Lodha Developers Ltd. · NSE:LODHA
Lodha Developers — Macrotech Developers Limited (Lodha) — Q2 FY2022 Earnings Presentation
43 slides from Lodha Developers's earnings presentation, Oct 21, 2021
Slide 1: Exchange filing cover letter: Investor Presentation
October 21, 2021 The Listing Dept., The Listing Dept. BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza, C-1, Block G Phiroze Jeejeebhoy Towers Bandra Kurla Complex Dalal Street Bandra (E), Mumbai – 400 051 Mumbai- 400001 Trading Symbol : LODHA Scr
Slide 2: Board Presentation Second Quarter FY2022
Board Presentation Second Quarter FY2022 21st October 2021
Slide 3: Index
INDEX Page No Company Overview 3 Highlights 11 Performance Update 19 Financial Update 29 Annexure 36 2
Slide 4: Company Overview
Palava 01 Company Overview 33
Slide 5: Lodha – India's leading real estate developer, exponential growth ahead
Lodha – India‟s leading real estate developer, exponential growth ahead Leading Residential Platform Strong Financial Profile Multiple Growth Drivers India‟s Largest Real Estate Developer^ Strong track record of profitability Future potential to expand further in Adj. EBITDA margin** of ~30% MMR &
Slide 6: Investing for the next phase of growth
Investing for the next phase of growth Three focus areas- Technology, People and ESG Technology Undergo a Tech. Transformation to achieve operational improvement, revenue growth, superior customer & employee experience 2 yr. roadmap to ensure high value solutions be implemented at the earliest;
Slide 7: Eminent Board of Directors
Eminent Board of Directors Expanded the board and inducted UK based Mr. Lee Polisano, an internationally acclaimed architect with demonstrated leadership in sustainability in the built environment, as an Independent Director. Mukund Chitale, Independent Director and Chairman Director on the Board
Slide 8: Strong management team
Strong management team Shaishav Dharia Sushil Kumar Modi CEO – Townships and Rental Assets Chief Financial Officer Strong senior-level Formerly worked with McKinsey & 25 Formerly served as Group CFO- 20 Company and Logic Tools management team of + Strategic Finance at GMR Group + ~100 executives
Slide 9: Our Philosophy: Do Good, Do Well – Environmental Focus
Our Philosophy: Do Good, Do Well – Environmental Focus Working towards becoming a global leader in sustainability in the real estate industry Environmental initiatives implemented Membrane bioreactor technology based sewage treatment plants in collaboration with Suez Water Technologies and Solutions
Slide 10: Our philosophy: Do Good, Do Well – Social Focus
Our philosophy: Do Good, Do Well – Social Focus Catering to essential needs of society and putting Healthcare & Safety first 10,000+ students are 20,000+ labourers have benefitted 57,000+ vaccinations for 3.5 lakhs free meals provided getting quality education till date across programs employees, de
Slide 11: Continued focus on improving transparency and internal controls
Continued focus on improving transparency and internal controls Existing Corporate Governance Policies No Gifts Policy Lodha Code of Conduct Anti Money Laundering, Anti- Guidelines on non-acceptance of gifts Outlines organizational values, Bribery and Anti-Corruption offered by existing or potential
Slide 12: Highlights
“World Tower – Ball Room” 02 Highlights 1111
Slide 13: Housing has entered multi-year up-cycle
Housing has entered multi-year up-cycle Drivers in place for sustained demand for housing Average age of home buyers is around 37-39 years. 2/3rd of the Indian population is below the age of 35. What it means is these many people would not have thought of buying a house but they will need to buy
Slide 14: Industry at start of upcycle with increasing share for Tier 1 players like Lodha
Urban housing in India‟s Tier 1 cities: set for a sustained up-cycle Real Estate sector on course to become a USD 1 trillion market* Industry at start of upcycle with increasing share for Tier 1 players like Strong Entry of large educated workforce every year Structural Rapid urbanization and fa
Slide 15: 2Q FY22: Best ever performance for 2Q of a FY (1/3)
2Q FY22: Best ever performance for 2Q of a FY (1/3) Pre-sales rebounded to INR 2,003 crores 88% YoY: o This is despite covid related challenges in the early part of the quarter and Q2 being a seasonally weak quarter due to monsoon and Shraadh (fortnight of inauspicious period) o Affordable & mid-i
Slide 16: 2Q FY22: Best ever performance for 2Q of a FY (2/3)
2Q FY22: Best ever performance for 2Q of a FY (2/3) Net debt remained stable at ~INR 12,500 crores, in spite of impact on collections due to 2nd wave of Covid and spend (land and approvals) in preparation for H2 launches and JDAs. Average cost of debt came down by ~20 bps from 11.6% (end of Jun‟
