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Investor Presentation
Quarter Ended June 30, 2013
Nitesh Estates Ltd.
Reports all time record topline performance:
o Revenue of Rs. 1,000 mn
o Over 10x Q4 FY2013 Revenue
o Over 3x Q1 FY2013 Revenue
Strong return to profitability and robust margins:
o Gross Profit of Rs. 279 mn with a margin of 27.9%
o EBITDA of Rs. 151 mn with a margin of 15.1%
Delivering value to shareholders:
o Profit after Tax of Rs. 57 mn with a margin of
5.7%
o EPS of Rs. 0.31
Cash generation underpins capital structure:
o Net Debt of Rs. 2,400 mn
o Net Debt to Equity ratio of 0.74x
Consolidated Financial Highlights
1
Q1 FY2014 Summary Quarterly Performance
Investor Presentation: Q1 FY2014
Commenting on the results and performance, Mr.
Ashwini Kumar, Executive Director and Chief
Operating Officer of Nitesh Estates said:
“We are delighted to report a solid performance
during the last quarter, underscoring the
Company’s high growth trajectory and value-add
to shareholders. As we build up the momentum of
project completion, we expect further enhanced
revenues and profitability going forward.
Our sales, both in terms of value and area,
remained robust and are a true reflection of Nitesh
Estates’ strong brand loyalty and customer trust.
We have a strong pipeline of 12 ongoing
residential projects with a future sales potential of
Rs. 22.0 bn and unrecognized income of Rs. 5.3 bn
as at June 2013.
The Ritz Carlton Hotel, opening for customers in
September, symbolizes the luxury brand value that
the Company enjoys.”
Consolidated Operational Highlights
2
Q1 FY2014 Summary Quarterly Performance
Investor Presentation: Q1 FY2014
Sales Value of Rs. 1,280 mn
o A growth of close to 200% y-o-y and 22% q-o-q
o Cumulative Sales Value of Rs. 8,822 mn achieved through the sale of 2.07 mn sq. ft. area
Area Sold of 0.35 mn sq. ft.
o A growth of over 350% y-o-y and 110% q-o-q
o 10.66 mn sq. ft. of area currently under development
Average Price Realization1 of Rs. 6,096 per sq. ft.
o Compared with Rs. 5,553 per sq. ft. in Q1 FY2013
Cash Collection of Rs. 849 mn
o A growth of 39% y-o-y and 25% q-o-q
Signed a new mid-income residential project, Nitesh British Columbia
o Total revenue potential of the project is estimated to be Rs. 3,000 million
Note:
1. Average Price Realization excludes Nitesh Long Island, a plotted development project
Deep value embedded in development portfolio and recurring income streams
3
Q1 FY2014 Summary Quarterly Performance
Total sales potential of Rs. 30,281 mn from 12 ongoing residential projects
o Sales Booked to date of Rs. 8,267 mn
o Further sales potential of Rs. 22,014 mn by FY2017
o Two projects are expected to be completed in FY2014
Unrecognized income of Rs. 5,266 mn as at June 30, 2013
o Seven residential projects have crossed the threshold limit for income recognition
o Two projects to cross the threshold limit in FY2014: Nitesh Long Island and Nitesh Napa Valley
o Three residential projects are under pre-construction/construction stages
o Nitesh Camp David and Nitesh Central Park completed and delivered in FY2013
Cumulative collection of Rs. 5,163 mn; Upside in cash collection of Rs. 3,104 mn, represents 38% of sales
booked till date
FY2014 recurring income streams
o The Ritz Carlton Hotel, Bangalore is expected to be operational by September 2013
Near term recurring income streams
o Nitesh Mall is expected to be operational in FY2016
o Expected rental income of Rs. 500 – 600 mn per annum
Investor Presentation: Q1 FY2014
Increasing income recognition will significantly enhance profitability
4
Q1 FY2014 Financials Quarterly Performance
Notes:
1. Revenue includes Net Sales plus Other Income
2. Impacted by Rs. 150 million charge on account of sales reversals and premium on redemption of debentures amounting to Rs. 38 million in Q4 FY2013
Investor Presentation: Q1 FY2014
Q1 Q4
(Rs. mn) FY2014 FY2013 FY2013
Total Debt 2,675.4 1,658.6 2,709.2
Cash and Cash Equivalents 275.8 526.2 278.6
Net Debt 2,399.6 1,132.4 2,430.6
Equity 3,254.9 4,589.1 3,209.1
Net Debt / Equity 0.74x 0.25x 0.76x
Debentures 1,159.6 970.0 1,170.9
Book Value / Share (Rs.) 22.32 31.47 22.01
Q4
(Rs. mn) FY2014 FY2013 FY2013
Revenue1 1,000.2 325.8 95.4
Gross Profit 279.0 92.8 (95.7)
Margin (%) 27.9% 28.5% nm
EBITDA 150.6 (42.9) (245.8)
Margin (%) 15.1% nm nm
Profit After Tax (PAT)2 56.5 (40.1) (494.6)
Margin (%) 5.7% nm nm
Net Profit2 45.5 (40.7) (513.3)
Margin (%) 4.6% nm nm
Basic EPS (Rs.)2 0.31 (0.28) (3.52)
Q1
434
618 623
1,048
1,280
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Sales Value and Area Sold increased 22% and 110% q-o-q, respectively
5
Q1 FY2014 Financials Quarterly Performance
Sales Value (Rs. mn) Collections (Rs. mn)
Area Sold (mn sq. ft.) Average Price Realization1 (Rs. per sq. ft.)
