Sunteck Realty Limited has informed the Exchange about Investor Presentation
Sunteck Realty Ltd.
Date: 29th May, 2023
SRL/SE/15/23-24
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 Q4 and 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 audited Financial Results for quarter and year ended 31st March, 2023.
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
Rachana Hingarajia Company Secretary Encl: a/a
5th Floor, Sunteck Centre, 37-40 Subhash Road, Vile Parle (East), Mumbai 400057. Tel: +91 22 4287 7800 Fax: +91 22 4287 7890
Website: www.sunteckindia.com CIN: L32100MH1981PLC025346 Email Id: cosec@sunteckindia.com
Sunteck Realty Limited
Investor Presentation
Q4 & Full Year FY2023
NSE: SUNTECK | BSE: 512179 | Bloomberg: SRIN: IN | Reuters: SUNT.NS / SUNT.BO An ISO 9001, 14001 & 45001 certified company
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, 2023 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
Key Highlights
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Key Highlights (FY18 - FY23) Delivering sustainable operational growth and operating margins
Pre-sales CAGR (18-23)
~22.2%
Collections CAGR (18-23)
~18.7%
W. Average EBITDA Margin (18-23)
~32.0%
*Company follows project completion method of accounting
Rs 1 cr = Rs 10 mn
4
Key Highlights (FY18 - FY23)
Particulars
CAGR (FY18-21)
CAGR (FY21-23)
Pre-sales
Collections
Particulars
Net Debt
21%
14%
FY22
Rs 539 cr
Operating CF Surplus
Rs 239 cr
25%
27%
FY23
Rs 280 cr
Rs 428 cr
CAGR – Compounded Annual Growth Rate
Rs 1 cr = Rs 10 mn
US$ 1 = ~Rs 80
5
Key Highlights (Q4 & FY23)
FY23
Pre-sales (~Rs cr) 1,602 +23% yoy
Q4 FY23
Pre-sales (~Rs cr) 537 +36% qoq
FY23
Collections (~Rs cr) 1,250 +19% yoy
Q4 FY23
Collections (~Rs cr) 330 +8% qoq
FY23
Gross OCF YoY (%) 79%
FY23
Net D/E (x) 0.10x
Rs 1 cr = Rs 10 mn
6
Who are we
7
Mumbai (MMR) focused Strong project portfolio across MMR
By Project Brands
By Location Volume
#GDV – Gross Development Value
US$ 1 = ~Rs 80
8
Our Brands Premium positioning by creating different luxury brands across all the segments
Uber Luxury
Premium Luxury (Upper Mid-Income)
Aspirational Luxury (Lower Mid-Income)
Marquee Luxury (Beach Residences)
9
Our achievements & aspirations
10
Strong land acquisition track- record, post-Lehmann crisis years (peak recession) 16 MSF 16 MSF
Net Debt/Equity @0.10x at the end of Q4 FY23 highlights fiscal discipline
11
Net Debt/Equity discipline
▷ Despite acquisitions of 38.5 mn sq ft since 2018, Net D/E decreased from 0.17x in FY18 to 0.10x in FY23
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
➢
➢
~38.5 mn sq ft of projects acquired since 2018 Of which, ~25.5 mn sq ft has been acquired since the onset of COVID-19 pandemic
0.17x
0.17x
0.22x
0.17x
0.19x
0.10x
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
12
6 (Six) Growth Engines of Sunteck
1
Signature, Signia, BKC
2
Sunteck City, ODC, Goregaon
3
Sunteck World, Naigaon
GDV
~Rs. 1,500 cr
GDV
Rs. 5,900 cr
GDV
Rs. 4,500 cr
4
Sunteck Beach Residences (SBR), Vasai
5
Sunteck Skypark, Mira Road
6
Kalyan
GDV
~Rs. 4,400 cr
GDV
~Rs. 2,400 cr
GDV
~Rs. 9,000 cr
13
Our Growth Engines Pre-sales growth multiple to improve
**Launched Towards The End of Q42023 (End of March 2023)
5
4
3
2
1
**Sunteck SkyPark
Sunteck Beach Residences (SBR), Vasai
Sunteck World, Naigaon
Sunteck City, ODC, Goregaon
Signature, Signia, BKC
3
2
1
Sunteck World, Naigaon
Sunteck City, ODC, Goregaon
Signature, Signia, BKC
*To Be Launched
*Kalyan
Sunteck Skypark, Mira Road
Sunteck Beach Residences (SBR), Vasai
Sunteck World, Naigaon
Sunteck City, ODC, Goregaon
Signature, Signia, BKC
6
5
4
3
2
1
FY2022 Pre-Sales: 1303 cr.
