Sobha Limited · NSE:SOBHA
Sobha — Sobha Developers — Q2 FY2011 Earnings Presentation
27 slides from Sobha's earnings presentation, 2010
Slide 1: Sobha Developers Ltd - maximizing value
SOBHA DEVELOPERS LTD in each | | | | | | | maximizing value | | | | | | |
Slide 2: Recognition During the Quarter
Recognition During the Quarter 1. Sobha Developers has been awarded with “India’s Top 10 Builders” Award by the Construction world for the year 2010 Construction World Architect & Builders Awards recognizes excellence in the architectural and builder fraternity. This award is based on a perception s
Slide 3: Sobha Developers: A Strong Foundation
Sobha Developers : A Strong Foundation Bringing Alive As on 30th Sept-10 Projects completed : 37.37 mn.sft Project under Execution : 13.91 mn.sft 3 SOBHA DEVELOPERS LTD
Slide 4: Shareholding Pattern
Shareholding Pattern • Promoters Holding : 60.50 % • FII’s : 26.96 % 30th Sept-10 30th June 10 31st Mar 10 • Mutual Fund : 7.77 % Promoters 60.50% 60.50% 60.50% • Others : 4.77 % Holding FII’s 26.96% 24.34% 23.19% Mutual Fund 7.77% 9.06% 9.77% Mutual Others Others 4.77% 6.09% 6.54% Funds 4.77% 7.77%
Slide 5: Stock Performance
Stock Performance Status as on: 30th Sept 10 No. of Shares 98.06 mns Market Capitalization Rs.36.70 bn Stock Price : 52 week High / Low Rs.401.80 / Rs.196.15 Avg. Daily volume (12 months) 301,717 Shares Source : NSE index Sobha stock covered by, • Bank of America & Merrill Lynch • Antique Stock Brok
Slide 6: Sobha Developers: A Strong Foundation
Sobha Developers : A Strong Foundation Real Estate Completed Ongoing H1 -Highlights: • Completed 8 projects aggregating 1.03 mn.sft in H1- FY11 • Encouraging response - Sobha Dew flower, Sobha Classic at Bangalore and Sobha Turquoise at Coimbatore • Truly Global Indian Company with Scalable Executio
Slide 7: Improved Operational Performance
Improved Operational Performance Area Sold No of Period (sq.ft) Units sold FY 07-08 2,838,397 1,219 FY 08-09 876,117 616 FY 09-10 2,080,413 1,076 Financial Year 10 -11 Area Sold No of Period (sq.ft) Units sold • Targeted to sell 3 mn.sft in FY10-11. Q1 : 10-11 670,883 326 • With sales witnessing an
Slide 8: Break-up of Sales
Break-up of Sales Location wise Sales break-up FY 10-11 Q1 10-11 : Q2 10-11 : H1 10-11 : H1 09-10 : FY 09-10 % % Area to be Locations Area sold Area sold Area Sold Area Sold Area Sold growth growth Sold (Sft) (Sft) (Sft) (Sft) (Sft) (Sft) Projected Bangalore 482,769 524,285 9% 1,007,053 340,843 195%
Slide 9: Signs of growth momentum…
Signs of growth momentum… • Generated positive cash flow of Rs.2,050 mns during the 2nd quarter of the current financial year from operations. • Reduction in gross debt from Rs.14,540 mns as on 1st April-10 to Rs.12,673 mns, with current D/E ratio of 0.69. • Invested about Rs.597 mns for new launche
Slide 10: Challenges Ahead
Challenges Ahead Challenges: Probable increase in rate of borrowings for end use customers Tightening the lending norms to Real Estate developers by RBI / Banks Availability of quality Manpower Rising Land Prices Rising Construction cost Rising human resource cost Entering New geograph
Slide 11: Project Completion – Momentum continues…
Project Completion – Momentum continues… FY 2009 - 10 FY 2010 - 11 Actual : Completed 36 projects aggregating 5.57 mn.sft Planned : Planning to complete 38 projects measuring 6.80 mn.sft 29 30 26 30 Real Estate 25 Real Estate Contracts Contractuals 25 20 20 15 10 15 9 10 3.75 10 5 1.82 3.33 3.48 5 0
Slide 12: Project Launched in Q2 FY10-11
Project Launched in Q2 : FY 10-11… SOBHA Coimbatore SOBHA Classic Turquoise - Veerakeralam South West Bangalore Launched in July-10 Launched in Sept-10 ¾ CLASSIC : 162 nos of 3 BHK ¾ 95 nos of 3 BHK Row Houses Luxury Units and 81 nos of 3 BHK Super Luxury Apartments ¾ Located at Veerakeralam – Haris
Slide 13: Positive Operational Cash flow
Positive Operational Cash flow Ongoing Real Estate Projects - Cash flow status as on 30th Sept -10 Ongoing Completed Description Projects Projects Total Super Built-up area 9.64 Mn.sft Area of Office space, Club house & JD share ( Non saleable) 1.29 (-) Sobha share of Saleable area 8.35 Mn.sft Total
Slide 14: Financial Snapshot
Financial Snapshot Revenue (year-wise) Particulars H1 – FY11 H1 – FY 10 % growth 14,364 16000 11,893 Revenue 11,193 7,503 4,057 85% Revenue (Rs.Mns) 12000 9,917 (Rs.Mns) 8000 4,652 6,273 Net Profit 932 402 132% (Rs.Mns) 4000 0 2005 2006 2007 2008 2009 2010 Revenue % Net Profit Year % growth Financia
