el Nitesh Estates Ltd. Meet/210551_20141111.pdf · Operating Officer of Nitesh Estates said: “We...
Transcript of el Nitesh Estates Ltd. Meet/210551_20141111.pdf · Operating Officer of Nitesh Estates said: “We...
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Investor Presentation
Quarter Ended September 30, 2014
Nitesh Estates Ltd.
Sustained revenue growth:
o Q2 FY2015 Revenue of Rs. 834 mn, growth of
46.1% over Q1 FY2015
o Gross Profit of Rs. 311 mn, increase of 20.4% over
Q1 FY2015; Margin at 37.2%
o EBITDA of Rs. 171 mn, growth of 21.3% over Q1
FY2015; Margin at 20.5%
o PAT of Rs. 80 mn at 9.5% margin, as compared to
Rs. 53 mn in Q1 FY2015
Net Debt at Rs. 3,474 mn (vs. Rs. 3,287 mn Q1
FY2015)
o Net Debt to Equity ratio of 1.07x
Book Value per Share of Rs. 22.22
Consolidated Highlights
1
Q2 FY2015 Summary Financial Performance
Investor Presentation: Q2 FY2015
Commenting on the results and performance, Mr.
Ashwini Kumar, Executive Director and Chief
Operating Officer of Nitesh Estates said:
“We are pleased with the 46% sequential growth
in revenue and the corresponding growth in
margins during the last quarter.
Our recently launched project Nitesh Chelsea, a
premium high rise condominium project has seen
excellent response from customers and this has
been very encouraging. The steady progress in
growth of business as also our project pipeline to
20 projects with a revenue potential of Rs 4,600
Crores makes us optimistic of the future.
There is steady progress on the construction of
projects and we are gearing ourselves for handing
over of 3 projects in the coming months.”
Sales Value of Rs. 1,426 mn
o An increase of 36% over Q1 FY2015 and 28% over Q2 FY2014
o Cumulative Sales Value of Rs. 11,869 mn achieved through the sale of 2.53 mn sq. ft. area
Robust Average Price Realization1 of Rs. 5,601 per sq. ft.
o Compared with Rs. 5,726 per sq. ft. in Q1 FY2015 and Rs. 6,018 in Q2 FY2014
o Marginally affected due to change in sales mix
Area Sold of 0.28 mn sq. ft.
o An increase of 42% over Q1 FY2015 and 16% over Q2 FY2014
o 14.56 mn sq. ft. of area currently under development
157 Units Sold
o Growth of 44% over Q1 FY2015 and 14% over Q2 FY2014
Steady Cash Collection: Rs. 866 mn (vs. Rs. 781 mn in Q1 FY2015)
Consolidated Highlights
2
Q2 FY2015 Summary Operational Performance
Note:
1. Average Price Realization excludes Nitesh Long Island, a plotted development project
Investor Presentation: Q2 FY2015
Deep value embedded in the development portfolio and recurring income streams
3
Q2 FY2015 Summary Operational Performance
Total sales potential of Rs. 46,019 mn from 19 current residential projects
o Sales booked to date of Rs. 11,869 mn
o Further sales potential of Rs. 34,151 mn by FY2019
Unrecognized Income of Rs. 5,732 mn as at September 30, 2014
o 7 residential projects are under income recognition
o 12 residential projects yet to cross the threshold for revenue recognition
Cumulative Collection of Rs. 8,114 mn; represents 68.4% of sales booked till date
Launched Nitesh Chelsea, a high-rise premium condominium development in South Bangalore
o Atleast 4 more projects are expected to be launched in FY2015
Recurring income streams
o The Ritz Carlton Hotel, Bangalore commenced operations in FY2014 and reinforces the Nitesh Estates
brand in the luxury and hospitality segments
o Nitesh Mall is expected to be operational in FY 2018; expected rental income of Rs. 500 – 600 mn per
