Godrej Properties Limited · NSE:GODREJPROP
Godrej Properties — Investor Presentation (February 2021)
43 slides from Godrej Properties's investor presentation, Feb 25, 2021
Slide 1: Exchange cover letter: revision to investor presentation
Godrej Properties Limited Regd. Office: Godrej One, 5th Floor, Pirojshanagar, Eastern Express Highway, Vikhroli (E), Mumbai – 400 079. India Tel.: + 91-22-6169 8500 Fax: + 91-22-6169 8888 Website: www.godrejproperties.com CIN: L74120MH1985PLC035308 February 25, 2021 BSE Limited Phiroze Jeejeebhoy To
Slide 2: Corporate Presentation February 2021
C O R P O R AT E P R E S E N TAT I O N FEBRUARY 2021 1 | GODREJ PROPERTIES I RESULTS PRESENTATION Q4 FY19
Slide 3: Disclaimer
DISCLAIMER This presentation has been prepared by Godrej Properties Limited (the Company) for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person and does not constitute any recommendation or form part o
Slide 4: Agenda
AGENDA Overview 01 Macroeconomic Tailwinds 02 Q3 FY21 Operational Highlights 03 Q3 FY21 Financial Highlights 04 Annexure 05 3 | GODREJ PROPERTIES I CORPORATE PRESENTATION
Slide 5: Godrej Group
GODREJ GROUP Established in 1897 Value Creation Track Record $5 billion in annual revenue 19 year CAGR in ` 1 invested in Particulars stock price June 2001 is now worth 1.1 billion people globally use a Godrej product1 BSE Sensex 15% 14 Godrej ranks amongst the most trusted Indian brands2 Go
Slide 6: Godrej Properties
GODREJ PROPERTIES Established in 1990 Indias largest publicly listed developer by booking value over the past five years Chandigarh 0.5, 1 NCR Successfully delivered ~21 million sq. ft. of real estate in the 27.0, 15 past five years ~186 million sq. ft. of saleable area across India Ahmedab
Slide 7: Strengths
STRENGTHS 1 1.1 billion people globally use a Godrej product Godrej Brand Godrej Properties ranked as the most trusted real estate brand in the 2019 Brand Trust Report GPL brings the Godrej brands reputation for trust, quality and corporate governance to the real estate sector Effective Com
Slide 8: Stock Performance
STOCK PERFORMANCE An investment into GPL’s IPO would be worth ~ 10x an identical investment into the BSE Realty Index Value Creation Track Record 11 year CAGR in ` 1 invested in Particulars stock price January 2010 is now worth BSE Sensex 9.5% 2.73 Godrej Properties 18.1% 6.21 BSE Realty Index -3.9%
Slide 9: Agenda
AGENDA Overview 01 Macroeconomic Tailwinds 02 Q3 FY21 Operational Highlights 03 Q3 FY21 Financial Highlights 04 Annexure 05 8 | GODREJ PROPERTIES I CORPORATE PRESENTATION
Slide 10: Macroeconomic Tailwinds
MACROECONOMIC TAILWINDS Housing Loan Interest Rates at 15-Year Low 13.0% 12.0% 11.0% 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% Jan-05 Jun-05 Sep-06 Jul-07 Dec-07 Aug-09 Jan-10 Jun-10 Sep-11 Jul-12 Dec-12 Aug-14 Jan-15 Jun-15 Sep-16 Jul-17 Dec-17 Aug-19 Jan-20 Jun-20 Feb-07 Feb-12 Feb-17 Nov-05 Nov-10 Apr-06 Ma
Slide 11: Government's Focus to Revive Real Estate
GOVERNMENT’S FOCUS TO REVIVE REAL ESTATE Stamp duty cut by 3% from September 1, 2020 to December 31, 2020 and by 2% from January 1, 2021 to Maharashtra March 31, 2021 Government Government A 50% reduction in construction premiums for all ongoing and new launches in the Mumbai Metropolitan Region
Slide 12: Commencement of a Likely Cyclical Upturn in Real Estate Sector
COMMENCEMENT OF A LIKELY CYCLICAL UPTURN IN REAL ESTATE SECTOR Sales continue to outpace Launches in Tier-1 cities 450 413 400 382 371 358 355 353 350 323 296 298 303 Area (msf) 300 246 250 227 200 150 100 50 0 CY15 CY16 CY17 CY18 CY19 CY20 Launches Sales 1,200 Declining inventory led by demand-supp
Slide 13: Consolidation in Fragmented Residential Real Estate Sector
CONSOLIDATION IN FRAGMENTED RESIDENTIAL REAL ESTATE SECTOR Top-10 listed developers market share at Pan-India level 12.0% 11.2% 10.0% 8.1% 8.1% 8.0% 7.1% 7.5% 6.0% 5.4% 4.0% 3.1% 1.7% 2.0% 1.8% 1.9% 2.0% 0.8% 0.0% FY16 FY17 FY18 FY19 FY20 H1 FY21 Top 10 Listed Developers Market Share GPL Market Shar