FY2023 Pre-Sales: 1602 cr.
FY2024E
14
Pre-sales growth multiple to improve On the back of new project launches
▷ The company has achieved a pre-sales CAGR of 22% between FY18 and FY23.
18
16
14
12
10
8
6
4
2
0
1,602
1,022
588
FY18
FY21
FY23
Rs 1 cr = Rs 10 mn
All figures are in Rs. Crores. Subject to material variances due to business risks, market risks and other risks
15
Key Numbers
Operational Performance and Financial Statements
16
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)
537
500
503
333
337
349
396
352
371
272
200
176
101
331
304
270
253
207
141
285
172
65
400
300
200
100
0
600
500
400
300
200
100
0
404
321
330
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
FY21
FY22
FY23
FY21
FY22
FY23
Rs 1 cr = Rs 10 mn
17
Operational Performance (Pre-sales Segment-wise)
Pre-sales registering growth of 23% YoY
Segment
Projects
Q4 FY23 (~Rs cr)
Uber Luxury
Signature, Signia
Upper Mid-income
Sunteck City, SBR, Sky Park
Lower Mid-Income
Sunteck World
Others
Total
Sunteck
76
360
66
35
537
FY23 (~Rs cr)
76
1,193
223
110
1,602
Rs 1 cr = Rs 10 mn
18
Operational Performance (Collections Segment-wise)
The collections mix for the quarter is broad-based with all segments performing well.
Segment
Projects
Q4 FY23 (~Rs cr)
FY23 (~Rs cr)
Uber Luxury
Signature, Signia
Upper Mid-income
Sunteck City, SBR
Lower Mid-income
Sunteck World
Others
Total
Sunteck
47
97
121
65
330
179
360
588
122
1,250
Rs 1 cr = Rs 10 mn
19
Robust operational cash flows (OCF) ~Rs 428 cr operating surplus generated in FY23 – used in Business Development/Acquisitions, debt reduction and advance premium payment
Rs 1 cr = Rs 10 mn
20
Robust operational cash flows ~Rs 948 cr operating surplus generated in 3 years – used in Business Development/Acquisitions, debt reduction and advance premium payment
~Rs 428 cr of operating cash flow surplus generated in 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 - Others Net cash flow – Financing Activities
FY 2021
FY 2022
FY 2023
281 -30 - 251
50 50
-197 -99 -297
239 -68 -202 -31
33 33
133 -87 46
428 -166 - 262
-16 -16
-164 -97 -261
*Part of Working Capital Changes – includes business development
Rs 1 cr = Rs 10 mn
21
Strong Balance Sheet
As on 31st March, 2023, the consolidated net debt to equity is amongst the strongest at 0.10x.
Particulars
Total Debt (~Rs cr)
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
As on 31st Mar, 23 593 158 155 280 2,788 0.10 93 373 0.13
*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
22
Key Financials
▷ In FY23, Revenue from operations stood at Rs 362 cr (Rs 3,624 mn) ▷ EBITDA for FY23 stood at Rs 64 cr (Rs 642 mn) ▷ EBITDA margin stood at ~18% for FY23 ▷ PAT for FY23 stood at Rs 1.4 cr (Rs 14 mn)
Particulars
Q4 FY23
Q3 FY23
Q4 FY22
FY23
FY22
Revenue from Operations
EBITDA
Operating Margin
Net Profit
49
-9
NM
-28
89
18
20%
2
156
6
4%
-4
362
64
18%
1.4
513
95
19%
25
*Company follows project completion method of accounting
Rs 1 cr = Rs 10 mn
23
Key Financials
BALANCE SHEET – FY23 (Consol)
Liabilities
Networth
Rs Cr
Assets
2,788
Receivables
Borrowings
685
Inventories
Other CL
Others
Provisions
Total
3,517
L & A
264
Cash & Bank
5
Others
7,259
Total
Rs Cr
150
5,725
230
158
996
7,259
Rs 1 cr = Rs 10 mn
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Superior Credit Rating
▷ Sunteck has Top Tier Credit Profile which is a Testimonial for its Strong Fundamentals.
