Slide 1: Arihant Superstructures – Continuing Stability
ARIHANT SUPERSTRUCTURES LTD. CONTINUING STABILITY CONTINUING STABILITY 03rd December, 2019 Corporate Relations Department Listing Compliance Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalai Street, Plot No. C/1, G Block, Mumbai - 400 00
Slide 2: ASL Investor Presentation Nov 2019
ASL Investor Presentation Nov 2019 COMMODITY COAL DREDGING TRANSPORTATION OIL & GAS NSE : ARIHANTSUP BSE : 506194 ASL believes REAL ESTATE is a retail product with a BLOOMBERG : ARSU IN flavour of an Asset Class.
Slide 3: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness, reasonableness or reliability of this information. Any forwa
Slide 4: Table of Contents
PAGE TABLE OF CONTENTS NUMBERS CMD‟s message 4 Introduction to Arihant 5-8 Key Investment Highlights 9 Our Value Creation Journey 10 Projects in pipeline & track record 11-12 De-risked And Scalable Business Model 13 Best Practices 14 The ASL Differentiator 15 Industry Dynamics 16-19 Corporate Social
Slide 5: CMD's message
CMD‟s message Commenting on the real estate sector, Mr. Ashok Chhajer, CMD of Arihant Superstructures said, “Arihant has been through a number of real estate cycles and has come out stronger every time. Though this cycle seems longer as we are in the midst of it, we are confident on the way ahead as
Slide 6: "Arihant" – The Institution
“Arihant” – The Institution • Housing since 2009, One of the Largest Developers in Navi Mumbai – MMR & Jodhpur region having projects in hand for next 10 years. • Delivered 9000+ homes worth 7.5+ Mn Sq. ft. across 50+ projects over past 2 decades by the Group • 17 Projects in hand consisting of 13,5
Slide 7: Arihant Superstructures Ltd (ASL): At A Glance
Arihant Superstructures Ltd (ASL): At A Glance Company Profile CATEGORY-WISE PROJECT PROFILE 1. A leading real estate company focused on Affordable Upper Medium Income Group Luxury Segment (INR 7,000+ psf) 2. Strong execution track record of project completion 6% Low cost 3. Strong brand recognition
Slide 8: Arihant Focus on housing sector demand
Arihant Focus on housing sector demand Navi Mumbai • Mumbai Trans Harbour Link (MTHL) connecting Sewri, Mumbai and Nhava Sheva, Navi Mumbai has completed 14% work. Currently deploying 1500 labourers & 300 engineers. It will be ready by 2022 end. • Kharghar Corporate Park : CIDCO plans to auction plo
Slide 9: Infrastructure Status assigned to Affordable Housing Projects
Real Estate (Housing) – Infrastructure Status assigned to Affordable Housing Projects Benefits to MIG Flat Buyers by Government • Interest subsidy upto Rs 267,000 on purchase of house for a family having income upto Rs 1.8 Mn per year • No processing fee • Change in base year from 1981 to 2001 as we
Slide 10: Key Investment Highlights
Key Investment Highlights Strategically Significant Large Land Bank Project Strong Focus On Superior Well-positioned Monetization Acquired At Funding Corporate Growth In High Growth Yet To Come Low Cost Secured Governance Profile Markets • Navi Mumbai – 2nd 2 Best Place in terms of ease of living In
Slide 11: Our Value Creation Journey
Our Value Creation Journey 2000 2014 2017 1994 Achieved a 2007 Successfully completes Successfully Launch of significant milestone Successfully and delivers 4 mn launched flagship Real Estate of completing 10 Completes and square feet; Crossed project “Arihant Division projects delivers 25 projects
Slide 12: Strong Project Pipeline
Strong Project Pipeline ARIHANT AAROHI - I 3.16 mn sq.ft. Under Construction 11.12 mn sq.ft. 0.10 mn sq.ft. Saleable Project Commenced ARIHANT ADITA – I, II, III 7.86 mn sq.ft. 13.78 mn sq.ft. projects Construction yet to start Arihant Arshiya – I,Arihant Arshiya – II Arihant Adita – I,II,III, Ariha
Slide 13: Proven Track Record (Some Key Group Projects)
Proven Track Record (Some Key Group Projects) Saleable Units Location Projects area Sold (sq.ft.) Airoli 1 32,500 40 Badlapur 2 349,125 490 CBD Belapur 2 166,000 185 Akriti (Badlapur) Aksh (Badlapur) Ghansoli 5 261,100 355 Kharghar 7 1,071,494 1012 Koperkhairane 3 140,000 228 Nerul 7 159,900 215 Pan
