Lodha, India’s No.1* real estate developer, once again delivered a strong momentum with pre-sales of INR 3,035 crores for Q3FY23 showing a robust 16% YoY growth. Collections at INR 2,682 crores were up 26% YoY. Net debt in India has further reduced to INR 8,042 crores.
Commenting on the performance, Abhishek Lodha, Managing Director, Lodha said “It is heartening to note that Q3FY23 was yet another successful quarter with INR ~3,035 crores of pre-sales. Our nine-month pre-sales performance of INR 9,039 in FY23 has already exceeded the pre-sales achieved in the full year of FY22. This sets us up to surpass our pre-sales guidance of INR 11,500 crores for FY23.
Despite the upward trajectory of mortgage rates, we witnessed robust demand across all segments as well as in different cities (Mumbai & Pune). This evidences our belief that housing demand in India is on a long-term viz. 10-15 year structural upcycle on the back of strong affordability, job creation and income growth. With emerging visibility that the upward trajectory of mortgage rates is likely to end in H1CY23, we believe that 2023 will continue to see strengthening of sales from trusted developers, who have a track record of high-quality product and reliable delivery.
Lodha continues to remain the preferred partners for landowners looking to generate best value from their land holdings – in Q3FY23, we have added four new projects (saleable area of ~5 million sq. ft. with estimated sales value (GDV) of INR ~8,500 crores) through the joint development (JDA) route. With this we have already exceeded our full year guidance for business development of INR 15,000 crores. This reflects availability of land in the targeted micro-markets for Lodha, which in turn provides visibility for us to deliver on our goals of 20% pre-sales growth with ~20% RoE.
Despite heightened business development activity, we continue to be on path of reducing our leverage. Our net debt stands at INR ~8,042 crores reducing by INR ~753 crores. Our goal of Net Debt <0.5x Equity and <1x operating cash flow is now likely to be achieved in the next 6 months.”
During the quarter Lodha also received an exceptional score in S&P Global Corporate Sustainability Assessment (CSA) 2022 achieving a score of 75 (out of 100), the highest amongst the real estate companies in India. Globally, this ranks Lodha amongst the top 1% most sustainable companies out of over 858 companies in real estate sector. Being devoted to the ‘do good, do well’ philosophy, Company’s overarching goal is to be a ‘net-positive’ organization that creates a positive impact on both – our planet and our people.
