1 Indiabulls Group
IndiabullsGroup Total Group Networth Rs. 19,356 Cr Total Group PAT for H1 FY 13-14 Rs. 885 Cr. Total Group Capital Expenditure Rs. 6,200 Cr. (US $ 1.2 bn.) capexin FY 10-11. Planned capexof Rs. 29,000 Cr (US $ 5.7 bn.) by FY 2014-15. Focus on Execution and on ground results translating into profits. For its ongoing projects Indiabulls Group consumes 385 MT of Steel, 550 MT of Cement & 1,700 CUM of RMC on daily basis. Creating Value for Shareholders Dividend payout of Rs. 551 Cr. in H1 FY 13-14 2
Journey of IndiabullsGroup Indiabulls started as a securities brokerage company Indiabulls Financial Services started as a lending business Indiabulls Real Estate started Indiabulls Real Estate demerged from Financial Services Indiabulls Power started Indiabulls Financial Services reverse merged into Indiabulls Housing Finance Ltd. Indiabulls Power announced demerger from Real Estate 2000 2004 2005 2006 2007 2010 2013 Independent companies with independent management teams All companies were spin offs from the existing company, with all benefits flowing to existing shareholders 3
Indiabulls Group Companies Indiabulls Group Indiabulls Housing Finance Indiabulls Real Estate Indiabulls Power Indiabulls Securities India s 3rd largest Mortgage Finance Company National developer with Focus on key regions of Mumbai, NCR (Delhi) and Chennai 72.86 Mnsqf currently under Development Developing 5400 MW of Power Plants Total capex of US$6.1 billion in next 4 years Full financial closure achieved Retail Nondiscretionary wealth management platform catering to over 7 lacs clients Total Group Networth : Rs. 19,356 Crore Separate Listed Companies (There is no Group Holding Company) 4 * Networth as on 31, March 2012
Strategy and Focus Consolidation aim to be among top 3 players in existing businesses within next 3 years No new products focus on gaining size and scale in existing core areas No capital market fund raising all businesses are well funded to achieve growth and size Goal-FY 2013/14 target of US $ 1.5 billion in cash generation from the 3 companies (Finance, Real Estate and Power) 5
6 Indiabulls Housing Finance Ltd (IHFL)
Leading Housing Finance Company Asset Composition 6% The company enjoys a long-term rating 21% of AA+ Focus on long term, low risk home loan 73% Mortgages Corporate Loans Commercial Vehicles business Retail mortgages comprise 73% of the total asset book Home loans, which forms the majority of incremental disbursals, are disbursed at an average ticket size of Rs. 24 lacs; average LTV of 66% at origination, for an average term of about 13 years Total Assets Under Management : Rs. 38,140 Crore(US $ 6.25 billion) 7
Assets Growth Total Loan Assets (Rs. Cr.) Loans Sold (Rs. Cr.) (in preceding 12 months) 38,140 3,093.4 23,792 31,025 2,129.9 764.0 Sep-11 Sep-12 Sep-13 Sep-11 Sep-12 Sep-13 Thegrowthintheloanbookinclusiveofloanssoldintheprevious12monthsis23% Loans sold (outstanding as on 30th September, 2013): Rs. 3,902.7 Cr. on which spread at 3.1%p.a.istobeearnedoverthelifeoftheloan 8
Stable Asset Quality (as % of Total Loan Book) 0.86% 0.76% 0.85% 0.54% 0.45% 0.32% 0.31% 0.41% 0.44% Sep-11 Sep-12 Sep-13 Gross NPA General & Specific Provisions Net NPA Focus on underwriting Low risk mortgage assets at low LTV s with emphasis on cash flows of borrowers has allowed the company to maintain low NPA levels Standard Asset Provision pool of Rs. 307.10 Cr. is over and above General and Specific ProvisionpoolandisnotnettedoffagainstGrossNPAsincalculationofNetNPAs 9
Home Loans: Expanding Reach Indiabulls Distribution Network Tier I 58 Tier II 89 Tier III 58 Total 205 The company hosted AAWAS-2013, a budget property show, across major Indian cities like Delhi, Kolkata and Chennai. The show s success reflects the expanding relationship base of the company amongst the developer community and also their trust in the company The company continues to grow its branch network and now has 205 branches spread across the country The company has a well-trained, in-house Direct Sales Team of over 1,800 people to promptly attend to prospective customers 10
