SOBHA Meet/132784_20100331.pdf · Sobha Developers : A Strong Foundation… 31 27 4.24 9.08-10 20 30 40 50 60 No of Projects SBA (Mn.sft) Ongoing Projects Real Estate Contractuals

SOBHA Maximizing value in each Square Foot…

31st MARCH’ 10 - PRESENTATION

Sobha Developers : A Strong FoundationSobha Developers : A Strong Foundation……

31

27

4.24

9.08

-

10

20

30

40

50

60

No of Projects SBA (Mn.sft)

Ongoing Projects

Real EstateContractuals

166

60

22.08

14.29

0

50

100

150

200

250

No of Projects SBA (Mn.sft)

Completed Projects

Real EstateContractuals … executing annually 6mn.sft

of works an average basis for the past 5 years

… execution presence in 20 cities across India

15 years of business stability

Truly global Indian company with scalable execution capability

Strong Brand Recall in South IndiaStrong Brand Recall in South India

Supported by >1,800 qualified management team and over 6,250 tradesmen

SOBHA DEVELOPERS LTDSOBHA DEVELOPERS LTD 22

Sobha Sobha –– BoardBoard……

• 36 years of experience in construction and real estate development• Awarded the prestigious Pravasi Bharatiya Samman Puraskar by the President of India (2009)

P.N.C. MenonThe founder and Chairman

Whole Time DirectorsWhole Time Directors

Ravi MenonVice- Chairman

• Six years of experience in construction and real estate development

• Bachelor of Science in Civil Engineering degree from Purdue University, USA

P. RamakrishnanDeputy Managing Director

J.C.SharmaManaging Director

• Over 26 years of experience in diversified Industries such as automobiles, textiles, steel and real estate

• He is a qualified Chartered Accountant and Company Secretary with Bachelor degree in Commerce (Honours) from St Xavier's college, Calcutta

• He holds B.E degree from PSG Technology, CBE and MBA from MaduraiKamaraj University.

• He has over 27 years of rich experience in Project Execution, Corporate Planning, System Design & Supply Chain Management.

Other Independent Directors

Anup ShahIndependent Director

• Over 24 years of experience in the field of law, specifically real estate law

• Degree in law from Government Law College, Mumbai

M.DamodaranIndependent Director

• Former Chairman of the Securities and Exchange Board of India (SEBI)

• He is an IAS officer (Retired) and over 30 years of rich experience in various public sectors and financial institutions

Dr.S.K.GuptaIndependent Director

• Over 49 years of experience in the field of metallurgy, engineering and management in the steel domain

• Metallurgical Engineer with a Ph.D.(Tech.) and D.Sc.(Tech.) from Moscow

RVS RaoIndependent Director

• Over 36 years of experience in the areas of banking and finance

• Bachelor’s degree in Commerce from Mysore University and a bachelor’s degree in law from Bangalore University


Share Holding PatternShare Holding Pattern……

• Promoters Holding : 60.50 %• FII’s : 24.17 %• Mutual Fund : 9.12 %• Others : 6.21 %

FIIFII’’ss

• Temasek• Capital International• Citi Group global markets• CAAM Funds• Emerging market• Government of Singapore Investment• Japan Trustee service bank• Merrill Lynch• Morgan Stanley• India equity growth fund• OppenHeimer International

Mutual Funds9.12%

FII's24.17%

Promoters60.50%

Others6.21%

Mutual FundsMutual Funds

• Reliance Capital• Birla Sun Life• Canara Robeco• HDFC mutual funds• JM financial • Kotak• Templeton• DSP Blackrock

Note: Status as on 23rd April 10


Fully Integrated Business ModelFully Integrated Business Model……

• Interiors• Metal & Glazing• Concrete• Spring Mattress

• IT Parks• Convention centre• Multiplex• Hospitals• Schools

• Residential• Commercial• Retail• Hospitality

• Facility Management• Architectural consulting• Structural designManufacturing

Contracts Services

Real EstateDevelopment

Business Model

Sobha’s USP is to provide integrated real estate management solutions on a turnkey basis


