Lodha, continued to deliver strong pre-sales momentum with pre-sales of INR 6,004 crores in H1FY23. This includes pre-sales of INR 3,148 crores for Q2FY23 showing a robust 57% YoY growth. Collections in India were INR 2,375 crores, up 24% YoY. Net debt reduced to INR 8,796 crores.
Commenting on the performance, Abhishek Lodha, MD & CEO, Lodha said “We are pleased to note the strong recurring pre-sales performance. Q2FY23 was our best ever 2nd quarter with INR ~3,148 crores of pre-sales. Despite this being the seasonally weakest quarter, it is the 2nd time in the last 3 quarters when we have surpassed INR 3,000 crores of pre-sales suggesting a strong underlying housing demand, the attraction of Lodha Brand among consumers, and the strength of our organization. An early read of the demand on the back of the onset of festive season gives us great confidence of a strong finish in the second half of the year.
Consumer sentiment towards owning homes remains robust in our country – we believe that we are witnessing the beginning of a long-term upcycle for quality housing driven by strong job creation, good affordability, and low levels of existing home ownership in urban areas. As prices rise in a reasonable manner, demand will continue to accelerate and will lead to a significant increase in volumes, particularly in mid-income and affordable housing segments. As the industry leader, we will focus on significant volume growth accompanied by modest price growth, which will help aspiring Indians climb onto the housing ladder and also create significant employment.
The consolidation in the market continues at an accelerated pace providing us with lucrative JDA opportunities across all our markets of interest. During the quarter we have added four new projects with a combined area of ~2.2 million square feet and an estimated GDV potential of INR 3,100 crores.
Inspite of the accelerating growth in pre-sales and business development, we continue to focus on reducing our leverage and are on track to achieve our goal of net debt:equity <0.5x and net debt <1x operating cash flow.”
