Sunteck Realty Limited · NSE:SUNTECK
Sunteck Realty — Q3 FY2023 Earnings Presentation
51 slides from Sunteck Realty's earnings presentation, Jan 31, 2023
Slide 1: Exchange filing cover letter
Sunteck Realty Ltd. Date: 31st January, 2023 SRL/SE/71/22-23 National Stock Exchange of India Ltd BSE Limited Exchange Plaza, Plot no. C/1, G Block, Phiroze Jeejeebhoy Tower, Bandra-Kurla Complex, Bandra (East), Dalal Street, Mumbai- 400 051 Mumbai – 400 001 Symbol: SUNTECK Scrip Code: 512179 Sub: I
Slide 2: Sunteck Realty Limited Investor Presentation Q3 & 9M FY2023
Sunteck Realty Limited Investor Presentation Q3 & 9M FY2023 NSE: SUNTECK | BSE: 512179 | Bloomberg: SRIN: IN | 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: Agenda
Agenda ▷ Who are we ▷ What have we achieved ▷ What we aspire for ▷ Key Numbers ▷ Risk Factors ▷ Awards ▷ Summary 3
Slide 5: Who are we
Who are we 4
Slide 6: Executive Summary
Executive Summary ▷ NSE and BSE listed organization with development focus in the Mumbai Metropolitan Region (MMR) market. ▷ One of the largest developer in the Western Suburbs of MMR from Bandra to Virar. ▷ Delivered projects worth > US$ 1 bn (~Rs 9,000 cr) GDV till date. ▷ Presently have ~52.5* mn
Slide 7: Mumbai (MMR) presence
Mumbai (MMR) presence One of the largest developer on Western suburbs with ~20 mn sq ft of balance launch pipeline Expanded to Eastern suburbs with ~12.1 mn sq ft of balance development By Project Brands By Location Volume 6
Slide 8: Company Overview
Company Overview Real Estate Developer with 2 Decades of Experience MMR-focus residential play and pivot from high-end luxury segment towards mid-income & affordable segment Luxury Mid-income Affordable Across segments (Aspirational luxury) BKC, Borivali E, ODC, Borivali W, BKC Airoli Goregaon W Nai
Slide 9: Our Brands
Our Brands Premium positioning by creating different luxury brands across all the segments Presence across the pricing spectrum from uber-luxury to affordable 8
Slide 10: Our Partnerships
Our Partnerships Partnership with Ajay Piramal Group - India REIT private equity invested at Signature Island in 2006 and exited at >20% IRRs within ~3 years - 50:50 JV - Piramal Sunteck Realty Pvt. Ltd. (PSRPL) formed in 2007 to undertaken multiple projects Partnership with Kotak Group - Kotak Real
Slide 11: Board of Directors
Board of Directors 200+ years of combined experience across real estate, banking & finance, law & compliance Kamal Khetan Atul Poopal V P Shetty Mukesh Jain Rachana Hingrajia Chaitanya Dalal Sandhya Malhotra CMD Executive Director Ind. Director Ind. Director Director Ind. Director Ind. Director - 1s
Slide 12: Shareholding Pattern
Shareholding Pattern Shareholder September-2022 December-2022 Type Promoters* 67.1% 67.1% FIIs & DIIs 25.2% 25.4% Others 7.7% 7.5% Total 100.0% 100.0% *Nil shares are pledged ▷ Market Cap - ~Rs. 5,022 crore / ~ US$ 628 million (27th January, 2023) US$ 1 = ~Rs 80 11
Slide 13: What have we achieved
What have we achieved 12
Slide 14: Strong land acquisition track-record, post-Lehmann crisis
Strong land acquisition track- record, post-Lehmann crisis years (peak recession) 16 MSF 13 Net Debt/Equity @0.14x at the end of Q3 FY23 highlights fiscal discipline
Slide 15: Net Debt/Equity discipline
