february 11, 201 3 investor fact sheet market cap: inr 31 bn · • other than mumbai, ... hni and...
TRANSCRIPT
February 11, 2013
Market Cap: INR 31 bn
Investor Fact Sheet 3Q & 9MFY13
Sunteck Realty Ltd.
BSE/ NSE: SUNTECK
S u n t e c k R e a l t y L i m i t e d | F o r P r i v a t e C i r c u l a t i o n O n l y
Page 1
Company Profile:
Sunteck Realty Limited is a leading Mumbai focused real estate development company with more than a decade of experience and
presence in the Premium and Super-Luxury segment. The company is managed by a strong and experienced professional management
team led by first generation entrepreneur Mr. Kamal Khetan.
It has over 36 million square feet of city centric developments across 26 projects and 4 rented assets. Of these developments, more than
80% are into premium luxury residential segment and remaining in the commercial segment. Nearly 90% of Sunteck’s economic value
emanates from its Mumbai projects. Sunteck follows project completion method of accounting.
The company has strong project execution skills through in-house project management team and tie-ups with Domestic and International
contractors, Architects and Engineers. It has also appointed Price Waterhouse Coopers (PWC) for document process, risk & control and
organizational development.
Sunteck has a strategic 50:50 Joint Venture with the renowned Ajay Piramal group for developing several projects. The major shareholders
of Sunteck Realty Limited include some of the prominent FIIs and real estate funds.
The company has also tied-up with international brands like Vertu and Walt Disney for its BKC and Goregaon projects respectively to
deliver niche living spaces to discerning customers and create more value for them.
Sunteck Realty is listed on both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) and also amongst the Top listed Real
Estate developers of the country.
Project Portfolio
1.27 msf
3.47 msf 3.73 msf
26.79 msf
31.95 msf 31.95 msf
36.13 msf
3
89
18
25 2526
0
5
10
15
20
25
30
0 msf
5 msf
10 msf
15 msf
20 msf
25 msf
30 msf
35 msf
40 msf
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Saleable Area - Cumulative (LHS) Projects Acquired - Cumulative (RHS)
Area Under Execution
0.0 msf
0.5 msf
1.0 msf
1.5 msf
2.0 msf
2.5 msf
3.0 msf
3.5 msf
4.0 msf
4.5 msf
Upto Mar-12 Upto Dec-12
3.21 msf
4.29 msf
0.92 msf1.13 msf
Area Launched Area Sold
23% Growth
Mumbai Centric Player
Cumulative - Sales & Customer Advances
Rs. 0 mn
Rs. 5,000 mn
Rs. 10,000 mn
Rs. 15,000 mn
Rs. 20,000 mn
Rs. 25,000 mn
Rs. 30,000 mn
Upto Mar-12 Upto Dec-12
Rs. 20,357 mn
Rs. 25,406 mn
Rs. 9,294 mn
Rs. 12,132 mn
Sales Booked Customer Advances
31% Growth
25% Growth
Sales & Customer Advances – Trend*
Rs. 529 mn
Rs. 920 mn
Rs. 397 mn
Rs. 1323 mn
Rs. 1117 mnRs. 949 mn
Rs. 1320 mn
Rs. 1206 mn
Rs. 2399 mn
Rs. 1450 mn
Rs. 50 mn
Rs. 450 mn
Rs. 850 mn
Rs. 1250 mn
Rs. 1650 mn
Rs. 2050 mn
Rs. 2450 mn
Rs. 200 mn
Rs. 600 mn
Rs. 1000 mn
Rs. 1400 mn
Rs. 1800 mn
3QFY12 4QFY12 1QFY13 2QFY13 3QFY13
Collections (LHS) Sales (RHS)
No. of Sale Area SRL's Share
Projects Mn.Sq.Ft. Mn.Sq.Ft.
Mumbai
BKC Projects 3 1.6 1.1
South Mumbai 2 2.9 0.7
Western Suburbs 9 6.78 6.62
Eastern Suburbs 4 6.13 3.03
Thane 1 7.9 3.0
Navi Mumbai 2 0.4 0.2
Mumbai Summary 21 25.71 14.62
Location
• Other than Mumbai, SRL has ~10.42 mn.sq.ft. of
saleable area of which SRL has an economic interest on
~3.25 mn.sq.ft.
• Currently, the total development potential of the
company at the consolidated level is ~36.13 mn.sq.ft.,
of which SRL’s share is 17.86 mn.sq.ft.