Sobha Competitive AdvantageSobha Competitive Advantage……

EXPERTISE INCONSTRUCTING

INNOVATIVESTRUCTURES

SYNERGETICBUSINESS ARMS-

BACKWARDINTEGRATION

MODEL

Project Implementation

Interiors Division

Glazing & Metal Division

ArchitecturalStructural &

Interior Studio

Mechanical,Electrical &

Plumbing practice

Building MaterialsDivision

PRESENCE ACROSSTHE REAL ESTATE

VALUE CHAIN

12

3

CONCEPTUALIZATION TO COMPLETION


Strategic way forwardStrategic way forward……

Diversify ProductPortfolio

Expand Geographical

Presence

Execution Strategy


Improved Operational PerformanceImproved Operational Performance……

• Targeted sales at the beginning of the year was 1.5 mn.sft

• Actual sale achieved for FY 09-10 was 2.08 mn.sft

Period Area sold (sft) No of Units sold

Q1 -2010 250,385 115

Q2 -2010 392,022 177

Q3 -2010 802,859 431

Q4 -2010 635,147 353

TOTAL 2,080,413 1,076-

100,000

200,000300,000

400,000

500,000

600,000700,000

800,000

900,000

Q1-2010 Q2-2010 Q3-2010 Q4-2010

Are

a So

ld (S

q.ft

)

Note: Q3 sales pent up due to new launch of Sobha Garrison on December 09


BreakBreak--up of Salesup of Sales……

Location wise Sales break-up for FY 09-10

Locations Area sold (Sft) %

Bangalore 1,356,744 65%

Thrissur 266,871 13%

Coimbatore 351,957 17%

Pune 104,839 5%

TOTAL 2,080,413 100%

• Targeted to sell 3 mn.sft in FY11-12.

• With sales witnessing an average of 0.24 mn sqft per month during the last 6 months and with new launches planned and new locations getting added, achieving 3 mn.sft of sales during the current financial year is possible.


Sign of growth momentumSign of growth momentum……

INTERNAL FACTORS:

• Improved operational efficiency – cash flow continues to remain positive from the operations during the last quarter which signifies the improvement in the operations

• From a peak D/E of 1.92 the current D/E stands at 0.80. Working towards to reduce the D/E ratio to 0.5 from the present 0.79

• Continue to maintain above 35% operating margin from our on-going residential projects.

• Average monthly sales volumes for the last two quarters have more than doubled when compared with first two quarters of 09-10.

• Average sales realization have increased about 6% from H1-10 to H2-10.

• Positive response from new launches – Sobha Garrison launched on Dec 09 – sold 182 units out of 310.

• Huge scaling up capacity

• Clear visibility on Contractual business –- about 3.9 mn.sft of new contractual works will be started progressively in 2010-11 onwards, apart from the ongoing development of 4.24 mn.sft


Sign of growth momentumSign of growth momentum……

EXTERNAL FACTORS:

• IT sector continues to witness growth resulting in recruitment and increase in emoluments. This in turn will result in demand for housing sector.

• The proposed capital expenditure by the IT sector to meet its growth will result in additional Contractual orders.

• As per CRISIL Research report, Bangalore will witness 7.3% of Capital value increase in 2010. Demand for the housing segment will increase marginally in 2010– backed by better job security owing to higher growth in the economy

• Growth initiatives proposed by both State and Central Government specially in Infrastructure will boost the demand for Housing segment.

• Availability of housing loans at affordable rates.


Project Launches during 09Project Launches during 09--1010……

Sobha City, Commercial Mall

Sobha Garrison Sobha Dewflower

SBA : 464,703 sq.ft

Total no of units : 310

Type : An exclusive colony for Serving & Retd. Armed force

officers

Location : Peenya, Bangalore

SBA : 622,408 sq.ft

Total no of units : 231

Type : 3 & 4 BHK Super Luxury Apartments

Location : J.P.Nagar, Bangalore

SBA : 303,527 sq.ft

Type : Commercial Centre. Retails, Hyper Market, Departmental Stores &

Multiplex

Location : Thrissur, Sobha City Project


Project CompletionProject Completion……

FY 2009 FY 2009 -- 1010 FY 2010 FY 2010 -- 1111

• Real Estate :

• 10 number of projects aggregating 1.82 mn.sft of projects have completed and handed over during FY 09-10

• Contractual :

• 26 number of projects aggregating 3.75 mn.sft of projects have completed and handed over during FY 09-10

• Overall 36 number of projects aggregating 5.57 mn.sft of work have completed and handed over during FY 09-10

• Real Estate :

• 3.32 mn.sft of Real Estate projects are targeted to complete on FY 10-11

• Contractual :

• 3.15 mn.sft of Contractual projects are targeted to complete on FY 10-11

• Total of 6.47 mn.sft of projects are targeted to complete in FY 10-11


Project LaunchesProject Launches……

• Proposed new Launches in current cities of operation in next 12 to 15 months

FY 10-11 onwards Bangalore Pune Coimbatore

0.29 0.20

Total

New Launches (mn sq.ft)

6.22 6.72

• New launches in new location

FY 10-11 Chennai Total

New Launches (mn sq.ft) 0.50 0.50

• Land required for the proposed launches has been fully paid up

• All the infrastructure required for future developments are available in place

• In addition to the above proposals, Preliminary works have already been started for NCR projects.



