Sobha Limited · NSE:SOBHA
Sobha — Sobha Developers — FY2013 Earnings Presentation
32 slides from Sobha's earnings presentation, Mar 31, 2013
Slide 1: Investor Presentation: Sustaining Growth
SOBHA DEVELOPERS LTD INVESTOR PRESENTATION Sobha Turquoise, Coimbatore 31st March, 2013 “ SUSTAINING GROWTH”
Slide 2: Key Highlights – FY 13
KEY HIGHLIGHTS – FY 13 Sobha crossed many new milestones .… Rs.22.15 Billion Rs.18.70 Billion 36.48 Million sq.feet of new sales value – highest ever of turnover – Highest ever of total area under development in Real Estate and Contracts 3.76 Million Sq.feet Rs.5.54 Billion Rs. 5.93 Billion of new a
Slide 3: Sustaining Growth
SUSTAINING GROWTH Revenue (Rs.Bn) PBT (Rs.Bn) PAT (Rs.Bn) Sustaining growth 20.00 18.70 4.00 3.00 3.18 3.24 in key parameters 16.00 14.00 14.14 2.50 2.06 2.17 3.00 2.51 1.81 11.34 2.00 12.00 9.89 1.34 1.66 Revenue 8.00 2.00 1.50 1.50 1.08 1.00 1.00 4.00 0.50 PBT - - - FY 09 FY 10 FY 11 FY 12 FY 13 F
Slide 4: Performance Highlights
PERFORMANCE HIGHLIGHTS “ SOBHA OUTPERFORMS ITS GUIDANCE ON SALES VALUE & VOLUME” Recorded new sales value of Rs.22.15 Billion during FY-13, as against Rs.17.01 Billion during Value FY-12 - Sales value up by 30.2% Sold 3.76 mn.sqft of new space during FY-13 as against 3.28 mn.sqft during FY-12. Volum
Slide 5: FY 13, Financial Highlights
FY 13, FINANCIAL HIGHLIGHTS Revenue of Rs.18.70 Billion during FY-13 as against Rs.14.14 Billion in FY-12 REVENUE Revenue up by 32% Yr-on-Yr EBITDA of Rs.5.54 Billion during FY-13 as against Rs.4.73 Billion in FY -12 EBITDA EBITDA up by 17% Yr-on-Yr EBITDA margin at 30 % PBT of Rs.3.24 Billion durin
Slide 6: FY 13, Financial Highlights
FY 13, FINANCIAL HIGHLIGHTS Unrecognized revenue from sold units has increased to Rs.17.99 Billion from Rs.16.12 Billion UNRECOGNIZED Due to the new income recognition policy there has been lower income recognition to the REVENUE tune of Rs.777 million and lower profit before tax of Rs.482 mn and PA
Slide 7: Q4-13, Performance Highlights
Q4-13, PERFORMANCE HIGHLIGHTS Recorded new sales value of Rs.6.74 Billion during Q4-13 as against Rs.4.64 billion during Q4-12 – sales value up by 45.2% SALES Sold 1.07 mn.sft of new space in Q4-13 as against 0.86 mn.sft during Q4-12 - Volume up by 24.1% Achieved average price realization of Rs.6,29
Slide 8: Q4-13, Financial Highlights
Q4-13, FINANCIAL HIGHLIGHTS Revenue of Rs.5.88 Billion during Q4-13 as against Rs. 5.24 Billion in Q4-12 and Rs.4.31 REVENUE Billion in Q3-13. Revenue up by 12% Yr-on-Yr and 36% sequentially. EBITDA of Rs.1.63 Billion during Q4-13 as against Rs.1.93 Billion in Q4 -12 and Rs.1.38 Billion in Q4-13. EB
Slide 9: Sales Performance & Price Realization
SALES PERFORMANCE & PRICE REALIZATION Avg. realization Avg. realization FY 12-13 FY 11-12 (Rs/sft) (Rs/sft) Locations- in sq. feet Rs/ sq.ft in sq. feet Rs/ sq.ft Bangalore 2,384,364 5,578 2,259,337 5,031 NCR (Gurgaon) 509,151 9,792 322,767 8,553 Chennai 288,132 4,624 85,213 4,811 Pune 137,708 4,895
Slide 10: Guidance for FY 13-14
GUIDANCE FOR FY 13-14 Targeted New Sales value for FY 13-14 : Rs. 26 Billion Targeted New Sales Volume for FY 13-14 : 4.20 Mn.sqft Expected Price Realization for FY 13-14 : ≈ Rs.6,200 / sq.ft Slide no : 10
Slide 11: Real Estate Projects – Cash Flow Projection
REAL ESTATE PROJECTS – CASH FLOW PROJECTION Real Estate Projects Cash flow status as on 31st March-13 Ongoing Completed Ref.No Description UOM Projects Projects 1 Total Developable area 25.83 Mn.sft 2 Area of Car Park, Common Amenities etc 7.46 Mn.sft 1-2 Total Super Built-up area 18.37 5.43 Mn.sft
