Shriram Properties Ltd. · NSE:SHRIRAMPPS
Shriram Properties — Q3 FY22 Earnings Presentation
28 slides from Shriram Properties's earnings presentation, Feb 15, 2022
Slide 1: Shriram Properties – exchange submission letter
~"1 Shriram Propert1es Homes that live in you 15th February 2022 National Stock Exchange of India Limited BSE Limited The Listing Department Dept of Corporate Services Exchange Plaza, 5th Floor Phiroze Jeejeebhoy Towers Plot C 1 - G Block Dalal Street, Fort Bandra-Kurla Complex, Bandra ( E) Mumbai 4
Slide 2: On a high growth trajectory – Investor Presentation Q3 FY22
Shriram Properties Limited On a high growth trajectory Investor Presentation – Q3 FY22 15 February 2022 STRICTLY PRIVATE AND CONFIDENTIAL
Slide 3: Index and Disclaimer
Index • SPL Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 • Operational Highlights – Q3 | 9M FY22 . . . . . . . . . . . . . . . 5 • Financial Highlights – Q3 | 9M FY22 . . . . . . . . . . . . . . . . . . 12 • Growth Outlook : RE Sector and SPL . . . . . . . . .
Slide 4: SPL Overview
Budget Housing Budget Housing Property Awards of Best Gated Visionary Leader Integrated Best Efficient & Lifetime Most Admired Developer Project of the Community of the Sustainable Smart MD of the Year Project of the year – the Year Plotted of the year (1) Township Project of Achievement Upcoming Pr
Slide 5: SPL: An Introduction
SPL : An Introduction Top 5 c. 90% players in core markets of portfolio2 in Among the Top 5 in South India1 Affordable housing About Us Part of the well known c.35% Shriram Group of post IPO capital held by and Mid Market globally renowned PEs housing segment c. 17 msf c. 47 msf 3 c. 21 msf over 29
Slide 6: Shriram Properties (SPL): The Journey so far
Shriram Properties (‘SPL’): The Journey so far… • Creation of credible residential real estate growth platform, over the last 2 decades – Among the Top-5 players in core markets of Bangalore, Chennai and Kolkata – Focused Mid-Market & Affordable housing player (84% of completed projects; 86% of Proj
Slide 7: Operational Highlights Q3 | 9M FY22
Budget Housing Budget Housing Property Awards of Best Gated Visionary Leader Integrated Best Efficient & Lifetime Most Admired Developer Project of the Community of the Sustainable Smart MD of the Year Project of the year – the Year Plotted of the year (1) Township Project of Achievement Upcoming Pr
Slide 8: KPI Snapshot: Q3 | 9M FY22
KPI Snapshot : Q3 | 9M FY22 Pre-Sales Volume (msf) Sales Value (INR mn) 12,443 3% 56% 1% 60% 3.0 10,033 2.6 6,272 1.7 4,159 4,107 1.0 1.0 Q3 FY21 Q3 FY22 9M FY21 9M FY22 FY21 Q3 FY21 Q3 FY22 9M FY21 9M FY22 FY21 Collections (INR mn) Construction (INR mn) 4,228 8,436 8,309 29% 64% 94% 158% 5,142 2,50
Slide 9: Operational Highlights (KPIs): Q3 | 9M FY22
Operational Highlights (KPIs): Q3 | 9M FY22 Sales volume (msf) • 9M FY22 Net sales of 2.6 msf - despite Covid 2.0 led lockdown for 50+ days during Q1FY22 3.0 2.6 - Average run rate of 1.0+ msf net sales in Q2 & Q3 1.6 1.7 - Supported by 8 good launches (4 in Bangalore, 3 in Chennai & 1 in Kolkata) 1
Slide 10: Successful Launches; Impressive Sales-at-Launch
Successful Launches; Impressive ‘Sales-at-Launch’* 9M FY22 Launches1 3 # of project launches3 Includes 3 new launches & 5 new phases of (Area in sft) Launch Launch Sold at % 8 ongoing projects 7 Area launch sold 6 6 Chirping Grove – Phase 11 Q1FY22 250,421 103,793 41% 3 Suvilas Palms Q1FY22 229,657
Slide 11: DM Platform: Well-established Now & Making Material Impact
DM Platform: Well-established Now & Making Material Impact DM Volumes DM Revenues 8% 14% 23% 22% 20% 19% 25% 35% 38% 1,142 1.1 1.0 0.8 871 0.7 622 571 0.5 FY19 FY20 FY21 9M FY22 FY18 FY19 FY20 FY21 9M FY22 % of Total Sales Volume % of Total Revenues Strong growth engine; Stabilised amidst ongoing in
Slide 12: Strong Project Pipeline; Growing Further
Strong Project Pipeline; Growing Further Project pipeline (msf) – As disclosed in the RHP/Prospectus Ongoing projects (msf) %age of 24% 52% 24% total area 46.6 7.6 6.3 26.2 13.7 4.3 6.2 0.9 0.2 7.2 0.3 %age of 87% 3% 10% development (msf) total area Projects under 6.3 0.9 8.3 7.2 0.3 13.7 Forthcomin
Slide 13: Strong Project Pipeline; Growing Further (contd.)
