Sunteck Realty Limited · NSE:SUNTECK
Sunteck Realty — Q2 FY2022 Earnings Presentation
29 slides from Sunteck Realty's earnings presentation, Nov 12, 2021
Slide 1: Exchange filing cover letter for investor presentation
Sunteck Realty Ltd. SRL/SE/53/21-22 Date: 12 th November, 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 Complex D
Slide 2: Investor Presentation Q2 & H1 FY2022
Sunteck Realty Ltd. Investor Presentation Q2 & H1 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: Company Overview
COMPANY OVERVIEW MMR focused residential play Others, 6% Institutional Players (FPIs and MFs), 27% Promoters, Headquartered at Mumbai 67% Market Cap : ~ Rs 70 Bn (~Rs 7,000 cr) ~ 50* msf development portfolio across 21 projects Delivered Projects > Rs 70 bn (Rs 7,000 cr) Shareholding pattern
Slide 5: Sunteck Journey So Far
SUNTECK 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 to live and
Slide 6: Sunteck 3.0
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 1,800 crores of finished inventory in the next 3-4 years Focus on JDAs like Naigaon, Vasai, Vasind,
Slide 7: Key Strengths
Company Overview KEY STRENGTHS Company Profile: Sunteck is a Mumbai focussed premium developer with experienced promoter, focussed project acquisition strategy, premium brand, strong execution and healthy balance sheet Strong Project Portfolio: Sunteck has about 50 mn sqft spread across 21* projects
Slide 8: Well-Timed Capital Allocation
Company Overview WELL-TIMED CAPITAL ALLOCATION STAGE SET FOR THE NEXT ROUND! Acquisition strength: Strong land • Research based acquisitions acquisition track- • Ability to predict growth recordin the post- areas ahead of the curve. Lehmann crisis years • Acquisitions done during (peak recession). p
Slide 9: Sunteck Brand Portfolio
Company Overview SUNTECK BRAND PORTFOLIO 8
Slide 10: Macro Trends
MACRO TRENDS Sunteck),
Slide 11: Macro Trends
Economy MACRO TRENDS Rise in income-levels and favourable demographics (66% of Indian population is less than 35 years of age) has led to best affordability in the last 25 years. Source: HDFC 10
Slide 12: Macro Trends: Home Loan Rates
Economy MACRO TRENDS Housing loan rates are at decadal lows, thereby improving affordability and savings on EMI. Home Loan ROI 11.0% 10.0% 10.0% 10.1% 10.2% 9.9% 9.5% 8.9% 8.7% 8.6% 8.6% 7.0% 6.6% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 1HFY22 Source: Bank Data 11
Slide 13: Macro Trends: Millennial Demand
Economy MACRO TRENDS Millennial have kick started real estate demand recovery – In India, almost 62% of residential demand comes from buyer cohort age between 21-40 years. The next real estate upcycle will be driven by individual born between 1981-1995 (38.8 cr) who will be turning 25- 40 years
Slide 14: Company Section
COMPANY SECTION Sunteck),
Slide 15: Robust Operational Performance
Operational Highlights ROBUST OPERATIONAL PERFORMANCE Operational Data Q2 FY22 Q1 FY22 QoQ % Q2 FY21 YoY % Pre-sales (new bookings) 2,716 1,760 54% 2,003 36% Collections 2,073 1,722 20% 1,411 47% All figures are in Rs. Million Operational Data H1 FY22 H1 FY21 YoY % Pre-sales (new bookings) 4,476 3,0
Slide 16: Operational Performance – Q2 FY2022
Operational Highlights OPERATIONAL PERFORMANCE – Q2 FY2022 Q2 FY22 Performance S.No. Project Name Sales Collections Area Sold Units Sold Rs Mn Rs Mn Lac Sq.Ft. Nos. 1 High-income (Uber & Ultra Luxury) 146 466 0.1 4 2 Mid-income (Premium Luxury) 1,000 991 0.7 47 3 Affordable (Aspirational Luxury) 1,1
Slide 17: Key Performance Highlights: Collections Efficiency
Business Overview KEY PERFORMANCE HIGHLIGHTS: COLLECTIONS EFFICIENCY In H1 FY22, collections efficiency was strong at ~85%. Sunteck always endeavors to achieve >50% collections to pre-sales ratio as it leads to efficient cash flow management Pre-Sales Collections 14000 100.0% 55.0% 58.6% 90.0% 1
Slide 18: P&L (Consolidated)
Financial Highlights P&L (CONSOLIDATED) In Q2 FY22, Revenue from operations grew by 47% Q-o-Q to Rs 1,363 mn (Rs 136 cr) from Rs 927 mn (Rs 93 cr) in Q1 FY22 EBITDA for the quarter grew by 77% Q-o-Q to Rs 365 mn (Rs 37 cr) from Rs 206 mn (Rs 21 cr) in Q1 FY22 and EBITDA Margin for Q2 FY22 stood
Slide 19: Balance Sheet (Consolidated)
Financial Highlights BALANCE SHEET (CONSOLIDATED) Liabilities H1 FY22 FY 21 Assets H1 FY22 FY21 Shareholders Funds 27,780 27,724 Trade Receivables 2,738 3,352 Minority Interest - - Inventories 37,996 26,145 Borrowings 6,727 6,879 Loans & Advances 1,089 1,161 Others 17,272 5,934 Cash & Bank balances
Slide 20: Amongst the Strongest Balance Sheet
Financial Highlights AMONGST THE STRONGEST BALANCE SHEET In H1 FY22, the consolidated net debt to equity is strong at 0.16x. Consolidated debt trend FY 2020 FY 2021 H1 FY22 Secured Debt 7,903 5,969 5,832 Less: Cash & Bank Balance 1,662 991 799 Less: Interest-bearing Loans to JV/JDA Partners 475 341
Slide 21: Strong Operating Cash Flow
Operational Highlights STRONG OPERATING CASH FLOW Net cash flow generated from operating activities at Rs 534 mn (Rs 53 cr) Particulars H1 FY22 H1 FY21 Net Cash Flow - Operating Activities 534 -23 - Operating Profits before Working Capital Changes 595 424 - Working Capital Changes & Others -61 -44
Slide 22: Credit Rating Update
Financial Highlights 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 Pol
Slide 23: Value-accretive acquisitions
Sunteck 3.0 in action Value-accretive acquisitions In the last 3 years – SRL has acquired ~36 msf across the pricing spectrum both on the western and eastern side of MMR. These projects would allow the company to generate its share of Rs ~100 bn+ operating surplus in the coming years. Est. Location
Slide 24: 2021: A Unique Opportunity for Sunteck
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 projects and paying pr
Slide 25: Efficient Use of Capital
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 without any reservation The Maharashtra premium reduction in 2021 is a good example of front-loading capital spending to 2
Slide 26: ESG
ESG Sunteck),
Slide 27: Sunteck - ESG Performance Highlights
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 consistin
Slide 28: Awards and Recognitions - 2021
Company Overview AWARDS AND RECOGNITIONS - 2021 Project Awards • Integrated Township Project of the year – Sunteck Maxx World, Naigaon Realty+ Excellence Awards 2021 • Mixed-use project of the year – Non-metro – Sunteck Forest World, Vasind Realty+ Excellence Awards 2021 27
Slide 29: 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