Keystone Realtors Limited has informed the Exchange about Investor Presentation
A
KiYSTONE REALTORS BUILDING EXCELLENCE
The Vice President Listing Department, National Stock Exchange of India Limited "Exchange Planza", Bandra Kurla Complex, Bandra East, Mumbai - 400 051 Scrip Symbol: RUSTOMJEE
Date: February 7, 2023
The General Manager, Listing Department, BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001 Scrip Code: 543669
Sub: Investor Presentation
We enclose herewith Investor's presentation on the Unaudited Financial Results - Limited Reviewed for the quarter and nine months ended December 31, 2022.
This is also being uploaded on the Company's website at www.rustomjee.in.
You are requested to inform your members accordingly.
Yours faithfully, ~ :~ muted
da
Bimal ~ Company Secretary and Compliance Officer Membership No. ACS - 11578
KEYSTONE REALTORS LIMITED Registered & Corp. Office : 702, NATRAJ, M. V. Road Junction, Western EJ(press Highway, Andheri (East), Mumbai - 400 069. Tel.: +91 - 22 - 6676 6888, Fax: +91 - 22 - 6676 6999. Web : www.rustomjee.com, CIN: L45200MH1995PLC094208
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KiYsToNE
REALTORS BUILDING EXCELLENCE
KEYSTONE REALTORS LIMITED
Quarterly Update Q3 FY-23
Table of Contents
Particulars
Company overview
Performance highlights
Management structure
Slide
03
11
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1. Company overview
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3
A Snapshot
20+ Million Sq. Ft. delivered
Capabilities & Experience
Prominent MMR Real Estate developer with 20+ Million Sq. Ft. delivered and a pipeline of 35+ Million Sq. Ft. of ongoing and forthcoming projects across all price points catering to all segments of the population from Affordable to Super Premium
Capability and experience in developing standalone buildings, gated communities and fully integrated townships. Greenfield & brownfield developments / redevelopments by partnering with societies, land- owners and developers for residential, retail & commercial
Asset Light Approach
Consumer Satisfaction
Asset-light approach focused on optimizing the upfront capital expenditure; achieving better return on equity and capital employed. Investment in acquisition of land only when it meets return expectations
Continued focus on consumer satisfaction leading to a high level of brand loyalty and engagement
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A Snapshot (continued)
End to End Project Management Capabilities
Sustainable Development
End-to-end project capabilities with in-house expertise across Business Development, Architecture, Approvals, Construction Management, Sales & Marketing and Property Management Services
Strong focus on sustainability in all our developments
Experienced Management
Execution Track Record
Experienced promoters and management possessing multi-decade experience in the real estate business
Proven expertise in executing greenfield, brownfield, development/redevelopment projects in residential & commercial segments. Enviable track record across all housing segments - affordable, mid mass, aspiration, premium and super premium. Pioneer and leading developer of large scale redevelopment in Mumbai
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The Journey over Two Decades
Launched the township tower ‘Urbania’ in Thane First PE investment by Trinity Capital in KRL
Launched slum redevelopment project ‘Elita’ in Andheri West.
Launched township project ‘Global City’ in Virar
Launched first residential project
Launched premium project ‘9 JVPD’ on 10th road Juhu
Launched the redevelopment project ‘Oriana’ in Bandra East
Launched the redevelopment project ‘Seasons’ in Bandra East
Entered into a development management agreement for the project ‘Crown’ in Prabhadevi
Total Area Delivered: 15 mn sq.ft.
Acquired land located at Bandra (Bandstand)
·~•.,,~· · •••
2020
2013
2016
2014
2018
2021
2022
2010
2009
2011
2007
2002
2006
2000
1996
2001
Total Area Delivered: 10+ mn sq.ft.
Launched the luxury gated community project ‘Elements’ in Juhu/Andheri
Launched the gated community project ‘Paramount’ in Khar
Xander invested in Kapstone Constructions
Investment by Keppel Land as strategic partner in Kapstone Constructions
First JV with Developer
First society redevelopment project
First SRA project
Trinity Capital Limited investment in Subsidiaries (Enigma, Rustomjee Construction and Kapstone Constructions)
Total Area Delivered: 20+ mn sq.ft.
Listed on Stock Exchanges: Marques DIIs/FIIs participated in IPO
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Technology in Planning, Execution, Sales & Marketing
Project planning & Execution
Sales & Customer Experience
Recent Developments
• Combined implementation of
ERP and BIM systems maximizes productivity and cost estimation.
• Automated and digitized invoice settlement process boosts transparency between all stakeholders.
