SUNTECKNSE11 August 2022

Sunteck Realty Limited has informed the Exchange about Investor Presentation

Sunteck Realty Limited

Sunteck Realty Ltd.

Sunteck

Date: 11 th August, 2022

SRL/SE/ 2~ /22-23

National Stock Exchange of India Ltd Exchange Plaza, Plot no. C/ 1, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai- 400 051 Symbol: SUNTECK

BSE Limited Phiroze Jeejeebhoy Tower, Dalal Street, Mumbai -400 001 Scrip Code: 512179

Sub: Investor Presentation on Ql FY23 results

Dear Sir / Madam,

Pursuant to Regulation 30(6) of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, please find enclosed the Investor Presentation with regard to unaudited Financial Results for quarter ended 30th June, 2022.

The Investor Presentation shall also be placed on the Company's website.

Kindly take the same on record and disseminate to all the concerned.

Thanking You.

For Sunteck Realty Limited

- ~~~

~ Rac~ingarajia Company Secretary Encl: a/a

Sunteck Realty Limited

Investor Presentation

Q1 FY2023

NSE: SUNTECK | BSE: 512179 | Bloomberg: SRIN: IN | Reuters: SUNT.NS / SUNT.BO

Disclaimer

By attending the meeting where this presentation is made and any additional material is provided (“Presentation”) 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 an offering document containing detailed information about the Company. Securities may not be offered or sold in the United States unless they are registered or exempt from registration requirements under the U.S. Securities Act of 1933, as amended. There will be no offer of securities in the United States.

The distribution of this Presentation in certain jurisdictions may be restricted by law and persons into whose possession this Presentation comes should inform themselves about and observe any such restrictions. This Presentation is strictly confidential and may not be copied, published, distributed or transmitted to any person, in whole or in part, by any medium or in any form for any purpose without the prior written consent of the Company. The information in this Presentation is being provided by the Company solely for the purposes set out herein and is subject to change without notice. Further, this Presentation does not purport to be all- inclusive or necessarily include all the information that the Recipient desires in its evaluation of the Company. The Company relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness.

The audited consolidated financial statements for Fiscals 2016 onwards have been prepared in accordance with Ind AS and the same for prior years have been prepared in accordance with Indian GAAP. This Presentation contains statements which may pertain to future events and expectations and therefore may constitute forward-looking statements. Any statement in this Presentation that is not a statement of historical fact shall be deemed to be a forward-looking statement, and the Recipient agrees that such statements may entail known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. There can be no assurance that the results and events contemplated by the forward-looking statements contained herein will in fact occur. None of the future projections, expectations, estimates or prospects in this Presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in the Presentation. The Company assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

