Sunteck Realty Limited · NSE:SUNTECK
Sunteck Realty — Q1 FY2022 Earnings Presentation
26 slides from Sunteck Realty's earnings presentation, Aug 2, 2021
Slide 1: Cover letter to stock exchanges
( Sunteck Realty Ltd. Sunteck ~ SRL/SE/25/21-22 Date: 2 nd August, 2021 The Manager, Listing Department The Secretary, Listing Department, National Stock Exchange of India Ltd Department of Corporate Services Exchange Plaza, BSE Limited Plot no. C/1, G Block, Phiroze Jeejeebhoy Tower, Bandra-Kurla C
Slide 2: Sunteck Realty Ltd. Investor Presentation Q1 FY2022
Sunteck Realty Ltd. Investor Presentation Q1 FY2022 NSE: SUNTECK | BSE: 512179 | Bloomberg: SRIN: IN | NSE: SUNTECK | BSE: 512179 | Bloomberg: SRIN: IN | Reuters: SUNT.NS / SUNT.BO Reuters: SUNT.NS / SUNT.BO
Slide 3: Disclaimer
Disclaimer By attending the meeting where this presentation is made and any additional material is provided (“Presentation”) or by reading the Presentation, you (“Recipient”), agree to be bound by the following limitations. This Presentation has been prepared on the basis of the estimates of the man
Slide 4: Who is Sunteck?
Who is Sunteck? Asset-light, Mumbai-based real estate developer with deep expertise and proven execution in delivering projects across the full spectrum of segments, from uber luxury to affordable. 38* million square foot portfolio across 19 projects, with projects worth Rs. 70 billion (Rs. 7,00
Slide 5: Our Journey so far…
Who is Sunteck? Our Journey so far… Sunteck 1.0 Our journey began in 2000 as a Business Center Operator at the then upcoming CBD of Bandra-Kurla Complex (BKC) in Mumbai Sunteck 2.0 In the next phase from 2006 onwards, with our differentiated and well-researched view that families would love
Slide 6: Introducing Sunteck 3.0
Sunteck 3.0 in Action Introducing Sunteck 3.0 These are early days at Sunteck. We have recently embarked on Sunteck 3.0 The salient aspects of Sunteck 3.0 are: 1. Maintain an asset light balance sheet Sell off most of our ~Rs 18 bn (Rs 1,800 cr) of finished inventory in the next 3-4 years Fo
Slide 7: Asset Light Balance Sheet: Releasing Locked Up Capital
Sunteck 3.0 in Action Asset Light Balance Sheet: Releasing Locked Up Capital We continue to actively monetize our finished inventory in our Completed Projects, releasing locked up capital. Rs 2,995 mn (Rs 300 cr) of inventory monetized through Q1 FY22 since end-FY20. %age of No. of units %age of
Slide 8: Asset Light Balance Sheet: Stack Them High, Let 'em Fly!
Sunteck 3.0 in Action Asset Light Balance Sheet: Stack Them High, Let ‘em Fly! Our focus is to maintain high sales velocity on Ongoing Projects. %age of No. of units %age of units Estimated unsold S.No Project Name Unsold area (msf) units sold unsold unsold revenue potential* Ongoing Projects Sunt
Slide 9: A Proven Flywheel: Near Term Growth Engines
Sunteck 3.0 in Action A Proven Flywheel: Near Term Growth Engines Our near term growth engine is driven by several asset-light JDA models with limited upfront capital. Estimated unsold revenue S.No Project Name Unsold area (msf) potential* Upcoming Projects 1 Sunteck City, ODC ~ 3.0 ~ 45.0 2 Sunte
Slide 10: Sunteck Business Summary
Sunteck 3.0 in Action Sunteck Business Summary In both the completed as well as ongoing projects category, the company has been able to sell more than 80% of the total inventory available. The balance inventory will provide estimated revenue potential of ~ Rs 31 bn (~ Rs 3,100 cr) in the 3-4 yea
Slide 11: 2021: A Unique Opportunity for Sunteck
Sunteck 3.0 in Action 2021: A Unique Opportunity for Sunteck In January 2021, the Maharashtra cabinet approved a 50% reduction in the premium fees paid by developers for ongoing and new projects between August 1 and December 31, 2021 The savings that Sunteck can realize in 2021 by fast-tracking
Slide 12: Efficient Use of Capital