Slide 12: Location Wise Stock Details
LOCATION WISE STOCK DETAILS Area in Million Sq.ft increase/ Opening Saleable Area sold Closing stock Area not Net unsold (decrease) Opening Locations stock as on area added during FY- as on 31st offered stock as on of existing stock 1st Apr-12 during FY-13 13 Mar 13 for sale 31st Mar 13 stock Bangal
Slide 13: Balance Sheet
BALANCE SHEET Rs.in Millions Particulars 31st Mar-13 31st Mar-12 Particulars 31st Mar-13 31st Mar-12 EQUITY AND LIABILITIES ASSETS Shareholders’ funds Non-current assets Fixed assets Share capital 981 981 Tangible assets 3,128 2,739 Reserves and surplus 20,385 19,017 Intangible assets 173 100 21,366
Slide 14: Profit & Loss Statement
PROFIT & LOSS STATEMENT Rs. in Million % of Growth Particulars Q4-13 Q4-12 Q3-13 FY-13 FY-12 Q4-13 on Q4-13 vs FY-13 vs Q4-12 Q3-13 FY-12 Property Development 4,445 3,922 3,172 14,156 10,338 13% 40% 37% Contractual + Manufacturing 1,422 1,308 1,126 4,490 3,741 9% 26% 20% Other Income 11 14 16 55 65
Slide 15: Cash Flow Statement
CASH FLOW STATEMENT Rs. in Million PARTICULARS Actual Q4 FY-13 Operational cash inflows Real Estate 5,292.71 16,110.84 Monetization of land / Development Rights - 1,028.80 Contractual 1,036.65 4,092.95 Total Operational cash inflow -A 6,329.35 21,232.58 Operational cash outflows Real Estate project
Slide 16: Cash Flow Statement (Continued)
CASH FLOW STATEMENT (Continued) Rs. in Million PARTICULARS Actual Q4 FY-13 Financial Outflows Interest 629,10 1,999.70 Income Taxes 242.96 909.91 Total Financial Outflows (C) 872.06 2,909.61 NET POSITIVE CASH FLOW 1,951.44 3,024.53 Capital Outflows Land Payments 319.60 2,388.31 Investment in Subsidi
Slide 17: Movement of Loans
MOVEMENT OF LOANS Consolidated Rs. in Million Increase Particulars 31st Mar-13 31st Mar-12 /(Decrease) Gross Debt 13,024 12,031 993 Less: Cash & Cash Equivalents 815 689 126 Net Debt 12,209 11,342 867 D/E Ratio - Consolidated 2.00 1.72 1.60 1.20 Net Worth : Rs.21.37 Billion 0.80 0.80 Debt (net) : Rs
Slide 18: Sales vs Income Recognition
SALES vs INCOME RECOGNITION Rs.in Million Particulars 2008-09 2009-10 2010-11 2011-12 2012-13 New Sale Value 2,598 5,506 11,335 17,015 22,145 Income Recognized 4,478 6,730 9,200 8,948 13,091 % income recognized 81% 53% 59% Note: 1. Due to the new income recognition policy there has been lower income
Slide 19: Real Estate – Completed Projects
REAL ESTATE – COMPLETED PROJECTS Apartments Completed 85 projects in 5 cities Total Developed area of 26.93 mn.sqft and Super Built-up area of 21.25 mn.sft Product mix includes Multi Storied Apartments (Dreams, Luxury, Super Luxury & Presidential Row Houses category), Row Houses, Villas, Plotted Dev
Slide 20: Real Estate – Ongoing Projects
REAL ESTATE – ONGOING PROJECTS 43 number of projects measuring Total Developed area of about 25.83 mn.sqft and Super Built-up area of 18.37 mn.sft, located at 6 cities in India. Location wise Product - mix 10.99 12.01 Bangalore 14.77 Apartments 15.31 4.22 Gurgaon 3.77 6.88 Villas 6.65 1.36 Thrissur
Slide 21: Real Estate – Future Launches
REAL ESTATE – FUTURE LAUNCHES Proposed new launches in FY 13-14 SITE Area ~Total SBA Sobha share S.No Projects Location Type (in Acres) (sft) of SBA (sft) BANGALORE 1 Devanahalli Property IVC Road Plotted Development 9.90 204,065 204,065 2 Doddanekundi Property Yamlur, HAL Road SL Apartments 5.62 55
Slide 22: Real Estate – Future Launches (continued)