Investor Presentation: Q1 FY2014
610
762
606681
849
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Note:
1. Average Price Realization excludes Nitesh Long Island, a plotted development project
0.080.11
0.08
0.17
0.35
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
5,553 5,797
7,965
6,225 6,096
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Str
uct
ure
Com
ple
te
The Ritz Carlton Hotel
Pre
-con
stru
ctio
n
Nitesh Mall 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 Flushing Meadows
Nitesh Hyde Park Nitesh Columbus Square
Nitesh Cape Cod
Total of 14 projects under various stages of construction
6
Note: Projects are sorted on the basis of completion date within each of the above 3 categories
Q1 FY2014 Operational Update Quarterly Performance
Nitesh Palo Alto
Nitesh Long Island
Investor Presentation: Q1 FY2014
Nitesh Palo Alto
7
Recent Launches Strategy
Villament project situated on the IT Corridor of
Marathahalli – Sarjapur Ring Road
Has 251 units comprising of 3BHK and 4BHK homes
with a multitude of amenities
Has a developable area of 1.21 msft and is spread over a
land area of 11.12 acres
Is in close proximity to shopping centers, schools and
health care facilities
Situated on Bellary Road Bangalore, provides a
Californian lifestyle experience to home owners
Spread over 20 acres, has 133 units with a developable
area of 0.59 msft and unit areas ranging from 2,712 sqft
to 5,342 sqft
Designed by P Landscapes (PLA), Thailand; Warner
Wong (WOW), Singapore and Wimberly Allison Tong
and Goo (WATG), California
Inspired by the architecture of Santa Barbara and
California
Investor Presentation: Q1 FY2014
Revenue potential over Rs. 5,300 mn
Nitesh Napa Valley Revenue potential ~Rs. 4,100 mn
Nitesh Park Avenue
8
Recent Launches Strategy
A premium luxury residential project with a total of 24 units
and is located in a prestigious location
Developable area of 0.14 msft and is spread over a land area
of 0.62 acres
In the vicinity of luxury hotels such as the ITC Windsor
Manor Hotel, the Taj West End and the Le Meridian
Close to various restaurants & bars, shopping centres,
cultural places and schools & colleges
Designed by Kohn Pedersen Fox (KPF), New York; P
Landscape, Thailand and Wilson Associates, New York
Investor Presentation: Q1 FY2014
Revenue potential ~Rs. 2,000 mn
Nitesh Long Island Revenue potential over Rs. 1,730 mn
Plotted development project on Devanahalli main road
An integrated gated community, spread over 43 acres with a
developable area of 0.89 msft and 321 units
Provides easy commute to the city centre, airport and major
existing and upcoming economic hubs
Internationally designed landscape features, promenades and
manicured gardens with wide roads and pathways
9
Q1 FY2014 Operational Update Quarterly Performance
Remaining Sales potential of Rs. 22,014 mn by FY2017
Ongoing residential projects summary
Total Developable Area (mn sq. ft.) 9.05
Total Saleable Area (mn sq. ft.) 7.23
Total Saleable Area (mn sq. ft.) – Company’s share 4.69
Area Sold till June 30, 2013 (mn sq. ft.) 1.94
A. Total Sales Value Potential (Rs. mn) 30,281
A1. Sales booked till June 30, 2013 (Rs. mn)1 8,267
A2. Collections till June 30, 2013 (Rs. mn) 5,163
A3. Income Recognized till June 30, 2013 (Rs. mn) 2,341
B. Total Expected Project Cost (Rs. mn) 18,502
B1. Cost Recognized till June 30, 2013 (Rs. mn) 1,899
C. Income Unrecognized till June 30, 2013 (Rs. mn) 5,266
D. Remaining Sales potential from ongoing projects by FY2017 (Rs. mn) 22,014