* Sales in 9MFY13 have increased by over 90% to ~INR 5,055 mn against ~INR 2,659 mn in 9MFY12
* Collections in 9MFY13 have increased by over 48% to ~INR 2,838 mn against ~INR 1,914 mn in 9MFY12
February 11, 2013
Market Cap: INR 31 bn
Investor Fact Sheet 3Q & 9MFY13
Sunteck Realty Ltd.
BSE/ NSE: SUNTECK
S u n t e c k R e a l t y L i m i t e d | F o r P r i v a t e C i r c u l a t i o n O n l y
Page 2
New Price Points Achieved
Last Transaction Price (INR per Sq.Ft.)
Rs. 0
Rs. 5,000
Rs. 10,000
Rs. 15,000
Rs. 20,000
Rs. 25,000
Rs. 30,000
Rs. 35,000
Rs. 40,000
Rs. 45,000
BKC Goregaon Airoli
Rs. 41,000
Rs. 14,300
Rs. 9,600
Snapshot
INR Mn
Cumulative Upto Cumulative Upto
March 31, 2012 December 31, 2012
Gross Sale Value 20,357 25,406
Customer Advances 9,294 12,132
Investment Highlights:
Mumbai Centric Player: Mumbai is one of the most resilient real estate
markets in India. Sunteck Realty Ltd (SRL) is a Mumbai focused player and has a
presence in city-centric locations. About 80% of the projects in the portfolio of
SRL are into premium luxury residential segment and are well spread-out across
Mumbai region.
Presence in High margin Premium Development: We have carved a
niche for ourselves in the luxury and super luxury segment and intend to keep
servicing the segment ‘A’ customers in each micro-market to meet their
growing needs complementing their earnings. This will lead to higher margins
and revenues for the company with lower volumes.
Corporate Sales: The company does sales through reputed channel partners,
wealth managers, institutions and participation in property exhibitions to
attract corporate, HNI and retail customers. SRL’s main customer focus is on the
corporate employees, Business heads of Financial institutions and some of the
most celebrated businessman / finance professionals of the country. In
addition, the company provides services to its customers from the date of
purchase till the date of delivery.
Clear Lands with low acquisition costs: SRL’s has always focused on
acquisitions with near to medium term cash flows. It has successfully won
tender (closed) bids and been a first mover in identifying opportunities (e.g. 3
residential projects in Bandra Kurla complex, 2 projects each in Goregaon (W)
and in Airoli, Navi Mumbai). SRL has also acquired lands through Joint
development and outright purchase during the downturn which has resulted in
low land acquisition costs and relatively clean titled land parcels. Furthermore,
the company continues to utilize its strong cash flows to acquire land and
strengthen its development portfolio.
Strong tie-ups for execution: SRL utilizes a strong in-house project
management team with an outsourcing model for execution that emphasizes
on quality, design and construction of its projects. SRL believes that in Mumbai,
Shareholding Pattern
Promoter &
Promoter
Group
73%
FIIs
6%
PEs
9%
Others
12%
In INR Million Consolidated P&L Statement
(Project Completion Method*)
Particulars 3QFY13 3QFY12 9MFY13 9MFY12
Income from
Operations 41.7 46.4 131.2 170
Expenditure 40.3 41.5 100.2 127.9
EBITDA 1.4 4.9 31 42.1
PBT 0.5 23 96.7 110.1
Adjusted PAT (17.9) 0.6 29.6 31.1
Sunteck City (~23 acres) in Goregaon (W) – I & II
* Under Project Completion Method (PCM), revenues are recognized
only when the project has been substantially completed. Till then, it
forms part of current liabilities & current assets as Customer Advances
& WIP respectively. Current P&L shows income from leased
properties.
SRL’s economic interest is 100% in
Goregaon and land cost has been
fully paid.
February 11, 2013
Market Cap: INR 31 bn
Investor Fact Sheet 3Q & 9MFY13
Sunteck Realty Ltd.
BSE/ NSE: SUNTECK
S u n t e c k R e a l t y L i m i t e d | F o r P r i v a t e C i r c u l a t i o n O n l y
Page 3
it has used the best contractors like Shapoorji Pallonji & Co. Ltd., Pratibha
Industries Lyd., New Consolidated Construction Co. Ltd. (NCCCL) etc. and
believes that it enjoys an incremental premium from its customers, based on
comfort driven by the contractor quality and reputation, in addition to that of
SRL. SRL endeavors to deliver high-quality products with contemporary and
efficient architecture and timely execution. The company believes that this
outsourcing model provides the scalability required to undertake large
developments.
