Kolte-patil Developers Limited · NSE:KOLTEPATIL
Kolte-patil Developers — Investor Presentation (March 2014)
34 slides from Kolte-patil Developers's investor presentation, March 2014
Slide 1: Analyst and Investor Presentation – March 2014
Analyst and Investor Presentation – March 2014
Slide 2: Forward-looking statements disclaimer
Certain statements in this communication may be „forward looking statements‟ within the meaning of applicable laws and regulations. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by
Slide 3: Agenda
1 KPDL Overview / Key Milestones 2 Management Team 3 Key Operational & Financial Highlights 4 Outlook 5 Annexure 3
Slide 4: Dominant player in the Pune real estate market
Undisputed leader in the Pune market with consistent market share ranging between 8-10% Dominant player in the Well-reputed, trusted name with proven execution capabilities Pune real estate market Successfully delivered over 7 msf. of area in Pune 51.7 msf. of saleable area spread across Pun
Slide 5: Advanced Construction Technology and Robust Balance Sheet Position
Early adopters of new construction technology Advanced Construction Technology Providing strong delivery capabilities Superior quality of construction Conservative approach to debt financing based on project execution and cash flow visibility Robust Balance Sheet Net debt-equity ratio at 0
Slide 6: Key milestones
2012-14 2011 • Foray into 2008-10 Mumbai – • Launch of 400 signed 3 2006-07 acre township society • Signed JV “Life Republic” 1991-2006 with Portman at Hinjewadi redevelopm ent projects • Successful IPO Holdings in 1989-91 in 2007 raising 2009 in the first year of • Forayed into US$ 63 million • Lau
Slide 7: Management team
Mr. Sujay Kalele : CEO Mr. Vasant Gaikwad: CFO • Engineer and Management Post Graduate from • Chartered Accountant with over 21 years of Indian School of Business, Hyderabad experience in handling financial • Over 10 years of experience in India and abroad in accounting, taxation, internal audit and
Slide 8: Management team (continued)
Mr. Pramod Nemade : VP Purchase Mr. Mahesh Saluja : VP Sales • MBA, Marketing from Symbiosis Inst. Of Management • Civil engineer from Pune University with 19 years of Pune work experience as project engineer and in purchase • Over 18 years of experience in real estate sales across • Responsibilitie
Slide 9: Management team: Bangalore operations
Mr. S.K.Prasanna: COO - Bangalore Operations Mr. M.Nagendra Prasad: AVP - Purchase Graduate Civil Engineer from Karnataka Graduate Civil Engineer from Bangalore University, Dharwar, Karnataka. University, Bangalore. Over Two Decades of rich experience in Real Estate Over Two decades of rich
Slide 10: Operational & Financial Update
Operational & Financial Update
Slide 11: KPDL sales volumes and area delivered
Consistently #1 in Pune with a market share of 7-11% KPDL Sales Volumes Pune Sales Volumes* 1.0 1.0 0.8 9.6 10.1 9.4 8.9 11.3 9.2 8.5 0.8 8.0 7.2 5.5 8.1 0.4 0.5 0.5 0.5 0.4 0.5 0.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY12 FY12 FY12 FY12 FY13 FY13 FY13 FY13 FY14 FY14 FY
Slide 12: Area delivery and in-house capabilities
In house capabilities PMC Engg/Design Procurement QA / QC Area Delivery Last 3 Years Next 12 months Capacity 1.7 msf. ~4 msf. 5 msf. Other salient features Construction outsourced - multiple partners depending on product type Investment of Rs. 68 crore in Aluform technology resulted in reduced slab
Slide 13: Right product, place, positioning leads to premium pricing
KPDL’s ability to deliver the right Product, at the right Place, with the right Positioning, leads to premium Pricing Right Positioning Right Strong sales momentum depicted Place over the last 3 years with new Million sq. ft area sales of 7 msf. 2.9 2.6 Right 1.5 Product FY2011 FY2012 FY2013 Price P
