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Earnings Call Overview • Date: June 4, 2024 • Participants: Chairman Murali Malayappan, CFO Gopalakrishnan • Focus: Exceptional operational and financial performance
Key Financial Highlights • Q4 Performance: • Sales: 1.56 million square feet • Sales Value: Exceeded Rs. 700 crores • Annual Performance: • Sales Volume: 4.59 million square feet (14% YoY growth) • Sales Value: Rs. 2,362 crores (28% YoY growth) • Near-record revenue: Just under Rs. 1,000 crores • EBITDA: Up 22% • PAT: Increased to Rs. 75.4 crores (10% rise)
Growth Metrics • Three-Year Growth: • Sales Volume CAGR: 15% • Sales Value CAGR: 24% • Handover CAGR: 42% • Future Targets: • FY '25 Sales Volume: 5.2 to 5.5 million square feet • Sales Value: Rs. 2,750 to 3,000 crores • Targeting 20% CAGR in sales
Project Developments • New Projects: • Entry into Pune market • Successful launch of Shriram Sapphire in Bangalore • Ongoing Projects: • Shriram 122 West acquisition • Progress on Gateway Mall monetization • Delivery of 3,500 homes in FY '25
Financial Strategy • Debt Management: • Aim for zero net debt within 12 to 18 months • Current debt-equity ratio target: 0.25 to 0.28 • Cash Flow: • Operational cash flow nearly doubled to Rs. 224 crores
Market Outlook • Sector Growth: • Optimism about real estate sector due to increased purchasing power • Preparedness for market volatility through conservative pricing and cost management
Stakeholder Engagement • Promoter Holding: • Stable at 28% • Future Partnerships: • Exploring new projects and collaborations, particularly with ASK and Aurum Investments
Conclusion • Management expressed confidence in achieving growth targets and maintaining stable financial metrics, inviting further questions from analysts.
Shriram Properties Limited Q3 & 9M FY24 Earnings Conference Call Summary
Company Overview • Date of Call: February 14, 2024 • Submission: Transcript submitted to National Stock Exchange of India and BSE Limited on February 20, 2024. • CEO: Murali Malayappan
Key Highlights • Market Entry: Entering Pune market. • Sales Performance: • Q3 sales volume: 1.1 million square feet. • Year-to-date total: 3 million square feet (12% YoY growth). • Record collections: Rs. 1,055 crores over nine months. • Challenges: Adverse weather and project approval delays affecting handovers and revenue recognition.
Project Updates • External Factors: Most issues resolved; targeting four launches in Q4. • Handover Targets: Aiming for 3,000 units, with 1,600 units completed by December.
Financial Performance • Nine-Month Results: • Achieved 68-70% of annual targets. • Sales: 3.03 million square feet (12% YoY growth). • Collections: Exceeded Rs. 1,000 crores (20% increase). • EBITDA margins stable at ~25%. • Debt Management: Gross debt increased to ~Rs. 500 crores; net debt at Rs. 440 crores.
Pricing Strategy • Price Improvement: 15% average increase in portfolio prices over nine months. • Mid-Market Pricing: Increased from below Rs. 5,000 to Rs. 6,200.
Future Outlook • Growth Target: 20% average growth over the next 2-3 years. • Debt Reduction: Aiming for zero net debt within 18-24 months. • Project Pipeline: 54 million square feet in total, with plans to launch an additional 6-7 million square feet.
Sustainable Development • Certification: Achieved EDGE certification for several projects.
Q&A Highlights • Commercial Projects: Focus remains on residential developments with minimal commercial activity. • Project Sales Performance: Clarified sales figures and handover readiness for specific projects. • Pune Project: New Greenfield site with revenue potential of Rs. 1,300 crores.
Conclusion • Confidence in Growth: Optimistic about recouping deferred revenues and delivering shareholder value.