High cash flow visibility with low debt: SRL has already sold a
considerable portion of its launched projects which provides cumulative gross
sales of ~INR 25,406 million versus cumulative customer advances of ~INR
12,132 million at the end of 9MFY13. This cash flow visibility in the near term
will take care of execution as well as future growth and acquisition. The group
also has steady cash flow from its 4 leased properties which covers its
operational overheads and helps manage cyclical risks. The group has
essentially placed low reliance on the debt model for growth and maintains low
debt levels. Cosnolidated Secured Net Borrowings of SRL is ~INR 900 mn.
International Tie-Ups: The company’s focus is to deliver niche living spaces
to discerning customers and create more value for them. It has tied-up with
international brands like (a) Vertu, a market leader in luxury mobile phones for
‘Signature Concierge Services’ for the residents of its flagship project
‘Signature Island’ located in the heart of Bandra Kurla Complex in Mumbai, (b)
Disney India for the residents of ‘Sunteck City’ in Gorgeaon (W) to bring Disney
inspired homes to India and create an exciting atmosphere for families to raise
their kids.
For Further Information, Please Contact:
Investor Relations
Sunteck Realty Limited Sumesh Mishra Abhinav Srivastava
Tel: +91 22 26267832 Tel: +91 22 26267859
Email: [email protected] Email: [email protected]
Disclaimer By attending the meeting where this presentation and any additional material provided therewith (“Presentation”) is made or
by reading the Presentation, you (“Recipient”), agree to be bound by the following limitations:
This Presentation has been prepared on the basis of the estimates of the management of Sunteck Realty Limited (the
"Company“ or “Sunteck”), for the sole and exclusive purpose of providing information to the Recipient about the Company and
its business, and is not and should be construed to be, directly or indirectly, an offer and / or an invitation and / or a
recommendation and / or a solicitation of an offer to buy or sell any securities of the Company in any jurisdiction, nor shall part,
or all, of this Presentation form the basis of, or be relied on in connection with, any contract or binding commitment or
investment decision in relation to any securities of the Company. No Offering of securities of the Company will be made except
by means of a statutory offering document containing detailed information about the Company. These materials are not an
offer of securities for sale into the United States, Canada or Japan. Securities may not be offered or sold in the United States or
Business Highlights – 3Q & 9MFY13
1. ‘Care A’ rating assigned by Care Ratings. Upgraded from
‘Care A-’ earlier
2. Consolidated Net Secured Debt of the company reduced to
~INR 90 crore as on Q3FY13 from a level of ~INR 153 crore
as on Q2FY13.
3. The company has tied-up with Walt Disney to offer ‘Disney
Inspired Homes’ in its ~23 acres project in Goregaon (W) i.e.
Sunteck City. The company has achieved consolidated sales
of ~INR 2,214 mn (US$ 41 mn) as on December 31, 2012 for
a sale of over 2.06 lac sq.ft. in Sector 1, Phase I of the
project.
4. Strong execution visibility in BKC projects has led to
incremental sales of ~INR 3,921 mn (US$ 73mn) in 9MFY13.
5. Sunteck Realty won 3 Merit Awards in APREA (Asia Pacific
Real Estate Association Limited) Best Practices Awards
2012:
a. Emerging Markets: Best Country Submission – India
(across 9 regions of Asia-Pacific)
b. Emerging Markets: Best 1st
Year Entrant
c. Emerging Markets: Property Valuation
6. Four projects in the advanced stage of completion i.e.
Signature Island, Signia Oceans, Sunteck Grandeur and
Sunteck Kanaka located in Bandra Kurla Complex, Airoli,
Andheri & Goa respectively.
February 11, 2013
Market Cap: INR 31 bn
Investor Fact Sheet 3Q & 9MFY13
Sunteck Realty Ltd.
BSE/ NSE: SUNTECK
S u n t e c k R e a l t y L i m i t e d | F o r P r i v a t e C i r c u l a t i o n O n l y
Page 4
to, or for the account or benefit of, U.S. persons (as such term is defined in Regulation S under the U.S. Securities Act of 1933,
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This Presentation contains statements which may pertain to future events and expectations and therefore may constitute
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