Shriram Properties Ltd. · NSE:SHRIRAMPPS
Shriram Properties — Investor Presentation (December 2022)
31 slides from Shriram Properties's investor presentation, Dec 7, 2022
Slide 1: Exchange intimation letter: Investor Presentation
December 7, 2022 National Stock Exchange of India BSE Limited Limited Dept of Corporate Services The Listing Department Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor Dalal Street, Fort Plot C 1 – G Block Mumbai 400 001 Bandra-Kurla Complex, Bandra ( E) Scrip Code : 543419 Mumbai 400 051 Scrip
Slide 2: Shriram Properties Limited Corporate Presentation December 2022
Shriram Properties Limited Corporate Presentation December 2022 STRICTLY PRIVATE AND CONFIDENTIAL
Slide 3: 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 About Us Part of the well known c.35% Shriram Group of post IPO capital held by and Mid Market globally renowned PEs housing segment c. 19.5 msf c. 54 msf 3 c. 21 msf over 3
Slide 4: 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 5: 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 (86% of completed projects; 90% of Proj
Slide 6: SPL on High Growth Trajectory since introduction of RERA
SPL on High Growth Trajectory since introduction of RERA Sales Volume (msf) Sales Value (Rs. Mn) CAGR 32% 3.8 CAGR 28% 14,824 3.6 14,318 3.2 3.0 12,443 11,726 11,486 2.4 1.3 4,718 3,318 0.7 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Collections (Rs. Mn) Construction (Rs. M
Slide 7: Demonstrated Capabilities in Project Execution
Demonstrated Capabilities in Project Execution Shriram Properties has delivered 33 completed projects | c.19.5msf of Saleable Area 2 Completed no. of projects Total saleable area for completed projects 6 Significant project 1 5 area delivered in the 6.9 2 years before 4 4 4 COVID 3.5 2.4 2.7 1.1 FY1
Slide 8: Recent Highlights & Developments: H1 FY23
Recent Highlights & Developments: H1 FY23 Operational Performance Project Execution • Best-ever sales volume and sales value in H1FY23 • Handed-over 700+ units, apart from 300+ plots • Back at 1.0+ run-rate, supported by launches and • On-track to hand-over ~2,000 units in FY23; to drive seasonal tr
Slide 9: Operational Highlights (KPIs): Q2 FY23
Operational Highlights (KPIs): Q2 | FY23 Sales Volume (Msf*) Sales Value (Rs. Mn.) Collections (Rs. Mn.) Construction (Rs. Mn.) +52% +39% -3% -1% 1.01 4,345 3,242 3,148 0.66 3,126 1,370 1,351 Q1FY23 Q2FY23 Q1FY23 Q2FY23 Q1FY23 Q2FY23 Q1FY23 Q2FY23 ✓ Strong QoQ growth trends - Sales volume up 52% QoQ
Slide 10: KPIs Half-yearly Trends: H1FY23 & FY22
KPIs Half-yearly Trends: H1FY23 & FY22 Pre-Sales Volume (msf) Sales Value (Rs. Mn.) 2.2 8,950 7% 7,470 27% 1.7 1.6 5,874 H1FY23 H1FY22 H2FY22 H1FY23 H1FY22 H2FY22 Gross Collections (Rs. Mn.) Construction (Rs. Mn.) 3,578 13% 6,975 6,385 5,656 2,722 2,857 H1FY23 H1FY22 H2FY22 H1FY23 H1FY22 H2FY22 Cont
Slide 11: Successful Launches; Impressive Sales-at-Launch
Successful Launches; Impressive ‘Sales-at-Launch’* H1 FY23 Launches Type Launch Launch Sold at % sold # of project launches 9 new projects & 3 Area launch new phases of ongoing projects Park63 (2B) New Jun’22 534,115 56,345 21% 12 12 Shriram Golden Acres1 Phase Aug’22 241,646 54,804 23% 7 9 6 6 Eden
Slide 12: Encouraging Pricing Trends: H1FY23 realization up 5% over H2FY22
Encouraging Pricing Trends: H1FY23 realization up 5% over H2FY22 Price Increase by Project – Top Projects only Developmen Realisation % Change Realisation % change Project t Type Mar’22 from Sep’21 Sep’22 from Mar’22 H1FY23 Increase in Average SouthEast Phase 2 Apartments 4,294 10% 4,639 8% realizat
Slide 13: Strong Project Pipeline; Growing Further
Strong Project Pipeline; Growing Further Project Pipeline (msf) Upcoming Projects – 30 msf 10.3 53.8 Ongoing – 24 msf 11.2 2.2 0.3 0.9 5.3 6.6 9.0 8.3 Ongoing Ongoing Ongoing PuD PuD PuD FC FC FC Total Owned JV / JDA DM Owned JV / JDA DM Owned JV / JDA DM # 7 7 12 3 1 1 4 12 7 54 Note: FC : Forthcom
Slide 14: Financial Highlights: P&L Quarterly Trends
Financial Highlights : P&L Quarterly Trends Particulars (INR Mn) Q2 FY23 Q1 FY23 QoQ (%) Q2 FY22 YoY (%) H1 FY23 H1 FY22 YoY (%) FY22 Revenue from operations* 2,586 1,222 112% 760 240% 3,807 1,182 222% 4,329 Other income 173 229 182 402 370 849 Total Revenues 2,758 1,451 90% 942 193% 4,209 1,552 171
