Sunteck Realty Limited

Ideators, Creators & Innovators

Corporate Presentation
March 2015

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Corporate Overview
Business Operations
Construction Updates
Financials
Strategy

An Insight
Mumbai focused developer

City-centric acquisitions
Premium Positioning
Development Potential: ~25 msf spread
across 24 projects and 4 rented assets

6 projects completed in last 4 years

totaling to delivery of ~2 msf

Our Strengths
Sunteck
Brand

Established premium brand

Affluent clientele

Long Lasting
Partnerships

Varied level partnerships since inception India Reit, Kotak REF and Ajay Piramal Group
Successful exits on multiple counts

Acquisition
Philosophy

Clean and clear acquisitions; Mix of Govt. Tenders, Outright Purchases and JV/JDAs
22 city-centric acquisitions between 2009 to 2013. Lowest FSI Cost of ~`2,000 psf

Funding
Approach

Prudent cash flow management

Capital Efficient Structures: Equity, Debt, Internal Accruals and PE Investments

Execution
Capabilities

Completion of ~2 msf in one execution cycle of 5 years

Experienced EPC team with best Contractors, Architects and Consultants on board

Corporate
Governance

Strong Independent Directors on Board with varied years of industry experience

Simple Balance Sheet and Project Structures
5

Solid Team
NAME

EXPERIENCE

ROLE

Over 18 years;
Regulatory Approvals

Compliance & Regulatory

Affairs

Exec. Vice President

Over 10 years; corporate

finance

Corp Finance, Investor

Relations & Luxury Sales

President

Over 18 years

EPC

Sr. Vice President

Over 38 years; project

management, operations

EPC

Sr. Vice President

Over 20 years; architecture

Project Planning & Design

Vice President

Over 30 years; commercial

affairs, procurement &
inventory control

Head - Procurement

Vice President

Over 20 years; project

management

PMO

Vice President

Over 8 years; project

management & marketing

Sales & Marketing, CRM

President

Business Updates
Delivery

Total 6 projects completed out of 24 projects and 4 rented assets

Additional 7 projects to be completed over next 8-10 quarters

Project
Potential

Sales of worth ~`21,913 mn unrecognized in the P&L

Inventory Value: 10 Completed and Ongoing Projects is ~`52 bn

Upcoming
Projects

No. of projects 8; development potential of ~15msf

Of which 3 projects target to launch in H1FY16, 1 already launched

Leverage

Net Secured Debt of ~`3,499 mn with Networth of ~`14,498 mn

Net Debt to Equity ratio is 0.24x with strong cash flow visibility

Margins &
ROEs

EBITDA Margin of ~51% reported in Q3FY15 (highest in the industry)

ROE of ~30% achieved

Awards & Accolades

Awards & Accolades (Contd..)

Sunteck City, wins

Suntecks flagship

Real
Estate
Marketing
Campaign of the
Year award at
Realty
Plus
Excellence Awards
2013

project
i.e.
Signature
Island
wins Project of the
year
award
Mumbai
by
Accommodation
Times

Corporate Overview
Business Operations
Construction Updates
Financials
Strategy

10

Project Statistics
Particulars

FY05-07

FY08

FY09-10 FY11-12 FY13-15 FY16 (E) FY17 (E) FY18 (E)

Beyond

14

NA

NA

NA

NA

2.87

0.17

16.77

4.16

0.83

NA

NA

NA

NA

In msf

0.2

1.8

1.05

1.4

1.0

19.3

In Value (`mn)

1,500

28,034

29,028

16,911

16,000

204,418

NA

Sunteck
Centre

NA

Signature
Signia City Sunteck City
Sunteck City
Island & Signia Isles &
Avenue 2 & (16 Acres),
Avenue 1 &
Signia
Signia Pearl
Signia
Mulund &
Signia High
Oceans
Gilbert Hill
Jaipur

Projects Acquired
No.
In msf
Delivery

Key Projects
Delivered

NA

11

Bandra Kurla Complex Single Residential Player

12

BKC 3 Research based Residential Acquisitions

Limited

edition

apartments

targeted

towards the Most Coveted by providing the

Most Premium offering

Prudent funding tie-ups with IndiaReit &

Kotak REF. Exits given within 18-30 months
FSI Cost (`psf)
Saleable Area (Sq.Ft.)
Area Sold (Sq.Ft.)

