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Investor Presentation
Quarter Ended September 30, 2013
Nitesh Estates Ltd.
Continued robust topline performance:
o Revenue of Rs. 844 mn
o Close to 3x Q2 FY2013 Revenue
Strong increase in profitability:
o Gross Profit of Rs. 381 mn – over 5x Q2 FY2013
o EBITDA of Rs. 255 mn – up 69% q-o-q
o High Gross Profit and EBITDA margins of 45.2%
and 30.2% respectively
Value enhancement to shareholders:
o Profit after Tax of Rs. 152 mn with a margin of
18.0% - close to 3x Q1 FY2014
o EPS of Rs. 0.90
Steady leverage providing growth potential:
o Net Debt flat at Rs. 2,457 mn
o Net Debt to Equity ratio of 0.73x
Consolidated Financial Highlights
1
Q2 FY2014 Summary Quarterly Performance
Investor Presentation: Q2 FY2014
Commenting on the results and performance, Mr.
Ashwini Kumar, Executive Director and Chief
Operating Officer of Nitesh Estates said:
“We have seen all round improvements in
performance. On year over year basis, revenue
during Q2 was up by 80%, and the average price
realisation at Rs 559 per sq mtr i.e. Rs 6,018/sqft
is also very encouraging. Nitesh British Columbia
was launched during Q2 and has been very well
accepted by customers.
Only Rs 3,040 million has got recognised as
revenue out of the sales potential of our project
portfolio and the balance will get recognized in the
coming quarters.
The Ritz-Carlton, Bangalore developed by the
Company has commenced operations. This is a
major milestone crossed. We are making steady
progress at our various project sites and we can
look at the coming periods with a great deal of
confidence.”
Consolidated Operational Highlights
2
Q2 FY2014 Summary Quarterly Performance
Sales Value of Rs. 1,115 mn
o Growth of over 80% y-o-y
o Cumulative Sales Value of Rs. 9,765 mn achieved through the sale of 2.3 mn sq. ft. area
Area Sold of 0.24 mn sq. ft.
o Growth of over 123% y-o-y
o 10.70 mn sq. ft. of area currently under development
Average Price Realization1 of Rs. 6,018 per sq. ft.
o Compared with Rs. 5,797 per sq. ft. in Q2 FY2013
Cash Collection of Rs. 899 mn
o Growth of 18% y-o-y
Launched a new mid-income residential project, Nitesh British Columbia
o Total revenue potential of the project is estimated to be close to Rs. 2,800 million
Note:
1. Average Price Realization excludes Nitesh Long Island, a plotted development project
Investor Presentation: Q2 FY2014
Deep value embedded in development portfolio and recurring income streams
3
Q2 FY2014 Summary Quarterly Performance
Total sales potential of Rs. 33,050 mn from 13 ongoing residential projects
o Sales Booked to date of Rs. 9,276 mn
o Further sales potential of Rs. 23,774 mn by FY2017
o One project is expected to be completed in FY2014
Unrecognized income of Rs. 4,992 mn as at September 30, 2013
o Six residential projects are under income recognition
o Two projects, Nitesh Napa Valley and Nitesh Long Island, to cross the threshold limit in FY2014
o Four residential projects are under pre-construction stage
o Nitesh Camp David and Nitesh Central Park completed and delivered in FY2013
Cumulative collection of Rs. 5,992 mn; represents 65% of sales booked till date
The Ritz Carlton Hotel, Bangalore commenced operations recently and reinforces the Nitesh brand in the
luxury and hospitality segments
Recurring income streams
o Nitesh Mall is expected to be operational in FY2017
o Expected rental income of Rs. 500 – 600 mn per annum
Investor Presentation: Q2 FY2014
Increasing income recognition will significantly enhance profitability
4
Q2 FY2014 Financials Quarterly Performance
Notes:
1. Revenue includes Net Sales plus Other Income
Q2 Q1
(Rs. mn) FY2014 FY2013 FY2014
Total Debt 2,797.0 1,878.1 2,675.4
Cash and Cash Equivalents 339.6 339.7 275.8
Net Debt 2,457.4 1,538.4 2,399.6
Equity 3,385.5 4,463.3 3,254.6
Net Debt / Equity 0.73x 0.34x 0.74x
Debentures 1,123.9 970.0 1,159.6
Book Value / Share (Rs.) 23.21 30.61 22.32
Q1 q-o-q
(Rs. mn) FY2014 FY2013 FY2014 Growth (%) FY2014 FY2013
Revenue1 844.1 301.9 1,000.2 (15.6)% 1,844.3 627.7
Gross Profit 381.4 67.4 278.9 36.8% 660.3 160.2
Margin (%) 45.2% 22.3% 27.9% 35.8% 25.5%
EBITDA 254.8 (45.2) 150.6 69.2% 405.4 (89.1)
Margin (%) 30.2% nm 15.1% 22.0% nm
Profit After Tax (PAT) 151.7 (124.1) 56.5 168.4% 208.1 (165.2)
Margin (%) 18.0% nm 5.6% 11.3% nm
Net Profit 131.0 (125.6) 45.5 187.8% 176.4 (166.3)
Margin (%) 15.5% nm 4.5% 9.6% nm
Basic EPS (Rs.) 0.90 (0.86) 0.31 187.8% 1.21 (1.14)
Q2 H1
Investor Presentation: Q2 FY2014
Steady trend of improving operational performance
5
Q2 FY2014 Financials Quarterly Performance
Sales Value (Rs. mn) Collections (Rs. mn)
Area Sold (mn sq. ft.) Average Price Realization1 (Rs. per sq. ft.)