Sunteck 3.0 in Action Efficient Use of Capital We will use shareholder capital in the most prudent manner possible If we have opportunities to deploy capital in high-return projects, we will do so without any reservation. The Maharashtra premium reduction in 2021 is a good example of front-loa
Slide 13: Cash Flow Highlights – Q1 FY2022
Cash Flow Highlights Cash Flow Highlights – Q1 FY2022 Collections Efficiency at Sunteck Through a combination of inventory monetization and new project pre-sales, Sunteck recorded Rs 1,760 mn (Rs 176 cr) of pre-sales in the quarter, up 74% yoy Collections and cash flow are front and center at Su
Slide 14: Cash Flow Statement
Cash Flow Highlights Cash Flow Statement Robust collections drives strong operating cash flow in Q1 FY2022. Gross cash flow generated from operating activities at Rs 320 mn (Rs 32 cr) Particulars Q1 FY22 Q1 FY21 Gross Customer Advances 1,722 651 Less : Cost Incurred 1,017 293 Less : Overheads 22
Slide 15: P&L (Consolidated)
Financial Highlights P&L (CONSOLIDATED) In Q1 FY2022, Revenue from operations grew by 69% yoy to Rs 927 mn (Rs 93 cr) from Rs 550 mn (Rs 55 cr) in Q1 FY2021 EBITDA and EBITDA Margin for Q1 FY2022 stood at Rs 206 mn (Rs 21 cr), up 32% yoy and 22% respectively PAT for Q1 FY2022 stood at Rs 30 mn
Slide 16: Consolidated Debt Trend
Financial Highlights Consolidated Debt Trend In Q1 FY2022, the consolidated net debt to equity has been reduced significantly to 0.17x. Consolidated debt trend FY 2020 FY 2021 Q1 FY22 Secured Debt 7,903 5,969 5,871 Less : Cash & Bank Balance 1,662 991 880 Less : Interest-bearing refundable deposit /
Slide 17: Appendix
Appendix Sunteck),
Slide 18: Operational Performance Trend
Appendix OPERATIONAL PERFORMANCE TREND Strong growth continues Pre-sales grows by 74% yoy to Rs 176 cr Collections grows by 165% yoy to Rs 172 cr Rs million FY2021 Operational Data 1QFY21 2QFY21 3QFY21 4QFY21 (Full Year) Pre-Sales 1,012 2,003 3,492 3,710 10,217 Collections 651 1,411 2,525 3,210
Slide 19: Collections Efficiency Improving
Appendix COLLECTIONS EFFICIENCY IMPROVING Collections / Pre-sales has been strong at >50% over the previous years. In Q1 FY22, the ratio was strong at ~98%. Sunteck always endeavors to achieve >50% collections to pre-sales ratio as it leads to efficient cash flow management Collection Efficien
Slide 20: Balance Sheet (Consolidated)
Appendix Balance Sheet (Consolidated) Liabilities FY21 FY 20 Assets FY21 FY20 Shareholders Funds 27,724 27,487 Trade Receivables 3,352 3,731 Minority Interest - - Inventories 26,145 27,438 Borrowings 6,879 9,207 Loans & Advances 1,161 1,289 Others 5,934 5,004 Cash & Bank balances 991 1,662 Provision
Slide 21: Credit Rating Update
Appendix CREDIT RATING UPDATE The Long-term issuer rating of Sunteck is “AA-” and Short-term issuer rating is “A1+”. AA- / Positive AA- / Stable Key Rating Drivers – Healthy track record in real estate development in MMR Adequate committed cash flow visibility Prudent Financial Policies; Stron
Slide 22: Sunteck Brand Portfolio
Appendix Sunteck Brand Portfolio The site pictures of our various ongoing projects are available on the company website. 21
Slide 23: Sunteck - ESG Performance Highlights
Appendix SUNTECK - ESG PERFORMANCE HIGHLIGHTS Environmental Social Governance ‘Go Green’ CSR campaign Support for migrant labourers and Philosophy on code of Digital transformation to reduce frontline workers following the governance COVID-19 outbreak resource consumption Policy framework
Slide 24: Corporate Social Responsibility
Appendix CORPORATE SOCIAL RESPONSIBILITY A Vaccination Drive arranged for Sunteck Employees 23
Slide 25: Corporate Social Responsibility
Appendix CORPORATE SOCIAL RESPONSIBILITY 24
Slide 26: Thank You!
Thank You! Corporate Office 5th Floor, Sunteck Centre, 37-40 Subhash Road, Vile Parle (East), Mumbai – 400057 Tel: +91-22-42877800 Email: ir@sunteckindia.com 25