The Recipient acknowledges that it shall be solely responsible for its own assessment of the market and the market position of the Company and that it shall conduct its own analysis and be solely responsible for forming its own view of the potential future performance of the business of the Company. The information contained in this Presentation is as of March 31, 2022 except as may be stated otherwise. Neither the delivery of this Presentation nor any further discussions of the Company with any of the Recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since that date. The Company is not under any obligation to update the contents of this Presentation or inform Recipient of any changes in the affairs of the Company. The Company hereby expressly disclaims liability for any errors, inaccuracies, or omissions, and representations and warranties – express or implied, as provided within or in connection with this Presentation. Any clarifications, queries or future communication regarding the matters stated in this Presentation should be addressed to the Company directly. The information given in this Presentation in the form of pictures, artistic renders, areas, consideration, project details etc. should not be construed to be or constitute advertisements, solicitations, marketing, offer for sale, invitation to offer or invitation to acquire.The intention of this Presentation is not to sell or market the unit/s of any of the projects of the Company and is limited to only providing information to Recipient of the Presentation. Note The project elevations are for representation purposes only and are the sole property of the Company and may not be 2 reproduced, copied, projected, edited in any way without written permission from the Company. All data and project related numbers are basis revenue recognition and operational performance excl. overheads for completed, ongoing and future projects respectively

Agenda

▷ Who are we

▷ What have we achieved

▷ What we aspire for

▷ Key Numbers

▷ Risk Factors

▷ Industry Insights

▷ Awards

▷ Summary

Who are we

Executive Summary

▷ NSE and BSE listed organization with development focus in the Mumbai Metropolitan Region (MMR) market.

▷ One of the largest developer in the Western Suburbs of MMR from Bandra to Virar.

▷ Delivered projects worth > US$ 1 bn (~Rs 9,000 cr) GDV till date.

▷ Presently have ~50* mn sq ft development portfolio across 19 projects.

▷ Monetization of upcoming project portfolio to generate ~US$ 3.7 bn (~Rs 28,600 cr) of est. GDV in coming 7-8+ years.

▷ Financial discipline & steadily growing cash flows has enabled to maintain a strong balance sheet over the years.

▷ Both equity and debt utilized judiciously.

*Includes ongoing and future projects, excludes 14 completed projects, GDV – Gross Development Value

US$ 1 = ~Rs 78

Mumbai (MMR) presence One of the largest developer on Western suburbs with ~18.1 mn sq ft of balance development Expanded to Eastern suburbs with ~12.1 mn sq ft of balance development

By Project Brands

By Location Volume

Western Suburbs

Eastern Suburbs

~2.6 msf

~10 msf

~0.5 msf

~5 msf

~12 msf

Western Suburbs

~1.3 msf

~6+ msf

~0.5 msf

~2 msf

Others ~6 msf

Company Overview Real Estate Developer with 2 Decades of Experience MMR-focus residential play and pivot from high-end luxury segment towards mid-income & affordable segment

Luxury

Mid-income

Affordable

Across segments

BKC Launched Uber Luxury Project Signature Island

BKC, Borivali E, Airoli

Signia brand launched

ODC, Goregaon W

Sunteck City brand launched

(Aspirational luxury)

Naigaon

Sunteck World brand launched

Borivali W, Vasai W, Kalyan-Vasind

2006-09

2009-2010

2012-14

2017

2018

2020-21

Acquired 3 BKC plots ~1.5 msf

~Rs 150 cr (Rs 1,500 mn) QIP in 2009

Acquired ~23 acres

(~6 mn sq ft+) at ODC, Goregaon West

~Rs 500 cr (Rs 5,000 mn) QIP

Acquired ~150 acres (~12 mn sq ft) at Naigaon

Acquired ~23 mn sq ft