8,424
1,523,146
849,087

Sales Value Achieved (` mn)

25,823

Average Realisation till date (`psft)

30,413

Last Sale Price (`psft)

52,284

Balance Receivables (` mn)

7,533

Cost to be incurred (` mn)

4,928

Est. Inventory Value (` mn)

28,653

Inventory Exhaustion Timeline

CAGR of ~20% (over 6 years) achieved in

sale realizations

Projects

generating

higher

operating

margins of ~50%-55%

ROE of ~30%-35% achieved; Target to

increase to ~35%-40%

24-30 months

13

BKC Recent Developments

Well planned CBD of 300 hectares for development as a City within Mumbai City.
Only slum free and a hawker free Zone in the country

Most secure and well connected place with proximity to both Airport & South Mumbai of ~15
mns (via sea link ). Under-pass plan finalized

Some of the biggest Corporates, Financial Institutions, Bourses, Educational Institutions, Multi
Specialty Hospitals & Consulates employing over 4 lakh people including top management.
More corporates shifting soon

4 main Entry & Exit points - Kalanagar, Kurla/Taxi men colony, Kalina, erstwhile Drive-in theater
(Now Maker Max City)

Further 3 new entry and exit points by end 2017

S.No.

Particulars

Santa Cruz Chembur Link Road (SCLR)

BKC Reclamation Elevated Corridor

Sion Bandra Elevated Corrridor

Status

Operational Since April 2014

Approvals in place; Work to commence soon
Work to commence by Mid 2015

14

BKC Recent Developments (Contd..)

First Global Convention centre cum RIL headquarters on 18 acres plot in G-Block. Construction
started

First High-End mall by Maker Group in E-Block. Construction started

Best 5 star hotels Trident, Accor Sofitel, Grand Hyatt, Taj Lands End, Sahara Star in and
around BKC. 2 more luxury hotels i.e. Bellagio & MGM Grand upcoming in Maker Max City

Best Club, Eateries & Restaurants MCA Club, Yauatcha, Otto Infinito & several others
operational in FIFC

7 Consulates operational Unites States, British, French, New Zealand, Australian, Belgium and
Sweden

7 Best Educational Institutions American School, Dhirubhai Ambani School, Arya, Vidya
Mandir, Ascent & upcoming Zee School

Multi specialty Healthcare Asian Heart Institute, Lilavati Hospital & Research Center

15

Goregaon (W) Largest land aggregator of ~23 acres

MIXED USE DEVELOPMENT

16

Goregaon (W) 7 acres approx.

Acquisition Cost @ `21 crore per acre;
significantly

lower

than

the

current

comparable transactions

Target Mid-management levels of Banks /

Corporates & BPOs with a ticket size: Min
FSI Cost (`psf)
Saleable Area (Sq.Ft.)
Area Sold (Sq.Ft.)
Sales Value Achieved (` mn)

2,127
1,546,451
360,582
4,325

Average Realisation till date (`psft)

11,995

Last Sale Price (`psft)

15,889

Balance Receivables (`mn)

2,812

Cost to be incurred (`mn)

4,666

Est. Inventory Value (`mn)

Inventory Exhaustion Timeline

18,304
36-48 months

`1.5 cr to `3.5 cr

Major Product Mix offering in the 1.5/2/2.5

BHK category

CAGR of ~26% (over 3 years) achieved in sale

realizations

Target EBITDA Margins of 40-45% and ROE of

~30%
17

Goregaon (W) 16 acres approx.

SUNTECK CITY, AVENUE 3, GOREGAON (W), MUMBAI

Approval Stage
Developable Area of ~4 msf

18

Goregaon Secondary CBD of Mumbai after BKC

being developed by MMRDA
Well located and surrounded with premier Business hubs, Shopping malls, Multiplexes and
Educational Institutes; About 10msf office space already operational

Easy accessibility to the Western Express highway and link roads like JVLR, proposed Goregaon Mulund Link Road

Infrastructure expected to improve further with the upcoming Oshiwara station, two flyovers - east
west and JVLR flyover going upto infinity mall, thereby resulting further increase in the commercial
activity

Several back offices of prominent banks like Citi, JP Morgan and also by many IT companies leading to
huge employment generation

Best Malls: Infinity 2 & Inorbit in the nearby vicinity of about 3-4 kms
Best Educational Institutes: Vibyor School, Ryan International & Golkuldham school within the
proximity of about 3-5 kms

19

Other Development Potential

No. of

Sale Area

SRL's Share

Projects

msf

msf

South Mumbai

2.9

0.73

Western Suburbs*

0.7

0.59

Eastern Suburbs

6.13

3.03

Navi Mumbai*

0.45

0.22

Total (A)

14

10.18

4.57

Goa*

0.11

0.05

Nagpur*

1.32

0.4

Jaipur

8.57

2.68

Total (B)

10.00

3.13

Grand Total (A+B)