≈ 142 nos of 3 & 4 BHK units of Luxury and Super Apartments

Located at just 1 km from NIBM and 7 kms from M.G.Road

Target Launch on Q2-11

888 nos of 3 BHK – Luxury apartments

Located at KanakapuraMain Road, just 3 kms from METRO

Target Launch on Q2-11

Pune Pune -- KhondwaKhondwa South BangaloreSouth BangaloreSOBHA

Carnation- 2SOBHA

Marigold

Project New LaunchesProject New Launches……

Positive Operational Cash flowPositive Operational Cash flow……

Ongoing Real Estate Projects - Cash flow status as end of 31st March -10

Total Super Built-up area 9.08 Mn.sft

(Area of Office space, Club house & JD share = 1.30 mn.sft)

Sobha share of Saleable area 7.78 Mn.sft

Total area sold till 31st March-10 4.39 Mn.sft

Unsold area 3.39 Mn.sft

Balance construction cost to be spent to complete the entire ongoing developments 11,344 Rs.Mns

Outstanding receivables + Balance to be billed and collected on sold units 8,718 Rs.Mns

Sales value of unsold stock 14,540 Rs.Mns

Positive cash flow available from On-going projects 11,914 Rs.Mns

• Also, Cash flow from our future projects is expected to be in excess of Rs.14,000 mns in the next 3 years after meeting the construction cost.

• In addition to the above, the Contractual revenue is expected to be about Rs.4,000 mns in the current financial year.


Financial SnapshotFinancial Snapshot……

Revenue (year-wise)Period Revenue

(Rs.Mns)%

growthNet Profit (Rs.Mns)

% growth

Q4 – FY10 4,031 30% 557 37%

Q3 – FY10 3,104 37% 408 48%

Q2 – FY10 2,268 27% 275 116%

Q1 – FY10 1,790 127

4,6526,273

11,893

14,364

9,91711,193

0

4000

8000

12000

16000

Rev

enu

e (R

s.M

ns)

2005 2006 2007 2008 2009 2010

Financial Year

Year Revenue (Rs.Mns)

% growth

Net Profit (Rs.Mns) % growth

2009 –10 11,193 13% 1,367 25%

2008–09 9,917 1,097

Net Profit (year-wise)

1,3671,097

2,283

347

885

1,615

100

1000

10000

2005 2006 2007 2008 2009 2010Financial Year

Net

Pro

fit

(Rs.

Mn

s)