Slide 14: Godrej Properties: Diverse Portfolio with Pan-India Presence
GODREJ PROPERTIES: DIVERSE PORTFOLIO WITH PAN-INDIA PRESENCE Godrej Properties Diversified Consistent Track Record of Value Accretive Development Pipeline Project Additions Saleable Area (%) Project Additions (msf) 35.0 30.6 30.0 21% 21% 25.0 22.9 19.1 20.0 15% 15.0 13.4 10.5 10.8 27% 10.0 7.9 6.6 6
Slide 15: Godrej Properties: Robust Sales; Rising Share in Key Cities
GODREJ PROPERTIES: ROBUST SALES; RISING SHARE IN KEY CITIES Robust Sales Growth Across Key Markets 1,600 1,516 1,462 1,400 1,318 Residential Sales (INR cr) 1,200 1,096 1,021 982 945 913 1,000 715 753 800 600 400 334 269 200 0 NCR MMR Bangalore Pune FY15 FY20 9M FY21 Rising Market Share in Focus Mark
Slide 16: Godrej Properties: Navigating COVID-19; Digital Marketing
GODREJ PROPERTIES: NAVIGATING COVID-19; DIGITAL MARKETING • Digital sales tools delivered strong sales leading to highest ever market share for Godrej in a quarter in Q1 FY21 • Godrej Properties took various initiatives to increase digital presence such as virtual site visits for customers, online s
Slide 17: Strong Balance Sheet; Lowest Bank Funding Rate in the Sector
STRONG BALANCE SHEET; LOWEST BANK FUNDING RATE IN THE SECTOR Robust Financial Position… …Lowest Bank Funding Cost in the Sector Average Borrowing Cost (%) Net Debt to Equity (x) 9.0% 2.0 8.8% 8.8% 1.8 1.8 8.6% 1.6 8.4% 1.4 1.3 8.2% 1.2 8.0% 8.0% 1.0 7.9% 0.9 7.8% 7.8% 0.8 7.6% 0.6 0.6 7.4% 0.4 7.3%
Slide 18: Focus on Sustainability and CSR Initiatives
FOCUS ON SUSTAINABILITY AND CSR INITIATIVES Sustainable Products As on Q3 FY21, ~87% of GPL project portfolio* is certified under credible external green rating systems such as the Indian Green Building Council (IGBC), Leadership in Energy and Environmental Design (LEED), and Green Rating for Gree
Slide 19: Global Recognition for Sustainability Initiatives
GLOBAL RECOGNITION FOR SUSTAINABILITY INITIATIVES Ranked #1 globally amongst listed residential developers by GRESB (Global Real Estate Sustainability Benchmark) - An industry-driven organization which assesses Environmental, Social and Governance (ESG) performance of real assets globally GRESB is
Slide 20: Godrej Properties: 250+ Awards Received
GODREJ PROPERTIES: 250+ AWARDS RECEIVED ILLUSTRATIVE LIST OF AWARDS OVER THE LAST FEW YEARS • Porter Prize: For Leveraging Unique Activities 2019 • Golden Peacock National Quality Award Porter Prize Institute of Directors - 27th World Congress on Business Excellence & • Green Developer of the Year (
Slide 21: Agenda
AGENDA Overview 01 Macroeconomic Tailwinds 02 Q3 FY21 Operational Highlights 03 Q3 FY21 Financial Highlights 04 Annexure 05 20 | GODREJ PROPERTIES I CORPORATE PRESENTATION
Slide 22: Q3 FY21 Operational Highlights
Q3 FY21 OPERATIONAL HIGHLIGHTS Launched 3 new projects/phases in Q3 FY21, and 4 new projects/phases in 9M FY21 Sales Highlights Sales booking for Q3 FY21 and 9M FY21 stood at INR 1,488 crore (up 25% YoY) and INR 4,093 crore (up 16% YoY), respectively Added two new residential projects in Banga
Slide 23: Sales Highlights
SALES HIGHLIGHTS Particulars Q3 FY21 Q3 FY20 Growth Q2 FY21 Growth 9M FY21 9M FY20 Growth Area Sold (sq. ft.) 2,395,688 1,583,124 51% 1,728,995 39% 6,636,971 5,189,054 28% Booking Value (INR Cr) 1,488 1,189 25% 1,074 38% 4,093 3,532 16% Strong response to new project/phase launches Godrej Green Cove
Slide 24: Project Booking
PROJECT BOOKING Particulars Booking Area (sq. ft.) Booking Value (INR Cr) Residential Projects Q3 FY21 9M FY21 Q3 FY21 9M FY21 Godrej Green Cove, Pune 522,048 522,048 312 312 Godrej Retreat, NCR 491,145 491,145 279 279 The Highlands/Godrej City, Panvel 373,814 418,190 244 273 Godrej Royale Woods, Ba
Slide 25: Project Booking (Contd.)