Slide 15: Balance Sheet
Balance Sheet PARTICULARS 30th Sept-10 30-Sept -09 31-Mar-10 Rs.in Millions SOURCES OF FUNDS Shareholders' funds Share capital 981 981 981 Reserves and surplus 17,038 15,426 16,104 18,019 16,407 17,085 Loan funds Secured loans 12,598 14,813 14,466 Unsecured loans 75 75 75 12,673 14,888 14,540 30,692
Slide 16: Profit and Loss Statement…
Profit and Loss Statement… Rs.in Millions % of Growth Particulars Q2-11 Q2-10 H1-11 H1-10 FY-10 Q2-11 on H1-11 on Q2-10 H1-10 Property Development 2,183 1,430 4,391 2,603 6,246 Land 1,140 - 1,198 - 1,779 Contractual + Mfg + Profit share 985 823 1,899 1,436 3,115 from Sobha city (net of ED) Other Inc
Slide 17: Land Bank – Development Potential
Land Bank – Development Potential GURGAON (172.77 Acres) HYDERABAD (76.26 acres) Developable Area 5.84 Developable Area 6.64 Sobha Share 4.30 Sobha Share 1.53 BANGALORE (972.21 acres) HOSUR (484.76 acres) Developable Area 89.74 Developable Area 34.84 Sobha Share 84.85 Sobha Share 34.84 PUNE (140.90
Slide 18: Fully Integrated Business Model
Fully Integrated Business Model • Residential • Commercial • Hospitality • Retail Real Estate Development • Architectural Consulting • Interiors Unique • Structural Design • Metal & Glazing Manufacturing Business Consulting • MEP Design & • Concrete Products Facilities Services Model Consulting • Sp
Slide 19: Interiors and Furnishing Division
Interiors and Furnishing Division Factory Area 0.80 Mn Sft Turnover 09-10 Rs.508 Mns Work Force 761 Turnover H1-11 Rs.336 Mns FEATURES PRODUCTS ¾ Solid wood veneer paneled ¾ Largest wood working / doors and MDF paneled doors joinery facility in India. ¾ Customized joinery works like Paneling, partit
Slide 20: Sobha Spring Mattress Division
Sobha Spring Mattress Division (Part of Interiors Division) FEATURES PRODUCTS ¾ First retail product of Sobha, ¾ Bonell Spring Mattress named as “SOBHA • They are hourglass RESTOPLUS”. Leading shaped with three manufactures of World Class grades called Siesta, spring mattress. Snooze, and Slumber. ¾
Slide 21: Sobha Glazing & Metal Division
Sobha Glazing & Metal Division Factory Area 0.30 Mn Sft Turnover 09-10 Rs.653 Mns Work Force 584 Turnover H1-11 Rs.271 Mns FEATURES PRODUCTS ¾ Largest metal & glazing factory in India, spread ¾ Structural Glazing Works across 7.3 acres of land with ¾ MS & SS metal fabrications the factory covered ar
Slide 22: Sobha Concrete Product Division
Sobha Concrete Product Division Factory Area 0.35 Mn Sft Turnover 09-10 Rs.147 Mns Work Force 77 Turnover H1-11 Rs.69 Mns FEATURES PRODUCTS Fully Automated production and control facility by using Hollow, Solid Blocks (4”, 6” & remote controlling systems. 8”) and Lintel Blocks. Kerb Stones & B
Slide 23: Superior Internal Process
Superior Internal Process ¾ Continuous training to the Engineers and Tradesmen from Sobha Training Academy ¾ International Quality Standards at execution (IS & DIN – Germany) Sobha Training Academy ¾ Imported German tools and supervision for fine detailing and workmanship Quality check at site ¾ Web
Slide 24: Corporate Social Responsibilities (CSR)
Corporate Social Responsibilities (CSR) • Sobha Group has adopted two villages, Kizhakkenchery and Vadakkenchery, in Palakkad district of Kerala, with a population of ≈ 90,000 Sobha Hermitage • A Senior Citizen’s and Widow’s home - 50 spacious, fully furnished double rooms • Supported with spacious
Slide 25: Recognition
Recognition Sobha bagged ‘CW & ARCHITECT BUILDERS AWARD 2010’ by Construction World for the year 2010, for being among India’s Top 10 Builders. “GEC-II, Infosys Campus, Mysore” awarded ‘Outstanding Concrete Structure of Karnataka-2010’ by Indian Concrete Institute on Sept 2010 “ The Best Contractor
Slide 26: Recognition
Recognition PRAVASI BHARATIYA SAMMAN PURASKAR – 2009 Mr.P.N.C.Menon, Chairman of the company was awarded the “PRAVASI BHARATIYA SAMMAN PURASKAR” by Hon’ble President of India Smt.Pratiba Patil at Chennai on Jan-2009 Prof. Vasanth Rao Trophy 2009 Awarded Prof. Vasanth Rao Trophy in recognition of bei
Slide 27: Thank You
THANK YOU Sobha Developers Ltd. S. Baaskaran K.Bala Murugan 43, Dickenson Road, Chief Financial Officer Deputy Manager – MD’s Office Ulsoor, Bangalore – 42. Mobile: +91- 98800 80009 Mobile: +91- 98807 30459 Phone: +91-80- 25564380 Email: [email protected] Email: [email protected] Fax: +91-