Slide 1: ASL Investor Presentation
ASL Investor Presentation May 2019 COMMODITY COAL DREDGING TRANSPORTATION OIL & GAS NSE : ARIHANTSUP BSE : 506194 ASL believes REAL ESTATE is a retail product with a BLOOMBERG : ARSU IN flavour of an Asset Class.
Slide 2: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness, reasonableness or reliability of this information. Any forwa
Slide 3: Table of Contents
PAGE TABLE OF CONTENTS NUMBERS CMD’s message 4 Introduction to Arihant 5-8 Key Investment Highlights 9 Our Value Creation Journey 10 Projects in pipeline & track record 11-12 De-risked And Scalable Business Model 13 Best Practices 14 The ASL Differentiator 15 Industry Dynamics 16-19 Corporate Social
Slide 4: CMD's message
CMD’s message Commenting on the real estate sector, Mr. Ashok Chhajer, CMD of Arihant Superstructures said, “Revenue crossed the Rs. 2000 mn milestone for the first time to close the financial year at Rs. 2422 mn. We have witnessed traction in execution of the marquee projects such as Arihant Aalish
Slide 5: "Arihant" – The Institution
“Arihant” – The Institution • Housing since 2009, One of the Largest Developers in Navi Mumbai – MMR & Jodhpur region having projects in hand for next 10 years. • Delivered 9000+ homes worth 7.5+ Mn Sq. ft. across 50+ projects over past 2 decades by the Group • 17 Projects in hand consisting of 13,5
Slide 6: Arihant Superstructures Ltd (ASL): At A Glance
Arihant Superstructures Ltd (ASL): At A Glance Company Profile Upper Medium CATEGORY-WISE PROJECT Income 1. A leading real estate company focused on Affordable Group PROFILE (INR Luxury Segment 7,000+ psf) 2. Strong execution track record of project completion 5% 3. Strong brand recognition in high
Slide 7: Arihant Focus on housing sector demand
Arihant Focus on housing sector demand Navi Mumbai • Work in full force for Mumbai Trans Harbour Link (MTHL) connecting Sewri, Mumbai and Nhava Sheva, Navi Mumbai. It will be ready by 2022 end. It will have 1.5-km long connecter linking with the Eastern Freeway, RA Kidwai Marg and Acharya Donde Marg
Slide 8: Infrastructure Status assigned to Affordable Housing Projects
Real Estate (Housing) – Infrastructure Status assigned to Affordable Housing Projects Benefits to MIG Flat Buyers by Government • Interest subsidy upto Rs 267,000 on purchase of house for a family having income upto Rs 1.8 Mn per year • No processing fee • Change in base year from 1981 to 2001 as we
Slide 9: Key Investment Highlights
Key Investment Highlights Strategically Significant Large Land Bank Project Strong Focus On Superior Well-positioned Monetization Acquired At Funding Corporate Growth In High Growth Yet To Come Low Cost Secured Governance Profile Markets • Navi Mumbai – 2nd 2 Best Place in terms of ease of living In
Slide 10: Our Value Creation Journey
Our Value Creation Journey 2000 2014 2017 1994 Achieved a 2007 Successfully completes Successfully Launch of significant milestone Successfully and delivers 4 mn launched flagship Real Estate of completing 10 Completes and square feet; Crossed project “Arihant Division projects delivers 25 projects
Slide 11: Strong Project Pipeline
Strong Project Pipeline ARIHANT AAROHI - I 3.85 mn sq.ft. Under Construction 11.7 mn sq.ft. 0.49 mn sq.ft. Saleable Project Commenced ARIHANT ADITA – I, II, III 7.44 mn sq.ft. 13.78 mn sq.ft. projects Construction yet to start Arihant Arshiya – I, Arihant Adita – I,II,III, Arihant Ayati, 2 mn sq. ft
Slide 12: Proven Track Record (Some Key Group Projects)
