Slide 1: Arihant Superstructures Ltd. cover letter
ARIHANT SUPERSTRUCTURES LTD. CO NTI N LUI NG STABI LI TY CONTI NUI NG STABI LI TY 21June, 2021 Corporate Relations Department Listing Compliance Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Plot No. C/1,G Block, Mumbai - 400
Slide 2: Investor Presentation Q4 – FY 2021
INVESTOR PRESENTATION Q4 – FY 2021
Slide 3: Disclaimer
DISCLAIMER This presentation has been prepared by Arihant Superstructures Limited (the Company) for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person. This presentation does not solicit any action based
Slide 4: CMD's Message
CMD’S MESSAGE “The beginning of the financial year was fraught with fear as the 1st wave of Covid-19 pandemic spread but thankfully we ended the year with a lot of confidence. We were well prepared for a strong revival in the affordable housing segment with ready-to-move-in inventory as well as proj
Slide 5: Key Highlights for FY21
KEY HIGHLIGHTS FOR FY21 4
Slide 6: Operational Highlights
OPERATIONAL HIGHLIGHTS Sales Sales bookings crossed 1,097 units for the full year FY21 for the first time in Company’s history showcasing strength of Brand Arihant In area terms, sales bookings crossed 1 million Sft, a growth of ~59% over FY20 with an aggregate value of bookings rising to INR 463 Cr
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS Strong all-round performance demonstrated by Arihant Superstructures Limited (ASL) in FY21 With record sales & collections, ASL was able to reduce its debt by INR 91 Cr on a Y-o-Y basis which will enable us to reduce finance costs substantially The weighted average cost of capit
Slide 8: Readiness for the Upcycle
READINESS FOR THE UPCYCLE • Real Estate is characterized with 5-year cycles. With over 2 decades of experience, ASL’s strategy incorporates such cyclicality • The slowdown experienced in the property markets provided an opportunity to consolidate Creating ready • ASL could envision the need for read
Slide 9: Readiness for the Upcycle
READINESS FOR THE UPCYCLE • Two new projects were added in FY21 – one in affordable housing admeasuring ~24,130 sqm and one redevelopment project in upper mid income/luxury segment on a land area admeasuring 14,996 sqm Healthy & expanding • These projects will add more than 1.1 mn sft to the overall
Slide 10: Company Overview
COMPANY OVERVIEW 9
Slide 11: Overview
OVERVIEW Arihant Superstructures Limited (ASL) is one of the largest real estate player in affordable and mid-income housing consisting of 96% of its portfolio in affordable and mid-income housing Geographically well diversified portfolio across Navi Mumbai, MMR and Jodhpur regions Ongoing & upcomin
Slide 12: Geographical Spread - MMR
GEOGRAPHICAL SPREAD - MMR 13 Lifestyle Defining Projects Region No of Projects Vashi 1 Kalyan Badlapur Taloja 6 Mumbai Kharghar Kharghar 1 Taloja Panvel 1 Vashi Kalyan 1 Panvel Badlapur 1 Karjat Karjat 1 Khopoli 1 Khopoli 11
Slide 13: Geographical Spread – Jodhpur
GEOGRAPHICAL SPREAD – JODHPUR 4 Market Defining Projects Region No of Projects Dali Bai Circle 3 Pal Gangana Road 1 Dali Bai Circle Pal Gangana Road 12
Slide 14: Portfolio Mix
PORTFOLIO MIX Category-wise portfolio mix Upper Mid income / Luxury (>INR 10,000/sft) 4% Diversified portfolio mix across geographies with focus on affordable and mid income housing Affordable (<INR7,000/sft) 54% Mid income (INR 7,000- 10,000/sft) Area-wise Portfolio Mix 42% Jodhpur Kharghar / Taloj
Slide 15: Strengths & Business Model
STRENGTHS & BUSINESS MODEL Land Acquisition Product Strategy Fully paid-up land bank for projects to be To have products across various stages of executed in the seven years; Direct purchase construction to serve varied customer needs from individual landowners to keep costs in check Sales and Marke
Slide 16: Value Creation Journey