PROJECT BOOKING (Contd.) Particulars Booking Area (sq. ft.) Booking Value (INR Cr) Commercial Projects Q3 FY21 9M FY21 Q3 FY21 9M FY21 Godrej BKC, MMR 10,463 10,463 38 38 Godrej Eternia, Chandigarh 3,743 10,062 2 7 Godrej Genesis, Kolkata -24,845 -24,845 -12 -12 Total -10,639 -4,320 28 33 Grand Tota
Slide 26: Quarterly Sales Trend
QUARTERLY SALES TREND Quarterly Sales Value 3,000 2,500 2,383 2,161 (INR cr) 2,000 1,446 1,531 1,488 1,500 1,189 1,074 1,000 897 500 0 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Quarterly Sales Volume 4.0 3.7 3.6 3.5 3.0 (Million sq. ft.) 2.5 2.4 2.5 2.3 2.0 1.7 1.6 1.5 1.3 1.0
Slide 27: Business Development
BUSINESS DEVELOPMENT Added two new projects with saleable area of ~4.1 million sq. ft. in Q3 FY21 Sarjapur, Bangalore • The project is an outright purchase of land in Sarjapur, Bangalore which has established itself as one of the most preferred residential locations with good connectivity to the Out
Slide 28: Launch Tracker FY21
LAUNCH TRACKER FY21 Launch timings are dependent on receipt of regulatory approvals and can be delayed substantially beyond initial expectations New Project Launches Planned in FY21 New Phase Launches Planned in FY21 Project City Launch Project City Launch Status Area* Status Area* Godrej Royale Woo
Slide 29: Construction Highlights
CONSTRUCTION HIGHLIGHTS Delivered ~1.3 million sq. ft. across 2 cities in Q3 FY21 Godrej Air – Phase 1, Bangalore Godrej 101, NCR 0.66 million sq. ft. 0.63 million sq. ft. GPL Economic Interest: GPL Economic Interest: Revenue Based - Profit Sharing - 50% 65% (GPL owns 25.1% of equity in the project
Slide 30: Agenda
AGENDA Overview 01 Macroeconomic Tailwinds 02 Q3 FY21 Operational Highlights 03 Q3 FY21 Financial Highlights 04 Annexure 05 29 | GODREJ PROPERTIES I CORPORATE PRESENTATION
Slide 31: Consolidated Financial Statements – P & L
CONSOLIDATED FINANCIAL STATEMENTS – P & L (INR Cr) Particulars Q3 FY21 Q3 FY20 % Change Q2 FY21 % Change 9M FY21 9M FY20 % Change Total Income 306 491 -38% 238 29% 709 1,569 -55% Adjusted EBITDA* 96 177 -46% 82 17% 222 582 -62% EBITDA** 81 151 -46% 77 6% 198 481 -59% Profit before tax 31 88 -64% 23
Slide 32: Consolidated Cashflow
CONSOLIDATED CASHFLOW (INR Cr) Notes Particulars Q3 FY21 9M FY21 Operating cashflow Total operating cash inflow 1,257 2,361 A Operating cash outflow Construction and related outflow (514) (1,195) Other project related outflow (298) (1,059) Total operating cash outflow (812) (2,254) Net operating cas
Slide 33: Consolidated Financial Statements - BS
CONSOLIDATED FINANCIAL STATEMENTS - BS (INR Cr) Sr. No Particulars As on 31.12.2020 As on 31.03.2020 A Assets Unaudited Audited 1 Non Current assets a Property, plant & equipment 80.56 77.89 b Capital Work-in-Progress 202.41 160.86 c Right-of-Use Asset 29.90 3.76 d Investment Property 9.48 9.79 e Go
Slide 34: Consolidated Financial Statements - BS