Slide 14: Execution focused approach - not a land banking model
Execution focused approach - not a land banking model City limit areas, 17% Land replenishment Extended city limit/town and balance planning areas, 28% maintained within three Township land buckets in Pune projects, 55% Flexible, project-specific capital structuring philosophy - For eg - In 2007, Li
Slide 15: Equity led expansion - a core strategy
Area Land Cost (Rs. Name of SPV Name of Projects Stake of PE Fund Location (acres) crore) Mohamad Wadi, Bellflower Properties Private Limited Margosa Portman Holdings – 49% 17.0 46.4 Pune Tuscan Real Estate Pvt. Ltd. Tuscan Portman Holdings – 49% Kharadi, Pune 12.8 67.6 Corolla Realty Ltd Corolla IC
Slide 16: Project portfolio: ongoing, forthcoming and future potential
Future Ongoing Forthcoming Total Projects under execution Potential Overall (msf.) 14.3 13.1 24.3 51.7 KPDL share (msf.) 9.6 7.0 12.4 28.9 KPDL saleable area of 28.9 million square feet De-risked project portfolio Mumbai, 1 % Investments in Pune spread across sub- Bengaluru, markets and ranging from
Slide 17: Re-alignment of portfolio mix post Lehman crisis
Re - alignment of portfolio mix post Creating availability at every point of Lehman crisis price spectrum Majority integrated with residential projects Luxury: > Rs. 1.5 Cr Commerci Residential, al, 10% 90% HIG: Rs. 1 to 1.5 Cr MIG Township / 60-65% Non-Township: Rs. 50 Lacs to 1 Cr Affordable Homes
Slide 18: Pune presence across growth markets and price points
Pune Presence across Growth Markets and Price Points Creating landmarks for 25 years in Pune.
Slide 19: Bengaluru market dynamics and Kolte-Patil strategies
Market dynamics… Size of market - ~40,000-50,000 units sold annually Diversified demand drivers - IT, engineering, manufacturing, education Organized market with multiple established players Mature JDA market moving towards outright purchases Average price realization - ~Rs. 4,000-4,500/sft. Capital
Slide 20: Mumbai strategic objectives and entry plan
Strategic objectives… Entry Plan Synergies to existing Pune business Focus on low risk society redevelopment projects - level playing field with recent DCR Facilitates margin expansion amendments Reduces working capital cycle No SRA projects Geographical diversification - establish strong Signed fir
Slide 21: Financial and sales performance FY2011-FY2013
Operating income EBITDA PAT 727.5 Rs. Crore Rs. Crore Rs. Crore 192.1 107.4 202.8 249.2 86.2 47.9 67.7 34.1 FY2011 FY2012 FY2013 FY2011 FY2012 FY2013 FY2011 FY2012 FY2013 Sales Volume Sales value Price realization 2.9 1,250 4,735 3,850 Million sq. ft 2.6 1,100 Rs. Crore Rs./sq. ft FY2012 FY2013 FY20
Slide 22: Sales mix, collections and cost incurred
msf. 0.50 0.48 0.44 0.45 0.44 100% 1% 8% 4% 14% 13% 17% 5% 17% 21% 80% 16% 13% 2% 3% 9% 60% 36% 8% 22% 26% 13% 23% 40% 40% 40% 49% 47% 41% 20% 4% 3% 0% 3% 3% 0% Q3 FY2013 Q4 FY2013 Q1 FY2014 Q2 FY2014 Q3 FY2014 Affordable MIG - non-township projects MIG - Township HIG Luxury Others Collections 323 3
Slide 23: Conservative debt financing, net worth and returns
0.5 800 Conservative to debt financing 0.4 0.3 0.2 0.2 750 Fast track debt payments before maturity 0.2 0.1 0.1 700 Net debt/equity to be maintained between 0.1- 0.1 700 708 712 787 0 650 0.3x over project cycle FY11 FY12 FY13 Q3 FY14 Assigned “CRISIL A+/Stable”' rating to the long- Networth (Rs. Cr
Slide 24: Free cash flows, taxation and dividend
Cash Flow Snapshot (in Rs. cr) FY13 FY12 FY11 Opening cash and cash equivalents 46.4 41.2 31.6 Net cash from/(used In) operating activities 208.2 15.4 177.1 Net cash from investing activities -45.8 2.7 -47.6 Net cash from financing activities -96.7 -13.0 -119.8 Closing cash and cash equivalents 112.