Slide 14: De-risked And Scalable Business Model
De-risked And Scalable Business Model Product Strategy Land Acquisition To have products across various stages of Fully paid up land bank for projects to be construction to serve varied customer needs executed in the next ten years; Land back acquired at historical cost levels Sales and Marketing St
Slide 15: Best Practices
Best Practices For Customer For Sustainable Development Water Preservation Social Development No lock-in No transfer by supporting Rural by Rain water harvesting & STP and period charges infrastructure, School etc Energy Conservation measures No Economic Participation in Full cheque Development by G
Slide 16: The ASL Differentiator
The ASL Differentiator Customer Centric Approach • The Company follows a customer centric approach in the entire lifecycle of the project • Some of the customer-centric policies that the Company adopts is o No lock in period for buyers o No transfer charges on re-sale of property High Level of Stand
Slide 17: Industry Dynamics
Industry Dynamics Retail / Consumer is the biggest Wealth Creating sectors ASL believes REAL ESTATE is a retail product with a flavour of an asset class. Opportunity of Vision – Housing for all by 2022 All India Demand Pattern 1 The Central Government has a stated vision to provide Housing Particula
Slide 18: Business Region In Focus - MMR
Business Region In Focus - MMR Key Factors Potential Population (mn) Growth Households in mn Growth to generate ~1 2008 2025 CAGR Income Level 2010 2020 2032 mn jobs and MMR 22 34 2.6% 0.09 Mn – 0.2 Mn 2.53 1.61 0.51 therefore Greater Mumbai 14 17 1.1% 0.2 Mn – 0.5 Mn 2.79 4.35 6.22 added RoMMR 8 17
Slide 19: Navi Mumbai 2nd in List Of Best Cities To Live In India
Navi Mumbai 2nd in List Of Best Cities To Live In India • The 'Ease of Living' index is an initiative of the Ministry of Housing and Urban Affairs to assess the most livable cities all over India and rank them on a 100 point scale. • The report evaluated 111 cities on a 100-point scale across 78 ind
Slide 20: Business Region In Focus - Jodhpur
Business Region In Focus - Jodhpur Key Factors • 2nd largest 'Metropolitan City' of Rajasthan • Industrial cluster and export hub of Gaur Gum, Textiles, SS utensils, Stone processing, Handicrafts & Solid Wooden Furniture, Jodhpur • Population base of 1.29 mn (source census, Wikipedia) • Tourism boom
Slide 21: Arihant Projects: Market Grading
Arihant Projects : Market Grading Navi Mumbai Arihant -MMR Arihant Arihant Arihant Clan Arihant Arihant Arihant Arihant Arihant Arihant Arihant Projects Parameters Arshiya Aloki Amisha Aalishan Aspire Anshula 3Anaika 4Anaika Amber Aarohi Anmol Kalyan Location Khopoli Karjat Panvel Kharghar Panvel Ta
Slide 22: A Few Cases Reflecting ASL's Business Strategies
A Few Cases Reflecting ASL‟s Business Strategies Case 1: Arihant Aalishan: Turnaround from a Distressed Asset to a Marquee Project Land Acquisition Approvals Project Launched Construction Begins Current Status Baraz I 26th slab Kaveh 37th slab Jan 2016 Feb 2016 Mar 2016 Mar 2016 Oct 2019 Case 2: Ari
Slide 23: Corporate Social Responsibility – Key Projects
Corporate Social Responsibility – Key Projects Contributing to the construction of school building, Jodhpur • Construction of school building to replace open classrooms • The building would have basic infrastructure such as 10 classrooms and multi-purpose hall Village Infrastructure Development, Nav
Slide 24: Financial Snapshot
FINANCIAL SNAPSHOT Arihant Superstructures Limited (ASL)
Slide 25: Capital Market Data
Capital Market Data Capital Market Details Shareholding Pattern BSE Scrip Code 506194 FPIs/Banks & FIs Public 1% 20% NSE Trading Symbol ARIHANTSUP Mutual Funds 5% Promoters Bloomberg Code ARSU IN 74% GICS Sector Real Estate Comparative Stock Price Performance - BSE Market Cap as on ASL BSE INR 1068
Slide 26: Superior Track Record With Strong Brand Recall