annum
Investor Presentation: Q2 FY2015
Increasing income recognition will significantly enhance profitability
4
Q2 FY2015 Financials Quarterly and Annual Performance
Note:
1. Revenue and EBITDA include Other Income
2. Net Profit includes transfer to / income from Minorities / Associates
Investor Presentation: Q2 FY2015
Q2 Q1 Q4
(Rs. mn) FY2015 FY2015 FY2014
Total Debt 3,812.5 3,861.6 3,362.1
Cash and Cash Equivalents 338.3 575.1 363.9
Net Debt 3,474.2 3,286.6 2,998.2
Equity 3,240.9 3,227.8 3,261.7
Net Debt / Equity 1.07x 1.02x 0.92x
Book Value / Share (Rs.) 22.22 22.13 22.37
Q1 q-o-q
(Rs. mn) FY2015 FY2014 FY2015 Growth (%) FY2015 FY2014
Revenue1 834.1 844.1 571.1 46.1% 1,405.2 1,844.3
Gross Profit 310.7 381.4 258.0 20.4% 568.7 660.3
Margin (%) 37.2% 45.2% 45.2% 40.5% 35.8%
EBITDA1 171.3 254.8 141.2 21.3% 312.5 405.4
Margin (%) 20.5% 30.2% 24.7% 22.2% 22.0%
Profit After Tax (PAT) 79.6 151.6 52.9 50.5% 132.5 208.1
Margin (%) 9.5% 18.0% 9.3% 9.4% 11.3%
Net Profit2 16.6 130.9 (33.8) nm (17.2) 176.4
Basic EPS (Rs.) 0.11 0.90 (0.23) nm (0.12) 1.21
Q2 H1
Steady operational performance
5
Q2 FY2015 Operations Quarterly Performance
Sales Value (Rs. mn) Collections (Rs. mn)
Area Sold (mn sq. ft.) Average Price Realization1 (Rs. per sq. ft.)
Note:
1. Average Price Realization excludes Nitesh Long Island, a plotted development project
Investor Presentation: Q2 FY2015
6,018 6,280
5,835 5,726 5,601
Q2 FY2014 Q3 FY2014 Q4 FY2014 Q1 FY2015 Q2 FY2015
1,115
726 669
1,044
1,426
Q2 FY2014 Q3 FY2014 Q4 FY2014 Q1 FY2015 Q2 FY2015
0.24
0.12
0.16
0.19
0.28
Q2 FY2014 Q3 FY2014 Q4 FY2014 Q1 FY2015 Q2 FY2015
899
800751 781
866
Q2 FY2014 Q3 FY2014 Q4 FY2014 Q1 FY2015 Q2 FY2015
Nitesh Mall Nitesh Melbourne Park
Str
uct
ure
Com
ple
te
Pre
-con
stru
ctio
n
Nitesh Park Avenue Nitesh Napa Valley
Nitesh Hunter Valley
Con
stru
ctio
n i
n P
rogre
ss
Nitesh Logos
Nitesh Fisher Island
Nitesh Caesar's Palace Nitesh Hyde Park Nitesh Columbus Square
Nitesh Cape Cod
Total of 20 projects under various stages of construction
6
Note: Projects are sorted on the basis of completion date within each of the above 3 categories
Q2 FY2015 Operational Update Quarterly Performance
Nitesh Palo Alto
Nitesh Long Island
Nitesh British
Columbia
Investor Presentation: Q2 FY2015
Nitesh Chelsea
Nitesh Virgin Island Nitesh Knightsbridge Nitesh Grand Canynon Nitesh Rio Nitesh Plaza
7
Recent Launches Strategy
Investor Presentation: Q2 FY2015
Nitesh Chelsea Revenue potential ~ Rs. 1,400 mn
A high-rise premium condominium development in a prime
location and designed to give the ultimate home advantage
Developable area of 0.49 msft and is spread over a land area
of 3.12 acres
Offering a selection of private gardens, lavish balconies and
apartment sizes
With prime access to Bangalore’s IT corridor, Nitesh Chelsea
makes a pitch-perfect project that will put buyer in the
premier league in every sense
Nitesh Melbourne Park Revenue potential ~ Rs. 3,550 mn
A premium condominium development project with low-rise
residential units
Situated in the northern part of Bangalore, designed on 14
acres with 0.98 msft developable area
Features strategically designed, premium amenities such as
convenience shopping, coffee shops, health facilities and
visitors parking
A unique development offering luxury of private gardens and
terraces
8
The Ritz Carlton Hotel Income Generating Assets