AA- / Positive
AA- / Positive
▷ 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
25
Key Company Details
26
Shareholding Pattern
Shareholder Type
Promoters*
FIIs & DIIs
Others
Total
*Nil shares are pledged
December-2022
March-2023
67.1%
25.2%
7.7%
67.2%
25.6%
7.2%
100.0%
100.0%
▷ Market Cap - ~Rs. 4,274 crore / ~ US$ 534 million (25th May, 2023)
US$ 1 = ~Rs 80
27
Board of Directors 200+ years of combined experience across real estate, banking & finance, law & compliance
Kamal Khetan CMD
~3 decades of experience in the Real Estate industry. Formulate corporate strategy, acquisition, execution & diversification plans.
Atul Poopal Executive Director
>3 decades of experience in the field of civil engineering, development regulations and project assessments.
Rachana Hingrajia Director
~2 decades of experience in corporate law compliances. Additionally, Company Secretary of Sunteck Realty.
V P Shetty Independent Director
Has held C&MD position in UCO, Canara and IDBI Bank. Over 4 decades of experience in Banking.
Mukesh Jain Independent Director
>4 decades of experience in Banking, Real Estate and Insolvency. Presently, practicing law.
Chaitanya Dalal Independent Director
>3 decades of experience in audits including Statutory and CAG audits. Practicing CA.
Sandhya Malhotra Independent Director
~2 decades of experience in corporate law compliances. Active involvement in human rights and CSR matters.
28
Completed Residential Projects (11 projects) 10 projects delivered completed till FY22
1. Signature Island, BKC
2. Signia Isles, BKC
3. Signia Pearl, BKC
4. Signia High, Borivali E
5. Signia Oceans, Airoli
6. Signia Skys, Nagpur
7. Sig. Waterfront, Airoli
8. Gilbird Hill, Andheri W
9. S. City Avenue 1, ODC
10. S. City Avenue 2, ODC
29
Completed Residential Projects (11 projects) ~2 mn sq ft - Sunteck West World, Naigaon completed in FY23
11. Sunteck West World, Naigaon
30
Completed Commercial Projects (5 projects) Sunteck Pinnacle (DMart) and Sunteck Crest completed in 2023
12. Sunteck Center, Vile Parle
13. Sunteck Kanaka, Goa
14. Sunteck Grandeur, Andheri E
15. Pinnacle (DMART), ODC
16. Sunteck Crest, Andheri E
31
Ongoing Projects - Residential ~5 mn sq ft (8 projects) of execution underway across segments (5 residential + 3 commercial)
1. Sunteck Maxx World, Naigaon
2. Sunteck City 4th Avenue, ODC Goregaon W
32
Ongoing Projects - Residential ~5 mn sq ft of execution underway across segments (5 residential + 3 commercial)
3. Sunteck One World, Naigaon
4. Sunteck Beach Residences, Vasai W
5. Sunteck Sky Park, Mira Rd.
33
Ongoing Projects - Commercial ~5 mn sq ft of execution underway across segments (5 residential + 3 commercial)
6. Sunteck BKC 51, BKC Jn.
7. Sunteck Icon, BKC Jn.
8. Sunteck Pinnacle 1, ODC
34
ESG & Awards
35
Embarking on the ESG Journey
˃ With these certifications Sunteck reinforces its promise to delivering world-class properties that are luxurious and environmentally sustainable.
˃ As an EDGE Green Building Champion, Sunteck is recognized for leading the green building certification and its efforts to reduce carbon emissions, conserve natural resources, and create healthier living & working spaces.
36
Green Building Initiatives
˃
Four of Sunteck prestigious projects, 4th Avenue, SunteckCity, ODC Goregaon; Sunteck Maxxworld & Sunteck ONEWorld, Naigaon and Sunteck Beach Residences (SBR), Vasai has been awarded with EDGE (Excellence in Design for Greater Efficiencies) Precertifcation (IFC- International Finance Corporation -The World Bank Group).
˃ Our HO “Sunteck Centre” has been awarded LEED Operations and Maintenance V 4.1 : Existing Building GOLD certification by US Green building council
˃
Three of our commercials buildings; BKC51, Icon and Crest has been awarded EDGE –IFC pre certification
37
Awards & Recognitions
Best ESG Initiative of the Year - Year 2022
Best ESG Initiative to improve biodiversity impact reduction
1. 2.
Sustainable Initiative of the Year 2023 Sustainable Best Initiative of the Year 2023 – Go Green
38
Thank You
ir@sunteckindia.com
39