Proven Track Record (Some Key Group Projects) Saleable Units Location Projects area Sold (sq.ft.) Airoli 1 32,500 40 Badlapur 2 349,125 490 CBD Belapur 2 166,000 185 Akriti (Badlapur) Aksh (Badlapur) Ghansoli 5 261,100 355 Kharghar 7 1,071,494 1012 Koperkhairane 3 140,000 228 Nerul 7 159,900 215 Pan
Slide 13: De-risked And Scalable Business Model
De-risked And Scalable Business Model Product Strategy Land Acquisition To have products across various stages of Fully paid up land bank for projects to be construction to serve varied customer needs executed in the next ten years; Land back acquired at historical cost levels Sales and Marketing St
Slide 14: Best Practices
Best Practices For Customer For Sustainable Development Water Preservation Social Development No lock-in No transfer by supporting Rural by Rain water harvesting & STP and period charges infrastructure, School etc Energy Conservation measures No Economic Participation in Full cheque Development by G
Slide 15: The ASL Differentiator
The ASL Differentiator Customer Centric Approach • The Company follows a customer centric approach in the entire lifecycle of the project • Some of the customer-centric policies that the Company adopts is o No lock in period for buyers o No transfer charges on re-sale of property High Level of Stand
Slide 16: Industry Dynamics
Industry Dynamics Retail / Consumer is the biggest Wealth Creating sectors ASL believes REAL ESTATE is a retail product with a flavour of an asset class. Opportunity of Vision – Housing for all by 2022 All India Demand Pattern 1 The Central Government has a stated vision to provide Housing Particula
Slide 17: Business Region In Focus - MMR
Business Region In Focus - MMR Key Factors Potential Population (mn) Growth Households in mn Growth to generate ~1 2008 2025 CAGR Income Level 2010 2020 2032 mn jobs and MMR 22 34 2.6% 0.09 Mn – 0.2 Mn 2.53 1.61 0.51 therefore Greater Mumbai 14 17 1.1% 0.2 Mn – 0.5 Mn 2.79 4.35 6.22 added RoMMR 8 17
Slide 18: Navi Mumbai 2nd in List Of Best Cities To Live In India
Navi Mumbai 2nd in List Of Best Cities To Live In India • The 'Ease of Living' index is an initiative of the Ministry of Housing and Urban Affairs to assess the most livable cities all over India and rank them on a 100 point scale. • The report evaluated 111 cities on a 100-point scale across 78 ind
Slide 19: Business Region In Focus - Jodhpur
Business Region In Focus - Jodhpur Key Factors • 2nd largest 'Metropolitan City' of Rajasthan • Industrial cluster and export hub of Gaur Gum, Textiles, SS utensils, Stone processing, Handicrafts & Solid Wooden Furniture, Jodhpur • Population base of 1.29 mn (source census, Wikipedia) • Tourism boom
Slide 20: A Few Cases Reflecting ASL's Business Strategies
A Few Cases Reflecting ASL’s Business Strategies Case 1: Arihant Aalishan: Turnaround from a Distressed Asset to a Marquee Project Land Acquisition Approvals Project Launched Construction Begins Current Status 37th slab Jan 2016 Feb 2016 Mar 2016 Mar 2016 May 2019 Case 2: Arihant Anaika – Phase 2: D
Slide 21: Corporate Social Responsibility – Key Projects
Corporate Social Responsibility – Key Projects Contributing to the construction of school building, Jodhpur • Construction of school building to replace open classrooms • The building would have basic infrastructure such as 10 classrooms and multi-purpose hall Village Infrastructure Development, Nav
Slide 22: Financial Snapshot
FINANCIAL SNAPSHOT Arihant Superstructures Limited (ASL)
