Shriram Properties Ltd. · NSE:SHRIRAMPPS
Shriram Properties — Q3 FY24 Earnings Presentation
48 slides from Shriram Properties's earnings presentation, February 2024
Slide 1: Shriram Properties Limited Corporate Presentation
Shriram Properties Limited Corporate Presentation February 2024 STRICTLY PRIVATE AND CONFIDENTIAL
Slide 2: SPL: An Introduction
SPL : An Introduction Top 5 c. 90% players in core markets of portfolio2 in Among the Top 5 in South India1 Affordable housing and Mid About Us Part of the well known Shriram Group Market housing segment c. 22.4 msf c. 53.1 msf 3 c. 21 msf over 40 projects over 51 projects Project Completed projects
Slide 3: SPL: Significant Competitive Strengths
SPL : Significant Competitive Strengths Leadership in Core Focus on Mid Market Markets and Affordable Housing Strong Parentage and Established Beneficiary of RERA- Partnerships led industry consolidation Experienced & Asset Light Business Professional Model Management Team Demonstrated Execution Tra
Slide 4: Shriram Properties: The Journey so far
Shriram Properties (‘SPL’): The Journey so far… • Creation of credible residential real estate growth platform, over the last 2 decades – Among the Top-5 players in core markets of Bangalore, Chennai and Kolkata – Focused Mid-Market & Affordable housing player (88% of completed projects; 93% of Proj
Slide 5: Building Scale in the Post-RERA Environment
SPL – Building Scale in the Post-RERA Environment Sales Volume (msf) Sales Value (Rs. Cr) 4.0 3.8 1,846 3.6 1,654 3.2 3.0 3.0 1,432 1,482 2.4 1,244 1,173 1,149 1.3 472 FY17 FY18 FY19 FY20 FY21 FY22 FY23 9MFY24 FY17 FY18 FY19 FY20 FY21 FY22 FY23 9MFY24 Collections (Rs. Cr) Construction (Rs. Cr) EBITD
Slide 6: Demonstrated Capabilities in Project Execution
Demonstrated Capabilities in Project Execution Shriram Properties has delivered 40 completed projects | c.22.4msf of Saleable Area 2 Completed no. of projects Total saleable area for completed projects Significant project 7 area delivered in the 1 6 6.9 2 years before 5 COVID 4 4 4 3.5 3.8 2.4 1.8 1
Slide 7: 9M FY24 Performance Highlights
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 8: Key Highlights & Developments – 9M FY24
Key Highlights & Developments – 9M | FY24 Operational Performance Financial Performance • YTD Sales 3.03 msf (+12% YoY); Q3 at 1.11 msf (+6% YoY) • Satisfactory 9M performance despite Q3 adversities • Aggregate Sales Value at Rs.1,654 crs YTD (+22% YoY) • EBITDA up 14% YoY, PBT up 11% YoY, PAT at Rs
Slide 9: KPI Summary – 3Q | 9M FY24
KPI Summary – 3Q | 9M FY24 Sales Volume Sales Value Collection Handovers -3% 34% 48% Q3 FY24 KPI’s 6% YOY YOY YOY YOY 1.11 msf 588 Cr. 334 Cr. 787 No's 12% 22% 19% 29% YOY YOY YOY YOY 9M FY24 KPI’s 1,055 Cr. 1,619 No's 68%* 72%* 66%* 54%* FY24 Plan 20% 26% 47% 50% ~4.8 msf YOY ~Rs.2,330 Cr. YOY ~Rs.