Net Debt/Equity discipline ▷ Despite acquisitions of 38.5 mn sq ft since 2018, the leverage discipline has been maintained ▷ No compromise on financial prudence and fiscal discipline 2.00x 1.80x 1.60x 1.40x ➢ ~38.5 mn sq ft of projects acquired since 2018 1.20x 1.04x ➢ Of which, ~25.5 mn sq ft has b
Slide 16: Business Growth along with Financial Prudence
Business Growth along with Financial Prudence BUSINESS GROWTH 25.5 mn sq ft of acquisition done across diverse micro- markets such as, Vasai W, Borivali W, Kalyan-Vasind, Mira Road in MMR in the luxury, mid- income and affordable residential segments. STRONG BALANCE SHEET Gross debt stands reduced a
Slide 17: Completed Projects
Completed Projects 14 (residential+commercial) projects delivered worth ~Rs 9,000 crore (~US$ 1.2 bn) Signature Island, BKC Signia Isles, BKC Signia Pearl, BKC Signia High, Borivali E Signia Oceans, Airoli Signia Skys, Nagpur Sig. Waterfront, Airoli Gilbird Hill, Andheri W S. City Avenue 1, ODC S. C
Slide 18: Completed Commercial Projects
Completed Commercial Projects Sunteck Kanaka, Goa Sunteck Center, Vile Parle E Sunteck Grandeur, Andheri E
Slide 19: Completed Projects – Residential
Completed Projects – Residential ~2 mn sq ft completed in Q1 FY23
Slide 20: Ongoing Projects - Residential
Ongoing Projects - Residential ~4 mn sq ft of execution underway across segments
Slide 21: Ongoing Projects - Commercial
Ongoing Projects - Commercial ~4 mn sq ft of execution underway across segments Sunteck BKC 51, BKC Jn. Sunteck Icon, BKC Jn. Sunteck Crest, Andheri E Pinnacle, ODC
Slide 22: Key Performance Highlights (FY18 - FY22)
Key Performance Highlights (FY18 - FY22) Delivering sustainable operational growth and operating margins Average Pre-sales Collections EBITDA CAGR CAGR Margin (18-22) (18-22) (18-22) ~22.03% ~18.68% ~33.51% *Company follows project completion method of accounting Rs 1 cr = Rs 10 mn 21
Slide 23: Operational Performance Trend
Operational Performance Trend Pre-sales mix & Collections efficiency ▷ Pre-sales mix has pivoted from Luxury to Mid-Income and Affordable segment. ▷ Collections Efficiency has improved to 81% in FY22 against 76% in FY21. In 9M FY23, CE stands at 86%. Healthy Pre-sales mix Collections efficiency (Col
Slide 24: Embarking on the ESG Journey
Embarking on the ESG Journey ˃ Sunteck Realty Limited believes in leveraging its strengths to create sustainable spaces. ˃ We published our 1st ESG report – “Creating Sustainable Spaces – Embarking on the ESG Journey” - FY 2021-22, highlighting the performance and initiatives undertaken by us, as we
Slide 25: Green Building Initiatives
Green Building Initiatives ˃ 6 (six) of our projects namely, Sunteck City 4th Avenue, ODC, Goregaon W; Sunteck Maxx World & Sunteck One World, Naigaon and Sunteck Beach Residences (SBR), Vasai, Sunteck Icon & Sunteck BKC 51, BKC Junction have been awarded with EDGE (Excellence in Design for Greater
Slide 26: What we aspire for
What we aspire for 25
Slide 27: Embarking on Sunteck 3.0
Embarking on Sunteck 3.0 ▷ Sunteck 1.0 journey was initiated as a Business Center Operator in 2000 and after 6 years with the acquisition of the Signature Island, BKC – under Sunteck 2.0 – the company grew into a pure play RE developer with projects in BKC and ODC, Goregaon W. ▷ The salient aspects
Slide 28: Existing Growth Engines of Sunteck 3.0