Our Brands

Premium positioning by creating different luxury brands across all the segments

Presence across the pricing spectrum from uber-luxury to affordable

Our Partnerships

Partnership with Ajay Piramal Group

- India REIT private equity invested at Signature Island in 2006 and exited at >20% IRRs within ~3 years

- 50:50 JV - Piramal Sunteck Realty Pvt. Ltd. (PSRPL) formed in 2007 to undertaken multiple projects

Partnership with Kotak Group

- Kotak Real Estate Fund (KREF) has invested in the listed entity in the past.

- KREF has done PE SPV funding at Signia Isles in 2009 and Sunteck City in 2012, and exited at >20% IRRs within ~2-4 years

Board of Directors 200+ years of combined experience across real estate, banking & finance, law & compliance

Kamal Khetan CMD

Atul Poopal Executive Director

V P Shetty Ind. Director

Mukesh Jain Ind. Director

Rachana Hingrajia Director

Chaitanya Dalal Ind. Director

Sandhya Malhotra Ind. Director

- Over 3

- Over 4

- 1st generation entrepreneur

- Close to 3 decades of experience in the Real Estate industry

Formulate corporate strategy, acquisition, execution & diversificatio n plans

decades of experience in the field of civil engineering, development regulations and project assessments

- Previous role was with MCGM

decades of experience in Banking

- Has held C&MD position in UCO, Canara and IDBI Bank.

- Recipient of “Banker of the Year- 2003” award

decades of experience in Banking, Real Estate and Insolvency

- Presently,

- Close to 2 decades of experience in corporate law compliances with Sunteck Realty

practicing law

- Company

- Alumnus of SRCC, New Delhi

Secretary of Sunteck Realty

- Practicing CA

- Over 3

decades of experience in audits including Statutory and CAG audits

- Also, teaches accountancy in colleges of Mumbai University

- Close to 2 decades of experience in corporate law compliances

- Presently,

practicing CS and law graduate

- Active

involvement in human rights and CSR matters

Shareholding Pattern

Others, 8.1%

June-2022

FIIs & DIIs, 24.8%

Promoters, 67.1%

*Nil shares are pledged

▷ Market Cap - ~Rs. 7,257.33 crore / ~ US$ 930.43 million (8th August, 2022)

US$ 1 = ~Rs 78

What have we achieved

Well-timed Capital Allocation ~36 mn sq ft of projects acquired since 2018 Of which, ~23 mn sq ft acquired since the onset of COVID-19 pandemic Net Debt/Equity @0.18x at the end of Q1 FY23 highlights fiscal discipline

Strong land acquisition track-record, post- Lehmann crisis years (peak recession) 16 MSF

D E S S E R T S I D E L P T L U M

E L B A L I A V A S E I T N U T R O P P O

Net Debt/Equity discipline

▷ Despite acquisitions of 36 mn sq ft since 2018, the leverage discipline has been maintained ▷ No compromise on financial prudence and fiscal discipline

2.00x

1.80x

1.60x

1.40x

1.20x

1.00x

0.80x

0.60x

0.40x

0.20x

0.00x

1.04x

0.89x

0.74x

0.58x

0.70x

0.75x

0.51x

➢

~36 mn sq ft of projects acquired since 2018 Of which, ~23 mn sq ft has been acquired since the onset of COVID-19 pandemic

0.17x

0.22x

0.17x

0.19x

0.18x

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22 Q1 FY23

Equity fund raising done judiciously

▷ Sunteck has raised external equity twice through QIP in 2009 (~Rs 150 cr) and 2017 (~Rs 500 cr) ▷ Since 2007, cumulative equity fund raising account for ~28% of FY22 Networth

Networth break-up

Equity fund raising - QIP & Others 28%

Reserves & Surplus 72%

Completed Projects 14 (residential+commercial) projects delivered worth ~Rs 9,000 crore (~US$ 1.2 bn)

Signature Island, BKC

Signia Isles, BKC

Signia Pearl, BKC

Signia High, Borivali E

Signia Oceans, Airoli