Nitesh Estates has developed India’s first Ritz Carlton
hotel, one of the world's finest luxury hotel brands
Has commenced commercial operations from October
31, 2013 and provides a recurring revenue stream to the
Company and an association with a global iconic brand
A 5-star luxury hotel located in the Central Business
District of Bangalore at Residency Road
Spread over an area of 0.50 msft with 277 rooms
Has a convenient downtown location, richly-appointed
guest rooms & suites and multiple dining options
Super luxury hotel reinforcing the Nitesh brand in the luxury space
Investor Presentation: Q2 FY2015
Portfolio of 19 Residential Projects
Overall:
Total Developable Area (mn sq. ft.) 13.14
Total Saleable Area (mn sq. ft.) 10.59
Total Saleable Area (mn sq. ft.) (excluding Land Owner's share in case of Area Sharing projects) 7.88
Area Sold till Sept 30, 2014 (mn sq. ft.) 2.53
Total Sales Value Potential (Rs. mn) 46,019
Sales Booked till Sept 30, 2014 (Rs. mn) 11,869
Collections till Sept 30, 2014 (Rs. mn) 8,114
Company’s Share:
A. Total Sales Value Potential (Rs. mn) 40,987
A1. Sales Booked till Sept 30, 2014 (Rs. mn) 10,283
A2. Income Recognized till Sept 30, 2014 (Rs. mn) 4,552
B. Total Expected Project Cost (Rs. mn) 27,839
B1. Cost Recognized till Sept 30, 2014 (Rs. mn) 3,173
C. Income Unrecognized till Sept 30, 2014 (Rs. mn) (A1 – A2) 5,732
D. Remaining Sales Potential from Ongoing Projects by FY2018 (Rs. mn) (A – A1) 30,703
E. Total Income Potential from Ongoing Projects by FY2018 (Rs. mn) (C + D) 36,435
9
Remaining Income potential of Rs. 36,435 mn by FY2019
Investor Presentation: Q2 FY2015
Q2 FY2015 Operational Update Quarterly Performance
Q2 FY2015 Cumulative
ProjectsArea Sold (mn
sq. ft.)
Units
Sold
Sales Value
(Rs. mn)
Avg. Realization1
(Rs. per sq. ft.)
% Units
Sold
Units
Sold
Sales Value
(Rs. mn)
Nitesh Caesar's Palace 0.017 12 91.9 5,312 92% 327 1,811
Nitesh Hyde Park 0.033 20 194.6 5,836 91% 488 2,180
Nitesh Columbus Square 0.027 16 126.5 4,713 79% 190 1,266
Nitesh Cape Cod 0.002 1 10.5 6,231 73% 222 1,913
Nitesh Long Island 0.037 16 85.7 2,303 51% 163 819
Nitesh Logos - - - - 50% 4 325
Nitesh Melbourne Park 0.097 52 539.7 5,592 37% 108 1,079
Nitesh Napa Valley 0.003 1 32.0 11,799 30% 26 1,059
Nitesh Park Avenue - - - - 21% 3 570
Nitesh Chelsea 0.053 34 303.6 5,695 20% 34 304
Nitesh British Columbia 0.005 4 22.2 4,675 18% 58 323
Nitesh Fisher Island - - - - 5% 1 49
Nitesh Palo Alto 0.003 1 18.8 6,797 3% 7 172
Total 0.276 157 1,425.5 5,601 1,631 11,869
Q2 FY2014 0.238 138 1,114.6 6,018
Q1 FY2015 0.195 109 1,044.4 5,726
Rs. 11,869 mn of sales value achieved through the sale of 2.5 mn sq. ft. area
10
Q2 FY2015 Operational Update – Sales Summary Quarterly Performance
Note:
1. Average Price Realization excludes Nitesh Long Island, a plotted development project
Investor Presentation: Q2 FY2015
An integrated property developer with strong brand recall and presence across all assets class
Efficient
Business
Model
Project development through JDAs/JVs/Leases
Access to premium city centric properties at low upfront capital outlay
Efficient capital utilization - funds utilized only for project execution as compared to acquiring land
Higher internal rate of return
Established
Track
Record
Brought over 21.20 mn sq. ft. of area under development in 10 years since inception
Completed 13 premium residential, office and hospitality projects totalling 2.61 mn sq. ft.
