Lodha Developers Ltd. · NSE:LODHA
Lodha Developers — Macrotech Developers Limited (Lodha) — Q4 FY2021 Earnings Presentation
39 slides from Lodha Developers's earnings presentation, May 15, 2021
Slide 1: Cover letter to stock exchanges
May 15, 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 C
Slide 2: Investor Presentation Fourth Quarter FY2021
Investor Presentation Fourth Quarter FY2021 15th May 2021
Slide 3: Index
INDEX Page No Company Overview 3 Highlights 10 Performance Update 16 Financial Update 25 Annexure 31 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 3.5 lakhs free meals provided getting quality education till date across programs during COVID pandemic ■ Achieved zero
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 Code of Conduct Policy Anti Money Laundering, Anti- Guidelines on non-acceptance of gifts Outlines organizational values, Bribery and Anti-Corruption offered by existing or potentia
Slide 9: 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 Directo
Slide 10: High quality management team
High quality management team Abhishek Lodha Sushil Kumar Modi Chief Executive Officer Chief Financial Officer Strong senior-level Formerly worked with McKinsey & Formerly served as Group CFO- management team of 851 19 Company, USA 25+ Strategic Finance at GMR Group executives heading various fun
Slide 11: Highlights
“World Tower – Ball Room” 02 Highlights 1010
Slide 12: Growing consensus that housing is set to be a key driver of growth in India
Growing consensus that housing is set to a key driver of growth in India Structurally strong demand “India witnessing a structural shift in housing demand, and clamor from first-time homebuyers and those planning to upgrade to a larger home is here to stay”: Deepak Parekh, Chairman, HDFC Ltd. (L
Slide 13: 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 14: Q4 FY21: Strong performance across all key KPIs
Q4 FY21: Strong performance across all key KPIs Despite Covid, Strong Pre-sales performance of INR 2,531 crores 116% YoY & 36% QoQ Adjusted EBITDA at INR 943 crores 87% YoY & 68% QoQ. Adjusted EBITDA margin improved to 37%. PAT of INR 312 crores Affordable & mid-income housing segment accoun
Slide 15: Other Highlights
Other Highlights Upper Thane received first set of OC - Boost to our Township business; Rising occupancies to fuel further demand Industrial Park- Monetized nearly 165 acres of industrial park (JV /outright sale) with marquee investors e.g. Morgan Stanley, FM logistics (French 3 PL co.) and US b
Slide 16: 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 17: Performance Update
“Palava Phase II” 03 Performance Update 16
Slide 18: Operational Performance
Operational Performance 9,451 17% 11,099 10,635 10,484 INR Cr 2,531 6,570 5,968 116% 1,171 Pre-Sales 1.2 msf 1.8 msf 6.2 msf 5.1 msf 4Q FY20 4Q FY21 FY20 FY21 2,089 8,190 1,905 10% 5,052 Collections 4Q FY20 4Q FY21 FY20 FY21 Mn. Sqft. 3.9 15.7 -33% 2.6 Completions 2.7 4Q FY20 4Q FY21 FY20 FY21 Avera
Slide 19: Financial Performance
Financial Performance 2,534 2,110 20% 9,577 INR Cr Revenues 5,449 4Q FY20 4Q FY21 FY20 FY21 943 2,905 87% 504 1,711 Adj. EBITDA 24% 37% 30% 31% 4Q FY20 4Q FY21 FY20 FY21 332 312 1,221 -6% PAT 511 16% 12% 13% 9% 4Q FY20 4Q FY21 FY20 FY21^ All data above is excluding impact of UK investments; Adjusted
Slide 20: Micro-market performance for 4QFY21
Micro-market performance for 4QFY21 INR Cr Average Sales Construction Area delivered Micro-markets Pre-Sales Collections Price (INR psf) spend (Mn. sq. ft.) South & Central 858 22,097 833 183 -- Thane 689 9,826 625 75 -- Extended Eastern Suburbs 349 5,818 379 167 2.5 Western Suburbs 63 11,333 54 15
Slide 21: Micro-market performance for FY21
Micro-market performance for FY21 INR Cr Average Sales Construction Area delivered Market Micro-markets Pre-Sales Collections Price (INR psf) spend (Mn. sq. ft.) Share^ South & Central 2,255 23,550 1,907 578 0.1 33.9% Thane 1,700 9,147 1,512 174 -- 19.6% Extended Eastern Suburbs 1,045 5,664 1,040 41
Slide 22: Micro-market supply overview