REAL ESTATE – FUTURE LAUNCHES (continued) Proposed new launches in FY 13-14 SITE Area ~Total SBA Sobha share S.No Projects Location Type (in Acres) (sft) of SBA (sft) COCHIN 12 Vyittla property Vyittla Residential Apartments 5.94 1,166,400 989,496 THRISSUR 13 Sobha City-Residential Thrissur, Kerala
Slide 23: Buyers Profile
BUYERS PROFILE Profession-wise breakup Customers funding status Non-IT Customers opted for Bank Loan 49% Business/ professionals Entreprenuer 36% 10% Self Funding 51% Note: The funding position is considered for cumulative sales period Medical/ from Jan-12 to Dec-12. Pharmaceutic al, 5% IT/ITES Prof
Slide 24: Price Band Category
PRICE BAND CATEGORY FY 12-13 FY 11-12 Total area sold - Sq.ft 3,755, 648 3,284,210 Total Sales Value – Rs.Mns 22,145 17,015 Average Price Realization – Rs/sq.ft 5,897 5,181 FY 12-13 FY 11-12 Category Sale Value Sale Value SBA (Sq.ft) % % SBA (Sq.ft) % % (Rs.Mns) (Rs.Mns) < 50 lakhs* 42,060 1% 192 1%
Slide 25: Contracts - Overview
CONTRACTS - OVERVIEW Completed Projects Projects Under Progress 228 Projects aggregating to 29.32 mn.sft of area 38 Projects aggregating to 10.65 mn.sft of area Completed projects located in 21 cities across India Ongoing contractual projects located in 9 cities across India Infosys Infosys 76% Proj
Slide 26: Contracts – Projects Break-up
CONTRACTS – PROJECTS BREAK-UP Contractual projects status as on 31st March-13 PROJECTS UNDER PROGRESS S.NO DESCRIPTION No of Built-up area Projects (Mn.Sft ) New Contractual orders received other than 1 Mysore 3 2.19 Infosys during FY 12-13 was about Rs.1,228 2 Bangalore 15 1.90 Million 3 Hyderabad
Slide 27: Execution Track Record
EXECUTION TRACK RECORD Developed Area - Track record 60 56.25 51.79 50 46.57 Area in Mn.sqft 38.99 40 33.11 30 23.88 18.72 20 14.60 10.14 10 4.30 5.65 2.28 3.16 - 0.13 0 FY 96- FY - 00 FY-01 FY-02 FY-03 FY-04 FY-05 FY-06 FY-07 FY-08 FY-09 FY-10 FY-11 FY-12 FY-13 99 Real Estate 0 0.13 2.08 0.43 0.19
Slide 28: Land Bank Status
LAND BANK STATUS Total Extent of Land 2,651 Acres Sobha Share of Land 2,558 Acres Total Developable Area 232.70 Mn.sft Total Cost consideration 20,011 Rs.Mns Sobha Share 227.06 Mn.sft Balance amount payable 1,997 Rs.Mns BANGALORE (884.12 acres) Cost / sqft of Sobha Share 180 Rs./sqft Developable Are
Slide 29: Backward Integration (World Class Manufacturing Facilities)
BACKWARD INTEGRATION (World Class Manufacturing Facilities) Interiors & Furnishing Division Glazing & Metal Works Division Concrete Products Division Turn over : FY-13 Rs.589 Mns Turn over : FY-13 Rs.781 Mns Turn over : FY-13 Rs.182 Mns Total Factory area 0.8 Mn sq ft Factory area 0.3 Mn sq ft Facto
Slide 30: Share Holding Pattern
SHARE HOLDING PATTERN FII's, Mutual 33.24% Funds, 2.55% No. of shareholders as on 31st March,13 - 57,869. Market capitalization as on 31st March,2013 - Rs.34.14 Billion. Others, 3.66% Promoters, 60.55% 31st Mar-13 31st Dec 12 30th Sept-12 30th June-12 31st Mar- 12 Promoters Holding 60.55% 60.54% 60.
Slide 31: Sobha – Stock Performance
SOBHA – STOCK PERFORMANCE Status as on: 31st March-13 1 year Chart - Sobha v/s Nifty v/s Nse Realty 50 40 % Change in Closing Price No. of Shares 98.06 Million 30 20 Market Capitalization Rs 34.14 Billion 10 0 Stock Price : 52 week High / Low Rs. 282 / 498 -10 -20 Avg. Daily volume (12 months) 119,7
Slide 32: 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), Mobile: +91- 96635 61144 Mobile: +91- 98807 30459 Devarabisanahalli, Bellandu