Signia Skys, Nagpur

Sig. Waterfront, Airoli

Gilbird Hill, Andheri W

S. City Avenue 1, ODC

S. City Avenue 2, ODC

Completed Commercial Projects

Sunteck Kanaka, Goa

Sunteck Center, Vile Parle E

Sunteck Grandeur, Andheri E

Completed Projects – Residential ~2 mn sq ft completed in Q1 FY23

Ongoing Projects - Residential ~4 mn sq ft of execution underway across segments

Ongoing Projects - Commercial ~4 mn sq ft of execution underway across segments

Sunteck BKC 51, BKC Jn.

Sunteck Icon, BKC Jn.

Sunteck Crest, Andheri E

Pinnacle, ODC

Key Performance Highlights (FY18 - FY22) Delivering sustainable operational growth and operating margins

Pre-sales CAGR (18-22)

~22.03%

Collections CAGR (18-22)

~18.68%

Average EBITDA Margin (18-22)

~33.51%

*Company follows project completion method of accounting

Rs 1 cr = Rs 10 mn

Operational Performance Trend Pre-sales mix & Collections efficiency

▷ Pre-sales mix has pivoted from Luxury to Mid-Income and Affordable segment. ▷ Collections Efficiency has improved to 81% in FY22 against 76% in FY21. In Q1 FY23, CE stands at 86%.

12%

25%

64%

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

Healthy Pre-sales mix

15%

12%

39%

43%

46%

45%

43%

24%

27%

63%

22%

27%

47%

12%

10%

40%

32%

78%

22%

19%

Collections efficiency ( C o l l e c t i o n s / P r e - s a l e s )

76%

81%

86%

55%

59%

FY16

FY17

FY18

FY19

FY20

FY21

FY22 Q1 FY23

F Y1 9

F Y2 0

F Y2 1

F Y2 2

Q 1 F Y2 3

Luxury

Mid-income

Aspirational

Others

All figures are in Rs. Crores

Rs 1 cr = Rs 10 mn

ESG Performance Highlights

Environmental

Social

Governance

▪

‘Go Green’ CSR campaign

Digital transformation to reduce resource consumption

Rainwater harvesting and use of STP water

Dual fitting tanks and LED lights to reduce energy use

Fly ash and GGBS, which are waste generated from thermal power plant and steel plant, are used in concrete to reduce waste and make concrete durable

▪

Support for migrant labourers and frontline workers following the COVID-19 outbreak

Donation of warm clothes, medicines and food at the Little Sister of the Poor home

Support for nutrition and health of communities through Project Roshan

Support for Wadia Hospital’s stem cell transplant centre

Promotion of hand-made, indigenous Diwali products

Promotion of higher education at Plaksha in Mohali

▪

Philosophy on code of governance

Policy framework consisting of Code of Conduct, Whistleblower Policy and CSR Policy

Disclosures on corporate governance, including committee composition, skills and competencies of directors, directors’ remuneration, CSR governance, etc.

What we aspire for

Embarking on Sunteck 3.0

▷ Sunteck 1.0 journey was initiated as a Business Center Operator in 2000 and after 6 years with the acquisition of the Signature Island, BKC – under Sunteck 2.0 – the company grew into a pure play RE developer with projects in BKC and ODC, Goregaon W.

▷ The salient aspects of Sunteck 3.0 are: ○ Maintain a strong balance sheet

■ Sell off our finished inventory in the next 4-5 years ■ Focus on large projects like Naigaon, Vasai, Kalyan and Borivali with low capex ■ Acquire land if opportunity is extremely compelling ■ Maintain non-recourse, muted debt levels

○ Leverage our brand and leading market position to grow the business ○ Invest in and incentivize our team

Existing Growth Engines of Sunteck 3.0

Sunteck’s strategy is to enter markets underpenetrated by organized players and bet big to realize attractive returns

2006

2012

2018

2020

BKC (Luxury)

ODC (Mid-income)

Naigaon (Affordable)

➢ Residences tapped back in 2006-2009, when looked as CBD

