Lodha Developers Ltd. · NSE:LODHA
Lodha Developers — Macrotech Developers Limited (Lodha) — Q4 FY2022 Earnings Presentation
47 slides from Lodha Developers's earnings presentation, Apr 26, 2022
Slide 1: Lodha – Investor Presentation cover letter to exchanges
= = LODHA a i mums |= BUILDING A BETTER LIFE April 26, 2022 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 05
Slide 2: Investor Presentation Fourth Quarter FY2022
Investor Presentation Fourth Quarter FY2022 26th April 2022
Slide 3: Index
INDEX Page No Highlights 4 Performance Update 23 Financials 27 Company Overview 33 Annexure 39 2
Slide 4: Lodha – India's leading real estate developer
Lodha – India’s leading real estate developer Leading Residential Platform Strong Financial Profile Multiple Growth Drivers India’s Largest Real Estate Developer^ Strong profitability track record; to further Significant room to grow in MMR & expand due to deleveraging benefits, scale Pune INR ~50
Slide 5: Highlights
“World Tower – Ball Room” 01 Highlights 44
Slide 6: 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 7: Performance Highlights
Performance Highlights FY22 pre-sales of INR 9,024 crores. Guidance achieved. Net debt reduced to INR ~9,300 crores, bettering FY22 guidance of INR 10,000cr Exceeded guidance of ‘for-sale’ business (INR 8,443 crores vs INR 8,000 crores guidance) inspite of loss of ~3 months due to 2 waves of C
Slide 8: Operational Performance
Operational Performance For Sale Others* 3,456 For Sale Others* 9,024 2,531 8,443 INR Cr 3,123 55% Pre-Sales 5,968 57% 2,013 5,364 1.8 msf 3.0 msf 5.1 msf 8 msf 4Q FY21 4Q FY22 FY21 FY22 2,843 INR Cr 8,597 2,089 36% Collections 70% 5,052 4Q FY21 4Q FY22 FY21 FY22 Mn. Sqft. 2.8 5.3 2.6 8% Completions
Slide 9: Financial Performance
Financial Performance INR Cr 3,445 9,233 2,534 36% Revenue 69% 5,449 FY21 FY22 4Q FY21 4Q FY22 1,230 3,243 922 33% 111% Adj. EBITDA 36% 36% 1,540 28% 35% 4Q FY21 4Q FY22 FY21 FY22 16% 13% 573 1,262 ~2x 11% 3.7x 6% 291 538 PAT 1,208 340 312 48 4QFY21 4QFY22 FY21 FY22 Adjusted EBITDA = After Grossing
Slide 10: UK Investments: Successful exit visible in next few quarters
UK Investments: Successful exit visible in next few quarters UK projects performance: o GSQ: £152mn in 4QFY22, £439mn sold in FY22; expect to fully sold out over next 4 quarters o LSQ: ~£21mn in 4QFY22, £92mn sold in FY22; remains on track to be sold in next 1-2 quarters Particulars (GBP mn) GSQ L
Slide 11: Guidance for FY23
Guidance for FY23 INR cr FY22 FY23 % growth Guidance Achieved Guidance Pre-Sales 9,000 9,024 11,500 27% For Sale 8,000 8,443 10,500 24% Others* 1,000 581 1,000 72% Operating Cashflow 3,950 > 6,000 > 51% New Project Additions 14,600 ~15,000 Net Debt 10,000 9,309 < 6,000 Growth backed by multiple visi
Slide 12: Planned launches in FY23
Planned launches in FY23 Own/ JDA Est. GDV (INR Micro-market Area (Mn .Sq.ft) No of Projects Project cr) South Central Own 1.0 4,950 3 South Central JDA 0.9 2,190 2 Extended Eastern Suburbs Own 3.5 2,070 1 Eastern Suburbs JDA 1.0 1,770 3 Western Suburbs JDA 0.7 920 2 Thane Own 0.8 790 2 Pune JDA 0.7
Slide 13: Launches in FY22
Launches in FY22 Own/ JDA Est. GDV Micro-market Launch Qtr/ Yr Area (Mn .Sq.ft) Est. OC Remarks Project (INR cr) South & Central Own 1QFY22 0.2 575 2025 Park Signet Crown Thane/ Thane Own 1QFY22 0.4 375 2025 Crown Ghodbunder Road Extended Eastern Suburbs Own 1QFY22 0.3 160 2023 Palava Extended Easte
Slide 14: JDA Update: 11 JDA Projects tied-up in FY22
JDA Update: 11 JDA Projects tied-up in FY22 INR Cr Launche Saleable Area Lodha’s Commercial Micro-market Est. GDV d/ Est. (msf) interest Launch MMR - Eastern Suburbs 1.5 2,450 Attributable PBT at 18% of GDV FY23 MMR - South Central 0.8 2,100 65% of Revenue FY23 MMR - South Central 0.8 2,030 65% of R
Slide 15: Entered Pune, fourth largest housing market…
Entered Pune, fourth largest housing market… Market size: INR ~25,000cr Micro-market Market Size (INR cr) 1 Central 1,000 2 North-East 4,500 3 South-East 3,500 4 South-West 3,500 5 North-West 6,500 6 Pimpri-Chinchwad 6,000 Total 25,000 Source: Anarock, CRE Matrix 14
Slide 16: …will contribute to growth in a sustainable manner