Existing Growth Engines of Sunteck 3.0 Sunteck’s strategy is to enter markets underpenetrated by organized players and bet big to realize attractive returns 2006 ➢ Residences tapped back in 2006-2009, when looked as CBD, took huge bet and developed BKC Uber luxury apartments via Signature Island. Do
Slide 29: Future Growth Engines of Sunteck 3.0
Future Growth Engines of Sunteck 3.0 The launch and execution of these new growth engines will scale up the sales engine of Sunteck 2021 Kalyan & ➢ After western suburbs, Kalyan (Shahad) and Vasind marks the entry in the eastern micro- markets of MMR Vasind ➢ With more than ~12 mn sq ft of potential
Slide 30: Development Potential & Launch Timelines
Development Potential & Launch Timelines ▷ Est. Gross Sales Visibility of ~Rs. 30,600 (~US$ 3.8 bn) crores from the 7 (six) growth engines ▷ In 2022 - Sunteck One World, Naigaon launched in Feb -2022, Sunteck Beach Residences, Vasai launched in May-2022 ▷ In the coming quarters, new sales launches f
Slide 31: The 'Sunteck' approach to 'Continuous Growth'
The ‘Sunteck’ approach to ‘Continuous Growth’ ❑ ~25.5 msf acquired since the onset ❑ Estimated GDV of acquisitions is ~Rs. of the COVID-19 pandemic. 30,600 cr (~US$ 3.8 bn). ❑ In the last 3 years, the company has ❑ The monetization of these projects acquired ~38.5 msf. will lead to continuous growth
Slide 32: US$ 3.8 billion GDV, 37 million sq ft, 0.14x
~US$ 3.8 billion Est. Gross Development Value (GDV) of upcoming project pipeline ~37 million sq ft Across 7 projects at BKC, ODC, Naigaon, Vasai West, Kalyan- Vasind, Borivali West and Mira Road in MMR ~0.14x One of the lowest Net Debt/Equity ratio across the sector US$ 1 = Rs 80 31
Slide 33: Pre-sales growth multiple to improve
Pre-sales growth multiple to improve On the back of new project launches ▷ The phase-wise launch of new projects at Vasai West, Kalyan-Vasind, Borivali West, Mira Road and new phases of existing projects such as Sunteck City ODC, Sunteck World Naigaon and Sunteck commercial projects (Sunteck Icon, S
Slide 34: Key Numbers
Key Numbers Operational Performance and Financial Statements 33
Slide 35: Operational Snapshot (Quarter and Half-year)
Operational Snapshot (Quarter and Half-year) Q3 FY23 Q3 FY23 Pre-sales Collections (~Rs cr) (~Rs cr) 396 304 9M FY23 9M FY23 Pre-sales Collections (~Rs cr) (~Rs cr) 1,066 920 Rs 1 cr = Rs 10 mn
Slide 36: Operational Performance Trend (Trailing 4 quarters)
Operational Performance Trend (Trailing 4 quarters) ▷ Trailing 4Q Pre-sales stands at ~Rs 1,569 cr as of Q3 & 9M FY23 ▷ Trailing 4Q Collections stands at ~Rs 1,324 cr as of Q3 & 9M FY23 Pre-sales (~Rs cr) Collections (~Rs cr) 1,700 1,400 1,324 1,569 1,290 1,525 1,460 1,300 1,500 1,166 1,200 1,303 1,
Slide 37: Operational Performance Trend (Quarter-wise)
Operational Performance Trend (Quarter-wise) Both pre-sales and collections are GROWING STRONGLY on a sequential (quarterly) as well as yearly basis Pre-sales (~Rs cr) Collections (~Rs cr) 600 500 503 404 500 400 396 331 321 400 349 352 371 304 333 337 285 300 253270 300 272 207 200 200 172 176 141
Slide 38: Operational Performance (Pre-sales Segment-wise)
Operational Performance (Pre-sales Segment-wise) The pre-sales mix for the quarter is dominated by the mid-income segment contributing 78% of the total bookings. Q3 FY23 Mix 9M FY23 Mix Segment Brands (~Rs cr) (%) (~Rs cr) (%) Sunteck City, Mid-income 295 75% 833 78% SBR Sunteck Aspirational 67 17%
Slide 39: Operational Performance (Collections Segment-wise)