➢ Took huge bet and developed Uber luxury apartments via Signature Island

➢ Doubled down and delivered luxurious apartments Signia Isles and Signia Pearl

➢ ~80% of units sold out, ~20% unsold = ~Rs 1,500+ cr

➢ The next BKC – Oshiwara District Center (ODC, Goregaon W) - ~6 mn sq ft+ by 2012

➢ Marked entry in the lucrative mid-income segment via Sunteck City Avenue projects

➢ Launch price of ~Rs 7,000-8,000/sq ft in 2013-14, current selling price is ~Rs 15,000/sq ft+

➢ Naigaon, a strategic location between Mira-Bhayandar and Vasai-Virar – ~150 acres acquired

➢ Marked entry into affordable housing for ~12 mn sq ft development in 2018

➢ 4,000+ units (1, 2 & 3 BHK) sold in 1st & 2nd ph. between 2018-2020, 3rd ph. launched (Feb-

22)

➢ Rs 23 lakh 1BHK selling for Rs 34 lakh now within ~36 months

Future Growth Engines of Sunteck 3.0

The launch and execution of these new growth engines will scale up the sales engine of Sunteck

2020

2022

Vasai W (Mid-income)

Kalyan & Vasind (Affordable)

Borivali West (Luxury)

➢ ~50 acres acquired with a development potential of ~5 mn sq ft

➢ Est. GDV of ~Rs 5,000 crores in the coming 6-7 years

➢ Tap big demand potential of hitherto untapped micro market with focus on middle income grp

➢ Unobstructed sea views residences offering luxurious lifestyle relative to micro-market

➢ After western suburbs, Kalyan (Shahad) and Vasind marks the entry in the eastern micro-

markets of MMR

➢ With more than ~12 mn sq ft of potential, these projects under the aspirational

luxury

segment will offer an est. GDV of ~Rs 10,000 crores in the coming 7-8 years

➢ Acquired Borivali West, a strategic location for luxurious waterfront residences in the strong

residential market ofwWestern suburbs.

➢ Borivali West has a potential est. GDV of ~Rs 2,000 crores in the coming 4-5 years

Development Potential & Launch Timelines

▷ Est. Gross Sales Visibility of ~Rs. 28,600 (~US$ 3.7 bn) crores from the 6 (six) growth engines

Projects

Project Size

Already Launched

Balance Potential

Estimated Sales Visibility

FY22-23 E

FY23-24 E

Beyond FY24 E

(~ mn sq ft)

(~ Rs crores)

(~ mn sq ft)

ODC, Goregaon W

Naigaon

Vasai W

Kalyan & Vasind

Borivali W

Others

Total

6.0

12.0

5.0

12.6

1.0

6.0

42.1

2.3

3.6

0.5

6.4

3.7

8.4

5.0

12.1

1.0

6.0

36.2

5,200

4,500

5,000

9,900

2,000

0.60

1.00

0.75

1.00

28,600

3.35

0.60

1.00

0.75

1.00

0.50

1.00

4.85

2.50

5.15

3.50

10.1

0.50

5.00

26.75

Estimates - subject to material variances due to business risks, market risks and other risks, ~-approx.

Rs 1 cr = Rs 10 mn

The ‘Sunteck’ approach to ‘Continuous Growth’

❑ ~23 msf acquired since the onset of

the COVID-19 pandemic.

❑ In the last 3 years, the company has

acquired ~36 msf.

❑ Estimated GDV of acquisitions is ~Rs.

28,600 cr (~US$ 3.7 bn).

❑ The monetization of these projects will lead to continuous growth in sales over the 7-8 years.

Project Acquisition

Sales

❑ Sunteck’s collections are growing in strong

double-digits leading operational cash flows.

Profit & Cash Flows

Execution

❑ In-house

execution

capability

ensure accelerated execution.

❑ The margins

trending are upwards driven by price growth and cost optimization.

also

SHAREHOLDER VALUE CREATION

❑ Stringent

supervision on costs & quality, drive confidence amongst customers long term - basis of demand.

~US$ 3.7 billion

Est. Gross Development Value (GDV) of upcoming project pipeline

~36 million sq ft

Across 6 projects at BKC, ODC, Naigaon, Vasai West, Kalyan- Vasind, and Borivali West in MMR

~0.18x

One of the lowest Net Debt/Equity ratio across the sector

US$ 1 = Rs 78