VALUE CREATION JOURNEY 1994 2000 2007 2014 2017 2021 Launch Achieved a Successfully Successfully Successfully Record sales of of Real significant Completes and completes and launched flagship 1,097 units Estate milestone of delivers 25 delivers 4 Mn project “Arihant Division completing 10 projects s
Slide 17: Board of Directors
BOARD OF DIRECTORS Ashok Chhajer, Nimish Shah, Virendra Mittal, Promoter, CMD Whole-Time Director Independent Director ● Over 4 decades experience including 2 decades in the real ● A civil engineer with over 17 years experience in ● IIT Alumnus and a fellow chartered engineer estate business constru
Slide 18: Management Team
MANAGEMENT TEAM Akshay Agarwal, Abhishek Shukla, Deepak Lohia, Director - Procurement Chief Strategy Officer Chief Financial Officer ● CA having 23 years of experience in the areas of Taxation, ● Seasoned business and finance professional with over 15 Accounts & Finance. ● Young and dynamic leader,
Slide 19: Awards & Accolades (Since 2017)
AWARDS & ACCOLADES (SINCE 2017) Over 25 Awards & Recognitions over the last decade 2019 2018 Zee Business Award – Developer of Iconic Award by Radio the Year ( Affordable Housing) IGBC Pre-certified Platinum Affordable Housing Project of City for Arihant the Year for Arihant Arshiya Rating for Aspir
Slide 20: Select Project Elevations
SELECT PROJECT ELEVATIONS Arihant Advika, Vashi Arihant Aspire, Panvel Arihant Anaika, Taloja Arihant Aalishan, Kharghar * Images are Artist’s impressions and for representational purposes only 19
Slide 21: Select Project Elevations
SELECT PROJECT ELEVATIONS Arihant Aloki, Karjat Arihant Adita, Jodhpur Arihant Arshiya, Khopoli Arihant Ayati, Jodhpur * Images are Artist’s impressions and for representational purposes only 20
Slide 22: Ongoing & Future Projects
ONGOING & FUTURE PROJECTS Estimated Sale Project Location Status Category Area (Sft) Arshiya khopoli 14,78,728 Ongoing Affordable Aarohi Kalyan 2,86,190 Ongoing Affordable 3 Anaika Taloja 2,13,400 Ongoing Affordable 4 Anaika Taloja 2,04,140 Ongoing Affordable Aloki karjat 4,42,280 Ongoing Affordable
Slide 23: Ongoing & Future Projects
ONGOING & FUTURE PROJECTS Estimated Sale Project Location Status Category Area (Sft) 5 Anaika Taloja 3,62,272 Ongoing Affordable Amber Taloja 54,491 Ongoing Affordable Adita Jodhpur 11,44,385 Ongoing Affordable Aanchal Jodhpur 21,42,000 Ongoing Affordable Ayati Jodhpur 2,11,168 Ongoing Mid-Income As
Slide 24: Sustainable Development
SUSTAINABLE DEVELOPMENT Water preservation by rain Solar water heating system, Social development by water harvesting & STP and energy efficient lighting and supporting rural energy conservation use of low VOC paints & infrastructure, school etc. measures adhesives Economic development by Participat
Slide 25: CSR Initiatives
CSR INITIATIVES Providing Ration to all laborers & their families staying at the sites during the Lockdown Grant to Shri Maruti Mandir Trust (Palaspe) for education & livelihood enhancement projects Construction of Road at Ekatpada village Construction of Road at Koynaville village 24
Slide 26: Growth Drivers
GROWTH DRIVERS 25
Slide 27: Robust Foundation
ROBUST FOUNDATION Financial Stability Dynamic Sales Infrastructure • Strong sales collections in FY21 –~24% • Sustainable sales growth momentum growth over FY20 despite pandemic impact • Expanded sales team to 100+ to capitalize on market opportunity • Thorough cost control – a competitive advantage
Slide 28: Consistent Pace of Delivery
CONSISTENT PACE OF DELIVERY We move forward with a strong belief that timely delivery with superior quality will be the key differentiator in the future ASL has consistently delivered 700-900 units year on year since past many years and is working towards improving the pace While construction activi
Slide 29: Acquisitions in Last 5 Years
ACQUISITIONS IN LAST 5 YEARS Saleable Area Est. Revenue Type of Land Area Year Location Project Potential Potential Acquisition (Sqm) (Sft) (INR Cr) 2016-17 Rohinjan, Aalishan Land purchase 20,470 1,001,432 820 Kharghar, Navi Mumbai 2017-18 Taloja Amber Land purchase 1,560 32,547 15 2018-19 Panvel F