Slide 17: 2Q FY22: Best ever performance for 2Q of a FY (3/3)
2Q FY22: Best ever performance for 2Q of a FY (3/3) Launched 1.1 msf area across MMR and Pune Achieved completion for 0.9 msf area in MMR despite Covid ESG : o Have registered with a leading ESG benchmark (S&P Global) and have filed for assessment. Expecting the score during this financial yea
Slide 18: Enabling resolution to raise growth capital in next 12 months
Enabling resolution to raise growth capital in next 12 months Housing demand from branded tier-1 developers witnessing huge growth. o Listed developers pre-sales show 90%* growth for Q2FY22 over pre-Covid period of Q2FY20 Consolidation continues to accelerate and enabling disciplined supply from
Slide 19: Bolstering capabilities to support growth plans
Bolstering capabilities to support growth plans Augmenting Senior Management o „For sale‟ business: • Rajib Das, CEO – Eastern Suburbs & Navi Mumbai (Ex-Godrej Properties) • Rajendra Gadekar, Approvals Head – Pune (Ex-Shapoorji Pallonji) • Shekhar Gaitonde, Lead – Quality Assurance (Ex-Avenue Supe
Slide 20: Performance Update
Palava 03 Performance Update 19
Slide 21: 2Q FY22 Operational Performance
2Q FY22 Operational Performance 8,884 15% 10,218 8,585 23% 10,549 2,003 INR Cr 2,960 Pre-Sales 1,066 88% 88% 1,575 1.1 msf 1.8 msf 1.7 msf 2.6 msf 2Q FY21 2Q FY22 1H FY21 1H FY22 1,912 INR Cr 3,626 1,107 73% Collections 143% 1,491 2Q FY21 2Q FY22 1H FY21 1H FY22 Mn. Sqft. 0.9 1.3 14x Completions 20x
Slide 22: 2Q FY22 Financial Performance
2Q FY22 Financial Performance INR Cr 2,124 3,729 136% Revenue 166% 901 1,401 2Q FY21 2Q FY22 1H FY21 1H FY22 778 1,316 17% 5x 37% Adj. EBITDA 12% 5.8x 35% 153 168 2Q FY21 2Q FY22 1H FY21 1H FY22 PAT 287 13% 409 10% 4.7x 223 62 (76) 384 (496) PAT (363) 1H FY21 1H FY22 2QFY21 2QFY22 Adjusted EBITDA =
Slide 23: Micro-market performance for 2Q FY22
Micro-market performance for 2Q FY22 INR Cr Average Sales Construction Area delivered Micro-markets Pre-Sales Collections Price (INR psf) spend (Mn. sq. ft.) South & Central 732 27,270 627 170 0.4 Thane 458 9,517 539 119 0.3 Extended Eastern Suburbs 452 5,534 351 166 0.2 Western Suburbs 76 14,569 11
Slide 24: Micro-market performance for 1H FY22
Micro-market performance for 1H FY22 INR Cr Average Sales Construction Area delivered Micro-markets Pre-Sales Collections Price (INR psf) spend (Mn. sq. ft.) South & Central 1,117 28,974 1,243 431 0.8 Thane 673 9,448 1,065 239 0.3 Extended Eastern Suburbs 625 5,462 629 375 0.2 Western Suburbs 105 14
Slide 25: Micro-market supply overview
Micro-market supply overview Planned Inventory Launches Residual Collections Ready Ongoing In next 12 months* Beyond 12 months Land Micro-markets from Sold unsold unsold Bank^ units Own Land JDA Own Land JDA INR Cr Mn. Sq. ft. Acres South & Central 1,910 4,696 4,251 1.1 -- 1.2 -- -- Thane 1,442 365
Slide 26: New Launches: 1H FY22 and likely launches for the rest of FY22
New Launches: 1H FY22 and likely launches for the rest of FY22 Est. GDV Micro-market Own/ JDA Launch Qtr/ Yr Area (Mn .Sq.ft) Est. OC Remarks (INR cr) Already launched during FY22 South & Central Own 1QFY22 0.2 575 2025 Park Signet Crown Thane/ Thane Own 1QFY22 0.4 375 2025 Crown Ghodbunder Road Ext
Slide 27: JDA Update: Robust JDA pipeline of ~INR 7,000 to 10,000 crores for 2HFY22
JDA Update: Robust JDA pipeline of ~INR 7,000 to 10,000 crores for 2HFY22 JDA Signed since IPO Saleable Area Lodha‟s Commercial Micro-market Est. GDV (INR cr) Est. Launch (Mn .Sq.ft) interest Attributable PBT at 20% of MMR - Western Suburbs 1.2 1,500 H2FY22 GDV Pune 1.5 1,000 67.5% of Revenue Q2FY22
Slide 28: Update on Digital Infrastructure
Update on Digital Infrastructure Tied up monetization for ~220 acres till date Sold ~27 acre land parcels in 2QFY22 including 22 acres to Flyjac Logistics (subsidiary of Hitachi Transport System Group), a Japanese 3-PL company Marquee ecommerce player: Due diligence in advance stages for 40 ac
Slide 29: Commercial Rental Assets
Commercial Rental Assets One Lodha Place iThink Thane iThink Palava Palava Mall Area in Mn. Sqft. Location Worli (World Towers) Thane (Clariant Plot) Palava (Office) Xperia Mall* Total^ Leasable area 0.75 0.92 0.66 0.42 0.41: Ready Area 0.23: Ready Area Under development Ready Area (Est. completion
Slide 30: Financials
“Lodha Amara – Club House” 04 Financials 29
Slide 31: Financial highlights for 2Q FY22
Financial highlights for 2Q FY22 INR Cr INR Cr Q2 FY22 Q2 FY21 Growth % 1HFY22 1HFY21 Growth (%) Revenue 2,124 901 135% 3,729 1,401 165% Adj. EBITDA^ 778 153 1,316 168 Adj. EBITDA (%) 36.6% 17.0% 35.3% 12% Strong Rebound Strong Rebound PAT (ex. Forex & 287 62 409 -76 Exceptional Items) PAT (%) (ex.