Strong brand recall for timely execution of prestigious projects
In-house fully integrated property development team
Balanced
Project
Pipeline
Total of 20 Projects with 14.56 mn sq. ft. Area Currently Under Development
4.0 mn sq. ft. of Area Planned for Future Developments
Projects across all asset classes with predominant focus on residential segment
Well-located projects in cities of Bangalore, Chennai, Goa and Kochi
Strong
Leadership
&
Partnerships
Eminent board and strong management team with significant experience across industries
Investments from leading institutional investors like Apollo and HDFC AMC at project level
Partnership with leading firms like KPF, WATG, Callison and L&T for design and construction services
Developed India's first Ritz Carlton Hotel in Bangalore
11
Nitesh Estates: At a Glance Company Overview
Investor Presentation: Q2 FY2015
12
One of India's most recognized luxury real estate brands with focus in south India
Land Portfolio Company Overview
Bangalore
Land 189.1 acres
19 ongoing projects with developable area of
14.4 mn sq. ft.
Plans for future development of 0.64 mn sq.
ft. area for residential segment and 0.36 mn
sq.ft for commercial segment
Chennai
Land 8.3 acres
Plans for future development of 1mn sq. ft.
area for commercial and hospitality segments
Goa
Land 9.3 acres
Ongoing luxury villa project with
developable area of 0.20 mn sq. ft.
Kochi
Land 11.6 acres
Plans for future development of over 2 mn
sq. ft. area for residential, commercial and
hospitality segments
Total
Land 218.3 acres
18.6 mn sq. ft. area available for ongoing and
upcoming projects
Investor Presentation: Q2 FY2015
13
Proven Track Record Projects Overview
Completed Projects
• The Ritz Carlton Hotel with a developable area of 0.50 mn sq. ft.
• 8 premium residential projects developed over 1.38 mn sq. ft.
• 0.49 mn sq. ft. corporate housing project for ITC
• 3 commercial properties in Bangalore covering 0.24 mn sq. ft.
Current Portfolio of Projects
• 19 residential projects at various stages of construction, with a developable area of 13.14
mn sq. ft.
• Nitesh Mall with a developable area of 1.11 mn sq. ft. and Nitesh Plaza (commercial) of
0.31 mn sq. ft.
Upcoming Projects
• Around 35 acres of land available for future projects (4.0 mn sq. ft. of developable area)
• Projects to be spread across various asset classes and geographies
Investor Presentation: Q2 FY2015
14
19 residential projects in high and mid income segments Average price realization (Rs. per sq. ft.)1
Current project mix
Total of 20 Projects with 14.56 mn sq. ft. Area Currently Under Development
Construction schedule (mn sq. ft.)
Ongoing Projects Projects Overview
Notes:
1. Average price realization based on sales till September 30, 2014 and excludes Nitesh Long Island, a plotted development project
Investor Presentation: Q2 FY2015
High - Income
9%
Mid - Income
91%
Residential
90%
Retail
10%
13,352
4,546 4,367
High - Income Mid - Income Average
4.53 0.59
1.65
7.79
FY2016 FY2017 FY2018 FY2019 FY2015-19
14.56
Total Sales Potential of Rs. 46,019 mn from 19 Current Residential Projects
Notes:
1. All projects in Bangalore except Nitesh Fisher Island
2. Total Units include Land Owners’ share
15
Current Portfolio of Projects Projects Overview
Investor Presentation: Q2 FY2015
No. Project Land
Agreement Location1 Segment
Completion
Date
Land Area
(acres)
Developable
Area
(mn. sq. ft.)