…will contribute to growth in a sustainable manner Large & resilient market with a play on IT and manufacturing sector upswing Historically, we have only present through Lodha Belmondo in Pune (Pimpri-Chinchwad) Launched first project within the city, off NIBM Road (South-East) in Aug’21, sold
Slide 17: Modest impact of cost inflation
Modest impact of cost inflation Overall impact of commodity inflation is ~2.5% of sales value at the portfolio level o Construction cost in MMR constitutes relatively lesser part of the sales value: ~35% of sales value o Construction cycle typically spans over 3-4 years, which allows flexibility i
Slide 18: Construction cost inflation – Deep dive
Construction cost inflation – Deep dive Commodity/Component % Escalation YoY* % Share in total cost Total weighted impact % Steel 35.1% 12.9% 4.5% Flooring Tiles 23.9% 5.0% 1.2% Electrical/Plumbing 10.1% 11.8% 1.2% Labour 3.0% 34.4% 1.0% External Windows 21.9% 3.9% 0.8% RMC 6.3% 10.5% 0.7% Lifts & E
Slide 19: Digital Infrastructure: potential to generate significant cashflow
Digital Infrastructure: potential to generate significant cashflow Digital Infrastructure Platform: In final stage of closure. o Platform to invest > USD 1 billion to create pan-India presence in warehousing and light industrial parks o Lodha to be operating partner and inject assets into the plat
Slide 20: Digital Services Business – Leveraging customer connect
Digital Services Business – Leveraging customer connect Strong understanding of consumers (Physical + Financial + Digital) staying in Lodha managed developments and their spending patterns Use Technology to facilitate seamless customer experience through integrated platform and increase recurrin
Slide 21: 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 0.18 0.58 0.42 0.15: Ready Area Under development Ready Area (Est. completion in FY23) 0.18: Re
Slide 22: Progress made in Environmental Sustainability during FY22
Progress made in Environmental Sustainability during FY22 Overarching Achieve Carbon Neutrality in operations Align Scope 3 emissions reduction Be resilient to climate change while not Goals (Scope1, 2) by the year 2035 or earlier roadmap with 1.5 ℃ ambition contributing to global warming Progress i
Slide 23: Progress made in Social and Governance dimensions during FY22
Progress made in Social and Governance dimensions during FY22 Governance Social Board Our People Communities Expanded the board with a world Diversity & Inclusion (44% Women by FY27) Livelihood renowned expert in Sustainability, Computer & vocational courses conducted for ~280 women and Mr. Lee Poli
Slide 24: Performance Update
Palava 02 Performance Update 23
Slide 25: Micro-market performance for 4QFY22
Micro-market performance for 4QFY22 INR Cr Average Sales Construction Area delivered Micro-markets Pre-Sales Collections Price (INR psf) spends (Mn. sq. ft.) South & Central 1,092 26,876 1,044 233 0.1 Thane 538 9,781 628 124 0.9 Extended Eastern Suburbs 678 5,649 452 316 1.1 Western Suburbs 330 14,9
Slide 26: Micro-market performance for FY22
Micro-market performance for FY22 INR Cr Average Sales Construction Area delivered Micro-markets Pre-Sales Collections Price (INR psf) spend (Mn. sq. ft.) South & Central 3,184 27,165 3,244 873 1.9 Thane 1,672 9,634 2,204 472 1.2 Extended Eastern Suburbs 1,941 5,599 1,390 880 1.3 Western Suburbs 768
Slide 27: 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 JDA JDA Own Land Own Land Projects Projects INR Cr Mn. Sq. ft. Acres South & Central 2,167 4,365 2,908 1.0 0.9 1.0 1.1
Slide 28: Financials
“Lodha Amara – Club House” 03 Financials 27
Slide 29: Financial highlights for 4Q FY22
Financial highlights for 4Q FY22 INR Cr INR Cr 4Q FY22 4Q FY21 Growth % FY22 FY21 Growth (%) Revenue 3,445 2.534 36.0% 9,233 5,449 69.5% Adj. EBITDA^ 1,230 922 33.3% 3,243 1,540 110.6% Adj. EBITDA (%) 35.7% 36.4% -70bps 35.1% 28.3% 680bps PAT (ex. Forex & 573 291 ~2x 1,262 340 3.7x Exceptional Items
Slide 30: Consolidated Summary Balance Sheet
Consolidated Summary Balance Sheet INR Cr EQUITY AND As at 31-Mar- As at 30- As at As at 31- As at 30- As at LIABLITIES 22 Sep-21 31-Mar-21 ASSETS Mar-22 Sep-21 31-Mar-21 Equity Share Capital 482 447 396 Tangible Assets 1,384 1,375 1,406 Other Equity 11,624 6,969 4,203 Non-Controlling Intangible Ass
