Sobha Limited · NSE:SOBHA
Sobha — Q3 2013 Earnings Presentation
30 slides from Sobha's earnings presentation, January 2013
Slide 1: Investor Presentation Quarter Ended 31st December 2012
INVESTOR PRESENTATION QUARTER ENDED 31st DECEMBER, 2012
Slide 2: 9M-13 Performance Highlights
9M-13 –PERFORMANCE HIGHLIGHTS SOBHA BECOMES RS.20 BILLION* BRAND – A NEW MILESTONE FOR THE COMPANY VALUE : Recorded new sales value of Rs.15.40 Billion during 9M-13, as against Rs.12.37 Billion during 9M-12 – sales value up by 24.5% Yr-on-Yr SALES VOLUME: Sold 2.68 mn.sqft of new space during 9M
Slide 3: 9M-13 Consolidated Financial Highlights
9M-13 – CONSOLIDATED FINANCIAL HIGHLIGHTS Revenue of Rs.12.82 Billion during 9M-13 as against Rs.8.90 Billion in 9M-12 REVENUE Revenue up by 44% on Yr-on-Yr EBITDA of Rs.3.90 Billion during 9M-13 as against Rs.2.80 Billion in 9M -12 EBITDA EBITDA up by b 39 3 % on Yr-on-Yr EBITDA margin at
Slide 4: 9M-13 Consolidated Financial Highlights
9M-13 – CONSOLIDATED FINANCIAL HIGHLIGHTS Unrecognized revenue from sold units has increased to Rs.16.12 Billion from Rs.14.72 Billion UNRECOGNIZED Due to the new income recognition policy there has been lower land income recognition REVENUE to the tune of Rs.517 mn and lower p profit before tax
Slide 5: Q3-13 Consolidated Financial Highlights
Q3-13 – CONSOLIDATED FINANCIAL HIGHLIGHTS Recorded new sales value of Rs.5.33 Billion during Q3-13 as against Rs.4.48 billion during corresponding period of the last year – sales value up by 19% - Highest ever sales value. SALES Sold 0 0.90 90 mn mn.sft sft of new space in Q3-13 Q3 13 as against
Slide 6: Sales Performance
SALES PERFORMANCE Area in Sq.ft Sq ft Locations- Q3-13 Q3-12 Q2-13 9M-13 9M-12 FY 11-12 Bangalore 591,216 567,662 590,438 1,701,735 1,689,240 2,259,337 NCR (Gurgaon) 103,098 106,183 137,600 376,419 213,562 322,767 Chennai 67,350 - 42,323 181,756 - 85,213 Pune 23 124 23,124 23 536 23,536 38 621 38,62
Slide 7: Operational Cash Flow – Real Estate
OPERATIONAL CASH FLOW – REAL ESTATE Real Estate Projects Cash flow status as on 31st December-12 Ongoing Completed Description UOM Projects Projects Total Super Built-up area 17.40 4.96 Mn.sft Sobha share of Saleable area 15.24 4.79 Mn.sft Total area sold till 31st December-12 6.83 4.65 Mn.sft f Uns
Slide 8: Location Wise Stock Details
LOCATION WISE STOCK DETAILS Area in Million Sq.ft q increase/ Opening Projects Area sold Closing stock Area not Net unsold (decrease) of Opening Locations stock as on launched during as on 31st offered stock as on g existing stock 1st Apr-12 Apr 12 during 9M-13 9M 13 9M 13 9M-13 Dec 12 for sale 31st
Slide 9: Improved Sales Performance
IMPROVED SALES PERFORMANCE Consistently improving sales realization with increasing sales volume 4.00 5,738 6,000 5,110 Rs/sft) 3.50 3.28 5,181 5,000 , erage Price rrealization (R 3.00 2.78 2.68 Area sold in Mn.sft 3,545 2.42 4,000 2.50 4,082 2.08 2.12 2 00 2.00 2 615 2,615 3 000 3,000 1.50 2,647 1.