Slide 10: Performance Snapshot: 9M FY24
Performance Snapshot: 9M|FY24 Pre-Sales Volume (msf) Sales Value (Rs. Cr.) Collection (Rs. Cr.) 4.8 1,600 1,654 2,300 19% 1,055 12% 4.0 22% 1,352 1,846 646 1,195 545 3.0 1.8 887 2.7 1.3 494 307 +22% +12% +19% 3.0 1,352 1,654 887 1,055 2.7 9MFY23 9MFY24 FY23A FY24P 9MFY23 9MFY24 FY23A FY24P 9MFY23 9M
Slide 11: YTD Launch Trends & Q4 Launch Outlook
YTD Launch Trends & Q4 Launch Outlook FY24 Launches so far Impressive Sales-at-Launch 48% Launch Sold at Projects Type Launch % sold 44% 43% Area launch 38% Shriram Esquire New May’23 1,31,870 57,835 44% 34% Shriram Hebbal 1 New May’23 1,44,328 63,750 44% Shriram Paradiso New Sep’23 10,71,330 4,64,0
Slide 12: Encouraging Pricing Trends: Realisation up 15%
Encouraging Pricing Trends: Realisation up 15% from Mar’23 levels Price Increase by Project – Top Projects only Avg. Portfolio Price increase Trends Development Increase in Project March’23 9M FY24 Type 9m FY24 15%* Shriram 107 Southeast -Phase 3 Apartment 4,300 5,081 18% Avg Shriram Southern Crest
Slide 13: Project Execution Trends: Q4 Handover Readiness
Project Execution Trends: Q4 Handover Readiness No. of Handed Project Name Total Area RERA date Project Current Status units over Shriram Greenfield Ph II 7,04,355 653 30-Dec-23 11 OC Received Registration Chirping Wood Tower 5 2,20,740 148 30-Mar-24 Nil OC Received Momentum Liberty Square 5,84,780
Slide 14: Financial Highlights | 9MFY24
Financial Highlights | 9MFY24 o Satisfactory 9M performance despite Q3 Adversities: • Near flat revenues, EBITDA up 14% YoY, PBT up 11% and Net Profit at Rs.55.3 crs in 9MFY24 • Q3 suffered on delayed receipt of OC’s and consequent deferred handover/sale deed regn resulting in deferment of revenue r
Slide 15: Financial Highlights: Profit & Loss | Q3 & 9MFY24
Financial Highlights : Profit & Loss|Q3 & 9MFY24 9M FY24 Particulars (Rs. Crores) 9MFY24 9MFY23 YoY (%) Q3FY24 Q3FY23 YoY(%) FY23 EBIDTA Total Revenues 629.0 643.0 -2% 240.6 222.0 8% 813.9 Rs. 157.1 Cr Cost of revenue 335.3 389.9 153.7 132.4 453.2 Employee benefit expense 64.4 59.5 22.0 19.5 78.7 14
Slide 16: Financial Highlights (contd.): Profit & Loss
Financial Highlights (contd.): Profit & Loss|Q3 & 9MFY24 9M | FY24 ❑ Revenue growth muted, primarily due to OC led hand over delays suffered in Q3FY24 • ~60% of Revenues to-date driven by recently completed projects - Grand City, Shankari, Southern Crest, Liberty Square and Park63. • DM fee accounte
Slide 17: Consolidated Cash Flows | Q3 & 9M FY24
Financial Highlights: Consolidated Cash Flows | Q3 & 9M FY24 (Excl. DM & JV cashflows) Amount in Rs. Crores 9M FY24 Q3FY24 Q2FY24 Q1FY24 FY23 Collection Trends Collections 499 189 171 139 524 SPL Own & JDA / JVs / DM DM Income 118 22 26 70 57 1,194 1,053 Other Inflows 1 - 1 - 1 251 124 Operating Inf
Slide 18: 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. 700 656 553 0.70 13.70% 600 86 508 12.50% 481 500 120 11.90% 61 11.46% 400 141 0.36 0.36 300 569 0.30 200 432 447 341 100 - Mar-21 Mar-22 Mar-23 Dec-23 Mar'21 Mar'22 Mar'23 Dec'23 Mar'21
Slide 19: New Market Entry: Pune
New Market Entry: PUNE 18
Slide 20: Pune: A promising new market
PUNE: A promising new market with promising great prospects Pune: The City on expressway in the journey of growth 01 Pune market is predominantly Affordable & Mid Market focused, and also end-use driven. Reflects significant similarity to our core markets. 02 Second largest market among Top-7 market
Slide 21: Why Pune & What's There for Shriram
Why Pune & What’s There for “Shriram” Pune “Undri” Key Segment Market dynamics Brand leverage Competitor Presence region Most sought after Significance presence of 1. Largely IT sector crowd. Strong brand image in 1. Kolte Patil alternative Affordable and mid – 2. Compact sized apartments Pune by “S
Slide 22: Growth Outlook Going Forward
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 23: FY24 Outlook | Context & Strategic Objectives
FY24 Outlook | Context & Strategic Objectives Strategic StrategicObjectives 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’
Slide 24: 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 25: Key Strategies
Key Strategies 6 1 Leverage established Stay focused on mid-market and relationships with financial affordable housing investors for growth funding 2 5 Continued focus on core Build scale and enhance markets of South India execution capabilities 4 3 Unlock value from ongoing Enhance focus on Develop
Slide 26: Residential Real Estate Sector Overview
Shriram WYTFIELD Residential Real Estate Sector Overview 25
Slide 27: Residential Real Estate Sector: Resilient & Attractive Investment