Slide 31: Cash Flow - 4Q FY22
Cash Flow - 4Q FY22 INR Cr Office & Retail Residential Industrial Other Land Total (for rent) Pre-Sales 3,123 188 68 76 3,456 Collections 2,471 203 101 68 2,843 Net* Collections 2,187 203 101 68 2,559 Op. Expenses 1,091 56 -- -- 1,164 -Const. Exp 788 52 -- -- 840 -SG&A 303 4 -- -- 307 -Taxes 17 Cash
Slide 32: Significant progress towards the targeted capital structure
Significant progress towards the targeted capital structure INR Cr Trend for Net Debt for India business Cost of borrowing continues to reduce 16,076 12.3% 11.1% 9,896 596 10.5% 9,300 Mar-21 Dec-21 Reduction in Mar-22 Mar-21 Dec-21 Mar-22* Q4FY22 *As of 31st Mar 2022 New borrowing at <9% rate 31
Slide 33: Market wise completion plan for ongoing 'for sale' projects
Market wise completion plan for ongoing ‘for sale’ projects Mn.sq ft. Revenue New sales from Sales from under- Sale of Sale of recognition for ready unsold construction project annuity Land the period Inventory obtaining OC during assets the period Sold/ FY25 >FY25 Total area under Business Unsold F
Slide 34: Company Overview
Palava 04 Company Overview 3333
Slide 35: 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 36: Eminent Board of Directors
Eminent Board of Directors Mukund Chitale, Independent Director and Chairman Director on the Board of L&T Former President of ICAI Former Chairman of Ethics Committee of BSE Rajinder Pal Singh, Non-Executive Director Director on the Board of Maruti Suzuki Former Chairman and Managing Direc
Slide 37: Strong management team
Strong management team Shaishav Dharia Deepak Chitnis Sushil Kumar Modi CEO – Townships and Rental Assets Chief Designer Chief Financial Officer Formerly worked with McKinsey & Previously served as senior architect 23 26 Formerly worked at GMR, Aditya 27 Excellent domain knowledge Company and
Slide 38: Our ESG Philosophy: Do Good, Do Well
Our ESG Philosophy: Do Good, Do Well Climate Resilience: Be resilient to climate change while not contributing to global warming Ensure sustainability in our core operations by positively impacting the natural environment. Not to contribute Achieve Carbon Neutrality in operations by the year 2035 or
Slide 39: Strategy to achieve the overarching ESG Goals
Strategy to achieve the overarching ESG Goals Environmental Strategy Social Strategy Purpose Goal Impact on Communities Action area 38
Slide 40: Annexure
“ESR Park” 05 Annexure 39
Slide 41: Multiple benefits of consistent housing price increase below wage growth
Multiple benefits of consistent housing price increase below wage growth Improves affordability leading to increased volumes Leads to significant wealth creation for home owning middle class (‘Wealth Effect’) o Boosts consumption as consumer confidence increases o Housing is a vehicle for genera
Slide 42: Significant room for growth in housing volumes
Significant room for growth in housing volumes 52,719 89% 31,080 >150x 68% Mortgage value per capita (US$) 38,116 27,720 22,661 52% 15,795 3,942 44% 45% 39% 2,109 34% 1,560 235 20% 18% 11% India USA Germany Malaysia UK China Singapore Netherlands Thailand Japan Mortgage as % of GDP As India moves fr
Slide 43: Significant positivity on sector from key stake holders
Significant positivity on sector from key stake holders “The residential real estate segment will continue to see strong traction going forward as the demand for housing is not just pent up demand but it is a structural one”: Renu Sud Karnad, Managing Director, HDFC (Link) “In over 50 years of m
Slide 44: 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 43
Slide 45: Key premium & luxury projects delivered
Key premium & luxury projects delivered Unique ability to create destinations New Cuffe Parade Lodha Altamount World Towers Lodha Park 44
Slide 46: 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 47: Thank You!
Thank You! For any further information, please write to investor.relations@lodhagroup.com 46
Macrotech Developers Limited (Lodha) — Q4 FY2022 Earnings Presentation on 6ix