Total
Units
Company’s Share
(%)
Area Sharing:
1 Nitesh Columbus Square JDA Bellari Road Mid - Income Jun-15 4.36 0.73 364 66%
2 Nitesh Caesar's Palace JDA Kanakpura Road Mid - Income Jun-15 5.00 0.94 498 69%
3 Nitesh Logos JDA Aga Abbas Ali Road High - Income Jun-15 0.64 0.09 16 48%
4 Nitesh Fisher Island JDA Goa High - Income Jun-15 9.32 0.20 36 60%
5 Nitesh Cape Cod JDA Outer Ring Road Mid - Income Dec-15 4.36 1.00 417 76%
6 Nitesh Napa Valley JDA Bellari Road High - Income Dec-16 20.13 0.59 133 63%
7 Nitesh Park Avenue JDA Sankey Road High - Income FY 2019 0.62 0.14 28 50%
8 Nitesh Melbourne Park JDA Hennur Mid - Income FY 2019 14.00 0.98 440 66%
9 Nitesh Hunter Valley JDA Hennur Mid - Income FY 2019 21.53 2.20 1,091 68%
10 Nitesh Virgin Island JDA Old Madras Road Mid - Income FY 2019 7.73 1.04 471 65%
11 Nitesh Chelsea JDA Bommasandra Mid - Income FY 2019 3.12 0.49 262 64%
12 Nitesh Knightsbridge JDA Sadashivanagar High - Income FY 2019 0.32 0.05 15 50%
13 Nitesh Grand Canynon JDA Electronics City Mid - Income FY 2019 6.50 0.65 362 66%
14 Nitesh Rio JDA Kanakapura Road Mid - Income FY 2019 14.00 0.61 130 28%
15 Nitesh Plaza (A) JDA Ali Askar Road High - Income FY 2019 2.44 0.11 55 89%
Revenue Sharing:
16 Nitesh Hyde Park JDA Bannergatta Road Mid - Income Jun-15 5.43 0.68 537 61%
17 Nitesh Long Island JDA Devanahalli Mid - Income Jun-15 43.00 0.89 321 31%
18 Nitesh British Columbia JDA Anjanapura Mid - Income FY2018 4.70 0.54 329 68%
19 Nitesh Palo Alto JDA ORR, Marathalli Mid - Income FY2019 11.12 1.21 251 62%
Sub - Total (Residential) 178.32 13.14 5,756
20 Nitesh Mall JDA Indiranagar Retail FY2018 5.06 1.11 50%
21 Nitesh Plaza (B) JDA Ali Askar Road High - Income FY 2019 0.31 37%
Total 183.38 14.56
4.0 mn sq. ft. of Area Planned for Future Developments
16
Upcoming Projects Projects Overview
Investor Presentation: Q2 FY2015
No. Project Land Agreement Location Segment Land Area (acres) Developable Area
(mn. sq. ft.)
Company’s Share
(%)
1 Nitesh Key Biscayne JDA Devanahalli, Bangalore High - Income Residential 12.00 0.51 74%
2 Richmond Road MOU CBD, Bangalore High - Income Residential 0.55 0.09 76%
3 Nitesh Courtyard JV Cunnigham Road, Bangalore High - Income Residential 0.48 0.04 55%
Sub - Total (Residential) 13.03 0.64
4 Nitesh Wimbeldon Garden JV Kakkanad, Kochi Commercial / Residential 8.00 1.64 38%
5 Chennai MOU Chennai Commercial / Hospitality 8.26 1.00 26%
6 Bolghatty Island MOU Kochi Hospitality 3.56 0.39 26%
7 Commissariat Road JDA Commissariat Road, Bangalore Commercial 2.04 0.36 50%
Total Planned Projects 34.89 4.03
Contact Details:
Nitesh Estates Limited
CIN: L07010KA2004PLC033412
Nitesh Timesquare, Level 7
#8 MG Road, Bangalore – 560001
Ph: +91 80 4017 4000
Fax: +91 80 2555 0825
www.niteshestates.com
Venkateshan MA
Nitesh Estates
+91 80 4017 4000
Saket Somani
Churchgate Partners
+91 22 3953 7444
Disclaimer:
This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to
the implementation of strategic initiatives, and other statements relating to Nitesh Estates future business developments and economic
performance. While these forward looking statements indicate our assessment and future expectations concerning the development of our
business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from
our expectations. These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends,
movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions
of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance.
Nitesh Estates undertakes no obligation to publicly revise any forward looking statements to reflect future / likely events or circumstances.