Slide 32: Consolidated Summary Balance Sheet
Consolidated Summary Balance Sheet INR Cr As at As at As at As at EQUITY AND LIABLITIES ASSETS 30-Sep-21 31-Mar-21 30-Sep-21 31-Mar-21 Equity Share Capital 447 396 Tangible Assets 1,375 1,406 Other Equity 6,969 4,203 Intangible Assets 543 547 Non-Controlling Interests 494 527 Investments 241 1,579 T
Slide 33: Cash Flow - 2Q FY22
Cash Flow - 2Q FY22 INR Cr Office & Retail Residential Industrial Other Land Total (for rent) Pre-Sales 1,892 -- 98 13 2,003 Collections 1,711 20 167 14 1,912 Net* Collections 1,555 20 167 14 1,756 Op. Expenses 712 34 -- -- 745 -Const. Exp 493 23 -- -- 516 -SG&A 219 11 -- -- 230 -Taxes -1 Cash flow
Slide 34: Update on UK Investments
Update on UK Investments UK projects quarterly performance: o LSQ best ever quarter (£ 35mn) o GSQ best ever single month sales (£ 110mn) in the very first month post relaxations on international travel in late August Collections at £ 24mn Level of customer enquiries and visits continue to ris
Slide 35: Market wise completion plan for ongoing 'for sale' projects
Market wise completion plan for ongoing „for sale‟ projects Mn.sq ft. Total area under Sold/ >FY24 Business FY22^ FY23 FY24 construction Unsold Own JDA Sold 0.65 0.23 0.11 0.07 -- South & Central Mumbai 2.72 Unsold 0.53 0.21 0.81 0.12 -- Sold 0.52 1.96 0.74 0.22 -- Thane 6.97 Unsold 0.09 0.41 0.64 2
Slide 36: Significant progress towards the goal of net cash positive
Significant progress towards the goal of net cash positive INR Cr Trend for Net Debt for India business Cash flow from ready & ongoing projects 16,076 5,231 23,488 13,639 19,665 3,823 -6,000 6,795 12,435 12,477 RTMI Unsold Pending Pending Surplus Surplus Total inventory ongoing collections const. co
Slide 37: Annexure
“ESR Park” 05 Annexure 36
Slide 38: Consolidated Profit & Loss Summary
Consolidated Profit & Loss Summary INR Cr Quarter ended Period Ended Year ended Sr. No. Particulars 30-09-2021 30-09-2020 30-06-2021 30-09-2021 30-09-2020 31-03-2021 (Unaudited) (Audited) (Unaudited) (Unaudited) (Unaudited) (Audited) 1 Income a) Revenue From Operations 2,124 901 1,605 3,729 1,401 5,
Slide 39: Palava Digital Infrastructure Park - Strategically located in MMR
Palava Digital Infrastructure Park- Strategically located in MMR • Clean land titles Significant Traction • Execution capabilities • High quality infrastructure • Proximity to MMR Entrance of the Industrial Park Strategically located & well connected Distance from: Duration (Min) Municipal limi
Slide 40: Key affordable & mid-income projects delivered
Key affordable & mid-income projects delivered Unique ability to create destinations Lodha Upper Thane Lodha Belmondo Lodha Splendora Lodha Amara Lodha Palava 39
Slide 41: Key premium & luxury projects delivered
Key premium & luxury projects delivered Unique ability to create destinations New Cuffe Parade Lodha Altamount World Towers Lodha Park 40
Slide 42: Disclaimer
Disclaimer Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, technological risks, and many other factors that could cause our actual
Slide 43: Thank You!
Thank You! For any further information, please write to investor.relations@lodhagroup.com 42
Macrotech Developers Limited (Lodha) — Q2 FY2022 Earnings Presentation on 6ix