Slide 15: Financial Highlights: Balance Sheet H1FY23
Financial Highlights : Balance Sheet | H1FY23 Particulars (INR Mn) 30-Sep-22 31-Mar-22 30-Sep-21 ROCE Trends (%) 11% Fixed Assets 816 823 728 10% Investments and loans 1,062 1,810 1,918 7% Inventories 21,463 21,882 20,626 5% 4% Cash and Bank Balances 1,044 1,405 422 Other Assets 10,713 10,418 9,240
Slide 16: Financial Highlights: Cashflows H1FY23
Financial Highlights : Cashflows H1FY23 SPL Consolidated Cashflows H1 Overall Enterprise Collection Trends (In Rs Mn) FY22 FY21 FY23 (SPL Own& JDA / JVs / DM Collections 2,729 5,346 3,202 12,631 DM Income 366 721 61 Other Inflows 3 6 202 3,578 9,245 Operating Inflow 3,098 6,073 3,465 2,930 Construct
Slide 17: 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 (%)** Rs. Mn 10,000 0.7 0.7 14.1% 8,047 13.7% 8,000 603 13.5% 6,724 6,558 494 6,000 864 4,811 4,788 0.3 0.3 1,044 12.5% 12.5% 4,000 7,444 1,405 6,230 5,694 2,000 3,407 3,744 - Mar'19 Mar'20 Mar'2
Slide 18: Growth Outlook Going Forward: Awards
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 19: Residential RE Sector Outlook Strong
Residential RE Sector Outlook Strong Strong Growth Drivers Affordability at a new high • Residential affordability at a multi-decade high: - historically low interest rates - lucrative payment plans / discounts - government incentives - stable real estate prices - improving purchasing power - Improv
Slide 20: 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 21: Strategy and Outlook: FY23 and Beyond
Strategy and Outlook | FY23 and Beyond ➢ SPL continues to demonstrate its growth momentum delivering strong performance ➢ Operating leverage kicking-in, on the back of scale and improving efficiency ➢ FY23 to be a promising year with strengthened long-term fundamentals, for the sector and SPL – Mark
Slide 22: Development Management (DM) Model: New Growth Engine for SPL
Development Management (DM) Model: New Growth Engine for SPL ❑ Successfully stabilised development model, now account ~33% of Pipeline DM Portfolio # projects Area (msf) ❑ Sustainable Opportunity: Completed 1 2.0 – RERA-led changes in the industry are irreversible Ongoing 12 6.6 PUD 1 0.9 – Large op
Slide 23: Strategies for Unlocking Potential from Kolkata Progressing Well
Strategies for Unlocking Potential from Kolkata Progressing Well Kolkata - Integrated township in Uttarapara – 314 acres, 33.5 msf saleable area Development Strategy Own development of c.10msf over next 3-5 years Monetising remaining land bank c.22msf Development Status Update Monetisation Update ❑
Slide 24: Strong Income Recognition Outlook (FY23-25e)
Strong Income Recognition Outlook (FY23-25e) Sales Volume (msf) Ongoing Projects – By Region (msf) 3-year cumulative sales of 10msf 18 4 2 3.8 10.0 4.0 3.2 9.0 3.0 3.5 8.0 3.0 7.0 9.2 2.5 6.0 5.0 5.6 2.0 4.0 … 1.5 3.0 1.0 2.0 0.5 1.0 - - FY20 FY21 FY22 Bangalore Chennai Kolkata # No. of projects # N
Slide 25: 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 26: Thank You
THANK YOU 24
Slide 27: Annexure
Annexure Shriram Summit 25
Slide 28: Projects Snapshot by Development Models: Ongoing Projects
Projects Snapshot by Development Models | Ongoing Projects Joint Development Development Ongoing Projects(June 2022) Own Developments Joint Ventures Agreements Management Saleable Area (msf) 8.2 5.4 3.7 6.5 SPL Share (msf) 8.2 4.2 3.7 6.5 Sold Area (msf) 6.9 4.1 2.7 4.4 To be Sold (msf) 1.3 0.1 1.0
Slide 29: Projects Snapshot by Development Models
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 ✓ 6 projects ✓ 23 projects ✓ 3 projects ✓ 1 project ✓
Slide 30: Economics of Different Real Estate Development Models
Economics of Different Real Estate Development Models ORP/Passive Seller Description OWN JDA DM Assumptions Land area 8.00 8.00 8.00 8.00 FSI 2.15 2.15 2.15 2.15 Project SBA 750,000 750,000 750,000 750,000 Land cost /Historical cost in the Books of LO 750.00 90.00 - 90.00 JDA share % Revenue sharing
Slide 31: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Shriram Properties Limited Strategic Growth Advisors Pvt. Ltd. CIN – U72200TN2000PLC044560 CIN - U74140MH2010PTC204285 Mr. Vineel Naidu, General Manager – Finance & Accounts Mr. Rahul Agarwal Email Id – vineel@shrirampr
Shriram Properties — Investor Presentation (December 2022) on 6ix