Improving Liability Profile 13% 8% 6% 20% 29% 28% 67% 63% 66% Bank Loans Bonds Commercial Paper Sep-11 Sep-12 Sep-13 Total Borrowings: As of September 30, 2013: Rs. Cr. 35,012 (US$ 5.74 bn) As of September 30, 2012: Rs. Cr. 28,006 (US$ 4.59 bn) Amongst its lenders, the company now counts 102 strong relationships: 26 PSU banks, 16 Private and Foreign banks and 60 Mutual Funds, Provident Funds, Pension Funds, Insurance Companies and others 11
12 Indiabulls Real Estate (IBREL)
Quality and on-time Delivery Delivery and Execution Track Record Delivered a record 3.3 million SF developed space valued at $1.75 billion (within 4 years of inception). Fastest and largest delivery in value terms by any Indian real estate developer in the same time period. Focus on Super Metros 95%+ portfolio is in Mumbai, Delhi (NCR) and Chennai markets. Focus on clear title projects $ 900 million in lands bought through government auctions. Focus on Execution With 72.86 million sqftarea under development; capex of $ 2.6 billion over next 2 years (with all financing in place) Focus on Results Cumulative $ 5 billion in projected Gross Sales by 2014-15. 13
Focus on Super-Metros Jodhpur Jaipur Ahmedabad NCR(Delhi) $ 1 bn Baroda Indore Agra Kanpur More than 95% of our projects (by value) are in super-metro cities Mumbai Metro Region, National Capital Region (Delhi) and Chennai Mumbai Region $ 7.5 bn Hyderabad Vishakapatnam Chennai $ 510 mn Madurai 14
Business Update Key Financial Highlights: FY12-13 Q2 FY 13-14 Q2 FY 12-13 Total Revenues (Rs. Cr.) 450.62 342.30 PBT (Rs. Cr.) 131.56 54.16 PAT (Rs. Cr.) 86.33 36.45 EPS (Rs.) 1.92 0.66 15
Business Update Total Sales of Rs. 2,236 Cr for an area of 2.25 msft in H1 FY-14 vs. Rs. 1,214 Cr for anareaof1.19msftinh1fy-13. Total leased area as on 30th Sep-13 stands at 2.8 msft. with annual rentals of Rs. 542Crperannum. IBREL purchased the entire stake of FIM Ltd. and its affiliates for Rs. 1,172.16 Cr funded through internal resources without taking any incremental debt. Giving it 100% ownership in 7 projects comprising area of 297.76 acres in NCR and Chennai. IBREL retains its A+ rating for long term debt and A1+ (highest possible) for short term debt. 16 * All sales and marketing costs are expensed upfront and not amortized
Total Land Bank Area(In Acres) Residential Commercial Total Opening Balance (As on 1 st Apr 2012) 960.36 43.18 1003.54 Addition in Q4 FY 13 6.20 0 6.20 Less: Moved to AUD 0 0 0 Closing Balance 966.56 43.18 1009.74 * 2,588 Acres of NashikSEZ not included in the above Acquired 6.20 acres land in H1 FY-14primarily in NCR. Strategic land acquisition over the years have helped IBREL to aggregate a land bank of 3,598 acres across India. Region Wise Land Bank Summary GREATER MUMBAI & MMR 22% CHENNAI 18% NCR 60% All land mentioned in the table is fully paid for and in our possession. 17 17
Approved Projects Area Under Construction* - million sq. ft. Regional Breakup of Area Under Construction 12.49 2.04 2.65 4.38 7.91 5.04 15.05 Super Premium Premium Mid income Mumbai MMR NCR Chennai Rest of India TotalSaleableAreaUnderConstruction 24.78Mn.Sq.ft.ason30 th Sept-13. *All construction work being executed through 100% IBREL subsidiaries by Grade A contractors like Shapoorji Pallonji, Ahluwalia, Ramky etc. 18
Sales Inventory of approved under construction projects Projects Total Saleable Area (Mn Sqft) Area Sold ( Mn Sqft) Area to be sold (Mn Sqft) Total Value Sold (Rs. Cr.) Value of Unsold Inventory at Current Rates (Rs. Cr.) Super Premium 4.38 2.01 2.37 5,335 8,532 Premium 12.49 8.49 4.00 4,133 3,000 Mid Income 7.91 3.74 4.17 1,139 1739 Total 24.78 14.24 10.54 10,606 13,325 11.24msftalreadysoldforSalesvalueofRs10,606crores 10.54msft.remainstobesoldwithanestimatedvalueofRs.13,325croresatongoingsalerates. Additional cash collections from Existing sales is Rs. 5,209 cr. linked to the construction progress of the projects. 19