Superior Track Record With Strong Brand Recall Key Strengths Average Sales Rate (INR per sq.ft.) 4310 4026 4070 3795 3582 14-15 15-16 16-17 17-18 18-19 Area Booked (mn sq.ft) Units Sold 1.01 1157 0.84 931 0.63 723 0.51 0.47 580 527 14-15 15-16 16-17 17-18 18-19 14-15 15-16 16-17 17-18 18-19 25
Slide 27: Prudent Financial Management Leading To Superior Shareholder Value
Prudent Financial Management Leading To Superior Shareholder Value Strong Risk Superior cash flow Strategic Land Acquisition Management and management Internal Audits • Land acquired at historical • 15% -20% launch sales target • Strong and independent prices • Adoption of DM model board with indust
Slide 28: Project Status - Mumbai
° Project Status - MUMBAI A} Total Area Project Estimated | arse | amount | satats [™ Project Location with Common wale se Aree | Total | units of aint | URNS | completi | ¥EFAEE | ValUE of Ivatue {in| Received |Receivable Area on% Mn) | (inn) | (in MN) Area [COMPLETED PROJECTS JONGOING PROJECTS |Ar
Slide 29: Project Status - Jodhpur
Project Status - JODHPUR Project ARIHANT Estimated Value of Unsold Area ATS* | Amount | Bal ATS Value (in| Received | Receivable Mn) | (inMn) | (in MN) |COMPLETED PROJECTS = z [Subtotal JODHPUR 1,744,634 | 1,272,695 1552| 1,147 405 74% 2.535 1,463| 3,226] 2,806 420 | FUTURE PROJECTS |Arihant Adita -
Slide 30: Potential Recognizable Revenue
Potential Recognizable Revenue Expected Revenue: Geographical Split Thane 2% Sales recognised Kharghar completed 21% Panvel 19% 47% Jodhpur 19% MMR Sales yet to Sales ongoing part 11% commence recognised 57% 23% Revenue Recognition Method Revenue has been recognized as per IND AS 115 „Revenue from C
Slide 31: Income Statement – INR Mn
Income Statement – INR Mn Particulars FY 15 FY 16 FY 17 FY18 FY19 Total Revenue 1,098 1,238 1,862 1,893 2,422 Cost of materials consumed 1,208 1,144 2,074 1,285 1,955 Changes in inventories -543 -480 -1130 -161 -511 Employee benefits expense 65 79 85 127 138 Other Expenses 102 133 190 256 271 Total
Slide 32: Balance Sheet – INR Mn
Balance Sheet – INR Mn Equity and Liabilities FY15 FY16 FY17 FY18 FY19 Sha re Ca pita l 412 412 412 412 412 Re s e rve s a nd Surplus 206 397 724 764 807 Ne t worth 617 809 1136 1176 1218 Minority Sha re 27 47 79 98 139 Long Te rm Borrowings 971 1778 2013 1719 2377 Short Te rm Borrowings 489 327 545
Slide 33: Financial Performance
Financial Performance Total Revenues (Rs Mn) EBITDA (Rs Mn) Net Debt/Equity (x)* 643 2,422 569 2.98 1,862 1,893 2.55 362 385 2.17 1,238 266 1,098 2.25 2.32 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 *The debt on holding company is 100% liability of ASL. The debt on su
Slide 34: Net Worth & PAT for the Quarter ended 30th Sept, 2019
Net Worth & PAT for the Quarter ended 30th Sept, 2019 Company (INR Mn) Net Worth PAT Arihant Superstructures Limited 1115.32 (24.85) Arihant Vatika Realty Private Limited 259.60 4.36 Arihant Abode Limited (7.34) 2.17 Arihant Gruhnirman Private Limited (1.82) (0.06) Arihant Aashiyana Private Limited
Slide 35: Q2 FY20 Financial Highlights
Arihant Superstructures Limited: Q2 FY20 Financial Highlights Consolidated Financial Highlights for Q2FY20 Vs. Q2FY19 Consolidated Financial Highlights for Q2FY20 Vs. Q1FY20 1. Revenue increased by 6% from INR 503.34 Mn to INR 1. Revenue decreased from INR 582.70 Mn to INR 531.78 531.78 Mn. Mn. 2. E
Slide 36: Q2 FY20 Operational Highlights
Arihant Superstructures Limited: Q2 FY20 Operational Highlights Sales Highlights Q2 FY20 VALUE (INR) AREA SOLD REGION UNITS Mn (Sq Ft) Navi Mumbai - MMR 144 601.09 138,616 Jodhpur 33 93.07 39,600 Total 177 694.16 178,216
Slide 37: Business Development – Q2 FY20
Business Development – Q2 FY20 • 2 Acres of land acquired in Taloja in Q2 FY20 • Launched in Q3 FY20 • Adjacent to the existing Arihant projects • Affordable Housing
Slide 38: A few sacrifices in a tough environment