Shriram Properties Limited Q2 and H1 FY 2024 Earnings Conference Call Summary
Earnings Performance • Date of Call: November 10, 2023 • Sales Value: • Q2: INR 608 crores (32% sequential increase) • H1: INR 1,066 crores (43% growth) • Quarterly Collections: Record high of INR 430 crores • Total Revenue: • Q2: INR 231 crores • H1: Slightly lower due to high base effect • Net Profit: • Q2: INR 20 crores • H1: INR 37 crores (23% increase)
Operational Highlights • Sales Volumes: • Q2: 1.14 million square feet (14% YoY increase) • H1: 1.9 million square feet • New Project Launches: • Shriram Paradiso in Chennai received positive market response • Upcoming launches: Shriram 122 West, Shriram Royal Court, and another residential project
Financial Metrics • EBITDA Growth: • Q2: 27% YoY • H1: 37% increase (from INR 86.7 crores to INR 118.6 crores) • Cost of Debt: Decreased to 11.4% • Cash Flow: • Q2: Total collections of INR 430 crores • H1: Positive cash flow from operations of INR 49 crores
Strategic Developments • Project Execution: Five projects expected to complete in H2 FY 2024 • Debt Management: • Gross debt stable at INR 530 crores • Targeting zero net debt by FY 2025 • Acquisition: Reacquiring economic interest from Mitsubishi Corporation in Shriram Park 63
Market Outlook • Future Revenue: • Anticipated INR 300 crores in free cash flow over the next three years • 70% of future revenues from already sold projects • Brand Transformation: Ongoing efforts referred to as "Shriram 2.0"
Q&A Highlights • Debt Levels: Expected to decrease to INR 300 crores by year-end and INR 200-250 crores in FY 2025 • Revenue Growth: H2 expected to be stronger than H1, with a target of over INR 1,000 crores in revenue recognition for the full year • Expansion Plans: Discussions ongoing for expansion into Pune, with a formal announcement expected in H2 FY 2024
Conclusion • The management expressed confidence in maintaining strong operational momentum and delivering superior value to shareholders.
Shriram Properties Limited Q1 FY24 Earnings Conference Call Summary
Conference Call Overview • Date: August 14, 2023 • Submitted transcript to National Stock Exchange of India and BSE Limited on August 21, 2023. • Chairman and Managing Director: Murali M.
Financial Performance Highlights • Sales Volume: 0.78 million square feet. • Revenue Growth: 8% year-on-year. • Net Profit: INR 17 crores. • Project Completion: Three projects totaling 1.3 million square feet; over 350 units handed over. • Debt Reduction: Expected decrease in debt levels with strong earnings visibility.
Real Estate Sector Overview • Market Conditions: Robust demand growth averaging 14% despite rising interest rates. • Price Increases: Key markets saw price increases of about 6%, with Bangalore and Chennai at 7% and 9%, respectively.
Q1 Performance Metrics • Volume Increase: 17% increase in sales volume. • Realization Growth: 47% rise in sales value. • Revenue: 10% year-on-year increase. • EBITDA: INR 53 crores, a 50% increase from the previous year.
Project Developments • New Project: Shriram 122 West in Chennai, 1.88 million square feet, soft launch in August. • Government Clearances: Awaiting for a transaction in West Bengal.
Financial Outlook • Debt Projections: Anticipated gross debt of INR 375-380 crores by end of Q2. • Revenue Visibility: Four projects expected to contribute 70% of projected revenues. • CAGR Target: Aiming for 20% CAGR in volumes.
Shareholding and Governance • Clarification on promoter ownership structure; no divestment of stakes. • Emphasis on trust, transparency, and governance.
Q&A Session Insights • Revenue Projections: Expected handover of 3.3 to 3.5 million square feet, around INR 1,100 crores in revenue for the year. • Debt Levels: Projected net debt of around INR 250 crores by year-end. • Unique Selling Proposition: High quality, timely delivery, and reliability.