Residential Real Estate Sector: Resilient & Attractive Investment Growth momentum strong despite ambivalent global economy * KEY EMERGING TRENDS – Largely remain intact • Top-7 City sales decade high for CY23 – 5.36 lac units, Up 16% YoY • Housing affordability favorable, Rate hike impact minimal •
Slide 28: SPL's Core Market Trends
SPL’s Core Market Trends • Absorption continue to dominate in SPL’s core markets Pricing & Segment wise Trends 2023– Core Markets Bengaluru Chennai Kolkata • 79% of absorbed units for CY23 in top 5 cities (Bangalore, Hyderabad, Thane & Pune) • Inventory overhang on downward trajectory − Bengaluru am
Slide 29: Green Building Initiatives through EDGE
Green Building Initiatives through EDGE ✓ SPL committed to “Green Buildings”, as part of its growth strategy and EDGE - ADVANTAGES FOR DEVELOPERS sustainable development efforts Positioning as a first mover in the market with a major marketing ✓ EDGE: A measurable solution from IFC, a part of the Wo
Slide 30: Project Pipeline Update – December'23
Project Pipeline Update – December’23 Project Pipeline (msf) Upcoming – 20 msf # projects Msf 8.6 53.1 Ongoing – 24 msf 7.8 44.5 Pipeline – March’23 53 52.9 1.6 10.6 Less: Projects Completed (4) (1.8) 4.1 11.9 Add: Projects Added 1 1.9 8.5 Pipeline – December’23 50 53.1 Ongoing Ongoing Ongoing Upcom
Slide 31: Shareholding Pattern as at 31st December 2023
Shareholding Pattern as at 31st December 2023 Category No.of Holders % Promoters 3 28% Strategic Investor 1 14% Shareholding Pattern as at 31st December 2023 Institutional Investors 20 10% Body Corporates 534 12% Promoters , Public 75,811 36% Public , 35% 28% Total 76,369 100% Strategic Body Investo
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: SPL footprints in emerging Micro-Markets
SPL footprints in emerging Micro-Markets Whitefield Micro Market: • Shriram Spurthi Started in – 2003 | Completed in 2005 | Whitefield • Shriram Samskruthi Completed - 2005 | Whitefield Sahakarnagar/Kodigehalli Micro Market: • Shriram Shreyas Completed 2006 | Kodeigehalli/ Sahakarnagar Domlur Micro
Slide 34: Thank You
THANK YOU 33
Slide 35: Back-up Slides
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 36: Annexure-2: Development Model Business Dynamics
Annexure-2: Development Model Business Dynamics 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 Shar
Slide 37: 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 38: 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 39: Our Project Presence: Bangalore
Our Project Presence: Bangalore 38
Slide 40: Our Project Presence: Chennai
Our Project Presence: Chennai 39
Slide 41: Our Project Presence: Kolkata
Our Project Presence: Kolkata 40
Slide 42: Back-up Slides: FY23 Performance
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 43: Key Highlights & Developments: FY23
Key Highlights & Developments: FY23 Operational Performance Project Execution • Sales volumes at 4.0 msf (net) - a new high for SPL • Handed-over 2,000+ units/plots - new record for SPL • Highest-ever sales, both Volume and Value • Completed 7 projects- 3 resi. & 4 plotted; TSA* of 3.8msf • Realisat
Slide 44: Financial Highlights: Profit & Loss | Q4 & 12M FY23
Financial Highlights : Profit & Loss|Q4 & 12M FY23 Particulars (Rs. Mn) 9M FY23 Q4 FY23 FY23 FY22 YoY (%) Total Revenues 6,430 1,710 8,139 5,178 57% Total Revenues Rs. 8,139 Mn Cost of revenue 3,899 633 4,532 1,823 Employee benefit expense 595 193 787 730 57% YoY Other expenses 560 431 991 807 Total
Slide 45: Financial Highlights: Balance Sheet | FY23
Financial Highlights : Balance Sheet|FY23 Particulars (Rs Mn) 31-Mar-23 31-Mar-22 ROCE Trends (%) 11% Fixed Assets 813 823 10% Investments and loans 1,526 1,810 7% Inventories 22,208 21,882 5% 4% Cash and Bank Balances 1,204 1,405 Other Assets 10,679 10,418 FY19 FY20 FY21 FY22 FY23 Total Assets 36,4
Slide 46: SPL CFS Cash Flows | Q4FY23
Financial Highlights: SPL CFS Cash Flows | Q4FY23 (Excl. DM & JV cashflows) Gross Collection Trends 9M Q4 (In Rs Mn) FY23 FY22 SPL Own & JDA / JVs / DM FY23 FY23 Collections 3,853 1,390 5,243 5,346 12,631 DM Income 455 117 572 721 11,943 Other Inflows 5 2 7 6 2,506 3,578 8,871 Operating Inflow 4,313
Slide 47: 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 48: Key Highlights & Developments – Q1 FY24
Key Highlights & Developments – Q1FY24 Operational Performance Project Execution • Highest-ever Q1 sales, both in terms of volumes and values • Handed over 350+ units in Q1, despite slowdown in registration since Apr’23 (Election / Kaveri 2.0 issues) • Sales volumes up 17% YoY ; Value up 47% YoY in