•
Smart management measures through detailed status monitoring of execution.
• Helps better understand
customer preferences and expedite customer purchase decisions resulting in greater efficiency and reduced manpower costs.
• CRM platform supports automation in marketing campaigns and personalized communications through intelligent chatbots.
• Automated and transparent system built-into execution flow: Reduced margin of error for contractors & vendors.
• Channel Partner Portal: Partners have access to relevant marketing collaterals. 5,091 downloads since launch since Dec’ 21
• Virtual Assistant Chatbot: Integrated, AI-driven, self- learning virtual assistant
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Ongoing projects
Townships 1. Global City, Virar (W) 2. Urbania, Thane (W)
Residential Projects 3. Crown, Prabhadevi 4. Seasons, Bandra (E) 5. Bella, Bhandup (W) 6. Paramount, Khar (W) 7. Erika, Bandra (E) 8. Parishram, Bandra (W) 9. Summit, Borivali (E) 10. Yazarina III, Dadar Parsi Colony
Commercial 11. Central Park, Andheri (E) 12. Eaze Zone, Goregaon (W)
v,.,t
Kanchvali
i
oregaon
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1;'<'•
,s'
~
ndheriE
Kurta
·~~
Mulund
,, ~, '
Bhandup
Ghatkopar
Chembur
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BUILDING EXCELLENCE
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Forthcoming projects
Townships 1. Global City, Virar (W) 2. Urbania, Thane (W)
Commercial 15. Urbania Commercial 16. OB12 + 13, Bandra (E)
Residential Projects 3. Garden Estate, Thane (W) 4. Charkop, Kandivali (W) 5. Ozone (Phase II), Goregaon (W) 6. Dombivli 7. Ashiana, Juhu 8. Dnyaneshwar Nagar, Sewri 9. Ambedkar Nagar, Khar (W) 10. Jyotirling, Goregaon (E) 11. MIG 64 - Gandhinagar, Bandra (E) 12. Cliff Tower, Bandra (W) 13. Sagar Darshan, Bandra (E) 14. Bandstand, Bandra (W)
Plotted Development 17. Khopoli
Under planning 18. Naigaon 19. Manori
New Additions 20. Jariwala Compound, Mahim (W) 21. Sagar Tarang, Andheri (W) 22. Vivekanand CHSL, Bandra (E)* 23. Kher Nagar, Bandra (E)* 24. Basant Park CHSL, Chembur*
' Virar
Oah1sar
Bonvall
Kand1vah
'
Goregaon
Andheri E
Kurla
Ghatkopar
Soon
0
4
Maham
Chem bur
*Projects added in Q3 FY-23
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Growth drivers
Leverage our leadership position in the premium category in micro markets that we operate in: • 39% Market share in Super Premium/ Premium category in Juhu in terms of
absorption (FY22)*
Continue to build an asset light business model: • Number of redevelopment projects added - 5 projects (1.3 million sq ft) (YTD FY23) •
Expected initial investment – ~9% of GDV
Grow our presence in the mid/mass and aspirational category: • 85% of our new acquisitions in current FY (in terms of GDV) are from mid/mass and aspirational category
Focus on growth areas in proximity of upcoming infrastructure projects • Upcoming transportation infrastructure projects and the relaxation of CRZ norms that allow for development of more sea-facing properties
Leverage technology to improve operational efficiency •
Real time tracking of Procurement, billing, accounts, Project Management
* PropEquity data, Company
10
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2. Performance Highlights
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Performance Snapshot (Q3 FY-23)
Area sold
0.3 mn Sq.ft.
Completions
0.2 mn Sq.ft.
Pre-Sales Value
Collections
OCF
INR 4.33 bn
INR 4.16 bn
INR 1.10 bn
New Projects Addition 3 Projects (Est GDV ~INR 17.50 bn)
IPO
Raised INR 5.60 bn
Secured Debt to Equity Ratio
0.3:1
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Performance Snapshot (YTD FY-23)
Area sold
0.8 mn Sq.ft.
Pre-Sales Value
INR 11.31 bn
Collections
INR 11.63 bn
OCF
INR 2.80 bn
Completions
0.3 mn Sq.ft.