Slide 23: Capital Market Data
Capital Market Data Capital Market Details Shareholding Pattern BSE Scrip Code 506194 FPIs/Banks & FIs Public 1% 20% NSE Trading Symbol ARIHANTSUP Mutual Funds 5% Promoters Bloomberg Code ARSU IN 74% GICS Sector Real Estate Comparative Stock Price Performance - BSE Market Cap as on ASL BSE INR 2,556
Slide 24: Superior Track Record With Strong Brand Recall
Superior Track Record With Strong Brand Recall Key Strengths Average Sales Rate (INR per sq.ft.) 4310 4026 4070 3795 3582 14-15 15-16 16-17 17-18 18-19 Area Booked (mn sq.ft) Units Sold 1.01 1157 0.84 931 0.63 723 0.47 580 527 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 24
Slide 25: Prudent Financial Management Leading To Superior Shareholder Value
Prudent Financial Management Leading To Superior Shareholder Value Strong Risk Superior cash flow Strategic Land Acquisition Management and management Internal Audits • Land acquired at historical • 15% -20% launch sales target • Strong and independent prices • Adoption of DM model board with indust
Slide 26: Project Status - MUMBAI
Project Status - MUMBAI *ATS = Agreement to Sale 26
Slide 27: Project Status - JODHPUR
Project Status - JODHPUR *ATS = Agreement to Sale 27
Slide 28: Potential Recognizable Revenue
Potential Recognizable Revenue Expected Revenue: Geographical Split Thane 2% Sales recognised Kharghar completed 24% Panvel 14% 45% Jodhpur 17% MMR Sales ongoing Sales yet to 12% part recognised commence 28% 54% Revenue Recognition Method Revenue has been recognized as per IND AS 115 ‘Revenue from C
Slide 29: Income Statement – INR Mn
Income Statement – INR Mn Particulars FY 15 FY 16 FY 17 FY18 FY19 Total Revenue 1,098 1,238 1,862 1,893 2,422 Cost of materials consumed 1,208 1,144 2,074 1,285 1,955 Changes in inventories -543 -480 -1130 -161 -511 Employee benefits expense 65 79 85 127 138 Other Expenses 102 133 190 256 271 Total
Slide 30: Balance Sheet – INR Mn
Balance Sheet – INR Mn Equity and Liabilities FY15 FY16 FY17 FY18 FY19 Sha re Ca pita l 412 412 412 412 412 Re s e rve s a nd Surplus 206 397 724 764 807 Ne t worth 617 809 1136 1176 1218 Minority Sha re 27 47 79 98 139 Long Te rm Borrowings 971 1778 2013 1719 2377 Short Te rm Borrowings 489 327 545
Slide 31: Financial Performance
Financial Performance Total Revenues (Rs Mn) EBITDA (Rs Mn) Net Debt/Equity (x)* 643 2,422 569 2.03 2.07 1,862 1,893 2.01 385 1.93 362 1,238 1,005 1,098 266 206 1.66 1.59 FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15 FY16 FY17 FY18 FY19 *The debt on holding company is 100% li
Slide 32: Net Worth & PAT for the Quarter ended 31st March, 2019
Net Worth & PAT for the Quarter ended 31st March, 2019 Company (amount in INR Mn) Net Worth PAT Arihant Superstructures Limited 1139.34 3.18 Arihant Vatika Realty Private Limited 231.08 35.18 Arihant Abode Limited 1.78 (2.87) Arihant Gruhnirman Private Limited (1.74) (0.04) Arihant Aashiyana Private
Slide 33: Arihant Superstructures Limited: FY2019 Highlights
Arihant Superstructures Limited: FY2019 Highlights Consolidated Financial Highlights for Q4FY19 FY2019 Consolidated Financial Highlights compared to FY2018 1. Revenue for Q4FY19 at INR 685.81 Mn as compared 1. Revenue increased by 28% from INR 1,892.52 Mn to INR to Q3FY19 at INR 794.11 Mn. 2,422.08
Slide 34: Q4-FY19 - Income Statement
Q4-FY19 - Income Statement Amount in INR Mn except as stated Particulars Q4 FY19 Q4 FY18 Q3 FY19 Tota l Re ve nue 685.81 450.05 794.11 Tota l ope ra ti ng e xpe ns e s 545.34 353.29 618.06 EBI TDA 140.47 96.76 176.06 EBI TDA Ma rgi n (%) 20.48 21.50 22.17 I nte re s t 86.22 38.23 86.53 De pre ci a t