Pre-sales growth multiple to improve On the back of new project launches

▷ The phase-wise launch of new projects at Vasai West, Kalyan-Vasind, Borivali West and new phases of existing projects such as Sunteck City ODC and Sunteck World Naigaon could be a tailwind for sales growth.

1,800

1,022

588

FY21 All figures are in Rs. Crores. Subject to material variances due to business risks, market risks and other risks

FY23E (Target)

FY18

Rs 1 cr = Rs 10 mn

Key Numbers

Operational Performance and Financial Statements

Operational Snapshot

FY22

Pre-sales (~Rs cr) 1,303

Q1 FY23

Pre-sales (~Rs cr) 333

FY22

Collections (~Rs cr) 1,053

Q1 FY23

Collections (~Rs cr) 285

Rs 1 cr = Rs 10 mn

Operational Performance Trend (Quarter-wise)

Both pre-sales and collections are GROWING STRONGLY on a sequential (quarterly) as well as yearly basis

Pre-sales (~Rs cr)

Collections (~Rs cr)

503

349

352

371

600

500

400

300

200

100

333

272

200

176

101

500

400

300

200

100

285

172

207

141

404

321

270

253

FY21

FY22

FY23

FY21

FY22

FY23

Rs 1 cr = Rs 10 mn

Operational Performance (Pre-sales Segment-wise)

The pre-sales mix for the quarter is dominated by the mid-income segment contributing 78% of the total bookings. Sunteck Beach Residences (SBR) at Vasai (W) was launched in the first-quarter.

Segment

Brands

Mid-income

Sunteck City, SBR

Aspirational

Sunteck World

Commercial

Sunteck

Total

Q1 FY23 (~Rs cr)

260

333

Mix (%)

78%

10%

12%

100%

Rs 1 cr = Rs 10 mn

Operational Performance (Collections Segment-wise)

The collections mix for the quarter is broad-based with all segments performing well.

Segment

Brands

Q1 FY23 (~Rs cr)

Luxury

Signature, Signia

Mid-income

Sunteck City, SBR

Aspirational

Sunteck World

Commercial

Sunteck

Total

116

285

Mix (%)

29%

26%

41%

100%

Rs 1 cr = Rs 10 mn

Robust operational cash flows ~ Rs 600 cr operating surplus generated in 2+ years – used in Buss. Dev., debt reduction and adv. premium payment

~Rs 74 cr of operating cash flow surplus generated in Q1 FY2023.

Particulars OPERATING CASH FLOW Total Operating Cash Flow Surplus Less: Landowner / JDA cost* Less: One-time advance payment of approval premiums at 50% rebate* Net cash flow – Operating Activities

INVESTING CASH FLOW - Business Acquisition, Interest, Dividends, Investments & Others Net cash flow – Investing Activities

FINANCING CASH FLOW - (Repayment) / Drawdown of Loans - Finance Cost - Dividends Paid & Others Net cash flow – Financing Activities *Part of Working Capital Changes #Provisional

FY 2021

FY2022

Q1 FY2023#

281 (30) - 251

50 50

(197) (86) (13) (297)

239 (68) (202) -31

33 33

133 (74) 13 46

74 (9) - 65

22 19

(85) (19) - (103)

Rs 1 cr = Rs 10 mn

Strong Balance Sheet

In FY22, the consolidated net debt to equity has been strong at 0.18x.

Particulars

Total Debt

Less: Cash & Bank Balance

Less: Loans to JDA partners

Net Debt

Net Worth

Net Debt / Equity

Quasi-Equity and Others*

Adjusted Net Debt

Adj. Net Debt / Equity

Q1 FY23

621

499

2,794

0.18x

590

0.21x

*With effect from 9th March, 2020, Starlight Systems (I) LLP became a wholly owned subsidiary of SRL pursuant to the retirement of PDL Realty Private Limited (Retired Partner). The Retired Partner’s balance of current capital and fixed capital in the SSILLP, aggregating to ~910 mn have been converted into a loan. The said loan will be in the form of 1% secured Non-Convertible Debentures (NCDs), which will be redeemed at premium out of the future free cash flow from the specified projects only with a tenure of 20 years.

Rs 1 cr = Rs 10 mn

Key Financials