As on 31st Mar 10

Net Worth Rs. 17,085 Mns

Debt (Net) Rs.13,740 Mns

D/E ratio 0.80


Profit and Loss StatementProfit and Loss Statement……

Q4-10 Q4-09%

Growth%

GrowthQ3-10

2,397

696

10

3,103

1,909538

2,447656

21.1%82

149425

13.7%17

40813.1%

4.17

146%

153%

743%

696%

% growth Q4-10 on

Q3 -10

791

13%

-9%

10%

25%

30%

51%

83%

37%

754

94

1,639

775474

1,249390

23.8%92

20692

5.6%2270

4.3%0.95

FY-09

Real Estate Operations 3,060 8,092 5,864

Contractual + Manufacturing 948 3,048 3,883

170

9,917

4,5042,546

7,050

2,867

EBIDTA % 24.5% 23.2% 28.9%

PBT % 19.3% 14.3% 14.7%

PAT % 13.8% 12.2% 11.1%

360

1,052

1,455

358

1,097

11.2

Staff/Admn/Selling Cost 751 2,271

Provision for Tax 219 236

PAT 557 1,367

Total Expenditure 3,043 8,596

EBITDA 988 2,597

Depreciation 77 323

Interest 135 671

PBT 776

FY-10

1,603

Other Income 23 53

Total Revenue 4,031 11,193

Constn/Mfg Cost 2,292 6,325

EPS ( Basic & Diluted) (Rs) 5.7 13.94

Note: Values are Rs.in Millions


Revenue BreakRevenue Break--upup……

Q4-10 Q4-09 Gr % FY – 10 FY - 09 Gr%

8,092 5,864

60%

2.299

24%

1,584

16%

9,747

1,290

54%

73%

38%

-9%

-40%

14%

2,099

19%

949

8%

11,140

1,107

51%

287%

% to total income 76% 51%

59%

-16%

159%

791

420

27%

334

22%

1,545

215

57%

% to total income 17%

% to total income 7%

Total Income 4,008

Revenue from Infosys (Contractual + Manufacturing) 413

Manufacturing Income 279

Real Estate Operations 3,060

Contractual Income 669

% to total contractual income from Infosys 61%

Note: Values are Rs.in Millions


Land Bank PositionLand Bank Position……

Gurgaon

Pune

MysoreBangaloreChennai

Hyderabad

Coimbatore

Thrissur

Cochin

Hosur

Bangalore : Majority of the land purchased in and around Eastern and Northern parts of Bangalore – the fastest growing areas of the city.

Mysore: Land procured at Belavatta & Jattihundi Villages –around 10kms from the central locations.

Pune: Land has been acquired on Hinjewadi and NIBM, Kondwabelt, the fastest growing locations of the City

Cochin: Land procured adjacent to National Highway near Le-Meridian Hotel in the centre of the city

Chennai: Land procured in Sriperampudur and TambaramRegion - the emerging destinations

Hosur: Land situated near Bangalore boarder on National Highway-7.

Coimbatore: Land procured near Vadavalli & Singanallur – the emerging locations.

Gurgaon: Land situated at 0 KM away from Delhi boarder and 15 KM away from the new Delhi International Airport

Hyderabad: Land has been allotted on express way earmarked as business district by Govt of AP - in between the New International Airport and Hitech City.

Thrissur: Land situated at Thrissur-Guruvayur Highway, near to Sobha City Project.


Land Bank Land Bank –– Development PotentialDevelopment Potential……

• Lands are purchased on strategically growing corridors

• Balance amount payable is Rs.158.5 crsas on 31st Mar 10

• Development potential available of entire land bank, based on saleable FSI is 244 mn.sft

• Cost of land is Rs.187 /sft and the Land cost on saleable FSI cost is Rs.98 / sq.ft

HOSUR14%

CHENNAI16%

THRISSUR1% COCHIN

19%

MYSORE2%

BANGALORE36%

HYDERABAD3%

PUNE4%

COIMBATORE1%GURGAON

4%


Backward IntegrationBackward Integration…… (World class manufacturing facilities)(World class manufacturing facilities)

Interiors & Furnishing Division Glazing & Metal Works Division Concrete Products Division

Total Factory area : 0.8 Mn sq ft Factory area : 0.3 Mn sq ft Factory area : 0.4 Mn sq ft

Workforce : 875 Workforce : 604 Workforce : 76

PRODUCTS• Manufacturing wood based products

such as doors, windows, paneling, cabinets, cupboards & furniture

• Manufacture of Economy, Deluxe, Super Deluxe & Premium Mattresses from Furnishing division

PRODUCTS• Metal / Steel fabrication

• Aluminum door and windows structure

• Glass works

PRODUCTS• Manufacture of wide range of

concrete products such as concrete blocks, pavers, kerb stones, water drainage channels, paving slabs and elite landscape products


Global Standard in Quality and SafetyGlobal Standard in Quality and Safety……

• To achieve Global standards in construction, the EVALUATION EVALUATION SYSTEMSYSTEM is used with 1700+1700+ check points for auditing and rating the Quality and Safety works. It is continuous monitored through integrated software application anytime.

• HANDS ON TRAININGTRAINING given by German experts to our Execution teams to continuously train on all aspects as per our Evaluation manual using German tools, materials and constructionknowledge.

Quality Check by German staff

• Safety trainingSafety training, practical training procedure through our dedicated Safety team by using electronic media and video presentation have been very effective for us.e.g. - Safety is ensured through 5937 Tool Box talks, 706 5937 Tool Box talks, 706 Safety Meetings and 122 Safety Committee meetings Safety Meetings and 122 Safety Committee meetings at our In house sites during 2008-09.

Training by German staffs

• Quality Maintenance team Quality Maintenance team with 96%96% efficiency closing nearly 4000 4000 customer queries in FY 2008-09 ensuring “Defect free and functioning” Sobha Projects after completion and during occupation.