New Projects Addition 5 Projects (Est GDV ~INR 34.25 bn)
Pre - IPO and IPO
Raised INR 7.30 bn
Secured Debt to Equity Ratio
0.3:1
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Ongoing projects as on Q3 FY-23
Category
No. of Projects
Saleable Area (mn sq ft)
Sold Receivable (INR bn)
Est Unsold Inventory (INR bn)
10
2
3
4
1
2
12
4.9
1.5
0.4
2.4
0.5
0.3
5.1
23.32
8.54
2.53
11.04
1.21
0.13
23.45
Residential (A)
Super Premium/Premium
Aspirational
Mid & Mass
Affordable
Commercial (B)
Total (A+B)
Category classification: Super Premium: > INR 150 mn Premium: INR 70-150 mn Aspirational: INR 30-70 mn Mid & Mass: INR 10-30 mn Affordable: <INR 10 mn
36.03
18.18
6.52
9.53
1.80
0.69
36.72
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Forthcoming projects as on Dec 31, 2022
Category
No. of Projects
Saleable Area (mn sq ft)
Est. GDV (INR bn)
Residential (A)
Super Premium/Premium
Aspirational
Mid & Mass
Affordable
Commercial (B)
Total (A+B)
20
4
6
7
3
2
22
23.0
0.6
1.5
9.7
11.2
4.0
27.0
290.29
39.42
39.85
155.17
55.86
50.80
341.09
15
Category wise performance YTD FY-23
Category
Super premium / Premium
Aspirational
Mid & Mass
Affordable
Commercial
Total
Area Sold (mn Sq.ft.)
Average Realisation (INR)
YTD FY-23
YTD FY-22
% change
YTD FY-23
YTD FY-22
% change
0.1
0.0
0.4
0.2
0.0
0.8
0.4*
(78%)
0.0
0.3
0.1
0.0
0.8
-
40%
72%
-
32,639
29,690
13,783
5,573
28,478
27,825
11,698
5,208
18,290
16,018
14,993**
19,130
15%
7%
18%
7%
14%
* YTD FY22 includes 0.2 mn (~INR 6.31 bn) one-off institutional sales in the Super Premium / Premium Segment **Higher share of Mid & Mass / Aspirational in CY
16
Category wise performance YTD FY-23 (continued)
Category
Super premium / Premium
Aspirational
Mid & Mass
Affordable
Commercial
Total
Pre-Sales (INR bn)
Collections (INR bn)
YTD FY-23
YTD FY-22
% change
YTD FY-23
YTD FY-22
% change
2.63
1.39
6.12
0.95
0.21
10.21*
(74%)
1.36
3.71
0.52
0.17
3%
65%
84%
24%
3.87
2.72
3.70
1.12
0.22
11.50*
1.16
2.18
0.65
0.32
11.31
15.96
(29%)
11.63
15.81
(66%)
134%
70%
72%
(29%)
(26%)
*YTD FY22 Pre-Sales include one off institutional sales of ~INR 6.31bn and corresponding Collections thereof Removing the one-off effect, Pre-Sales have grown by 17% and Collections by 27% (y-o-y)
17
Historical Operational Performance (Last 5Q)
Pre-Sales (No. of units)
618
0.7
Sales (mn Sq.ft.)
0.4
260
225
272
260
0.3
0.3
0.2
Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23
Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23
Pre-Sales (INR bn)
10.43
8.08
Collections (INR bn)
6.92
4.55
4.33
2.44
4.57
4.03
4.16
3.44
Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23
Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23
18
New Launches (YTD FY-23)
Project
Launch Quarter
Location
Category
Nature of Development
Saleable Area (mn sq. ft)
Est GDV (INR bn)
Global City - Avenue L - Wing JK La Familia - Tower C Q2 FY 23
Q1 FY 23
Virar W
Affordable
Own Land
Thane W
Mid & Mass
JDA + JV
Total
0.2
0.3
0.5
0.90
4.55
5.45
19
New Project Addition (YTD FY-23)
Project
Quarter of Acquisition
Location
Category
Nature of Development
Saleable Area (mn sq. ft)
Est GDV (INR bn)
Jariwala
Q1 FY 23
Mahim
Aspirational
Joint Development
Sagar Tarang
Q1 FY 23
Versova
Super Premium/Premium Society Redevelopment
Vivekanand CHSL
Q3 FY 23
Bandra E
Aspirational
Society Redevelopment
Kher Nagar Building No 31
Q3 FY 23
Bandra E
Mid & Mass
Society Redevelopment
Basant Park CHSL
Q3 FY 23
Chembur W
Aspirational
Society Redevelopment
Total:
11.50
5.25
2.20
2.80
12.50
34.25
0.5
0.1
0.1
0.1
0.5
1.3
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Cash Flows
Particulars (INR mn)
Q3 FY-23
Q2 FY-23
Q3 FY-22
YTD FY-23
YTD FY-22
Operating Activities Net Collections Construction Cost Land and Approval Payments Employee and Admin Expenses Statutory Payments Net Cash Flow from Operating Activities (A) Investment Activities Investment in New Projects Inflow from Investment Activities Other Investments (FD & Mutual Fund) Net Cash Flow from Investment Activities (B) Financing Activities Debt Drawdown Investments Received Proceeds from IPO (Net) Repayments Others Finance costs Net Cash Flow from Financing Activities (C) Net Cash Flows for the Period (A+B+C)