Strong Project Pipeline; Growing Further (contd.) New Projects Signed since Nov’21 Dev. Dev. Type Project City Micro-Market Project Area (msf) Model Prime Life Spaces JDA Affordable Chennai Kuthambakkam 1.08 Sanath Land JDA Affordable Bangalore Electronic CIty 0.44 Clay Groove DM Plots Bangalore Dev
Slide 14: Financial Highlights Q3 | 9M FY22
Budget Housing Budget Housing Property Awards of Best Gated Visionary Leader Integrated Best Efficient & Lifetime Most Admired Developer Project of the Community of the Sustainable Smart MD of the Year Project of the year – the Year Plotted of the year (1) Township Project of Achievement Upcoming Pr
Slide 15: Financial Highlights – Q3 FY22
Financial Highlights – Q3 FY22 Growth % Growth % INR Mn Q3 FY22 Q2 FY22 Q3 FY21 QoQ YoY Total Revenues 1,301 942 1,617 38% -20% EBITDA 532 216 270 147% 97% EBITDA Margin % 40.9% 22.9% 16.7% PBT 217 (142) (22) NA NA PAT 132 (233) (272) NA NA Net Debt – Equity 0.3x • Positive Net Earnings – Turnaround
Slide 16: Financial Highlights: Profit and Loss Q3 | 9M FY22
Financial Highlights : Profit and Loss Q3 | 9M FY22 Q3 Q2 Q3 9M 9M INR Mn QoQ (%) YoY (%) FY21 FY22 FY22 FY21 FY22 FY21 Revenue from operations 1,096 761 1,409 2,278 2,936 4,315 (Of which, DM Revenues) 299 212 212 622 876 1,142 Other income 205 182 208 535 504 698 Total Revenues 1,301 942 38% 1,617
Slide 17: Financial Highlights: Consolidated Cashflows Q3 | 9M FY22
Financial Highlights : Consolidated Cashflows Q3 | 9M FY22 SPL Consolidated (CFS) Cashflows SPL Enterprise (100%)1 Cashflows (INR mn) Q3 FY22 H1 FY22 9M FY22 (INR mn) Q3 FY22 H1 FY22 9M FY22 Collections 1,201 1,776 2,977 Collections 2,209 3,607 5,815 DM Income 182 372 553 DM Income 182 372 553 Other
Slide 18: Financial Highlights: Consolidated Balance Sheet Q3 | 9M FY22
Financial Highlights : Consolidated Balance Sheet Q3 | 9M FY22 As at As at As at Net Debt# Amount (INR mn)* 31-Dec-21 30-Sep-21 31-Mar-21 6,230 Tangible Assets 588 589 614 5,694 5,728 Intangible Assets 138 139 142 Investments 427 423 463 3,027 Loans 1,678 1,495 1,437 Inventories 20,817 20,626 20,261
Slide 19: Growth Outlook Positive, Both Near and Long Term
Growth Outlook Positive, Both Near and Long Term Q4 FY22 visibility strong; Reinforces confidence on full year turnaround Strong Volume Outlook, driven by positive market environment, supported by strong launch pipeline − 3 planned new launches and preparedness for launching 3-5 additional phase
Slide 20: Growth Outlook Going Forward
Budget Housing Budget Housing Property Awards of Best Gated Visionary Leader Integrated Best Efficient & Lifetime Most Admired Developer Project of the Community of the Sustainable Smart MD of the Year Project of the year – the Year Plotted of the year (1) Township Project of Achievement Upcoming Pr
Slide 21: Residential RE Sector Outlook Strong
Residential RE Sector Outlook Strong Strong Growth Drivers Affordability at a new high • Residential affordability at a multi-decade high: - historically low interest rates - lucrative payment plans / discounts - government incentives - stable real estate prices - improving purchasing power • Re-est
Slide 22: SPL Outlook
Budget Housing Budget Housing Property Awards of Best Gated Visionary Leader Integrated Best Efficient & Lifetime Most Admired Developer Project of the Community of the Sustainable Smart MD of the Year Project of the year – the Year Plotted of the year (1) Township Project of Achievement Upcoming Pr
Slide 23: Current Year Outlook
Current Year Outlook ➢ SPL standing firm on its growth path – proven sales and execution machine showing strong resilience ➢ SPL’s growth momentum interrupted by COVID in FY21; Back on growth trajectory ➢ Encouraging near term outlook with strengthened long-term fundamentals, for the Sector and for
Slide 24: Long Term Strategy & Growth Outlook
Long Term Strategy & Growth Outlook SPL Competitive Strengths SPL Forward Strategy 1 3 5 Focus on Mid Stay focused on mid- Leadership in Enhanced focus on DM Build scale and enhance Market and market and affordable Core Markets model execution capabilities Affordable housing Strong Housing Parentage
Slide 25: Development Management (DM) Model: New Growth Engine for SPL
Development Management (DM) Model: New Growth Engine for SPL Evolving new development model, given the RERA led industry consolidation DM Portfolio # projects Area (msf) – Sustainable opportunity: Completed 1 2.0 Ongoing 11 6.4 • RERA-led changes in the industry are irreversible PUD 1 0.9 • Large op
Slide 26: Kolkata Project: Unlocking Value
Kolkata Project : Unlocking Value Project Overview – Integrated township in Uttarpara, Kolkata • 314 acres with 33.54msf of estimated total saleable area • Acquired additional 73 acres; 30 acres earmarked for road infra – Master development plan approved by authorities in 2016 • 26.42msf of resident
Slide 27: Investment Summary
Investment Summary 8. Access to Capital 1. Corporate Governance ➢ Strategic relationships with domestic and ➢ Shriram Group DNA and marquee investor international financial investors presence for a decade contribute to strong ➢ Early recipient of FDI in the sector governance and transparency practic
Slide 28: Thank You
THANK YOU 26