Safety Training at Site


SOBHA DEVELOPERS LTDSOBHA DEVELOPERS LTD

A Masterpiece of Modern India A Masterpiece of Modern India –– Infosys GEC 2, Infosys GEC 2, MysoreMysore……

Lounge areaLounge area

Class RoomClass Room

2424

A Masterpiece of Modern India A Masterpiece of Modern India –– Infosys GEC 2, Infosys GEC 2, MysoreMysore……


Central Atrium areaCentral Atrium area View from backsideView from backside

MysoreMysore Infosys GEC 2 Infosys GEC 2 -- InauguralInaugural

India’s Biggest Structure with a built-up area of 10 Lakhs. Sq.ft

Asia’s Largest Training Center, accommodates about 9500 trainees at any given point of time.

Supported by the largest residential unit (13,500 rooms) anywhere in the world for the trainees

Almost 2 times bigger than Bangalore VidhanSoutha and 5 times bigger than RastrapathiBhavan, Delhi

Its design is a mix of Roman Coliseum and Indian parliament Architecture

Mr.P.N.C.Menon, Chairman & Founder of Sobha Developers, receiving memento from Mrs.Sonia Gandhi, for Mysore Infosys GEC II, Inaugural function on Sept, 2009


Track Record of successful ExecutionTrack Record of successful Execution……

CW ARCHITECT & BUILDER CW ARCHITECT & BUILDER AWARD 2008AWARD 2008

BEST EXECUTED PROJECTBEST EXECUTED PROJECTIN INDIAIN INDIABEST OF THE BEST AWARDBEST OF THE BEST AWARD

Sobha got the “BEST EXECUTED PROJECT IN INDIA” award for its Sobha Malachite III project presented jointly by CNBC, ICICI & CRISIL on August 2007.

Infosys Employee Care Centre, Hinjewadi, Pune – Awarded ‘BEST OF THE BEST’ by Builders Association of India, Pune centre for the year 2008

Sobha Developers Limited , Awarded ‘CW ARCHITECT & BUILDER AWARD’ in Mumbai for being among India’s Top 10 Builders for the year 2008

PROJECT OF THE YEAR 2005PROJECT OF THE YEAR 2005ACCE SARVAMANGALA AWARDACCE SARVAMANGALA AWARD PROJECT OF THE YEAR 2005PROJECT OF THE YEAR 2005

Infosys Foot court I, Pune – Awarded “PROJECT OF THE YEAR 2005” by Builders Association of India-Birla well built structures for the year 2005

Infosys Mysore Campus, Phase II, Awarded “ACCE SARVAMANGALA AWARD” by Association of Consulting Civil Engineers India, for the year 2006

Infosys Mysore Project, – Awarded “PROJECT OF THE YEAR 2005” by Builders Association of India, Mysore Center on September 2005.


RecognitionRecognition……

REAL ESTATE EXCELLENCE AWARDREAL ESTATE EXCELLENCE AWARDMYSORE CAMPUS INAGURALMYSORE CAMPUS INAGURAL C&W AWARD 2007C&W AWARD 2007

Mr.P.N.C.Menon, Chairman & Founder of Sobha Developers, receiving memento from our Hon. Prime Minister. Dr.Manmohan Singh, for Mysore Infosys campus Inaugural function on Feb, 2005

Sobha Developers Limited , Awarded ‘C&W AWARD 2007’ by Construction World on August 2007, for being among India’s Top 10 Builders.

Sobha Developers Ltd , awarded ‘REAL ESTATE EXCELLENCE AWARD’ for 2007 by Moksh Promotions Limited

PRAVASI BHARATIYA SAMMAN PRAVASI BHARATIYA SAMMAN PURASKARPURASKAR

A+D Spectrum Award 2009A+D Spectrum Award 2009

Our achievements are still more and continued to be.....!!!!

Infosys Terminal Foodcourt building -awarded by A+D Spectrun foundation Architecture award 2009 to Mr.NeilJeffery, Architect, Sobha Developers.

Mr.P.N.C Menon, Chairman was awarded the‘PRAVASI BHARATIYA SAMMAN PURASKAR’ by Hon’ble President of India Smt.Pratiba Patil at Chennai on Jan 2009


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Documents

SOBHA Meet/132784_20100331.pdf · Sobha Developers : A Strong Foundation… 31 27 4.24 9.08-10 20 30 40 50 60 No of Projects SBA (Mn.sft) Ongoing Projects Real Estate Contractuals