2,621 (891) (185) (280) (169) 1,096
(567) 43 11 (512)
882 - 5,541 (4,242) - (159) 2,022 2,606
1,961 (681) (125) (275) (247) 633
(335) (38) 27 (346)
422 - (87) (709) (23) (303) (699) (412)
2,384 (572) (848) (278) (71) 615
(2,834) 117 63 (2,654)
1,169 1,940 - (838) (88) (184) 1,999 (39)
6,224 (1,388) (3,020) (754) (154) 909
(2,897) 192 (55) (2,760)
2,006 1,940 - (2,750) (54) (630) 511 (1,339)
7,415 (2,452) (846) (879) (436) 2,801
(1,035) 39 (24) (1,020)
3,690 - 7,110 (8,831) (22) (694) 1,253 3,034
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Q3 FY-23
Q2 FY-23
Q3 FY-22
9M FY-23
9M FY-22
FY21-22
Financial Summary
Consolidated Results
(INR mn)
Revenue from Ops
Other Income
Total Income
Adjusted EBITDA* #
Adjusted EBITDA %
EBITDA *
PBT
PAT
PAT after Share of Profits
PAT after Non controlling Interest
1,265
90
1,355
450
36%
178
95
72
58
53
462
95
557
67
14%
32
(43)
(25)
(43)
(47)
8,708
73
8,781
2,748
32%
1,185
1,160
874
884
898
3,413
260
3,673
981
29%
329
126
91
55
50
*EBITDA and Adjusted EBITDA include Other income #Adjusted EBITDA is after grossing up of finance cost included in cost of sales
10,356
195
10,551
3,123
30%
1,406
1,243
924
958
977
12,694
336
13,030
4,304
34%
2,129
1,844
1,380
1,358
1,399
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Financial Summary
Debt Movement (INR mn)
9M FY-23
FY 21-22
Gross Debt
Less: Cash and cash equivalents
Net Debt
Gross Debt to Equity ratio
Net Debt to Equity ratio
Debt in JV Co. (Rustomjee Share)
5,165
4,184
982
0.32
0.06
836
7,184
2,511
4,673
0.75
0.49
499
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ESG
Environmental initiatives
Social initiatives
•
•
•
•
Tie up with Tata Power to deploy EV chargers across Rustomjee projects Sewage treatment plants (STPs), wastewater management system and rainwater harvesting systems. Eg. Global City Virar has 3 STPs to treat ~ 3.6mn litres per day Implemented environmental friendly building concepts with aim to minimize net carbon impact Ensuring regular compliance proactively and adapting and complying with new regulations (e.g. Environmental Acts)
The Ruslorl19e Urbanic
The Natroj By
township is certified by
Rustom,ee
Indian Green aulding convnercial project is
Council
LEED Certified
•
•
• Awareness and training on
Health and Safety at sites for employees and workers Induction for employees on existing project sites has been initiated and made mandatory
• Awarded A+ Grade by the
Government of Maharashtra and title of the Best Vocational Training Provider by the UK India British Council & FICCI Rustomjee Educate a child initiative: Every time a family buys a Rustomjee home, a child is educated for an year (More than 1,000 children educated)
Governance
Policies Implemented:
• Anti bribery and anti corruption policy
•
•
EHS policy
Sustainability policy
• Diversity and Inclusion
•
Information Security
24
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3. Management Structure
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Experienced Promoters and Directors
Boman Irani
CMD
Chandresh Mehta
Executive Director
26+ years of Real Estate experience
26+ years of Real Estate
President of CREDAI – MCHI
President Elect - CREDAI
Experience
Directs the redevelopment
initiatives for the Group
Percy Chowdhry
Executive Director
23+ years of Real Estate
Experience
Directs Sales, Marketing and
HR functions
Independent Directors
Ramesh Tainwala
Rahul Divan
Seema Mohapatra
Non-Executive Independent
Non-Executive Independent
Non-Executive Independent Director
Director
Previously associated with
Samsonite International as CEO
Director
Founding partner of Rahul
Gautam Divan & Associates
Was associated with BBC World
Service Trust India as a trustee
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Supported by a Professional Management Team
