Signatureglobal (india) Limited · NSE:SIGNATURE
Signatureglobal (india) — Q2 FY24 Earnings Presentation
35 slides from Signatureglobal (india)'s earnings presentation, Nov 9, 2023
Slide 1: Cover letter to stock exchanges: Investors Presentation
Date: 9th Novembber, 2023 The Mannager The Manager BSE Lim mited Natiional Stock Exchange E off India Limiited Corporaate Relationshhip Departm ment, Listiing Departmeent 1st Floorr, New Trading Ring, Exchhange Plaza Rotundaa Building 5th Floor, F Plot noo C/1, G Bloock Phiroze Jeejeebhoy Towers, T
Slide 2: Q2FY24 Investor Presentation
Q2FY24 INVESTOR PRESENTATION SIGNATURE GLOBAL NOV 2023 1
Slide 3: Disclaimer
Disclaimer Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, technological risks, and many other factors that could cause our actual
Slide 4: Operating Highlights
Operating Highlights Strategy & Portfolio Financial Snapshot Company Overview 3
Slide 5: The Company sold 1,956 units at an average ticket size of INR 9.5 mn
The Company sold 1,956 units at an average ticket size of INR 9.5 mn during the first half of the current financial year • INR 18,614 mn in H1FY24 Elevations of Signature Global City in Sector 93 & Sector 92 (II) in Gurugram Strong Sales • Growth of 38% vis a vis H1FY23 at INR 13,530 mn Performance
Slide 6: Portfolio addition of 6.3 million sft in focus micro markets
Portfolio addition of 6.3 million sft during the current financial year in focus micro markets 5,000 4,664 Operating 4,000 • Achieved an Operating Cashflow before Investment in Land of INR 2,943 Cashflow before 3,000 4,664 mn in H1FY24 Investment in 2,000 • Growth of 58% vis a vis H1FY23 at INR 2,94
Slide 7: Healthy gross profit margins and Low Leverage Levels
Healthy gross profit margins and Low Leverage Levels Revenue being recognized from recently delivered units of Signature Global Park • INR 2,644 mn revenue recognized from operations in H1FY24 vs INR 6,658 mn in H1FY23 Financial • Adjusted gross margin of INR 893 million (36.33%) for H1 FY24 vs Perf
Slide 8: FY24 Guidance
FY24 Guidance Launches1 Pre-Sales Collections INR Mn INR Mn INR Mn 90,000 85,000 50,000 50,000 45,000 80,000 70,000 40,000 40,000 34,306 60,000 56,000 29,000 30,000 30,000 50,000 40,000 19,200 20,000 20,000 30,000 20,000 10,000 10,000 10,000 0 0 0 FY23 FY24 (Guidance) FY23 FY24 (Guidance) FY23 FY24
Slide 9: Strategy & Portfolio
Operating Highlights Strategy & Portfolio Financial Snapshot Company Overview 8
Slide 10: Strong sales momentum
Strong sales momentum SALES GROWTH OF 38% IN H1FY24 VS H1FY23 SALES CAGR OF 42% DURING FY21-FY23 INR Mn INR Mn 18,614 40,000 6.00 20,000 3.0 34,306 5.00 15,000 13,530 1.9 30,000 25,900 1.82 2.0 4.00 18,614 10,000 20,000 16,903 3.00 1.0 4.25 5.46 4.35 1.90 2.00 5,000 10,000 1.00 0 0.0 0 0.00 H1FY23 H
Slide 11: Mid Income projects launched in Q4FY23; strong sales velocity in H1FY24
Mid Income projects launched in Q4FY23; strong sales velocity in H1FY24 CITY 93 CITY 92-2 CITY 79B Particulars Amount Particulars Amount Particulars Amount Launch Qtr Mar-23 Launch Qtr Mar-23 Launch Qtr Mar-23 # of Residential Units 996 # of Residential Units 688 # of Residential Units 776 Residenti
Slide 12: Seen success in mid income low rise floors since entering the market
Seen success in mid income low rise floors since entering the market CITY 37D CITY 81 CITY 63-A Particulars Amount Particulars Amount Particulars Amount Launch Qtr Sep-21 Launch Qtr Sep-21 Launch Qtr Sep-22 # of Residential Units 1,168 # of Residential Units 826 # of Residential Units 288 Residentia
Slide 13: Growing collections leading to fast paced construction while maintaining low net debt