Operational Performance (Collections Segment-wise) The collections mix for the quarter is broad-based with all segments performing well. Q3 FY23 Mix 9M FY23 Mix Segment Brands (~Rs cr) (%) (~Rs cr) (%) Signature, Luxury 23 8% 132 14% Signia Sunteck City, Mid-income 100 33% 263 29% SBR Sunteck Aspira
Slide 40: Robust operational cash flows
Robust operational cash flows ~ Rs 830 cr operating surplus generated in 2.75 years – used in Business Development/Acquisitions, debt reduction and advance premium payment Robust OCF Built-up 900 ~Rs 830 cr 800 700 600 ~Rs 520 cr 500 400 ~Rs 281 cr 300 200 100 0 FY21 FY22 9M FY23 39 Rs 1 cr = Rs 10
Slide 41: Robust operational cash flows
Robust operational cash flows ~ Rs 830 cr operating surplus generated in 2.75 years – used in Business Development/Acquisitions, debt reduction and advance premium payment ~Rs 311 cr of operating cash flow surplus generated in 9M FY2023 Particulars FY 2021 FY2022 9M FY23# OPERATING CASH FLOW Total O
Slide 42: Strong Balance Sheet
Strong Balance Sheet In Q3 & 9M FY23, the consolidated net debt to equity is amongst the strongest at 0.14x. Particulars Q3 & 9M FY23# Total Debt (~Rs cr) 542 Less: Cash & Bank Balance 79 Less: Loans to JDA partners 81 Net Debt 381 Net Worth 2,818 Net Debt / Equity 0.14 Quasi-Equity and Others* 87 A
Slide 43: Key Financials
Key Financials ▷ In 9M FY23, Revenue from operations stood at Rs 314 cr (Rs 3,136 mn) ▷ EBITDA for 9M FY23 stood at Rs 73 cr (Rs 733 mn) ▷ EBITDA margin stood at ~23% for 9M FY23 ▷ PAT for 9M FY23 stood at Rs 29 cr (Rs 293 mn) Particulars Q3 FY23 Q2 FY23 Q3 FY22 9M FY23 9M FY22 FY22 Revenue from Ope
Slide 44: Key Financials
Key Financials BALANCE SHEET – H1 FY23 (Consol) Liabilities Rs Cr Assets Rs Cr Networth 2,813 Receivables 247 Borrowings 543 Inventories 4,690 Other CL 2,420 L&A 125 Others 303 Cash & Bank 79 Provisions 5 Others 944 Total 6,084 Total 6,084 Rs 1 cr = Rs 10 mn 43
Slide 45: Superior Credit Rating
Superior Credit Rating ▷ Sunteck has Top Tier Credit Profile which is a Testimonial for its Strong Fundamentals. AA- / Positive AA- / Positive ▷ Key Rating drivers are – ○ Healthy track record in real estate development in MMR ○ Adequate committed cash flow visibility ○ Prudent Financial Policies; S
Slide 46: Risk Factors
Risk Factors 45
Slide 47: Risk Factors
Risk Factors ▷ Impact of COVID-19 pandemic on overall economy and real estate sector in particular is still being quantified and uncertain. ▷ Weak global sentiments due to geopolitical tensions, supply chain and price rise. ▷ Exposure to cyclicality in real estate business – the residential real est
Slide 48: Awards
Awards 47
Slide 49: Awards & Recognitions
Awards & Recognitions Sunteck Realty Ltd won three awards at ESG Summit and Awards 2022 for Best ESG Initiative of the Year, Best ESG Initiative to improve biodiversity impact reduction. Additionally, it is a proud moment that our Chairman and MD, Shri Kamal Khetan has been announced as a wined of G
Slide 50: Awards & Recognitions
Awards & Recognitions Zero Waste management initiative ➢ Zero waste management initiative has been taken for Sunteck’s two of it’s luxurious projects – Signature Island and Signia Isles. ➢ We believe in eliminating harmful plastics which are unsustainable and recycle the beneficial ones. ➢ Our aim i
Slide 51: Thank You
Thank You ir@sunteckindia.com 50