CONSOLIDATED FINANCIAL STATEMENTS - BS (INR Cr) Sr. No Particulars As on 31.12.2020 As on 31.03.2020 B Equity and Liabilities Unaudited Audited 1 Equity a Equity share capital 126.04 126.01 b Other equity 4,685.33 4,681.78 c Non-controlling interest - - Total Equity 4,811.37 4,807.79 2 Liabilities 2
Slide 35: Financial Analysis
FINANCIAL ANALYSIS Profitability Indicators Particulars Q3 FY2021 Q3 FY2020 Q2 FY2021 9M FY2021 9M FY2020 Adjusted EBITDA / Total Income* 31.4% 36.0% 34.6% 31.3% 37.1% EBITDA / Total Income** 26.6% 30.7% 32.3% 27.9% 30.6% PBT Margin % 10.3% 17.9% 9.5% 5.5% 19.2% Net Profit Margin %# 4.7% 9.5% 3.0% 0
Slide 36: Agenda
AGENDA Overview 01 Macroeconomic Tailwinds 02 Q3 FY21 Operational Highlights 03 Q3 FY21 Financial Highlights 04 Annexure 05 35 | GODREJ PROPERTIES I CORPORATE PRESENTATION
Slide 37: A. Residential Projects
A. RESIDENTIAL PROJECTS Est. Saleable Asset Ind AS Sr. No. Project Name Location Area Business Model Status Class Classification (mn sq. ft.) Phase I to IV: Area Based - 73.6% 1 Godrej Garden City* Ahmedabad Residential 14.80 Own Phase V: Revenue Based - 67.6% Ongoing Phase VI: onwards - 17% of Reve
Slide 38: A. Residential Projects
A. RESIDENTIAL PROJECTS Est. Saleable Asset Ind AS Sr. No. Project Name Location Area Business Model Status Class Classification (mn sq. ft.) 18 Sarjapur 4 Bangalore Residential 1.60 Own 100% owned project Forthcoming 19 Whitefield Bangalore Residential 2.50 Own 100% owned project, 5.4% area share t
Slide 39: A. Residential Projects
A. RESIDENTIAL PROJECTS Est. Saleable Asset Ind AS Sr. No. Project Name Location Area Business Model Status Class Classification (mn sq. ft.) 34 Godrej Park Mumbai Residential 0.77 Own Revenue Based – 56.5% Forthcoming 35 Godrej Vihaa Mumbai Res idential 1.30 DM DM Fee – 10% of Revenue Ongoing Profi
Slide 40: A. Residential Projects
A. RESIDENTIAL PROJECTS Est. Saleable Asset Ind AS Sr. No. Project Name Location Area Business Model Status Class Classification (mn sq. ft.) 51 Godrej Nirvaan Mumbai Residential 2.42 JV Profit Share - 50% Ongoing 52 Taloja Mumbai Residential 7.50 JV Profit Share - 55% Forthcoming 53 Ambernath Mumba
Slide 41: A. Residential Projects
A. RESIDENTIAL PROJECTS Est. Saleable Asset Ind AS Sr. No. Project Name Location Area Business Model Status Class Classification (mn sq. ft.) 68 Godrej Infinity Pune Residential 2.80 JV Profit Sharing - 35% Ongoing Revenue Based 96% (GPL owns 49% equity in project 69 Godrej 24 Pune Residential 0.73
Slide 42: B. Commercial Projects
B. COMMERCIAL PROJECTS Est. Saleable Asset Ind AS Sr. No. Project Name Location Area Business Model Status Class Classification (mn sq. ft.) Phase I to IV: Area Based 73.6% 1 Godrej Garden City* Ahmedabad Residential 2.40 Own Phase V : Revenue Based - 67.6% Ongoing Phase VI : onwards - 17% of Revenu
Slide 43: Thank You
THANK YOU For further information, please contact: Rajendra Khetawat Godrej Properties Limited Tel: +91 22 6169 8500 Fax: +91 22 6169 8888 Email: rajendra@godrejproperties.com 4238 | GODREJ PROPERTIES | GODREJ I CORPORATE PROPERTIES PRESENTATIONQ4 FY19 I RESULTS PRESENTATION
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