Growing collections leading to fast paced construction while maintaining low net debt 65% GROWTH IN COLLECTIONS Particulars H1FY24 Cash and cash equivalents at the beginning of the year 6,387 15,000 13,275 Add: Operating surplus before land advance/acquisition 4,664 10,000 8,049 5,000 Total Cash ava
Slide 14: Successful deliveries in recent times gives confidence to customers
Successful deliveries in recent times gives confidence to customers SG Park, Sohna Serenas, Sohna Orchard Avenue – Sector 93, Gurugram Roselia, Sector 95A, Gurugram Sunrise Floors, Karnal Grand Iva, Sector 103, Gurugram 13
Slide 15: Strong Portfolio of 44.7 msf across Ongoing and Forthcoming projects
Strong Portfolio of 44.7 msf across Ongoing and Forthcoming projects Ongoing projects of 17.3 msf saleable area Forthcoming projects of 27.4 msf saleable area1 Strong project pipeline to result in sustainable growth Affordable Mid Income Mixed Category Others Total Housing Housing Use Ongoing 5.6 11
Slide 16: Snapshot of Ongoing Portfolio; Aim to be delivered by FY26
Snapshot of Ongoing Portfolio; Aim to be delivered by FY26 Number of Land Saleable Area Sold Area Sold Value Category Category Wise Share of 17.3 mn sft Ongoing Portfolio Projects (in acres) (in sft) (%) (INR mn) Affordable 12 63.1 5.6 97.4% 25,337 Others 2% Mid Income - Gurugram 8 91.6 7.5 71.8% 45
Slide 17: Focus across three distinct micro markets fueled by world class infrastructure
Focus across three distinct micro markets fueled by world class infrastructure THREE FOCUS AREAS 1) Sector 71 11.25 mn sft1 Proximity to all prime areas of Gurugram; red light free to Golf Course Road in future 37D 2) Sohna Elevated Corridor 7 mn sft1 Opened in 2022; Closer to 71 Cybercity and MG Ro
Slide 18: Strong pipeline of mid income housing projects across focused micro markets
Strong pipeline of mid income housing projects across focused micro markets; aim to launch by FY26 Location Project Land (in acres) Estimated Saleable Area 1(in sft) Group Housing 22.5 3.0 Sector 71, SPR Residential 23.6 2.7 Mixed Use Land 25.1 5.5 Group Housing 20.2 2.7 Each focus area has distinct
Slide 19: Business Development - Sector 71 portfolio crosses 10 mn sft
Business Development - Sector 71 portfolio crosses 10 mn sft New additions to portfolio Update on existing portfolio Estimated Land Estimated Land Area Location Usage Saleable Area Status Location Area Usage Saleable Area Status as on RHP Current Status (acres) (in mn sft)1 (acres) (in mn sft)1 SPA
Slide 20: Financial Snapshot
Operating Highlights Strategy & Portfolio Financial Snapshot Company Overview 19
Slide 21: Consolidated PL Snapshot
Consolidated PL Snapshot PL Statement (INR mn) H1FY24 H1FY23 Y-o-Y% FY23 Adjusted Gross Margin % & Adjusted EBITDA Margin % Revenue from real estate properties - Mid Housing 1,984 1,524 30.22% 6,671 50% - AHP 474 4,976 -90.48% 8,560 40% Total Revenue from real estate properties 2,458 6,500 15,231 36
Slide 22: Healthy balance sheet with improved equity and reduced debt levels
Healthy balance sheet with improved equity and reduced debt levels Balance Sheet (INR mn) Sep-23 Mar-23 Total equity 5,884 475 • Breakup of Net Debt as of 30th Sep 2023 : Minority interests 27 26 Particulars INR mn Non-current liabilities 8,807 13,263 Gross Debt 11,294 Current liabilities 55,215 46,
Slide 23: Net Debt Position of the Company with Growing Operating Cashflows
Net Debt Position of the Company with Growing Operating Cashflows Operating Surplus1 and Net Debt2 (INR mn) Lenders to Signature Global 10,939 H1FY24 Operating Surplus1 of INR 4,683 mn 5,573 6,912 5,173 4,701 3,624 2,489 Mar-21 Mar-22 Mar-23 Sep-23 Net Debt Operating Surplus INR 3,624 mn Net Debt al
Slide 24: Strong debut at the stock exchange