Slide 30: New Launches
NEW LAUNCHES Consistent launch pipeline with readiness to scale up in line with market response as and when required Project Location Timeline No. of units Category 5Anaika Taloja Q1 FY22 250 Affordable Advika Vashi Q1 FY22 325 Luxury Anmol Badlapur Q2 FY22 80 Affordable Arshiya Khopoli Q2 FY22 150
Slide 31: Infrastructure Development
INFRASTRUCTURE DEVELOPMENT Navi Mumbai International Airport • The 16,000-crore Navi Mumbai airport is touted to be one of the world’s largest Greenfield airports with a capacity to handle 20 Mn passengers per annum in the first phase and 90 Mn final capacity • Takeover by Adani Group recently is ex
Slide 32: Infrastructure Development
INFRASTRUCTURE DEVELOPMENT Multi Modal Corridor • Virar-Alibaug Multi Modal Corridor is a 126 kms road network connecting NH-8, Bhiwandi bypass, NH-3, NH-4 and NH-4B, Mumbai-Pune Expressway, NH-17, etc. • Designed to promote 7 growth centers in MMR such as Virar, Bhiwandi, Kalyan, Dombivali, Panvel,
Slide 33: Market Attractiveness
MARKET ATTRACTIVENESS Ranking among 111 cities – Ministry of Housing and Urban Affairs (2020) Navi Mumbai has 45 consistently ranked in top 10 out of a total 38 36 of 111 cities ranked 33 30 through the Ease of 25 26 25 Living Index 16 16 17 11 12 It is also ranked in top 11 10 11 6 8 9 8 8 9 15 for
Slide 34: Construction Progress
CONSTRUCTION PROGRESS 33
Slide 35: Project Status – Aalishan (Kharghar)
PROJECT STATUS – AALISHAN (KHARGHAR) Mar-20 Mar-21 46th floor completed in Baraz I 29th floor completed in Baraz I Finishing work in progress 34
Slide 36: Project Status – Aalishan (Kharghar)
PROJECT STATUS – AALISHAN (KHARGHAR) Mar-20 Mar-21 37th floor completed in Kaveh Finishing work in progress 35
Slide 37: Project Status – Aspire (Panvel)
PROJECT STATUS – ASPIRE (PANVEL) Mar-20 Mar-21 6th floor completed in Iliana 18th floor completed in Iliana 8th th floor 37floor completed completed in in Hortensia Kaveh 18th floor completed in Hortensia 36
Slide 38: Project Status – Anaika (Taloja)
PROJECT STATUS – 3 ANAIKA (TALOJA) Mar-20 Mar-21 37
Slide 39: Project Status – Anaika (Taloja)
PROJECT STATUS – 4 ANAIKA (TALOJA) Mar-20 Mar-21 38
Slide 40: Project Status – Amber (Taloja)
PROJECT STATUS – AMBER (TALOJA) Mar-20 Mar-21 39
Slide 41: Project Status – Anmol (Badlapur)
PROJECT STATUS – ANMOL (BADLAPUR) Mar-20 Mar-21 40
Slide 42: Project Status – Aloki (Karjat)
PROJECT STATUS – ALOKI (KARJAT) Mar-20 Mar-21 41
Slide 43: Project Status – Adita (Jodhpur)
PROJECT STATUS – ADITA (JODHPUR) Mar-20 Mar-21 42
Slide 44: Project Status – Anchal (Jodhpur)
PROJECT STATUS – ANCHAL (JODHPUR) Mar-20 Mar-21 43
Slide 45: Financial Snapshot
FINANCIAL SNAPSHOT 44
Slide 46: Capital Market Data
CAPITAL MARKET DATA BSE Scrip Code 506194 NSE Trading Symbol ARIHANTSUP Shareholding Pattern Bloomberg Code ARSU:IN FPIs/Banks/Fis Public 0.35% 23.96% GICS Sector Real Estate Promoters Mutual Funds 74.31% 1.38% Market Cap as on INR 3,733 Mn 18th June 2021 52 Week High INR 102.4 52 Week Low INR 18.5
Slide 47: Quarterly Highlights – Q4 FY21
QUARTERLY HIGHLIGHTS – Q4 FY21 Sales bookings of 373 units aggregating 3.6 lac sft in Q4 FY21 Collections sequentially grew 12.8% to INR 112.5 Cr in the current quarter Construction activity at full swing across all the sites Total Debt reduced by 12.2% INR 41 Cr to INR 296 Cr Particulars Q4 FY21 Q3
Slide 48: Quarterly Results – Q4 FY21
QUARTERLY RESULTS – Q4 FY21 Particulars (INR Cr) Q4 FY21 Q4 FY20 % change Q3 FY21 % change Total Revenue 124.26 62.60 98.5% 73.25 69.6% Total Operating Expenses 103.42 47.11 58.42 EBITDA 20.84 15.49 34.5% 14.83 40.5% Interest 6.49 6.80 6.06 Depreciation 0.48 0.58 0.51 PBT 13.87 8.11 71.0% 8.26 67.9%
