Orbit Corporation Limited

Un-audited Quarterly Results – Q2FY11

Orbit Enclave … coming up in South Mumbai

2

ORBIT ENCLAVE – LAUNCHED IN Q2FY11

Orbit Enclave

… coming up in South Mumbai

3

AGENDA

Profit and Loss Details

Balance Sheet Details

Cashflow and Debtor Details

7

8

9

Project Completion Charter 10

Sales Analysis 12

Corporate Information and Compliance 13

Shareholding Details 14

Project Charter 11

Financial Results Summary - Consolidated 5

Industry Update and Company Performance 4

Revenue Recognition and Outstanding Order Book Analysis 6

Strategy going ahead 15

4

Real Estate – Updates

Sales

� 1,57,917 sft sold in the Quarter for a value of ` 2,291 mn

� Average realization psft for the projects improved by

~14% in South Mumbai locations comprising Nana

Chowk/Gamdevi and by ~8% in South Central Mumbai

Profitability

� EBIDTA margin for Q2FY11: 31.6%

� PAT margin for Q2FY11: 16.2%

� No tax benefits claimed for any of the projects under

revenue recognition starting Q1FY11

Projects launched during Q2FY11

� Orbit Mandwah (Phase 1)

� Area sold – 1,02,800 sft

� Average price – ` 8,508 psft

� Orbit Enclave

� Area sold – 10,923 sft

� Average price – ` 27,000 psft

Company Performance

Demand and Supply

� Robust demand in South Mumbai micro-market of

Gamdevi/Nana Chowk/Prarthna Samaj

� Demand seen cooling off in South Central Mumbai, with

correction in prices to the extent of ~15%

� Stable demand expected in Mumbai suburbs

Regulatory

� Union Ministry of Environment and Forest relaxed the

restrictions in the CRZ area - slums being redeveloped

under the Slum Rehabilitation Scheme will be entitled to

an FSI of 2.5, while cessed buildings will get 2.5 FSI or 50%

incentive FSI, whichever is higher

� Clearance of roll-on-roll-off (Ro-Ro) services for vehicles

and passengers from Ferry Wharf to Mandwa by State

Government

INDUSTRY UPDATE AND COMPANY PERFORMANCE

*based on current projections

5

FINANCIAL RESULTS SUMMARY - CONSOLIDATED

Total Income - ` ` ` ` 988 mn

EBITDA - ` ` ` ` 313 mn

Profit after Tax - ` ` ` ` 160 mn

O/s Order Book - ` ` ` ` 8,493 mn

Fresh Sales - ` ` ` ` 2,291mn

Fresh Sales – 157,917 sft

6

REVENUE RECOGNITION AND O/S ORDER BOOK – Q2FY11

Revenue Composition (` mn)

Outstanding Book Size - Trend

Projects Location Amount

Villa Orb Annexe Napean Sea Road 100.0

Orbit Arya Napean Sea Road 42.8

Orbit Haven Napean Sea Road 223.3

Orbit Heights Nana Chowk 25.0

Orbit Terraces Lower Parel 229.9

Orbit Eternia Lower Parel 3.4

Orbit Grand Lower Parel 70.2

Orbit – WTC Bandra Kurla Complex 216.4

Orbit Residency Park Andheri Saki Naka 66.2

Total 977.1

-26%

-10%-8%

-9%-18%

-7%

9%15%

52%

1%

20%

8,693

6,448

5,7835,326

4,843

3,9953,707

4,031

4,616

7,028

7,079

8,493

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

3,500

4,500

5,500

6,500

7,500

8,500

9,500

Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11

Qo

Q C

ha

ng

e (

%)

Ou

tsta

nd

ing

Bo

ok

Siz

e (`

mn

)

7

PROFIT AND LOSS DETAILS – Q2FY11

Profit and Loss Account (Consolidated) (` mn)

Particulars Q2FY11 Q1FY11 Q2FY10

Operating Income 977.1 1,194.9 1407.1

Other Income 10.8 13.3 11.9

Total Income 987.9 1,208.2 1419.0

Expenditure 675.4 814.3 967.2

EBIDTA 312.5 393.9 451.8

Profit Before Tax 259.1 282.7 334.4

Provision for Tax 99.6 80.4 85.0

PAT (attributable to OCL)* 160.4 201.2 249.4

EPS (Basic - `)# 1.46 1.83

EPS (Diluted - `) # 1.44 1.82

Q-o-Q Margin Comparison

Interest Details (` mn)