Slide 35: FY19 - Income Statement
FY19 - Income Statement FY19 - Operating Overview INR Mn Y-O-Y FY19 FY18 Business Development (except as stated) Change • Acquisition of 7 Acres of Land at a Prime location in Revenue 2422.09 1892.52 28% Panvel • ASL’s First Development Management Model Project Total Expenditure 1852.61 1507.61 23%
Slide 36: The Road Ahead – FY20
The Road Ahead – FY20 REVENUE DRIVERS MARGIN DRIVERS FUTURE PLANS Fast tracking of Navi Mumbai To infuse funds for land purchase Efficiency in low cost land airport to boost demand from to take current developable purchase home buyers area from 13.7 mn sq. ft. to 25 mn sq. ft. To add more projects i
Slide 37: Holding Company Debt Liability as of 31st March, 2019
Holding Company Debt Liability as of 31st March, 2019 Entity Debt Liability of ASL Entity Holding (INR mn) (INR mn)* • The company accounts for & ASL 100% 831.27 831.27 have adopted the method of liabilities V/s Shareholding Vatika 60% 173.76 104.26 percentage. The debt on holding company is 100% li
Slide 38: Board Of Directors
Board Of Directors Ashok Chhajer, Virendra Mittal, Nimish Shah, Promoter, CMD Independent Director Whole-Time Director ● Over 4 decades experience includes 2 ● IIT Alumnus and a fellow chartered engineer ● A civil engineer with over 17 yrs experience in decades in the real estate business constructi
Slide 39: Experienced and dedicated management team
Experienced and dedicated management team Akshay Agarwal, Piyush Dosi, Pradeep Mehta, Jitendra Mehta Director - Procurement Director - Jodhpur CFO COO ● A CA and IIM Alumini with ● CA, LLB with 3 decades of ● A civil engineer with over 21 over 23 years experience in experience in Operations, ● Dual
Slide 40: Past Awards and Accolades
Past Awards and Accolades 2015 2016 Best Business Winner of Mumbai Best Corporate Most Esteemed Ongoing NDTV awards Arihant as Practice Award in Hot 50 Brands by Brands 2016- Real Project of the Year – the best developer in 2015 for 2014 One India and Estate by the Navbharat Realty Business affordab
Slide 41: Mumbai Hot 50 Brands (2 Times) - 2015 and 2014
Mumbai Hot 50 Brands (2 Times) - 2015 and 2014 41
Slide 42: Arihant Aspire – Iconic Award & Platinum IGBC Certificate
Arihant Aspire – Iconic Award & Platinum IGBC Certificate Iconic Award by Radio City for Arihant Aspire, IGBC PreCertified Platinum Rating for Aspire project, Sept 2018 July 2018 42
Slide 43: Recent Jodhpur Awards
Recent Jodhpur Awards Dainik Bhaskar (94.3 MYFM) – Arihant Adita – Jodhpur’s no1 Housing Award for Excellence in Quality Society Award, Red FM Construction • In their drive to promote cleanliness in Jodhpur city, RED FM 93.5 had organized a contest among the Award for Excellence in Quality Construct
Slide 44: MMR – Navi Mumbai Awards, 2018
MMR – Navi Mumbai Awards, 2018 Affordable Housing Project of Affordable Low Cost Quality the Year – 2018 Housing - 2018 The MCHI CREDAI in their prestigious GOLDEN PILLAR award 2018 has given Affordable Housing Project of the Year award to Arihant Superstructures Ltd (ASL) Award for Quality construc
Slide 45: Thank you !!
Thank you !! For further Information please contact Pradeep Mehta Umesh Jhawar CFO VP – Strategy & IR Tel: +91 22 6249 3333 Tel: +91 22 6249 3333 Email: cfo@asl.net.in Email: umesh.j@asl.net.in Corporate Office: Arihant Aura, Floor No. 25, B wing, Plot no 13/1, TTC Industrial Area, Thane Belapur Roa