Sajal Gupta (Group CFO & Head Corporate Strategy) Previously associated with Otis Elevators and AMW Motors
Bimal Nanda (Group CS and Compliance Officer) Previously associated with Entertainment World Developers, Sahara
Venkatraman B. (Chief Operating Officer) Previously associated with K. Raheja Universal
Rakesh Setia (Chief sales Officer) Previously associated with Vodafone Idea
Anupam Verma (President & CEO - Kapstone Constructions) Previously associated with HUL
Mahesh Gera (Group Chief Human Resources Officer) Previously associated with Centum and Reliance Communications
Harsh Chandra (President & CEO – SRA) Previously associated with Hindustan Coca-Cola, Etisalat DB Telecom and Tata Teleservices
Manish Sawant (President – Liaisoning) Previously associated with Manish D Savant Architects
Atul Date (Chief of Planning & Architecture) Previously associated with RKW Developers
Binitha Dalal (Associate Vice President) Previously associated with Godrej Properties
Jennifer Sanjana (Project Head) Started her career with Keystone Group
Nilesh Nimbalkar (Associate Vice President) Previously associated with Gammon India
Sreedharan Veede (Vice President - Special Projects) Previously associated with Dheeraj Realty
Vineet Mehta (Vice President - Operations) Previously associated with DS Group
Manish Randev (Project CEO – Virar AH) Previously associated with Goodman Fielder (Wilmar)
Parag Saraiya (Project CEO) Previously associated with Eversmile Properties (Kalpatru)
Vishal Bafna (Project Group Head) Started his career with Keystone Group
Jayshree Ramchandran (Vice President - Legal) Previously associated with HiStyle Retail
Shareholding Pattern as of December 31, 2022
Promoter 86.70%
FPI 2.45%
Mutual Funds 1.82%
Insurance 1.42%
AIF 2.67%
Bodies Corporate 2.88%
Others 2.06%
FPIs Abu Dhabi Investment Authority Morgan Stanley India Societe Generale
Mutual Funds Tata Mutual Fund Aditya Birla Sun Life IDFC Emerging Businesses
AIF HDFC CAPITAL IIFL Special Opportunities Fund
[
Bodies Corporate Plutus Wealth Management LLP
Insurance SBI Life Insurance HDFC Life Insurance
28
I
Completed projects
Townships 1. Global City, Virar (W) Phase 1 1. Global City, Virar (W) Phase 2 2. Urbania, Thane (W)
Residential Projects 4. Elements Off Juhu Circle 5. Seasons, Bandra (E) 6. Meridian, Kandivali (W) 7. Elanza, Malad (W) 8. Elita, Andheri (W) 9. Paramount, Khar (W) 10. Ozone, Goregaon (W) 11. Oriana, Bandra (E) 12. Acres, Dahisar (W) 13. Adarsh, Malad (W) 14. Yazarina I, Dadar Parsi Colony 15. Ciroc, Juhu 16. Raag, Goregaon (E)
17. Shimmer, Juhu 18. 7 JVPD, Juhu 19. 9 JVPD, Juhu 20. Central Park, Andheri (E) 21. Buena Vista, Bandra (W) 22. La Sonrisa, Matunga (E) 23. La Solita, Bandra (W) 24. La Roche, Bandra (W) 25. Orva, Bandra (W) 26. Riviera, Malad (W) 27. Meadows, Mahim (E) 28. Gagan, Goregaon (E) 29. Pinnacle, Borivali (E)
Commercial 30. Sangam, Santracruz (W) 31. Natraj, Andheri (E) 32. Aspiree, Sion (E)
Ch
r
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Disclaimer
Some of the statements in this presentation may be ‘forward-looking statements’ within the meaning of applicable laws and regulations. Actual results might differ substantially from those expressed or implied. Important developments that could affect the company’s operations include changes in the industry structure, significant changes in the political and economic environment in India and overseas, receipt of approvals, tax laws, duties, litigation and labor relations.
30
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BUILDING EXCELLENCE
Thank You
KEYSTONE REALTORS LIMITED
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KiYsToNE
REALTORS BUILDING EXCELLENCE
702, Natraj, M.V. Road Junction, Western Express Highway, Andheri East, Mumbai – 400 069
Corporate Identification Number: U45200MH1995PLC094208 Website: www.rustomjee.com
Investor Relations Contact:
Email: investor-relations@rustomjee.com Tel: 022 – 667 66 888
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BUILDING EXCELLENCE