Lodha Developers Ltd. · NSE:LODHA
Lodha Developers — Macrotech Developers Limited (Lodha) — Q1 FY2022 Earnings Presentation
38 slides from Lodha Developers's earnings presentation, Jul 30, 2021
Slide 1: Exchange filing cover letter for analyst presentation
July 30, 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 Scrip
Slide 2: Investor Presentation First Quarter FY2022
Investor Presentation First Quarter FY2022
Slide 3: Index
INDEX Page No Company Overview 3 Highlights 11 Performance Update 16 Financial Update 24 Annexure 30 2
Slide 4: Company Overview
Palava Phase I 01 Company Overview 33
Slide 5: Lodha – India's leading real estate developer, focused on disciplined growth
Lodha – India’s leading real estate developer, focused on disciplined growth 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%
Slide 6: 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 7: 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 25,000+ vaccinations for 3.5 lakhs free meals provided getting quality education till date across programs employees, de
Slide 8: 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 9: 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 implemented earliest; Initiative
Slide 10: 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 11: High quality management team
High quality management team Sushil Kumar Modi Shaishav Dharia Chief Financial Officer Strong senior-level CEO – Townships and Rental Assets Formerly served as Group CFO- management team of 85 Formerly worked with McKinsey & 25+ Strategic Finance at GMR Group 20+ Company and Logic Tools executiv
Slide 12: Highlights
“World Tower – Ball Room” 02 Highlights 1111
Slide 13: Housing enablers intact post 2nd wave…significant rebound ahead
Housing enablers intact post 2nd wave…significant rebound ahead Strong structural demand to triumph over Covid-led short term dislocation Structural demand for housing in India will always be strong; COVID has proved to be positive for the sector with people looking for bigger homes further acce
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 upcycle Industry at start of upcycle with increasing share for Tier 1 Strong Structural Real Estate sector on course to become a USD 1 trillion market* Demand Entry of large educated workforce every year players like Lodha and improved pr
Slide 15: Q1 FY22: Strong performance despite 2nd wave of Covid
Q1 FY22: Strong performance despite 2nd wave of Covid Strong Pre-sales performance of INR 957 crores 88% YoY despite Covid. While April and May had very limited pre-sales on account of the 2nd Covid wave in India, June saw pre-sales of INR 654 crore. o This pick-up in June is despite some continui
Slide 16: Other Highlights
Other Highlights Affordable & mid-income segment accounted for 53% pre-sales of the total ‘for-sale’ pre-sales for 1QFY22. Success of new launch at Park Signet resulted in higher contribution from premium segment. Launched 0.9 msf area in MMR Despite Covid, achieved completion for 0.4 msf area
Slide 17: Performance Update
“Palava Phase II” 03 Performance Update 16
Slide 18: 1QFY22 Performance
1QFY22 Performance ASP 8,039 11,364 INR Cr 41% 957 1,605 Pre-Sales 88% Revenue 509 221% 500 0.6 msf 0.7 msf 1Q FY21 1Q FY22 1Q FY21 1Q FY22 1,714 Significant 576 346% rebound seen Collections Adj. EBITDA 384 1% 36% 3 1Q FY21 1Q FY22 1Q FY21 1Q FY22 Mn. Sqft. 0.4 161 Significant rebound seen 9% Compl
Slide 19: Micro-market performance for 1QFY22
Micro-market performance for 1QFY22 INR Cr Average Sales Construction Area delivered Micro-markets Pre-Sales Collections Price (INR psf) spend (Mn. sq. ft.) South & Central 385 31,874 616 262 0.4 Thane 215 9,325 526 119 -- Extended Eastern Suburbs 173 5,310 278 208 -- Western Suburbs 28 13,879 77 30
Slide 20: 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 1,768 4,630 4,775 1.1 -- 1.2 -- -- Thane 1,456 510
Slide 21: New Launches: 1QFY22 and likely launches for the rest of FY22