Particulars Amount

Interest charged during the period 241.4

Interest Capitalized 199.7

Interest Charged to P&L A/c 41.7

The Company has been following Accounting Policy for accounting of ‘Borrowing

Costs’ in compliance with AS 16 “Borrowing Costs” –

“Borrowing Costs that are attributable to the acquisition, construction or

production of qualifying assets are capitalised as part of the cost of such assets

till such time as the asset is ready for its intended use or sale. A qualifying asset is

an asset that necessarily takes a substantial period over twelve months of time

to get ready for its intended use or sale. All other borrowing costs are

recognized as expense in the period in which they are incurred”.

*In compliance with AS 21, Consolidated financial statements minority

interest income of (` 0.9) mn recognized in the P&L statement

#In compliance with AS 20, EPS (Basic and Diluted) for Q1/Q2FY11 has

been calculated taking into effect the allotment of bonus shares.

EBITDA PAT attributable to OCL

31.7%

16.3%

31.8%

17.6%

25.3%

21.1%

32.3%

23.0%

32.6%

16.7%

31.6%

16.2%

Q1-FY10 Q2-FY10 Q3-FY10 Q4-FY10 Q1-FY11 Q2-FY11

8

BALANCE SHEET DETAILS – Q2FY11

Debt Position

Note –

* Warrant money has been considered in calculating the Net

worth, as the same is non-refundable.

Balance Sheet (Consolidated) (` mn)

� Net worth* as on 30 September 2010 stands at

` 8,847 mn

� Debt excluding CCD is at ` 6,966 mn implying a

Debt/Equity ratio of 0.79 times

� Outstanding debt repayment for the rest of the year –

` 1,126 mn

� There are no material changes in the terms and

conditions of loans taken from various financial

institutions

Q2FY11 Q1FY11

Sources of Funds

Equity Share Capital 1,100 550

Preference Share Capital 2 2

Money Pending allotment (Promoter

Warrants) 95 95

Reserves and Surplus 7,651 8,041

Net Worth* 8,847 8,687

Minority Interest 3 4

Borrowings 5,466 5,158

NCD 1,500 1,500

CCD 2,235 2,235

Deferred Tax Liability 544 518

Total 18,595 18,102

Application of Funds

Net Fixed Assets 296 296

Cash and Cash Equivalents 154 630

Investments (including liquid funds) 76 75

Inventory 6,649 6,456

Debtors 4,185 4,047

Advance for Properties 7,205 6,842

Other Net Current Assets 433 535

Mat Credit Entitlement 298 299

Advances from Customers -701 -1,077

Total 18,595 18,102

9

Cashflow Statement (Consolidated) (` mn)

Debtors Net off advances at the beginning of the

period2,970

Revenue Recognised for Q2-FY11 977

Cash received during Q2-FY11 462

Debtors Net off advances at the end of the

period3,485

Debtors as on 30 September 2010 (` mn)

Quarter ended 30 September 2010

Cashflow from/(used in)

Operating Activities (501)

Investing Activities (10)

Financing Activities 35

Net Cashflow (476)

Cash and Cash Equivalents at the beginning of the

period630

Cash and Cash Equivalents at the end of the period* 154

*Note –

Investments totaling to ` 76 mn have been made

during the quarter.

Hence, total funds available with the company

including cash and cash equivalents stand at ` 230 mn.

CASHFLOW AND DEBTORS DETAILS

10

Cumulative construction progress for properties under Revenue Recognition*

*Note –

Construction details of projects with <25% construction progress - Villa Orb Annex(16%), Orbit Grand (14%) and Orbit Residency Park (12%)

Budgets has been revised for Orbit Terraces and Villa Orb Annex.