Slide 49: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Particulars (INR Cr) FY18 FY19 FY20 FY21 Total Revenue 189.3 242.2 237.6 272.3 Cost of Construction, Land & Development 128.5 195.5 119.2 149.2 Changes in Inventories -16.1 -51.1 33.6 33.4 Employee Benefits Expense 12.7 13.8 12.1 11.9 Other Expenses 25.6 27.1 25.2 27.6
Slide 50: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Equity and Liabilities (INR Cr) FY18 FY19 FY20 FY21 Share Capital 41.2 41.2 41.2 41.2 Reserves and Surplus 76.4 80.7 85.6 97.5 Net worth 117.6 121.9 126.8 138.7 Non-Controlling Interest 9.8 13.9 20.0 24.6 Long Term Borrowings 171.9 237.7 316.8 249.9 Short Term Borrowings 1
Slide 51: Consolidated Debt for FY21
CONSOLIDATED DEBT FOR FY21 Debt attributable as Entity Debt Entity % holding per % holding (INR Cr) (INR Cr)* ASL 18.68 100% 18.68 Effective debt of ASL is worked out based on ASL’s shareholding in subsidiaries Arihant Vatika 0.04 60% 0.02 Any liability of the holding company is attributable at 100%
Slide 52: Financial Performance
FINANCIAL PERFORMANCE Income Statement (INR Cr) Return Ratios ROE ROCE Revenues EBITDA PAT 16.0% 15.0% 272 14.0% 242 238 12.0% 12.0% 10.1% 189 11.0% 10.0% 10.9% 10.9% 8.4% 8.0% 6.0% 4.5% 56.9 47.5 50.2 38.5 4.0% 14.7 18.3 11 15.7 2.0% 0.0% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Debt to Equity Debt
Slide 53: Industry Outlook
INDUSTRY OUTLOOK 52
Slide 54: Macro-Economic Indicators
MACRO-ECONOMIC INDICATORS Negative real rates pushing preference towards physical assets - India is witnessing negative real rates after many years which boosts the attractiveness of owning physical assets over the financial assets. As per an analysis by Jefferies, 1 year G-Sec yields less CPI is pe
Slide 55: Key Reforms & Interventions
KEY REFORMS & INTERVENTIONS 2017 2019 2021 RERA & GST GST Reduction Structural Upcycle RERA & GST are arguably the GST reduction to 5% for The last 5 years have laid the most important landmark under-construction housing foundation for a structural structural reforms post the and 1% for affordable h
Slide 56: Residential Market
RESIDENTIAL MARKET Early signs of recovery Gaining Momentum GDP showed higher than expected Opening up of the economy recovery; Housing sales grew 34% coupled up with pent up on sequential basis – significant demand resulted into new indicator considering job and launches and sales registering incom
Slide 57: Declining Inventory Levels
DECLINING INVENTORY LEVELS Unsold Inventory (units in lakhs) 9 7.91 8 7.26 6.73 7 6.48 6.38 6 Limited launches in last two years and sales pickup 5 4 has resulted in unsold inventory declining ~20% 3 since 2016 at 6.38 lakh units in top 7 cities. 2 1 0 Unsold inventory in MMR at 2 lakh units is down
Slide 58: Key Trends
KEY TRENDS 1 2 3 4 Ownership vs Rent Historically low Government Accelerating interest rates Initiatives Consolidation Lockdown Central bank Stamp duty The crisis reinforced the need continues to hold reduction of 2-3% in precipitated by the of owning the house the low interest rate states like pand
Slide 59: Key Trends
KEY TRENDS 5 6 7 Peripheral markets Affordable Housing Technology Adoption As many companies 80% of the new The success of digital embrace remote launches were in the adoption among the working model, the sub INR 10 Mn market leaders as peripheral markets category* reflected in the sales and satelli
Slide 60: Best Ever Affordability
BEST EVER AFFORDABILITY Best affordability in 25 years Stable Property prices and all-time low mortgage rates have resulted in the best affordability in past two and a half 25 decades. 22 20 15 15.6 It is expected to be even more favourable in satellite cities 10 11.1 established peripheral micro ma
Slide 61: Thank you!
Thank you! For further Information please contact: Abhishek Shukla Chief Strategy Officer Tel: +91 22 6249 3333 Cell: +91 9619195775 Email: abhishek.shukla@asl.net.in Corporate Office: Arihant Aura, Floor No. 25, B wing, Plot no 13/1, TTC Industrial Area, Thane Belapur Road, Turbhe, Navi Mumbai – 40