Indiabulls Blu, Worli ProjectlaunchedatRs.36,000psftinJune2012. Already achieved residential sale rate of Rs. 58,399 psft. Office -250,000sqftxsalerateRs25,000(alreadycontracted)=Rs625Cr Constructioncost(includingIDCandallfees) =Rs1200Cr Cashflow(afterallcosts)=Rs4425Cr. Construction Status All approvals in place Complete civil construction by Dec 15 Shapoorji Pallonji has been awarded civil construction contract. 45%saleableareaalreadysoldinBlu -Rs.4,425pretaxcashflowsovernext3years. 20
Projects Pipeline Projects Launched in FY 13 1. BLU, Worli, Mumbai 7-Star luxury residential complex spread over 10 acres in South Mumbai with breathtaking sea views 2. IB Golf City, Savroli, MMR Premium residential township with 18-hole golf course spread over 350 acres of greens 21 Launch Pipeline FY 14 1. IB City, Sonepat, Haryana 150 Acres of integrated township with plotted development, commercial and group housing 2. IB Enigma II, Sec 104, Gurgaon Super premium residential complex with Villa s and high rise towers spread over 34 acres 3. IB Imperial, Sec 106, Gurgaon 54 Acres of Integrated township with high end residential apartments, villa s, luxury retail and commercial 4. IB Commercial Centre, Sec 109, Gurgaon Over 5 acres of commercial development on the Dwarka Expressway 5. IB Greens, Chennai Premium residential township with high rise towers near the IT corridor spread over 32 acres 6. IB Mint, Sec 104, Gurgaon Iconic Commercial tower on the Dwarka Expressway 7. IB Greens, Indore - 15 Acres of Integrated township with high end residential apartments, retail and commercialintheheartofthecity 8. IBMegaMall,Agra&Kanpur Destinationmall/multiplexintheheartofthecity
22 Indiabulls Power (IBPOW)
Indiabulls Power (IBPOW) Focus on Delivery and Execution Plan - Developing 5,400 MW across India. Financial closure achieved for entire 5,400 MW. Execution- US $6.1 billion capex over next 4 years for 5,400 MW. Phase I (2,700 MW) construction in full swing (~5,000 workers on site) For both Phases (entire 5,400 MW) - Land, Water and Coal clearances in place No External Risk/No Quality Risk As work given to reputed contractors/suppliers. Indiabulls Power is largest private sector client of BHEL Results Annual run-rate 20 billion units of electricity generation to be achieved by March 13 and 40 billion units of annual run-rate to be achieved by March 14 23
Execution Execution - construction is in full swing with ~5,000 people working on the sites. Suppliers - Work given to reputed suppliers and contractors Vendor / Service Provider Scope / Work 1 BHEL Boiler Turbine Generator (BTG) 2 Shapoorji Pallonji BTG Civil 3 Shapoorji Pallonji BTG - Structural 4 Gannon Dunkerley Balance of Plant Civil 5 Gammon India Limited Chimney 6 Paharpur Cooling Towers Cooling Tower 7 L&T Coal Handling Plant 8 Areva Power Transformer 9 ABB 400 KV Switchyard Delivery First unit to be commissioned by Q3 FY14 Tariffs 1200 MW already tied up on a long term 25 year Power Purchase Agreement with Maharashtra State utility at Rs 3.26/unit. Another 950 MW from Nashikplant approved by MSEDCL at Rs. 3.42/unit. Cash flows Assuming Rs 1/unit margin (difference between sales price and cost of generation), cash generation from average of 25 billion units produced in FY 13-14 would be US$ 600 million by March-2014. Deal with BEST to sell 300 MW of power for 25 years 24
Construction work in full swing.. Amravati Power Plant 2700 MW 25
26 Amravati Power Plant 2700 MW
27 Amravati Power Plant 2700 MW
28 Amravati Power Plant 2700 MW
29 Amravati Power Plant 2700 MW
30 Amravati Power Plant 2700 MW
Construction work in full swing.. NashikPower Plant 2700 MW 31
32 NashikPower Plant 2700 MW
33 NashikPower Plant 2700 MW
34 NashikPower Plant 2700 MW
35 NashikPower Plant 2700 MW
36 NashikPower Plant 2700 MW
37 Thank You