Note:
1. Average Price Realization excludes Nitesh Long Island, a plotted development project
Investor Presentation: Q2 FY2014
5,797
7,965
6,225 6,096 6,018
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
618 623
1,048
1,280
1,115
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
0.110.08
0.17
0.35
0.24
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
762
606681
849899
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
Str
uct
ure
Com
ple
te
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
Q2 FY2014 Operational Update Quarterly Performance
Nitesh Palo Alto
Nitesh Long Island
Nitesh British
Columbia
Investor Presentation: Q2 FY2014
Nitesh British Columbia
7
Recent Launches Strategy
Revenue potential ~ Rs. 2,800 mn
A mid-segment high-rise condominium project in
Anjanapura, off Kanakpura Road in South Bangalore
Aimed at the first-time home buyers with apartments starting
from Rs. 37 lakhs
Spread over an area of 4.70 acres with 0.61 msft developable
area
388 apartments including 2 and 3 bedroom units with areas
ranging from 1,000 sqft to 1,600 sqft
Nitesh Park Avenue
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
Revenue potential ~Rs. 2,000 mn
Investor Presentation: Q2 FY2014
8
Recent Launches Strategy
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
Nitesh Palo Alto
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
Revenue potential over Rs. 5,300 mn
Investor Presentation: Q2 FY2014
9
Recent Launches Strategy
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
Nitesh Napa Valley Revenue potential ~Rs. 4,100 mn
Investor Presentation: Q2 FY2014
10
The Ritz Carlton Hotel Income Generating Assets
Nitesh Estates has developed India’s first Ritz Carlton
hotel, one of the world's finest luxury hotel brands
Has commenced commercial operations from October
31, 2013 and provides a recurring revenue stream to the
Company and an association with a global iconic brand
A 5-star luxury hotel located in the Central Business
District of Bangalore at Residency Road
Spread over an area of 0.50 msft with 277 rooms
Has a convenient downtown location, richly-appointed
guest rooms & suites and multiple dining options
Super luxury hotel reinforcing the Nitesh brand in the luxury space
Investor Presentation: Q2 FY2014
11
Q2 FY2014 Operational Update Quarterly Performance
Remaining Sales potential of Rs. 23,774 mn by FY2017
Ongoing 13 residential projects summary
Total Developable Area (mn sq. ft.) 9.66
Total Saleable Area (mn sq. ft.) 7.77
Total Saleable Area (mn sq. ft.) – Company’s share 6.21
Area Sold till September 30, 2013 (mn sq. ft.) 2.17
A. Total Sales Value Potential (Rs. mn) 33,050
A1. Sales booked till September 30, 2013 (Rs. mn)1 9,276
A2. Collections till September 30, 2013 (Rs. mn) 5,992
A3. Income Recognized till September 30, 2013 (Rs. mn) 3,040
B. Total Expected Project Cost (Rs. mn) 19,945
B1. Cost Recognized till September 30, 2013 (Rs. mn) 2,342
C. Income Unrecognized till September 30, 2013 (Rs. mn) 4,992
D. Remaining Sales potential from ongoing projects by FY2017 (Rs. mn) 23,774
Note:
1. Sales Booked includes Land Owner’s share for Nitesh Hyde Park, Nitesh Long Island, Nitesh British Columbia and Nitesh Palo Alto projects
Investor Presentation: Q2 FY2014
Q2 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 Central Park 0.003 2 18.4 5,272 95% 71 488.3
Nitesh Hyde Park 0.018 14 100.0 5,586 88% 442 1,794.0
Nitesh Flushing Meadows 0.005 3 22.2 4,436 83% 166 738.6
Nitesh Caesar's Palace 0.024 16 118.6 4,997 77% 273 1,399.4
Nitesh Cape Cod 0.031 18 180.9 5,776 70% 213 1,782.4
Nitesh Columbus Square 0.016 10 75.3 4,851 61% 147 937.2
Nitesh Logos 0.000 - - - 38% 3 253.2
Nitesh Long Island 0.078 34 149.7 1,926 37% 120 563.6
Nitesh Park Avenue 0.006 2 163.5 26,598 28% 3 524.5
Nitesh Napa Valley 0.003 1 31.4 11,578 24% 21 848.0
Nitesh British Colombia 0.045 35 191.9 4,223 9% 35 191.9
Nitesh Palo Alto 0.009 3 62.7 6,929 4% 11 243.4
Nitesh Hunter Valley 0.000 - - - 0% - -
Nitesh Fisher Island 0.000 - - - 0% - -
Total 0.238 138 1,114.6 6,018 1,505 9,764.5
Q2 FY2013 0.107 74 618.0 5,797
