July 28, 2023: Real estate developer Lodha on July 27, 2023, announced its financial results for the first quarter of the financial year 2023-24 (Q1 FY24) that ended June 30, 2023. The company clocked pre-sales of Rs 3,353 crore, up by 17% Year-over-Year (YoY). It also added five new projects with the gross development value (GDV) potential of approximately Rs 12,000 crore in Q1FY24.
Abhishek Lodha, MD and CEO, Lodha, said, “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 a 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. 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.”
Total revenue collected by Lodha during the quarter touched Rs 1,617 crore. The company’s profit after tax (PAT) in Q1 FY24 stood at Rs 179 crore. With an embedded EBITDA margin of around 30%, Lodha’s adjusted EBITDA at the end of the quarter stood at Rs 464 crore. The company has become a part of the prestigious FTSE4Good Index Series in its latest review in June 2023. Moreover, it launched Lodha Genius Programme with Ashoka University, wherein 96 students underwent a month-long campus programme under the mentorship of esteemed academicians, including Nobel Laureates.
“Our net debt has increased marginally, primarily on account of front loaded business development investment. We remain 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. Continued strengthening of the balance sheet has led to further credit rating upgrades for 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 around 9.65% (down 15 bps for the quarter),” Lodha added.