Future Plans • Market Expansion: New projects planned in Pune and ongoing scouting in Hyderabad. • Demand Confidence: Sustained demand for mid-market housing expected over the next 3-5 years. • Cash Flow Projections: INR 2,000 to INR 2,500 crores over the next two years, with free cash flow around INR 150 to INR 200 crores.
Conclusion • Management remains optimistic about growth trajectory and project execution, inviting further inquiries from participants.
Earnings Performance • Date of Call: May 30, 2023 • Revenue Growth: 57% increase to Rs. 8.14 billion • Net Profit: Increased to Rs. 68 crores from Rs. 18 crores in FY22 • Sales Volume: Record sales of 4.02 million square feet, 25% year-on-year growth • Gross Margins: Maintained around 30%, EBITDA margins at 22%
Project Execution and Sales • Units Handed Over: 2,000 units, with seven projects completed • Sales Efficiency: 44% in first 90 days for five operational projects • Price Trends: Average price increase of 8%, cumulative 16% over 18 months
Financial Health • Cash Flow: Rs. 115 crores from operations, free cash flow of Rs. 116 crores • Net Debt: Rs. 432 crores, with a recent repayment of Rs. 103 crores • Cost of Debt: Reduced to 11.8% from 13% the previous year
Future Outlook • Growth Projections: Anticipated 20% growth in sales volume and value for FY24 • Project Launches: Plans to launch 11-12 projects targeting 7 million square feet • Long-term Cash Flow: Projected Rs. 3 billion in free cash flow over the next three years
Project Pipeline • Total Pipeline: 53 million square feet, with 24 million square feet ongoing • Upcoming Projects: 20 million square feet from 18 projects ready for FY24 launch
Management Insights • Regulatory Delays: Two project launches postponed to FY24 • Sales Collections: Impacted by postponed launches, resulting in a loss of Rs. 240 crores • Investor Interest: New investor acquiring 15% stake for potential synergies
Closing Remarks • Optimistic Growth Outlook: Aim for average sales volume of 5 million square feet annually • Market Conditions: Favorable macroeconomic conditions and strong demand for middle-income housing • Industry Position: Benefit from consolidation favoring large developers like Shriram Properties
Conference Call Overview • Date: February 15, 2023 • Submitted transcript to National Stock Exchange of India and BSE Limited on February 20, 2023. • Key participants: • Mr. Murali M (Chairman and Managing Director) • Mr. Gopalakrishnan J (Executive Director & Group CFO) • Mr. K.R Ramesh (Executive Director of Operations) • Focus: Q3 and nine-month financial results for FY '23.
Company Performance Highlights • Strong demand in real estate, especially in Bangalore, Chennai, and Kolkata. • Highest-ever nine-month sales in volume and value. • Affordable mid-market segment accounts for 70-80% of absorption. • Successful project launches, including Shriram Pristine Estates.
Financial Results • 60% year-on-year revenue increase for Q3. • Top four projects contributed 76% of revenue. • 42% decline in interest expenses due to refinancing. • Profit before tax (PBT) increased by 20% to INR 26 crores. • Net profit rose by 16% to INR 22.4 crores.
Future Outlook • Anticipation of strong Q4 performance with several project launches. • Projected presales volume of 4.25 to 4.5 million square feet by year-end. • Plans to deliver 10,000 units over the next three years.
Debt Management • Transitioned loan portfolio to 55% from banks. • Targeting a cost of debt around 12% by year-end. • Current gross debt stands at INR 504 crores with a low debt-to-equity ratio of 0.36.
Market Insights • Metro cities account for 80% of organized real estate demand. • Strong sales growth and declining inventory in core markets. • Mid-market demand remains robust; luxury segments improving post-COVID.
Project Launches and Co-Investment • Confidence in launching at least six out of seven planned projects. • Co-investment platform with ASK Investments for potential sales of INR 1,500 to 1,600 crores.
Conclusion • Management remains optimistic about the real estate market and company growth. • No significant impact from interest rate hikes on demand for affordable housing. • Positive outlook for ongoing projects and market conditions.