New Launches: 1QFY 22 and likely launches for the rest of FY22 INR Cr Micro-market Own/ JDA Launch Qtr/ Yr Area (Mn .Sq.ft) Est. GDV Est. OC Remarks 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 Exten
Slide 22: Business Development Update - JDAs Signed
Business Development Update - JDAs Signed INR Cr. Saleable Area Lodha’s Commercial Micro-market Est. GDV Est. Launch (Mn .Sq.ft) interest Attributable PBT at 20% of MMR- Western Suburbs 1.2 1,500 H2FY22 GDV Pune 1.4 900 67.5% of Revenue H2FY22 Attributable PBT at 20% of MMR- Western Suburbs 0.4 600
Slide 23: Update on Digital Infrastructure
Update on Digital Infrastructure Till date monetized 275+ acres of which 165 acres monetized in 4QFY21 Morgan Stanley Transaction: Expected completion in 2QFY22 Concluded sale of ~22 acre land parcel to Flyjac Logistics (subsidiary of Hitachi Transport System Group), a Japanese 3-PL company (J
Slide 24: 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 0.70 0.42 0.41: Ready Area 0.27: Ready Area Under development Ready Area (Est. completion i
Slide 25: Financials
“Lodha Amara – Club House” 04 Financials 24
Slide 26: Financial highlights for Q1 FY22
Financial highlights for Q1 FY22 INR Cr INR Cr Q1 FY22 Q1 FY21 Variance % FY21 Revenue 1,605 500 221% 5,449 Adj. EBITDA^ 576 3 Strong Rebound 1,711 Adj. EBITDA Margin % 35.9% 0.7% Strong Rebound 31.4% PAT 161 -133 220% 511** PAT Margin % 9.3% -23.3% Strong Rebound 8.9% Networth 7,205 4,417 4,559 ROE
Slide 27: Cash flows for 1QFY22
Cash flows for 1QFY22 INR Cr Office & Retail INR Cr. Residential Industrial Other Land Total (for rent) Pre-Sales 821 -- -- 136 957 Collections 1,548 17 13 136 1,714 Net* Collections 1,342 17 13 136 1,507 Op. Expenses 887 26 3 -- 942 -Const. Exp 647 19 1 -- 667 -SG&A 240 7 2 -- 249 -Taxes 26 Cash fl
Slide 28: Update on UK Investments
Update on UK Investments UK projects quarterly performance: o Sales: GBP 22 million “Enquiry levels in London are now ahead of pre- pandemic levels, o Collection: GBP 26 million signaling the return of confidence to the London market as we emerge Targeting partial pre-payment of USD denominated
Slide 29: Market wise completion plan for ongoing 'for sale' projects
Market wise completion plan for ongoing ‘for sale’ projects Mn.sqft. Total area under Sold/ Business FY22^ FY23 FY24 >FY24 construction Unsold Sold 0.88 0.22 0.10 0.07 South & Central Mumbai 3.13 Unsold 0.71 0.21 0.82 0.12 Sold 0.78 1.83 0.64 0.12 Thane 7.26 Unsold 0.12 0.54 0.74 2.50 Sold 1.46 2.23
Slide 30: 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 ‘for sale^^’ projects 16,625 16,076 4,913 549 14,075 19,760 -6,000 12,435 3,641 6,772 RTMI inventory Unsold ongoing Pending Pending const. Surplus inventory collecti
Slide 31: Annexure
“Industrial Park- ESR Park” 05 Annexure 30
Slide 32: Consolidated Summary Profit & Loss
Consolidated Summary Profit & Loss INR Cr Quarter ended Year ended Sr. No. Particulars 30-06-2021 31-03-2021 30-06-2020 31-03-2021 (Unaudited) (Audited) (Unaudited) (Audited) 1 Income a) Revenue From Operations 1,605 2,534 500 5,449 b) Other Income 107 78 72 323 Total Income 1,712 2,611 573 5,772 2
Slide 33: Consolidated Summary Balance Sheet
Consolidated Summary Balance Sheet INR Cr As at As at As at As at EQUITY AND LIABLITIES ASSETS 30-Jun-21 31-Mar-21 30-Jun-21 31-Mar-21 Equity Share Capital 447 396 Tangible Assets 1,390 1,406 Other Equity 6,758 4,203 Intangible Assets 545 547 Non-Controlling Interests 518 527 Investments 615 1,579 T
Slide 34: Palava logistics & Industrial Park- Strategically located in MMR
Palava logistics & Industrial 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 35: 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 34
Slide 36: Key premium & luxury projects delivered
Key premium & luxury projects delivered Unique ability to create destinations New Cuffe Parade Lodha Altamount World Towers Lodha Park 35
Slide 37: 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 38: Thank You!
Thank You! For any further information, please write to investor.relations@lodhagroup.com 37
Macrotech Developers Limited (Lodha) — Q1 FY2022 Earnings Presentation on 6ix