Sunteck Realty Limited · NSE:SUNTECK
Sunteck Realty — Q3 FY24 Earnings Presentation
29 slides from Sunteck Realty's earnings presentation, Jan 22, 2024
Slide 1: Exchange filing cover letter: revised Investor Presentation Q3 FY24
Sunteck Realty Ltd. Date: 22nd January, 2024 SRL/SE/66/23-24 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: R
Slide 2: Sunteck Realty Limited Investor Presentation Q3 & 9M FY24
Sunteck Realty Limited Investor Presentation Q3 & 9M FY24 January 2024 NSE: SUNTECK | BSE: 512179 | Bloomberg: SRIN: IN | Reuters: SUNT.NS / SUNT.BO 1
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: Key Strengths - Why Sunteck?
Key Strengths - Why Sunteck? 3
Slide 5: Key Strengths – Why Sunteck?
Key Strengths – Why Sunteck? 1 2 3 Well-timed Capital Strong Foothold in Luxury portfolio in every Allocation for MMR market - largest segment & across micro- acquisitions - Acquired & fastest growing markets - from uber luxury more than ~50 mn sq ft & market in India to aspirational luxury GDV of ~
Slide 6: Snapshot
Snapshot Strong Operational Foothold One of the large Well-timed developers in MMR INR~29,650 cr of ~50 MSF+ total 17 projects capital allocation – largest & fastest GDV from ~7 large development successfully with JDA & growing market projects acquisitions delivered outright model 5 Rs 1 cr = Rs 10
Slide 7: Strong Foothold in MMR Market – largest & fastest growing in India
1 Strong Foothold in MMR Market – largest & fastest growing in India MMR-Focused Luxury Real Estate Developer (1/2) By Location Volume By Project Brands 6
Slide 8: Strong Foothold in MMR market – MMR is the most attractive real estate market
1 Strong Foothold in MMR market – largest & fastest growing in India MMR is the most attractive real estate market in India (2/2) NU. OF UNITS SOLD IN-CY23 MMR AFFORDABILITY MATRIX 86,871 93% 60,002 54,046 49,266 52% 53% 51% 32,880 14,999 16,113 14,920 MMR Bengaluru NCR Pune Hyderabad Kolkata Ahmeda
Slide 9: Luxury portfolio in every segment & across micro-markets
2 Luxury portfolio in every segment & across micro-markets From Uber Luxury to Aspirational Luxury Premium positioning by creating different luxury brands across segments 8
Slide 10: Well-timed Capital Allocation for acquisitions
3 Well-timed Capital Allocation for acquisitions Acquired more than ~50 mn sq ft & GDV of ~Rs 29,650 cr (1/2) 9
Slide 11: GDV - Growth Engines to drive Pre-sales growth (as of Q3’FY24)
3 GDV - 7 Growth Engines to drive Pre-sales growth (as of Q3’FY24) GDV more than doubled in less than 3 years (2/2) GDV – Balance Gross Development Value excluding sales already done GDV – ~Rs 29,650 cr Rs 1 bn = Rs 100 cr GDV – ~Rs 27,150 cr Nepean Sea Road 7 GDV – Rs 2,500 cr ***Launched Towards T
Slide 12: Expanding Annuity Income Portfolio
4 Expanding Annuity Income Portfolio Rs 300 cr plus rental, capital value creation of ~Rs 5,000 cr Launched Upcoming Capital Value – ~Rs 5,000 cr Future 5th Avenue, Sunteck City, ODC 3 Avg. Rental Income – Rs 250 cr Capital Value – ~Rs 1,050 cr Sunteck Icon, BKC Jn. Sunteck Icon, BKC Jn. 2 Avg. Rent
Slide 13: Strong Financial Performance
5 Strong Financial Performance Amongst industry best financials 0.02x Net Debt ~35% ~20%+ Cashflow AA- Long term INR 750 cr to Equity Ratio Embeded Surplus Yield credit rating from partnership with EBITDA margin Fitch and CARE IFC – World Bank Group 12 Rs 1 cr = Rs 10 mn
Slide 14: Net Debt to Equity @ 0.02x
Strong Financial Performance 5 Net Debt to Equity @ 0.02x Sunteck’s Long-Term Credit Rating is AA- with Positive Outlook from FITCH & CARE (1/5) As on As on 2.00x Particulars (~Rs cr) 31 Dec 23 30 Sep, 23# st # th 1.80x > ~38.5 mn sq ft of projects acquired since Total Debt 446 537 1.60x 2018 Less:
Slide 15: Embedded EBITDA Margin of ~35%
5 Strong Financial Performance Embedded EBITDA Margin of ~35% (2/5) Proforma P&L (basis operating performance) Operating Performance Yearly Pre-sales (~Rs cr) 9M FY24 2,000 1,602 Particulars 1,500 1,303 Rs cr % 1,237 1,022 1,000 Pre-sales 1,237 500 Embedded EBITDA 436 35% 0 FY21 FY22 FY23 9MFY24 D&A