▷ In Q1 FY23, Revenue from operations stood at Rs 144 cr (Rs 1,435 mn) against Rs 93 cr (Rs 927 mn) for Q1 FY22 ▷ EBITDA for Q1 FY23 stood at Rs 45 cr (Rs 452 mn) against Rs 21 cr (Rs 206 mn) for Q1 FY22 ▷ EBITDA margin stood at 32% for Q1 FY23 against 22% in Q1 FY22

Particulars

Q1 FY23

Q4 FY22

QoQ %

Q1 FY22

YoY %

FY22

Revenue from Operations

EBITDA

Operating Margin

Net Profit

144

32%

156

-8%

613%

-4

55%

119%

22%

513

19%

724%

*Company follows project completion method of accounting

Rs 1 cr = Rs 10 mn

Key Financials

BALANCE SHEET – FY22 (Consol)

Liabilities

Networth

Rs Cr

Assets

2,790

Receivables

Inventories

Borrowings

787

L & A

Others

Provisions

Total

1,917

Cash & Bank

Others

5,499

Total

Rs Cr

271

4,042

113

976

5,499

Rs 1 cr = Rs 10 mn

Superior Credit Rating

▷ Sunteck has Top Tier Credit Profile which is a Testimonial for its Strong Fundamentals.

AA- / Positive

AA- / Stable

▷ Key Rating drivers are –

○ Healthy track record in real estate development in MMR ○ Adequate committed cash flow visibility ○ Prudent Financial Policies; Strong Credit Metrics ○ Prudent cash flow management with adoption of asset light JDA model for new projects ○ Price-Point diversity; Locational Advantage ○ Low Execution Risk

Risk Factors

▷ Impact of COVID-19 pandemic on overall economy and real estate sector in particular is still being

quantified and uncertain.

▷ Exposure to cyclicality in real estate business – the residential real estate sector have been adversely

impacted by liquidity crunch, high inventory and subdued demand conditions in the past.

▷ Cost inflation can negatively impact profitability and margins.

▷ Any other unforeseen risks related to project acquisitions, delay in launches, approval risks, delay in

execution, subdued demand, home loan risks and others.

Industry Insights

Improved Affordability

▷ Rise in income-levels and favourable demographics (66% of Indian population is less than 35 years of age)

has led to best affordability in the last 25 years.

▷ MMR affordability has improved the most in the last 10 years since 2011.

(Affordability = EMI/Income)

Source: HDFC

Source: Knight Frank Research data

Rising Urbanisation

▷ By 2030, almost 40% of the population is expected to be living in urban centers.

31%

32%

28%

26%

23%

20%

17%

18%

35%

30%

25%

20%

15%

10%

1951

1961

1971

1981

1991

2001

2011

2017

Source: ADB, Census 2011, Knight Frank Research data

Urbanisation Trend

MMR Dominates the Residential Real Estate Market in India

▷ MMR both in terms of pricing and units sold is the largest micro-market in India. The average pricing at

Rs6,787 per square feet is higher than other cities

▷ Over the past 5 years, the pricing in MMR has remained stable

MMR 6,787

MMR Simple Average Price Index

Pune 4,017

Bengaluru 4,935

NCR 4,257

103

109

112

113

60,000

50,000

40,000

30,000

20,000

10,000

0 2 Y C n

d o S s t i n U

Hyderabad 4,509

Chennai 3,794

Size of the bubble represents weighted average price of sold units during the year in Rs per square feet

2013 2014 2015 2016 2017 2018 2019 2020 2021

Source: Knight Frank Research data

Source: NHB data

Home loan rates are benign ▷ Housing loan rates are at decadal lows, thereby improving affordability and savings on EMI.

▷ Average of last 13 years is ~9.2%.

11.0%

10.0%10.0%

10.1%10.2%

9.9%

9.5%

8.6% 8.6%

8.9% 8.7%

7.5%

7.0%

6.5%

0 1 Y F

1 1 Y F

2 1 Y F

3 1 Y F

4 1 Y F

5 1 Y F

6 1 Y F

7 1 Y F

8 1 Y F

9 1 Y F

0 2 Y F

1 2 Y F

2 2 Y F

Source: Bank data

3 2 Y F

1 Q

Awards

Thank You

ir@sunteckindia.com

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