PROJECT COMPLETION CHARTER

92%

92%97% 98% 99%

91%94%

96% 97% 98%

77%

87%90%

93%95%

38%

44%

51%

56%

63%

20%

25%

33%

41%

53%

Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11

Orbit Eternia Orbit Arya Orbit - WTC Orbit Terraces Orbit Haven

11

PROJECT CHARTER

Project Name Location Project Type Saleable Area (sft)*

Orbit Arya Napean Sea Road Residential 80,872

Orbit Eternia Lower Parel Residential 31,100

Orbit WTC Bandra Kurla Complex Commercial 316,000

Orbit Haven Napean Sea Road Residential 45,000

Orbit Terraces Lower Parel Residential/Retail 279,081

Orbit Grand Lower Parel Residential 79,600

Orbit Residency Park Andheri Saki Naka Residential 284,000

Villa Orb Annex Napean Sea Road Residential 45,000

Orbit Grandeur Santacruz Residential 569,507

Total 17,30,160

*Note: Saleable area is as per Company estimates.Final saleable area may change based on variousfactors

#Note: Aggregation/ acquisition for the land inrespect of these projects is in progress

^Note: First phase proposed to be launched inFY11 (permissions under progress)

Project Name Location Project Type

Orbit Ocean Parque Napean Sea Road Residential

Orbit Laburnum Gamdevi Residential

Orbit Mandwah^ Mandwa Gated Township

Orbit Enclave Prarthna Samaj Residential

N. S. Road Block# Napean Sea Road Residential

New Project# Napean Sea Road Residential

Lalbaug Block# Lalbaug Residential

Ongoing Projects/Projects Under Development

Projects in the Pipeline (Construction activities for projects are progressively expected to commence)

12

Quarter – on – Quarter ComparisonFresh Sales* – Location wise (` mn)

Average rate of realization - Location wise (` per sft)

SALES DATA

Location Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11

Napean Sea Road 39,473 40,785 34,899 45,958 55,000 55,000

Gamdevi/Tardeo 24,662 - - - 27,630 31,391

Lower Parel 15,000 17,278 16,345 17,098 19,577 21,150

Andheri/SakiNaka - - 7,312 7,690 8,239 8,560

Mandwa - - - - - 8,508

23,768

62,650

1,72,606

1,25,339

54,092

1,57,917

815

1,731 2,077

3,271

1,150

2,291

-

2,000

4,000

6,000

8,000

10,000

12,000

20,000

60,000

1,00,000

1,40,000

1,80,000

Q1-FY10 Q2-FY10 Q3-FY10 Q4-FY10 Q1-FY11 Q2-FY11

Sa

le V

alu

e (` ` ` ` m

n)

Are

a s

old

(sf

t)

Sft sold (sft)Value (INR mn)

Napean Sea

Road, 413

Nana

Chowk/Tardeo

, 680

Lower Parel,

170

Andheri/SakiN

aka, 153

3,600

7,600

11,600

15,600

19,600

23,600

Are

a s

old

(sft

)

*Additionally, Mandwah (Phase 1) witnessed robust sales of 1,02,800

sft @ `̀̀̀ 875 mn

13

CORPORATE INFORMATION AND COMPLIANCE

Changes in Capital Structure

� Bonus shares in the ratio of 1:1, allotted on July 1, 2010.

Subsequently, the paid-up Equity Share Capital stands at

` 1099.62 mn

� 2 mn out of 4 mn warrants convertible into equity shares

allotted to the Promoters at a conversion price of

` 189.75 in Nov 2009, yet to be converted.

(These 2 mn warrants post conversion will total to 4 mn

equity shares due to the effect of bonus in the ration of

1:1)

Disclosures

Details of shares pledged by Promoter/Promoter Group

Accounting Policy

� There has been no change in the Accounting Policy of the

Company

Insider Trading

� NIL

Promoter Loan

� Loan from Promoter Directors stands at ` 101.6 mn as

of 30 September 2010

Headcount

ParticularsShares held as

on 30 Sep 2010

Shares pledged as on

30 Sep 2010

Ravi Kiran Aggarwal 1,92,13,904 1,66,00,000

Pujit Aggarwal 2,07,19,676 1,58,00,000

Total 3,99,33,580 3,24,00,000

ParticularsDirect

Employees

Contract

WorkersTotal

Opening Headcount

as on 1 July 2010150 153 303

Attrition during Q2-

FY11(8) (13) (21)