Strong debut at the stock exchange Issue details Share price performance – stellar 76% return from offer price 685 679 Issue Size INR mn Listing Closing price price - 444 as on 8th Nov Fresh issue size 6,030 585 Offer for sale issue size 1,270 485 Total issue size 7,300 385 27-Sep 29-Sep 2-Nov 4-Nov
Slide 25: Company Overview
Operating Highlights Strategy & Portfolio Financial Snapshot Company Overview 24
Slide 26: Largest Player in Delhi NCR's Affordable and Lower Mid-Income Housing Market
Largest Player in Delhi NCR’s Affordable and Lower Mid-Income Housing Market Focus on Affordable & Mid Income housing Disciplined Approach to Land Acquisition • Commenced operations# in 2014 with focus on affordable • Lead-time from acquisition of land to launch of projects housing has been typicall
Slide 27: Track Record of Execution
Track Record of Execution Delivered Housing Projects Totaling to c. 8.1 msf1 Solera Synera Grand Iva Orchard Avenue Serenas Sector 107, Gurugram Sector 81, Gurugram Sector 103, Gurugram Sector 93, Gurugram Sector 36, Sohna 1,157 units 898 units 1,581 units 800 units 1,418 units Best Affordable Devel
Slide 28: With Quick Turnaround of Land Resources
… With Quick Turnaround of Land Resources Disciplined approach to land acquisition leading to quick turnaround of up to 18 months from 2.2 msf of Individual Floors completed acquisition to launch Sunrise & Karnal City : Completed 906 Units Time from Land Acquisition to Project Land Acquisition Date
Slide 29: Well Established Brand and Strong Distribution Network Focused on Mid-Income Segments
Well Established Brand and Strong Distribution Network Focused on Mid-Income Segments Well entrenched sales and distribution network driving customer acquisition Strong Brand Recall Strong Distribution Network Engaged celebrity brand ambassadors for various campaigns Campaign Name Response2 Strong
Slide 30: Standardized Product Leading To Low Design Costs & Higher Design Efficiencies
Standardized Product Leading To Low Design Costs & Higher Design Efficiencies… Using Aluminium Formwork Technology to Reduce Construction Time Standardization providing Imported the Aluminum formwork technology providing a unique advantages competitive edge Reduced structure cost Increased pac
Slide 31: Leveraging Technology for efficiency & scale
Leveraging Technology for efficiency & scale Digital Integration of all stakeholders Strong emphasis on digital sales Projects being sold through various digital channels Stronger Internal Controls including website since 2014 Human Resource Management Software Strong Linkage with Core ERP AHP
Slide 32: Trusted brand with strong campaign being run at a national level
Trusted brand with strong campaign being run at a national level • Relatable brand ambassadors like Vidya Balan and Vijay Raaz • Company has strong presence across social media and has touched c. 30 mn social media users • Strong in-house direct sales team of 43 members1 and indirect sales team of 9
Slide 33: High Quality Board & Experienced Management Team
High Quality Board & Experienced Management Team Name Designation Brief Profile Independent Directors 8+ years of experience in real estate industry; Pradeep Kumar Chairman & Whole- Served as MD on the board of SMC Comtrade Aggarwal Time Director Limited for 10 years Kundan Mal Agarwal Ex-director o
Slide 34: Focus On Sustainable Development
Focus On Sustainable Development Waste Management Use Of Solar Panels Use Of LED lights Green Building Initiatives Green Building Initiatives (Water Management) Use of Low Flow Fixtures INDUSTRY LEADING CERTIFICATIONS Green Building Certification* IGBC Certification Occupational Health & Safety Qual
Slide 35: Thank You
SIGNATURE. GLOBAL MAKING INDIA AFFORDABLE TH OU
SignatureGlobal (India) — Q2 FY24 Earnings Presentation on 6ix