Note:
1. Sales Booked includes Land Owner’s share for Nitesh Hyde Park project
2. Nitesh Camp David and Nitesh Central Park are now complete and have not been included in the upcoming projects
Investor Presentation: Q1 FY2014
Q1 FY2014 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 Camp David 0.003 1 24.3 7,823 100% 4 84.7
Nitesh Central Park 0.014 6 60.5 4,366 92% 69 469.8
Nitesh Hyde Park 0.025 21 132.1 5,305 85% 428 1,694.0
Nitesh Flushing Meadows 0.005 3 21.8 4,394 82% 163 716.4
Nitesh Caesar's Palace 0.021 16 105.7 5,020 72% 257 1,280.7
Nitesh Cape Cod 0.041 25 229.7 5,653 64% 195 1,601.5
Nitesh Columbus Square 0.007 5 33.7 4,910 57% 137 861.8
Nitesh Logos 0.005 1 98.0 18,533 38% 3 253.2
Nitesh Long Island 0.212 86 413.9 1,952 27% 86 413.9
Nitesh Napa Valley 0.005 2 49.5 9,124 26% 22 904.0
Nitesh Park Avenue 0.000 - - - 7% 1 361.0
Nitesh Palo Alto 0.016 5 111.0 6,929 3% 8 180.7
Total 0.354 171 1,280.1 6,096 1,373 8,821.8
Q1 FY2013 0.078 49 434.1 5,553
Q4 FY2013 0.168 101 1,047.5 6,225
Rs. 8,822 mn of sales value achieved through the sale of 2.1 mn sq. ft. area
10
Q1 FY2014 Operational Update Quarterly Performance
Investor Presentation: Q1 FY2014
Note:
1. Average Price Realization excludes Nitesh Long Island, a plotted development project
2. Nitesh Camp David and Nitesh Central Park are now complete and have not been included in the upcoming projects
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 ~ 21 mn sq. ft. of area under development in 8 years since inception
Completed 11 premium residential and office projects totalling 1.73 mn sq. ft.
Strong brand recall for timely execution of prestigious projects
In-house fully integrated property development team
Balanced
Project
Pipeline
Total 14 projects with 10.66 mn sq. ft. of area currently under development
8.70 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: Q1 FY2014
Bangalore
Land 193.2 acres
13 ongoing projects with developable area of
10.46 mn sq. ft.
Plans for future development of 5.7 mn sq. ft.
area for residential 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
12
Total
Land 222.4 acres
Over 19.4 mn sq. ft. area available for
ongoing and upcoming projects
One of India's most recognized luxury real estate brands with focus in south India
Land Portfolio Company Overview
Investor Presentation: Q1 FY2014
Completed Projects
• 7 premium residential projects developed over 1.00 mn sq. ft.
• 0.49 mn sq. ft. corporate housing project for ITC
• 3 commercial properties in Bangalore covering 0.24 mn sq. ft.
Ongoing Projects
• 12 residential projects at various stages of construction, with a developable area of 9.05
mn sq. ft.
• The Ritz Carlton Hotel with a a developable area of 0.50 mn sq. ft.
• Nitesh Mall with a developable area of 1.11mn sq. ft.
Upcoming Projects
• Over 87 acres of land available for future projects (8.7 mn sq. ft. of developable area)
• Projects to be spread across various assets class and geographies
13
Proven Track Record Projects Overview
Investor Presentation: Q1 FY2014
10.66
1.61
3.80
1.70
3.55
FY2014 FY2015 FY2016 FY2017 FY2014-17
9,162
4,378 4,689
High - Income Mid - Income Average
Residential
85%
Retail
10%
Hospitality
5%
High - Income
11%
Mid - Income
89%
14
12 residential projects in both high and mid income segments Average price realization (Rs. per sq. ft.)1
Current project mix
Total of 14 projects with 10.66 mn sq. ft. area currently under development
Construction schedule (mn sq. ft.)
