Lodha Reported Best Ever First Quarter Pre-Sales Performance

Lodha, India’s No. 1 real estate developer, announced its financial results for the quarter ended June 30, 2023. Company reported its best ever first quarter pre-sales performance at INR 3,353 crores along-side a very strong business development of INR ~12,000 crores.

Commenting on the performance, Abhishek Lodha, MD & CEO, Macrotech Developers Ltd. said, “It is heartening to note that Q1FY24 has turned out to be our best ever 1st quarter pre-sales performance. Our pre-sales for the quarter at INR 3,353 crores grew by 17%. Our ‘for-sale’ business has shown a stupendous growth of 30%. This reinforces our belief in the sustainable nature of the strong housing demand.”

“With the likelihood of downward journey of interest rates in next few quarters after witnessing a pause by the RBI, we see momentum for housing continuing to strengthen. Robust job creation led by PLI schemes and strong growth of GCCs could offset short term concerns originating in other parts of the economy. Combined with good affordability and mortgage availability, this housing cycle in India has the potential to continue for more than a decade in our view,” he added. 

“Our strong start and industry tailwind has positioned us extremely well on our path to achieve our pre-sales guidance for the year. Strong demand conditions, improving seasonality, along with forthcoming launches at multiple new locations will lead to continuing momentum for our business in FY24,” he said. 

The company have burgeoning pipeline of business development opportunities on the back of our strong brand and proven ability to quickly monetize any land asset making landowners prefer Lodha. It added five new projects with GDV potential of INR ~12,000 crores in Q1FY24. 

The new projects include projects in the Western Suburbs of MMR, Bengaluru and in Alibaug. Offering at a super-prime location in Alibaug, a market which is starved of tier-1 brand, will not only serve the primary demand from MMR but will also enable us to tap the 2nd home segment. This location is well connected from MMR including through waterway and is a dream destination for MMR residents. Having proven strength in creating destinations at several locations in past, this too will provide a significant fillip to thebrand, diversity in offerings, and thereby growth.

Company’s net debt has increased marginally, primarily on account of front loaded business development investment. It remained on the path to achieve our full year guidance of reduction of net debt to lower of 0.5x equity and 1x Operating Cash flow, with significant debt reduction to be seen in H2. It is pleasing to note that, continuing strengthening of balance sheet has led to further credit rating (or outlook) upgradesfor us - by ICRA to A+/ Positive and by India Ratings to A+/ Stable. Our average cost of funds continues to trend down despite rising policy rates and was at ~9.65% (down 15bps for the quarter).”

Lodha is progressing well on its sustainability journey and is on track to advance its net zero scope 1 & 2 targets from 2027 to 2024. Lodha’s efforts in sustainability are increasingly being recognized by various leading global benchmarks. After receiving exceptional scores from S&P Global, GRESB and Morningstar Sustainalytics during previous quarters, Lodha has added yet another feather in its cap by becoming part of the prestigious FTSE4Good Index Series in its latest review in June 2023.

Guided by its philosophy of “Do Good, Do Well”, Lodha launched Lodha Genius Programme with Ashoka University – a leading Indian university. 96 students from diverse backgrounds were handpicked who underwent a month long campus programme and benefitted from mentoring by some of the finest minds in the world including Nobel Laureates. Through this initiative, Lodha aims to nurture and inspire the brightest young minds of our nation to reach their full potential.