Slide 10: Real Estate – Snapshot
REAL ESTATE – SNAPSHOT Completed Projects Ongoing Projects Forthcoming Projects 83 Projects aggregating to 20.78 43 Projects aggregating to 17.40 13 Projects aggregating to ≈ mn.sft of Super Built-up area mn.sft of Super Built-up area 12.53 mn.sft of Super Built-up area Total area developed
Slide 11: Real Estate – Overview
REAL ESTATE - OVERVIEW Presence P across 7 cities iti iin IIndia di : Tier Ti I cities iti : B Bangalore, l NCR (Gurgaon), (G ) Chennai Ch i : Tier II cities : Pune, Coimbatore, Mysore : Ties III cities : Thrissur Product mix includes Multi Storied Apartments (Dreams (Dreams, Luxury Luxury, Supe
Slide 12: Real Estate – Future Launches
REAL ESTATE – FUTURE LAUNCHES Proposed new launches in next 4 quarters SITE Area ~Total SBA Sobha share S.No Projects Location Type (in Acres) (sft) of SBA (sft) BANGALORE 1 City Property Minerva Mills, Gopalapura Residential+Commercial 11.37 1,486,403 817,522 2 Devanahalli Property IVC Road Plotted
Slide 13: Real Estate – Future Launches (cont…)
REAL ESTATE – FUTURE LAUNCHES (cont…) Proposed new launches in next 4 quarters SITE Area ~Total SBA Sobha share S.No Projects Location Type (in Acres) (sft) of SBA (sft) COCHIN 12 Vyittla property Vyittla Residential Apartments 6.00 1,149,984 975,570 THRISSUR 13 Sobha City-Commercial 2 Thrissur, Ker
Slide 14: Sales vs Income Recognition
SALES vs INCOME RECOGNITION Rs.in millions Particulars 2007-08 2007 08 2008-09 2008 09 2009-10 2009 10 2010-11 2010 11 2011-12 2011 12 Q3 -13 13 9M-13 9M 13 New Sale Value 10,617 2,598 5,506 11,335 17,015 5,334 15,402 Income Recognized 8,619 4,478 6,730 9,200 8,948 3,161 8659 % income 81% 53% 59% 56
Slide 15: Buyers Profile
BUYERS PROFILE Profession-wise breakup Customers funding status Business/ Medical Customers opted for Bank Loan 47% /Pharma entreprenuer 8% 5% Self Funding 53% Others Note: The funding position is considered for cumulative sales period 12% from Sept-11 to Sept-12. IT/ITES Non-IT Professional Buyers
Slide 16: Price Band Category – Residential Sales
PRICE BAND CATEGORY – RESIDENTIAL SALES Total area sold during 9M-13 2,684,377 sq.ft Total Sales value Rs.15,402 Mns Average Price Realization Rs.5,910 / sft Sale Value Category SBA (Sq.ft) Percentage Percentage (Rs.Mns) < 50 lakhs* 29,449 1% 130 1% 50-75 lakhs 380,954 14% 1,511 10% 75 lakhs to 1cr
Slide 17: Contracts - Overview
CONTRACTS - OVERVIEW Projects Under Progress Completed Projects 39 Projects aggregating to 10.06 mn.sft of area 224 Projects aggregating to 28.47 mn.sft of area Ongoing contractual projects located in 8 cities across Completed projects located in 21 cities across India da India Area in Mn.sf
Slide 18: Contracts – Projects Break-up
CONTRACTS – PROJECTS BREAK-UP C Contractual lPProjects j status as on 31stt December D b -12 12 PROJECTS UNDER PROGRESS S.NO DESCRIPTION No of Built-up Built up area Projects (Mn.Sft ) 1 Bangalore 15 2.21 2 Mysore 3 1 94 1.94 3 Hyderabad 7 1.77 4 Trivendrum 3 1.29 5 P Pune 4 1 10 1.10 6 Mangalore 4
Slide 19: Execution Track Record
EXECUTION TRACK RECORD Cumulative area completion 60.00 9 M-13 50.00 40.00 Area in Mn.sft 30.00 20.00 10.00 ‐ FY 96 - FY 00 FY 0 01 FY 0 02 FY 03 FY 0 04 FY 05 FY 06 FY 0 07 FY 08 FY 09 FY 10 0 FY 11 FY 12 9M - 13 9 3 99 Developed Area (sft) - 0.13 2.28 3.16 4.30 5.65 10.14 14.60 18.72 23.88 33.11 3
Slide 20: Financial Snapshot