Micro-market supply overview Planned Inventory Launches Residual Ready Ongoing In next 12 months Beyond 12 months Land Collections from Micro-markets unsold unsold Bank^ Sold units Own Land JDA Own Land JDA INR Cr Mn. Sq. ft. Acres South & Central 2,140 4,631 4,136 1.1 -- 1.4 -- -- Thane 1,757 514 3
Slide 23: FY21 saw continued focus on growing affordable & mid-income business
FY 21 saw continued focus on growing affordable & mid-income business INR Cr Micro-market Asset Class Area (Mn .Sq.ft) Est. GDV Est. OC Remarks For 4QFY21 Thane For Sale office 0.13 205 2022 For FY21 (ex-4QFY21) Extended Eastern Suburbs Affordable housing 0.12 89 2022 Launched in Q2 Launched 0.27 in
Slide 24: Industrial Parks vertical has started gathering momentum
Industrial Parks vertical has started gathering momentum Performance till date Area in acres 90 255 130 165 35 Outright Sale JVs tied up Total monetization for Previous monetization Total land monetized till date 4QFY21 Over 3500 acres of land available at Palava & Upper Thane for the Industrial Par
Slide 25: 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 26: Financials
“Lodha Amara – Club House” 04 Financials 25
Slide 27: Financial highlights for FY21
Financial highlights for FY21 INR Cr INR Cr Q4 FY21 Q4 FY20* Variance % FY21 FY20* Variance % Revenue 2,534 2,110 20% 5,449 9,577 (43%) Adj. EBITDA^ 943 504 87% 1,711 2,905 (41%) Adj. EBITDA Margin % 37.2% 23.9% 31.4% 30.3% Adj. PAT 312 332 (6%) 511** 1,221 (58%) Adj. PAT Margin % 11.9% 15.5% 8.9% 1
Slide 28: Cash flows for 4QFY21
Cash flows for 4QFY21 Strong performance leading to robust operating cash flows INR Cr Office & Retail INR Cr. Residential Industrial Other Land Total (for rent) Pre-Sales 2,013 - 450 64 2,527 Collections 1,963 28 55 43 2,089 Net* Collections 1,917 26 55 43 2,041 Op. Expenses 659 59 9 - 728 -Const.
Slide 29: Update on UK Investments
Update on UK Investments During the quarter collection from UK projects amounted to GBP 13 million Targeting repayment of USD denominated bond well ahead of maturity from UK cash flows UK investments expected to repatriate INR 1500 -2000 crores over FY23/FY24 after repaying debt 28
Slide 30: Market wise completion plan for ongoing 'for sale' projects
Market wise completion plan for ongoing ‘for sale’ projects Mn.sqft. Total Under Sold/ Business FY22 FY23 FY24 >FY24 construction area Unsold Sold 0.72 0.32 0.53 -- South & Central Mumbai 3.31 Unsold 0.29 0.11 1.34 -- Sold 0.50 0.73 1.79 0.10 Thane 6.81 Unsold 0.08 0.54 1.24 1.82 Sold 1.97 1.64 0.67
Slide 31: Making progress towards the goal of net cash positive
Making progress towards the goal of net cash positive Trend for Net Debt for India business Cash flow from ready & ongoing ‘for sale’ projects 16,625 16,075 INR Cr. 5,600 13,575 12,075 19,000 12,800 - 6,250 6,850 RTMI inventory Unsold ongoing Pending collections Pending const. Surplus Cashflow* Dec'
Slide 32: Annexure
“Industrial Park- ESR Park” 05 Annexure 31
Slide 33: Consolidated Summary Profit & Loss
Consolidated Summary Profit & Loss INR Cr Quarter ended Year ended Sr. No. Particulars 31-03-2021 31-12-2020 31-03-2020 31-03-2021 31-03-2020 (Unaudited) (Unaudited) (Unaudited) (Audited) (Audited) 1 Income a) Revenue From Operations 2,534 1,514 3,170 5,449 12,443 b) Other Income 78 86 34 323 118 To
Slide 34: Consolidated Summary Balance Sheet
Consolidated Summary Balance Sheet INR Cr As at As at As at As at EQUITY AND LIABLITIES ASSETS 31-Mar-21 31-Mar-20 31-Mar-21 31-Mar-20 Equity Share Capital 396 396 1,406 1,480 Tangible Assets Other Equity 4,203 4,156 Intangible Assets 547 548 Non-Controlling Interests 527 519 Investments 1,579 1,553
Slide 35: 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 36: 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 35
Slide 37: Key premium & luxury projects delivered
Key premium & luxury projects delivered Unique ability to create destinations New Cuffe Parade Lodha Altamount World Towers Lodha Park 36
Slide 38: 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 39: Thank You!
Thank You! For any further information, please write to investor.relations@lodhagroup.com 38
Macrotech Developers Limited (Lodha) — Q4 FY2021 Earnings Presentation on 6ix