18

20.18

7.7

Location
Mumbai

Non Mumbai

Notes:
* 4 Projects completed in the respective locations
20

Steady Cash Flow Visibility

Figures in ` Mn

As on Dec14
Location

Particulars

Sale Value Unrecognized Balance Est. Project Balance CoC Est. Inventory
Achieved Sale Value Receivables Cost (B) to be Incurred
Value#

Signature Island

10,513

625

2,360

3,606

112

15,080

Signia Isles

7,868

7,868

2,519

2,055

467

6,387

Signia Pearl

7,443

7,443

2,654

2,048

529

7,186

Sunteck City Avenue 1

2,914

2,914

1,701

3,008

1,481

7,947

Sunteck City Avenue 2

1,411

1,411

1,111

3,194

3,186

Signia Oceans

592

61

110

315

18

Signia Orion

433

433

386

432

357

1,488

Borivali, Mumbai

Signia High

614

614

413

914

516

2,176

Andheri, Mumbai

Sunteck Grandeur

469

92

229

212

522

Panjim, Goa

Sunteck Kanaka

371

371

169

268

199

Sadar Bazar, Nagpur

Signia Skys

81

81

27

230

1,015

32,708

21,913

11,678

16,283

6,678

52,383

BKC, Mumbai

Goregaon(W),Mumbai
Airoli, Navi Mumbai

Total

10,357
25

Notes : Inventory as per last sale price#

Estimated Project cost is excluding land & other cost
Revenue of ~`10,796 mn has been recognized (highlighted) till date

21

Corporate Overview
Business Operations
Construction Updates
Financials
Strategy

22

Our Project Associates

Brand Partners

Contractors

Architects

Structural
Engineers
Landscape,
Interiors, & QS
23

Completed 6 projects - 2msf delivered

BKC, Mumbai
Residential
Developed Area 1.08 msf

Airoli, Navi Mumbai

Residential
Developed Area 0.23 msf

Nagpur
Residential
Developed Area 0.21 msf

Vile Parle, Mumbai

Commercial
Developed Area 0.15 msf

Andheri, Mumbai
Commercial
Developed Area 0.08 msf

Goa
Commercial
Developed Area 0.18 msf

24

Completed Projects
SIGNATURE ISLAND, BKC
Atrium View

Water Fountain at Driveway Lobby

Water Fountain at Podium

Day View of Landscape Area

25

Completed Projects (contd..)

SIGNIA OCEANS, AIROLI, NAVI MUMBAI

Area Developed ~0.23 msf

SIGNIA SKYS, NAGPUR

Area Developed ~0.21 msf

26

Completed Projects (contd)

SUNTECK CENTRE, VILE PARLE
MUMBAI

SUNTECK GRANDEUR ANDHERI

MUMBAI

Leased
Leased

Area Developed ~0.15 msf

SUNTECK KANAKA PANJIM

GOA

Sale

Area Developed ~0.08 msf

Area Developed ~0.18 msf

27

Projects Gearing up for Completion

SIGNIA ISLES, BKC, MUMBAI

Artistic Impression
Developable Area of ~0.43 msf

Actual Site Photograph Dec14

19th slab completed with plaster completed for 12 slabs

28

Projects Gearing up for Completion (contd..)

SIGNIA PEARL, BKC, MUMBAI

Artistic Impression
Developable Area of ~0.43 msf

Actual Site Photograph Dec14

19th slab completed & painting work commenced

29

Construction Stage
SUNTECK CITY, AVENUE 1, GOREGAON (W)

Artistic Impression
Developable Area of ~0.75 msf

Actual Site Photograph Dec14

Tower A 18th Slab Completed; Tower B 9th Slab Completed

30

Construction Stage (Contd..)

SUNTECK CITY, AVENUE 2, GOREGAON (W)

Artistic Impression
Developable Area of ~0.79 msf

Actual Site Photograph Dec14

Ground Preparation work started; Product Mix 1.5/2/2.5 BHK

31

Construction Stage (Contd..)

SIGNIA HIGH, BORIVALI, MUMBAI

Artistic Impression
Developable Area of ~0.24 msf

Actual Site Photograph Dec14

Plinth completed; 2nd slab work-in-progress

32

Launching Soon..
SIGNIA PRIDE, ANDHERI, MUMBAI

Artistic Impression
Developable Area of ~0.05 msf

33

Forthcoming Launches (contd..)