Slide 25: Construction quality, governance and organizational competencies
Superior construction quality and Best-in-class corporate Increasing organizational delivery capabilities governance practices competencies Early adopters of new construction Expanded scope of engagement Improving process orientation – technology, invested Rs. 68 crore in with Deloitte and KPMG from
Slide 26: Outlook: maintain sales momentum
Maintain sales momentum - demand not a constraint Continue strong sales momentum Achieve internal capabilities of 4-5 msf. of new sales subject to approval sanctions Consolidate dominate position in Pune market Capitalize on inherent market demand and strong brand presence Further expand market shar
Slide 27: Annexure
Annexure
Slide 28: P&L snapshot
P&L Snapshot (Rs. crore) 9M FY2014 9M FY2013 YoY (%) Total operating income 593.1 517.6 14.6% Total Expenses 417.0 395.6 5.4% EBITDA 181.2 125.2 44.7% EBITDA Margin (%) 30.5% 24.2% EBIT 176.1 121.9 44.5% EBIT Margin (%) 29.7% 23.6% Profit before tax 152.6 112.1 36.1% Profit after tax 101.8 73.4 38.7
Slide 29: Balance sheet snapshot
Balance Sheet Snapshot (Rs. cr) 31st December, 2013 30th September, 2013 31st March, 2013 Net Worth 787 780 717 Gross debt 240 265 175 Cash & cash equivalents 42 58 112 Current Investments 36 24 8 Net debt** 127 149 21 Inventories 1,243 1,269 983 Net debt/Equity (x)** 0.16 0.19 0.03 ROE (%) 15.8% 17
Slide 30: Debt profile
Debt Profile (in Rs. Crore) As on 31st Dec, 2013 As on 30th Sept, 2013 Secured Loan From Banks 107 118 Secured Loan From Others 58 61 Public Deposits 14 15 Cash Credit and OD from Bank 15 18 Unsecured Loan from Others 10 19 Compulsorily convertible debentures (CCDs) 34 34 Total Debt 239 265 Gross de
Slide 31: Details of ongoing projects as on 31st December, 2013
Details of ongoing projects as on 31st December, 2013 Saleable Average KPDL Share Area Sold Sales value Collections Projects Area Location Realization (msf.) (msf.) (Rs. mn.) (Rs. mn.) (msf.) (Rs./sft.) Life Republic - Phase I 2.6 Hinjewadi, Pune 1.2 Life Republic - Phase I – R3 2.67 11,084 8,738 4,
Slide 32: Forthcoming projects
KPDL Saleable KPDL Land cost Approval Status/Expected date of Projects Location Share Area (msf.) Share (%) (Rs. mn.) launch (msf.) Life Republic - Phase II 6.9 Hinjewadi, Pune 45% 3.1 3,400 Under approval process Corolla - Phase II 2.5 Wagholi, Pune 37% 0.9 946 Expected by end-FY14 Atria 0.2 100% 0
Slide 33: Future potential projects and divestment of agricultural plots
Title/MOU/DAPA KPDL Share Project Area (msf.) Share of KPDL Comment /Saledeed/JV (msf.)* • 50:50 profit sharing JV with Sanjivani Remidies, a Pune based Pharma firm Sanjivani Township, JV 15.0 50% 7.5 • Launch targeted by end-FY15 Urse, Pune • Awaiting land clearance from the Department of Urban Dev
Slide 34: For further information, please contact
Kolte-Patil Developers Ltd. (BSE:532924, NSE: KOLTEPATIL) is a leading Pune-based real estate company incorporated in 1991. Kolte-Patil is a well-reputed, trusted name with a reputation for high quality standards, design uniqueness, transparency and the delivery of projects in a timely manner. The c
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