Slide 16: Strong Operational Growth
5 Strong Financial Performance Strong Operational Growth (3/5) Trailing 12M Pre-sales stands strong at Rs. 1,772 cr as of 9MFY24, leading to High Cash Flow Visibility Trailing 12M Pre-sales 2,000 1,772 1,800 1,569 1,600 1,400 1,172 1,200 1,000 800 600 400 200 0 Q3FY22 Q3FY23 Q3FY24 15 Rs 1 cr = Rs 1
Slide 17: Cashflow Surplus Yield @~22%
5 Strong Financial Performance Cashflow Surplus Yield @~22% (4/5) Net CF Surplus (~Rs cr) Net CF Surplus Yield 450 428 25% 22% 400 350 20% 300 281 15% 239 15% 250 12% 200 10% 150 100 5% 50 0 0% FY21 FY22 FY23 FY21 FY22 FY23 • As the company follows Project Completion Method of Accounting, CF Surplus
Slide 18: High revenue & profits visibility
5 Strong Financial Performance High revenue & profits visibility (5/5) Follows Project Completion Method (PCM) of Accounting wherein P&L recognition occurs as the project is delivered 2 large projects will get delivered in the coming years leading to strong revenue recognition in P&L Key Target FY24
Slide 19: Successful Equity Partnerships
6 Successful Equity Partnerships Recent Partnership • Sunteck & IFC – World Bank Group form Joint Investment Platform of up to ~Rs 750 cr • Key highlights of the partnership • MMR focused platform to build high-quality green urban large-scale housing projects targeting the mid-income demographic • U
Slide 20: ESG
ESG 19
Slide 21: GRESB 5-star rating
> Sunteck Realty has received the prestigious 5-star rating from GRESB (Global Real Estate Sustainability Benchmark) in its second year of submission with a strong score of 95 > Sunteck Realty has been ranked 3rd rank in Asia-pacific Diversified Office/ Residential Peer comparison
Slide 22: ESG Highlights
ESG Highlights >90% 31% Women Representation in organization Of our properties are green building pre- certified (EDGE IFC) Sunteck Head office is LEED Existing building Gold certified 4.3 times Increase in employee trainings hours Zero Waste to landfill & Plastic neutrality at Signature Island, Sig
Slide 23: Green Building Initiatives
Green Building Initiatives • Four projects, 4th Avenue, SunteckCity, ODC Goregaon W; Sunteck • Our HO Sunteck Centre Maxxworld & Sunteck Oneworld, Naigaon and Sunteck Beach has been awarded LEED Residences (SBR), Vasai W has been awarded with EDGE (Excellence GOLD certification by US in Design for G
Slide 24: Q3 & 9M FY24 Highlights
Q3 & 9M FY24 Highlights 23
Slide 25: Strong Net Cash Flow Surplus crosses Rs 1,200 cr in 3.75 years
Strong Net Cash Flow Surplus crosses Rs 1,200 cr in 3.75 years Particulars (~Rs cr) 9M FY24 Cumulative NCF Surplus (~Rs cr) 1400 Gross Cash Inflows 940 1,252 1200 Less: Project Expenses 448 1000 948 Less: JDA Revenue Share 63 800 Gross Cash Flow Surplus 429 600 520 Less: Other Expenses 126 400 Net C
Slide 26: Operational Performance Break-up
Operational Performance Break-up Trailing 12 months Pre-sales at ~Rs 1,772 cr 9M FY24 Q3 FY24 Pre-sales Collections Pre-sales Collections Segment Projects (~Rs cr) (~Rs cr) (~Rs cr) (~Rs cr) Uber Luxury Signature, Signia 129 60 84 5 Sunteck City, High Mid-income 668 328 179 84 SBR, Sky Park Low Mid-
Slide 27: Strong Core EBITDA margin in P&L
Strong Core EBITDA margin in P&L • SRL follows Project Completion Method of Accounting – Direct (Attributable) Costs pertains to projects from which revenue has been recognized in respective quarter • Indirect (Non-attributable) Costs pertains to expenses from which revenue recognition has not start
Slide 28: Experience Leadership
Experience Leadership 200+ years of combined experience across RE, banking & finance, law & compliance Kamal Khetan ~3 decades of experience in the Real Estate industry. Formulate Chairman & MD corporate strategy, acquisition, execution & diversification plans. Atul Poopal >3 decades of experience i
Slide 29: Thank you
Thank you ir@sunteckindia.com 28