SIGNIA ORION, AIROLI, NAVI MUMBAI

Approval Stage
Drawing Board
Stage
Developable Area of ~0.29 msf

SUNTECK CENTRE, BKC, MUMBAI

Approval Stage
Developable Area of ~ 0.09 msf

34

Corporate Overview
Business Operations
Construction Updates
Financials
Strategy

35

Financial Statistics
Consolidated Profit & Loss Statement
Particulars

Figures in ` Mn

9MFY15

FY14

FY13

FY12

1,626

9,256

302

170

Expenditure

927

6,471

248

128

EBITDA

698

2,785

54

42

EBITDA Margin

43%

30%

18%

25%

Other Income

130

127

200

134

Interest

165

170

110

51

Depreciation

16

14

14

15

PBT

647

2,728

107

110

Tax

272

900

62

65

PAT (before MI)

376

1,828

45

45

Minority Interest

92

318

14

Adj PAT

284

1,510

40

31

PAT Margin

16%

16%

8%

10%

EPS

4.74

25.18

0.67

0.52

Revenue

36

Financial Statistics (Contd..)

Strongest Balance Sheet
Figures in ` Mn

Liabilities

9MFY15

H1FY15

14,498

5,651

413

379

Secured Loans

4,005

4,410

Unsecured Loans

4,059

Customer Advances
Others

Shareholders Funds
Minority Interest

Total

Assets

9MFY15

H1FY15

134

139

3,027

3,609

Investments

474

1,016

3,147

Inventories

32,834

20,688

12,304

11,426

Cash & Bank balances

479

1,166

4,940

5,029

Others

3,272

3,423

40,219

30,041

40,219

30,041

Net Block
Loans & Advances

Total

37

Corporate Overview
Business Operations
Construction Updates
Financials
Strategy

38

Roadmap for Growth

1. BUSINESS EXPANSION

Continue to explore city-centric acquisitions in and around Mumbai. Further, explore opportunistic
acquisitions outside Mumbai (JV/JDA model preferably)

Enhancing rental income by exploring opportunities in existing development portfolio

Foray into re-development with a different brand

2. STRENGTHEN PROCESSES

Appointment of BIG 4 Consultancies like PWC and KPMG to further strengthen the systems
Improvise customer interaction programs
3. ENHANCE EXECUTION CAPABILITIES

Thrust to add more projects to the completed portfolio in the coming 8-10 quarters
Selectively increase quality EPC team
Working with top contractors, architects, PMCs and employing best talent to ensure quality and
timely delivery

39

Annexure

40

Corporate Information
Board of Directors
Name
Mr. Kamal Khetan

Designation
Chairman & Managing Director

Mr. Jignesh Sanghavi

Promoter &
Promoter
Group
74%

Executive Director

Mr. Kishore Vussonji

Independent Director

Mr. Sanjay Dutt

Independent Director

Mr. Mahadevan Kalahasthi

Independent Director

Mr. Ramakant Nayak

Independent Director

Shareholding Pattern

Stock Price Data

(As on Dec14)

(As on Feb 28, 2015)

FIIs / PEs /
MFs / FIs
/Trusts
18%

Particulars
Current Market price (`/share)

284.8

Market Capitalization (` Bn)

17.9

52 Week H/L (`)

Others
8%

Data

No of Shares (Mn)

379.90 / 205
62.9

41

Brand Positioning
Niche Products, Premium Positioning; Vital differentiator in Mumbai residential market as
Sunteck has emerged as the 1st brand recall for unparalleled luxurious living spaces along with
world-class amenities

Credible partnerships and tie-ups

Focus on Segment A customers
Companys products are designed to cater segment A clients in each micro-market
The Companys clientele are the affluent gentry of UHNW individuals, head honchos of global
organizations, business heads of financial institutions, other businessmen and professionals

Channel partners
Sales through reputed channel partners, wealth managers, institutions and participation in property
exhibitions to attract corporate, HNI and retail customers

Ultra luxury residences

Premium & mid-level

Large formats and mixed

aimed at high-net worth

residences in select

used developments

individuals

suburban micro markets

Commercial developments

42

Construction Management
Appointment of Price Waterhouse Coopers (PWC) for document process, risk & control and
organizational development

Sound Planning, Optimized structural design and construction technology by partnering with
world class architects, best contractors and structural engineers

Strong PMO Team: Planning, budgeting, progress reporting, cost management and project
management processes such as:
- Integrated project schedule - drawing schedule, construction schedule, approvals schedule and
procurement plans

Outsource through EPC contracts with oversight managed by external PMC, QS and QC along with
a strong in-house project monitoring unit

ERP platform to undertake contract management, procurement processes, billing and MIS
Obtainment of requisite certificates for construction and occupation

43

News Articles on BKC

News Articles on BKC

44

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45

Coverage on Sunteck

46

Thank You!
Communication Contacts:
Investor Relations
ir@sunteckindia.com
Sumesh Mishra / Chirag Vageria / Abhinav Srivastava
Tel: +91 22 42877800
Email: sumesh.mishra@sunteckindia.com
chirag.vageria@sunteckindia.com
abhinav.srivastava@sunteckindia.com