A few sacrifices in a tough environment a)The Promoters of the Company has accepted the request of the Management to reduce the interest rate on the loans given by them from 15% to 8% annually compounded for Financial Year 01st April, 2019 to 31st March, 2020 resulting in savings of Rs 12 Crore. b)
Slide 39: FY19 - Income Statement
FY19 - Income Statement FY19 - Operating Overview INR Mn Y-O-Y FY19 FY18 Business Development (except as stated) Change • Acquisition of 7 Acres of Land at a Prime location in Revenue 2422.09 1892.52 28% Panvel • ASL‟s First Development Management Model Project Total Expenditure 1852.61 1507.61 23%
Slide 40: Consolidated Income Statement
Consolidated Income Statement Amount in INR Mn except as stated Particulars Q2 FY20 Q2 FY19 Q1 FY20 Tota l Re ve nue 531.78 503.34 582.70 Tota l Ope ra ti ng Expe ns e s 457.68 403.54 473.27 EBITDA 74.11 99.80 109.43 EBITDA Ma rgi n (%) 13.94 19.83 18.78 Inte re s t 82.03 66.82 79.15 De pre ci a ti
Slide 41: The Road Ahead – FY20
The Road Ahead – FY20 REVENUE DRIVERS MARGIN DRIVERS FUTURE PLANS Fast tracking of Navi To infuse funds for land purchase Efficiency in low cost land MumbaiInfrastructure projects to to take current developable purchase boost demand from home buyers area from 13.7 mn sq. ft. to 25 mn sq. ft. To add
Slide 42: Holding Company Debt Liability
Holding Company Debt Liability Entity Debt Liability of ASL Entity Holding (INR mn) (INR mn)* • The company accounts for & ASL 100% 928.18 928.18 have adopted the method of liabilities V/s Shareholding Vatika 60% 169.59 100.23 percentage. The debt on holding company is 100% liability of ASL. Aashiya
Slide 43: Board Of Directors
Board Of Directors Ashok Chhajer, Virendra Mittal, Nimish Shah, Promoter, CMD Independent Director Whole-Time Director ● Over 4 decades experience includes 2 ● IIT Alumnus and a fellow chartered engineer ● A civil engineer with over 17 yrs experience in decades in the real estate business constructi
Slide 44: Experienced and dedicated management team
Experienced and dedicated management team Akshay Agarwal, Jitendra Mehta Deepak Lohia, Piyush Dosi, Director - Procurement COO Head Finance Director - Jodhpur ● CA, LLB with 3 decades of ● CA, having 17 years of ● A civil engineer with over 21 experience in Operations, experience in the areas of ● D
Slide 45: Past Awards and Accolades
Past Awards and Accolades 2015 2016 Best Business Winner of Mumbai Best Corporate Most Esteemed Ongoing NDTV awards Arihant as Practice Award in Hot 50 Brands by Brands 2016- Real Project of the Year – the best developer in 2015 for 2014 One India and Estate by the Navbharat Realty Business affordab
Slide 46: Mumbai Hot 50 Brands (2 Times) - 2015 and 2014
Mumbai Hot 50 Brands (2 Times) - 2015 and 2014 45
Slide 47: Arihant Aspire – Iconic Award & Platinum IGBC Certificate
Arihant Aspire – Iconic Award & Platinum IGBC Certificate Iconic Award by Radio City for Arihant Aspire, IGBC PreCertified Platinum Rating for Aspire project, Sept 2018 July 2018
Slide 48: Jodhpur Awards, 2017-18
Jodhpur Awards, 2017 -18 Dainik Bhaskar (94.3 MYFM) – Arihant Adita – Jodhpur‟s no1 Housing Award for Excellence in Quality Society Award, Red FM Construction • In their drive to promote cleanliness in Jodhpur city, RED FM 93.5 had organized a contest among the Award for Excellence in Quality Constr
Slide 49: MMR – Navi Mumbai Awards, 2018
MMR – Navi Mumbai Awards, 2018 Affordable Housing Project of Affordable Low Cost Quality the Year – 2018 Housing - 2018 The MCHI CREDAI in their prestigious GOLDEN PILLAR award 2018 has given Affordable Housing Project of the Year award to Arihant Superstructures Ltd (ASL) Award for Quality construc
Slide 50: Developer of the Year – Affordable Housing, Award, 2019
Developer of the Year – Affordable Housing, Award, 2019 49
Slide 51: Thank you !!
Thank you !! For further Information please contact Deepak Lohia Umesh Jhawar Head - Finance VP – Strategy & IR Tel: +91 22 6249 3333 Tel: +91 22 6249 3333 Email: cfo@asl.net.in Email: umesh.j@asl.net.in Corporate Office: Arihant Aura, Floor No. 25, B wing, Plot no 13/1, TTC Industrial Area, Thane B