.25 PBT 82.65 62.06 33.2% 49.76 66.1
Slide 44: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Particulars (INR Million) FY 17 FY18 FY19 FY20 Total Revenue 1,862 1,893 2,422 2,376 Cost of materials consumed 2,074 1,285 1,955 1,192 Changes in inventories -1,130 -1,61 -511 336 Employee benefits expense 85 127 138 121 Other Expenses 190 256 271 252 Total Expenses 1,
Slide 45: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Equity and Liabilities (INR Million) FY17 FY18 FY19 FY20 Share Capital 412 412 412 412 Reserves and Surplus 724 764 807 856 Net worth 1,136 1,176 1,218 1,268 Minority Share 79 98 139 200 Long Term Borrowings 2,013 1,719 2,377 3,168 Short Term Borrowings 545 1,048 1,401 698
Slide 46: Financial Performance
FINANCIAL PERFORMANCE Income Statement (INR Mn) Return Ratios ROE ROCE Revenues EBITDA PAT 35.0% 2,422 2,376 30.0% 28.8% 1,862 1,893 25.0% 20.0% 19.6% 15.0% 12.3% 14.8% 13.9% 643 569 475 10.0% 327 385 10.7% 11.2% 126 137 56 5.0% 4.0% 0.0% FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 Net Debt to Equity 3.
Slide 47: Industry Outlook
INDUSTRY OUTLOOK
Slide 48: Macro-Economic Indicators
MACRO-ECONOMIC INDICATORS Negative real rates pushing preference towards physical assets - India is witnessing negative real rates after many years which boosts the attractiveness of owning physical assets over the financial assets. As per an analysis by Jefferies, 1 year G-Sec yields less CPI is pe
Slide 49: Key Reforms & Interventions
KEY REFORMS & INTERVENTIONS 2016 2019 2021 RERA & GST GST Reduction Structural Upcycle RERA & GST are arguably GST reduction to 5% for The last 5 years have laid the most important under-construction housing the foundation for a landmark structural reforms and 1% for affordable structural upcycle po
Slide 50: Residential Market
RESIDENTIAL MARKET Early signs of recovery Gaining Momentum GDP showed higher than Opening up of the economy expected recovery; Housing coupled up with pent up sales grew 34% on sequential demand resulted into new basis – significant indicator launches and sales registering considering job and incom
Slide 51: Declining Inventory Levels
DECLINING INVENTORY LEVELS Unsold Inventory (units in lakhs) 9 7.91 8 7.26 6.73 7 6.48 6.38 6 5 Limited launches in last two years and 4 sales pickup has resulted in unsold 3 inventory declining ~20% since 2016 at 2 1 6.38 lakh units in top 7 cities. 0 2016 2017 2018 2019 2020 Unsold inventory in MM
Slide 52: Key Trends
KEY TRENDS 1 2 3 4 Ownership vs Rent Historically low Government Accelerating interest rates Initiatives Consolidation Lockdown Central bank Stamp duty The crisis reinforced the continues to hold reduction of 2-3% precipitated by need of owning the low interest in states like the pandemic has the ho
Slide 53: Key Trends
KEY TRENDS 5 6 7 Peripheral markets Affordable Technology Housing Adoption As many 80% of the new The success of companies launches were in digital adoption embrace remote the sub INR 10 among the market working model, Mn category* leaders as the peripheral reflected in the markets and Government ha
Slide 54: Best Ever Affordability
BEST EVER AFFORDABILITY Best affordability in 25 years Stable Property prices and all-time low mortgage rates have resulted in the best affordability in past 25 22 two and a half decades. 20 15 15.6 It is expected to be even more favourable in satellite 11.1 10 cities established peripheral micro ma
Slide 55: Thank you!
Thank you! For further Information please contact: Abhishek Shukla Chief Strategy Officer Tel: +91 22 6249 3333 Email: abhishek.shukla@asl.net.in Corporate Office: Arihant Aura, Floor No. 25, B wing, Plot no 13/1, TTC Industrial Area, Thane Belapur Road, Turbhe, Navi Mumbai – 400705, Maharashtra