New recruits in Q2-

FY1117 28 45

Closing Headcount

as on 30 Sep 2010159 168 327

� As on 30 September 2010, the Promoter/Promoter Group

hold total 4,78,81,486 shares, out of which 3,24,00,000

shares have been pledged as shown below -

14

SHAREHOLDING DETAILS – Q2FY11

Shareholding Pattern as on 30 September 2010

Category PercentageNumber of

Shares

Promoter Group 43.54% 4,78,81,486

Mutual Funds/Financial

Institutions3.60% 39,59,987

FIIs 15.18% 1,66,91,472

Bodies Corporate 20.38% 2,24,05,650

Other Public 17.30% 1,90,23,295

Total outstanding shares 100.0% 10,99,61,890

� The total number of shareholders on 30 Sep 2010 are

35,173 compared to 25,901 as on 30 June 2010

Institutional Holding Trend Summary

Shareholding Pattern as on 30 September 2010

Promoter

Group,

43.54%

Mutual

Funds/Finan

cial

Institutions,

3.60%

FIIs, 15.18%

Bodies

Corporate,

20.38%

Other

Public,

17.30%

14

33 34

3935 46

10.4%

24.0%

26.0%

23.9%

21.3% 18.8%

10

15

20

25

30

35

40

45

50

10%

15%

20%

25%

30%

30 June 2009 30 September

2009

31 December

2009

31 March 2010 30 June 2010 30 September

2010

No. of Institutional Investor % Holding of Institutional Investor

15

GOING AHEAD …

Objective for next 3 years

� Grow at ~40% Y-on-Y on revenue basis with sustained

profitability

� Maturity of current pipeline into execution phase

� Double the Pipeline

� Implement the Value Add model of signature projects

in other micro markets

Key Challenges

� Asset monetization

� Capital Support

� Bandwidth Optimization

Strategy

� Continuous generation of projects through agility in

identifying suitable properties in focus locations

� Speedier property acquisition by leveraging our expertise

� Meticulous project designing and planning with keen

understanding of customer requirements

� Agility in Sales and Marketing

� Leveraging the Orbit brand while investing in new micro

markets

� Leveraging execution and business development

capabilities for raising capital for further growth

� Remaining financially sound by maintaining Leverage ratio

of <1 and bringing down average cost of debt by at least

150 basis points

� Target improvement in EBIDTA margins by 300 basis

points with thrust on process efficiency

� Developing human capital through capability building and

knowledge management

16

Disclaimer

The Corporate Presentation (the “Presentation”) is based on management estimates and is being provided to you (herein

referred to as the “Recipient”) only for information purposes. The sole purpose of this Presentation is to provide preliminary

information on the business activities of the Company, in order to assist the recipient in understanding the Company. This

Presentation does not purport to be all inclusive or necessarily include all information that a prospective investor may desire in

evaluating the Company. The Company expressly disclaims any and all liability for any errors and/or omissions, representations

or warranties, expressed or implied as contained in this document.

This Presentation contains certain forward looking statements and images which are based on certain assumptions of future

events over which the Company exercises no control. Hence this involves number of risks and uncertainties which could cause

the actual results and the images to differ materially from those that may be projected or implied by these forward looking

statements. Such risks and uncertainties include, but are not limited to: our ability to manage growth, competition, attracting

and retaining skilled professionals, time and cost overruns, regulatory approvals, market risks, domestic and international

economic conditions, changes in laws governing the company including the tax regimes and exchange control regulations.

The Company does not undertake to update any forward looking statements that may be made from time to time by or on

behalf of the Company. By receiving this Presentation, the Recipient agrees to keep confidential the information contained

herein or made available in connection with any further evaluation of the company. This Presentation has been prepared for

information purposes relating to this company only and upon the express understanding that it will be used only for the

purposes set forth above. This Presentation may not be photocopied, reproduced or distributed to others at any time without

prior consent of the Company. Upon request, the Recipient will promptly return all material received from the company without

retaining any copies thereof.

In furnishing this Presentation, the company do not make any obligation to provide the Recipient with access to any additional

information on the company or its subsidiaries. This Presentation should not be deemed an indication of the state of affairs of

the company nor shall it constitute an indication that there has been no change in the business or state of affairs of the

company since the date of publication of this Presentation.

Any clarifications / queries on the proposal as well as any future communication regarding the Company should be

addressed to Orbit Corporation Limited / the company.