Q1 FY2014 0.354 171 1,280.1 6,096
Rs. 9,765 mn of sales value achieved through the sale of 2.3 mn sq. ft. area
12
Q2 FY2014 Operational Update Quarterly Performance
Note:
1. Average Price Realization excludes Nitesh Long Island, a plotted development project
Investor Presentation: Q2 FY2014
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 ~ 22 mn sq. ft. of area under development in 8 years since inception
Completed 12 premium residential, office and hospitality projects totalling 2.23 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 10.77 mn sq. ft. of area currently under development
9.12 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
13
Nitesh Estates: At a Glance Company Overview
Investor Presentation: Q2 FY2014
Bangalore
Land 198.4 acres
13 ongoing projects with developable area of
10.6 mn sq. ft.
Plans for future development of 6.1 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
14
Total
Land 227.5 acres
Over 19.9 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: Q2 FY2014
15
Proven Track Record Projects Overview
Completed Projects
• The Ritz Carlton Hotel with a a developable area of 0.50 mn sq. ft.
• 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
• 13 residential projects at various stages of construction, with a developable area of 9.66
mn sq. ft.
• Nitesh Mall with a developable area of 1.11mn sq. ft.
Upcoming Projects
• Over 90 acres of land available for future projects (9.12 mn sq. ft. of developable area)
• Projects to be spread across various asset classes and geographies
Investor Presentation: Q2 FY2014
10.77
0.38
4.530.59
5.27
FY2014 FY2015 FY2016 FY2017 FY2014-17Residential
90%
Retail
10%
14,015
3,457 4,022
High - Income Mid - Income Average
High - Income
11%
Mid - Income
89%
16
13 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 10.77 mn sq. ft. area currently under development
Construction schedule (mn sq. ft.)
Ongoing Projects Projects Overview
Notes:
1. Average price realization based on sales till September 30, 2013 and excludes Nitesh Long Island, a plotted development project
Investor Presentation: Q2 FY2014
1 Nitesh Flushing Meadows AOP Whitefield Mid - Income Mar-14 2.00 0.38 200 67%
2 Nitesh Columbus Square JDA Bellary Road Mid - Income Jun-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 Road 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 48%
7 Nitesh Long Island JDA Devanahalli Mid - Income Sep-14 43.00 0.89 321 31%
8 Nitesh Cape Cod JDA Outer Ring Road Mid - Income Dec-14 4.36 1.00 417 76%
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 British Columbia JDA Anjanpura Mid - Income Dec-16 4.70 0.61 388 68%
13 Nitesh Hunter Valley JDA Hennur Mid - Income Mar-17 21.53 2.20 1,091 68%
132.21 9.66 4,276
14 Nitesh Mall JDA Indiranagar Retail Dec-16 5.06 1.11 - 50%
137.27 10.77
Completion
Date
Sub - Total (Residential)
Total
Land Area
(acres)
Developable
Area
(mn. sq. ft.)
No. ProjectLand
AgreementLocation
1 SegmentCompany’s Share
(%)
Total
Units
13 residential projects have revenue potential of Rs. 33,050 mn
Notes:
1. All projects in Bangalore except Nitesh Fisher Island
2. Total Units includes Land Owners’ share
17
Ongoing Projects Projects Overview
Investor Presentation: Q2 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 Old Madras Road LOI Old Madras Road, Bangalore Mid - Income Residential 7.73 1.03 65%
4 Nitesh Melbourne Park 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%
70.41 6.09
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%
90.23 9.12
Developable
Area
(mn. sq. ft.)
Company’s
Share
(%)
Sub - Total (Residential)
SegmentLand Area
(acres)
Total
No. Project Land Agreement Location
9.1 mn sq. ft. of area planned for future developments
18
Upcoming Projects Projects Overview
Investor Presentation: Q2 FY2014
Contact Details:
Nitesh Estates Limited
Nitesh Timesquare, Level 7
#8 MG Road, Bangalore – 560 001
Venkateshan MA
Nitesh Estates
+91 80 4017 4000
Anirudh Bhardwaj
Churchgate Partners
+91 22 3953 7444
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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