el Nitesh Estates Ltd. Meet/210551_20141111.pdf · Operating Officer of Nitesh Estates said: “We...

18
Draft Residential Commercial Hotel Shopping Mall Investor Presentation Quarter Ended September 30, 2014 Nitesh Estates Ltd.

Transcript of el Nitesh Estates Ltd. Meet/210551_20141111.pdf · Operating Officer of Nitesh Estates said: “We...

Page 1: el Nitesh Estates Ltd. Meet/210551_20141111.pdf · Operating Officer of Nitesh Estates said: “We are pleased with the 46% sequential growth in revenue and the corresponding growth

Draft R

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Investor Presentation

Quarter Ended September 30, 2014

Nitesh Estates Ltd.

Page 2: el Nitesh Estates Ltd. Meet/210551_20141111.pdf · Operating Officer of Nitesh Estates said: “We are pleased with the 46% sequential growth in revenue and the corresponding growth

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.”

Page 3: el Nitesh Estates Ltd. Meet/210551_20141111.pdf · Operating Officer of Nitesh Estates said: “We are pleased with the 46% sequential growth in revenue and the corresponding growth

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

Page 4: el Nitesh Estates Ltd. Meet/210551_20141111.pdf · Operating Officer of Nitesh Estates said: “We are pleased with the 46% sequential growth in revenue and the corresponding growth

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

Page 5: el Nitesh Estates Ltd. Meet/210551_20141111.pdf · Operating Officer of Nitesh Estates said: “We are pleased with the 46% sequential growth in revenue and the corresponding growth

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

Page 6: el Nitesh Estates Ltd. Meet/210551_20141111.pdf · Operating Officer of Nitesh Estates said: “We are pleased with the 46% sequential growth in revenue and the corresponding growth

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

Page 7: el Nitesh Estates Ltd. Meet/210551_20141111.pdf · Operating Officer of Nitesh Estates said: “We are pleased with the 46% sequential growth in revenue and the corresponding growth

Nitesh Mall Nitesh Melbourne Park

Str

uct

ure

Com

ple

te

Pre

-con

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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

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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

Page 8: el Nitesh Estates Ltd. Meet/210551_20141111.pdf · Operating Officer of Nitesh Estates said: “We are pleased with the 46% sequential growth in revenue and the corresponding growth

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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

Page 9: el Nitesh Estates Ltd. Meet/210551_20141111.pdf · Operating Officer of Nitesh Estates said: “We are pleased with the 46% sequential growth in revenue and the corresponding growth

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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

Page 10: el Nitesh Estates Ltd. Meet/210551_20141111.pdf · Operating Officer of Nitesh Estates said: “We are pleased with the 46% sequential growth in revenue and the corresponding growth

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

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Remaining Income potential of Rs. 36,435 mn by FY2019

Investor Presentation: Q2 FY2015

Q2 FY2015 Operational Update Quarterly Performance

Page 11: el Nitesh Estates Ltd. Meet/210551_20141111.pdf · Operating Officer of Nitesh Estates said: “We are pleased with the 46% sequential growth in revenue and the corresponding growth

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

Page 12: el Nitesh Estates Ltd. Meet/210551_20141111.pdf · Operating Officer of Nitesh Estates said: “We are pleased with the 46% sequential growth in revenue and the corresponding growth

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

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Nitesh Estates: At a Glance Company Overview

Investor Presentation: Q2 FY2015

Page 13: el Nitesh Estates Ltd. Meet/210551_20141111.pdf · Operating Officer of Nitesh Estates said: “We are pleased with the 46% sequential growth in revenue and the corresponding growth

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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

Page 14: el Nitesh Estates Ltd. Meet/210551_20141111.pdf · Operating Officer of Nitesh Estates said: “We are pleased with the 46% sequential growth in revenue and the corresponding growth

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

Page 15: el Nitesh Estates Ltd. Meet/210551_20141111.pdf · Operating Officer of Nitesh Estates said: “We are pleased with the 46% sequential growth in revenue and the corresponding growth

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

Page 16: el Nitesh Estates Ltd. Meet/210551_20141111.pdf · Operating Officer of Nitesh Estates said: “We are pleased with the 46% sequential growth in revenue and the corresponding growth

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

Page 17: el Nitesh Estates Ltd. Meet/210551_20141111.pdf · Operating Officer of Nitesh Estates said: “We are pleased with the 46% sequential growth in revenue and the corresponding growth

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

Page 18: el Nitesh Estates Ltd. Meet/210551_20141111.pdf · Operating Officer of Nitesh Estates said: “We are pleased with the 46% sequential growth in revenue and the corresponding growth

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

[email protected]

Saket Somani

Churchgate Partners

+91 22 3953 7444

[email protected]

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.