Ongoing Projects Projects Overview
Investor Presentation: Q1 FY2014
Notes:
1. Average price realization based on sales till June 30, 2013 and excludes Nitesh Long Island, a plotted development project
1 Nitesh Flushing Meadows AOP Whitefield Mid - Income Dec-13 2.00 0.38 200 67%
2 Nitesh Columbus Square JDA Bellary Road Mid - Income Mar-14 4.36 0.73 364 66%
3 Nitesh Hyde Park JDA Bannerghatta Road Mid - Income Jun-14 5.43 0.68 537 61%
4 Nitesh Caesar's Palace JDA Kanakapura Mid - Income Jun-14 5.00 0.94 498 69%
5 Nitesh Fisher Island JDA Goa High - Income Jun-14 9.32 0.20 36 60%
6 Nitesh Logos JDA Aga Abbas Ali Road High - Income Aug-14 0.64 0.09 16 45%
7 Nitesh Cape Cod JDA Outer Ring Road Mid - Income Dec-14 4.36 1.00 417 76%
8 Nitesh Long Island JDA Devanahalli Mid - Income Mar-15 43.00 0.89 321 32%
9 Nitesh Napa Valley JDA Bellary Road High - Income Mar-16 20.13 0.59 133 63%
10 Nitesh Park Avenue JDA Sankey Road High - Income Jul-16 0.62 0.14 24 50%
11 Nitesh Palo Alto JDA Outer Ring Road Mid - Income Dec-16 11.12 1.21 251 62%
12 Nitesh Hunter Valley JDA Hennur Mid - Income Mar-17 21.53 2.20 1,091 68%
127.51 9.05 3,888
13 The Ritz Carlton Hotel JV Residency Road Hospitality Sep-13 2.58 0.50 277 26%
14 Nitesh Mall JDA Indiranagar Retail Jun-15 5.06 1.11 - 50%
135.15 10.66
Completion
Date
Sub - Total (Residential)
Total
Land Area
(acres)
Developable
Area
(mn. sq. ft.)
No. ProjectLand
AgreementLocation
1 SegmentCompany’s Share
(%)
Total
Units
12 residential projects have revenue potential of Rs. 30,281 mn
Notes:
1. All projects in Bangalore except Nitesh Fisher Island
2. Total Units includes Land Owners’ share
3. Nitesh Camp David and Nitesh Central Park are now complete and have not been included in the upcoming projects
15
Ongoing Projects Projects Overview
Investor Presentation: Q1 FY2014
1 Whitefield MOU Whitefield, Bangalore Mid - Income Residential 23.00 2.38 69%
2 Thannisandra LOI Thannisandra, Bangalore Mid - Income Residential 10.21 1.06 67%
3 Nitesh British Columbia JDA Anjanpura, Bangalore Mid - Income Residential 4.70 0.61 68%
4 Nitesh Malibu MOU Hennur, Bangalore Mid - Income Residential 14.00 0.58 62%
5 Nitesh Key Biscayne JDA Devanahalli, Bangalore High - Income Residential 12.00 0.51 74%
6 Nitesh Plaza JDA Ali Askar Road High - Income Residential 2.44 0.40 49%
7 Richmond Road MOU CBD, Bangalore High - Income Residential 0.55 0.09 76%
8 Nitesh Courtyard JV Cunnigham Road, Bangalore High - Income Residential 0.48 0.04 55%
67.38 5.67
9 Nitesh Wimbeldon Garden JV Kakkanad, Kochi Commercial / Residential 8.00 1.64 38%
10 Chennai MOU Chennai Commercial / Hospitality 8.26 1.00 26%
11 Bolghatty Island MOU Kochi Hospitality 3.56 0.39 26%
87.20 8.70
Developable
Area
(mn. sq. ft.)
Company’s
Share
(%)
Sub - Total (Residential)
SegmentLand Area
(acres)
Total
No. Project Land Agreement Location
8.7 mn sq. ft. of area planned for future developments
16
Upcoming Projects Projects Overview
Investor Presentation: Q1 FY2014
Contact Details:
Nitesh Estates Limited
Nitesh Timesquare, Level 7
#8 MG Road, Bangalore – 560 001
Venkateshan MA
Nitesh Estates
+91 80 4017 4000
venkateshan.ma@niteshestates.com
Anirudh Bhardwaj
Churchgate Partners
+91 22 3953 7444
anirudh@churchgatepartnersindia.com
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 Limited’s (‘Nitesh Estates’ or the ‘Company’)
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.
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