FINANCIAL SNAPSHOT REVENUE EBITDA 18,000 6,000 5,000 4,730 15,000 13,996 14,144 12,824 3,902 11 337 11,337 4 000 4,000 3 652 3,652 12,000 9,888 2,936 8,899 2,674 2,802 3,000 9,000 2,000 1,391 6,000 4,314 1,159 3 150 3,150 1,000 3,000 ‐ ‐ FY 09 FY 10 FY 11 FY 12 9M‐12 9M‐13 Q3‐12 Q3‐13 FY 09 FY 10 FY
Slide 21: Balance Sheet
BALANCE SHEET Rs.in Millions Particulars 31st Dec-12 31st Dec-11 Particulars 31st Dec-12 31st Dec-11 EQUITY AND LIABILITIES ASSETS Shareholders’ funds Non-current assets Sh Share capitall 98 981 98 981 Fixed assets Tangible assets 2,977 2,614 Reserves and surplus 20,492 18,493 Intangible assets 45 6
Slide 22: Profit & Loss Statement
PROFIT & LOSS STATEMENT Rs. in Millions % of Growth Particulars Q3-13 Q3-12 Q2-13 9M-13 9M-12 FY 11-12 Q3-13 on Q3-13 vs 9M-13 vs. 9M- Q3-12 Q2-13 12 Property Development 3,172 2,267 3,164 9,710 6,416 10,338 40% 0.2% 51% Contractual + Manufacturing 1,126 861 984 3,069 2,432 3,741 31% 14% 26% Other I
Slide 23: Cash Flow Statement
CASH FLOW STATEMENT Rs in Millions Rs. PARTICULARS Actual Q3 9M-13 9M-12 FY 11-12 Operational cash inflows Real Estate 3,882.57 10,818.13 8,438.30 11,823.40 Monetization of land / Development Rights - 1,028.80 1,586.73 3,328.23 Contractual 1,494.50 3,056.30 1,803.00 3,178.50 Total Operational cash i
Slide 24: Cash Flow Statement
CASH FLOW STATEMENT Rs. in Millions PARTICULARS Actual Q3 9M-13 9M-12 FY 11-12 Financial Outflows Interest 473 30 473.30 1 370 60 1,370.60 1 727 40 1,727.40 2 165 70 2,165.70 Income Taxes 150.25 666.95 372.60 535.30 Deposit 14.90 45.90 - - Total Financial Outflows (C) 638 45 638.45 2 083 45 2,083.45
Slide 25: Movement of Loans
MOVEMENT OF LOANS C Consolidated lid t d Rs. in Million As on 31st As on 30th Increase Particulars December 2012 September 2012 /(Decrease) Gross Debt 14,490 14,246 244 Less: Cash & Cash Equivalents 1,282 1,324 (42) Net Debt 13,208 12,922 286 D/E / Ratio o - Consolidated o so d d 2.00 1.80 1.72 1.60
Slide 26: Land Bank Status
LAND BANK STATUS • Total T t l Extent E t t off LLand d : 2,630.96 2 630 96 acres • Sobha Share of Land : 2,525.38 acres • Total Cost consideration : Rs.20,085.19 mns • Balance payable as on 30.06.12 : Rs.1,432.52mns • Cost of Sobha Land : Rs.182.60 /sft • Sobha FSI Cost of Land : Rs.91.40 Rs 91 40
Slide 27: Backward Integration
BACKWARD INTEGRATION (World Class Manufacturing Facilities) Interiors & Furnishing Division Glazing & Metal Works Division Concrete Products Division T Turn over : 9M 9M-13 13 R 452.57 Rs. 452 57 Mns M T Turn over : 9M 9M-13 13 R 524 27 Mns Rs.524.27 M T Turn over : 9M 9M-13 13 Rs. R 130.52 130 52 M
Slide 28: Share Holding Pattern
SHARE HOLDING PATTERN Others, Mutual 4.22% Fund, 3.65% No. of shareholders as on 31st December 2012 - 57 869 57,869. Market capitalization as on 31st December 2012 - Rs.37.17 Billion. FII's, 31.59% Promoters, 60.54% 31st Dec 12 30th Sept-12 30th June-12 31st Mar- 12 31st Dec- 11 Promoters Holdin
Slide 29: Sobha – Stock Performance
SOBHA – STOCK PERFORMANCE Status as on: 31st December 12 1 year Chart - Sobha v/s Nifty v/s Realty 120 % Change in Closing Price 100 No. of Shares 98.06 Million 80 Market Capitalization Rs 37.17 Billion 60 Stock Price : 52 week High / Low Rs. 196 / 410 40 20 A Avg. Daily D il volume l (12 months) th
Slide 30: Thank You
THANK YOU Corporate Office For Investors Contact : Sobha Developers Ltd. Mr. Ganesh Venkataraman K.Bala Murugan ‘SOBHA’, Sarjapur-Marathahalli Outer Ring Chief Financial Officer Senior Manager – VC & MD’s Office Road(ORR) Road(ORR), Mobile: +91- +91 96635 61144 Mobile: +91- +91 98807 30459 Devarabis