Lodha Developers Ltd. · NSE:LODHA
Lodha Developers — Macrotech Developers Limited (Lodha) — Q4 FY2024 Earnings Presentation
58 slides from Lodha Developers's earnings presentation, Apr 24, 2024
Slide 1: Exchange intimation letter on investor presentation
April 24, 2024 BSE Limited Scrip Code: 543287 Debt Segment – 974163, 974199, 974473, 974511, 974986, 975053, 975115, 975192, 975560 National Stock Exchange of India Limited Trading Symbol: LODHA Dear Sirs, Sub: Investor Presentation on Audited Financial Results for the quarter and year ended March 3
Slide 2: Investor Presentation Fourth Quarter FY2024
Investor Presentation Fourth Quarter FY2024 24th April, 2024
Slide 3: Index
INDEX Page No Highlights 7 Growth Drivers 12 Performance Update 22 Financials 34 Company Overview 37 Annexures 44 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 Amongst India’s Largest Real Estate Strong operating cash flow generation giving ability to grow & de-lever in tandem Planned consistent growth of ~20% p.a. Developers in housi
Slide 5: FY21-24: Brand and operational strength enabled growth and deleveraging
FY21-24: Brand and operational strength enabled simultaneous growth and deleveraging INR bn 145 160 121 ~34 % CAGR 93 90 71 60 60 30 3.5x 0.8x 0.6x 0.3x 0.2x FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 x Net D/E Post-QIP Pre-sales Net Debt Along with new project additions of INR ~550bn GDV in this perio
Slide 6: '20:20' Action Plan to drive ongoing value creation
‘20:20’ Action Plan to drive ongoing value creation INR bn Focus to deliver ~20% Pre-sales CAGR & 20% RoE with net debt ceiling of 0.5x D/E 210 Excluding impact of Q4 equity raise ~20% ~20 % CAGR 19% ~300bps 145 17% FY24 FY26 FY24 FY26 Pre-Sales RoE (Proforma) 5
Slide 7: Guidance for FY25
Guidance for FY25 INR bn FY24 Actuals FY25 Guidance Pre-Sales 145 175 Operating Cashflow 57 65 New Project Additions 203 210 Pre-QIP: 0.34x Net Debt/Equity <= 0.5x Post-QIP: 0.17x 6
Slide 8: Highlights
World Tower – Ball Room 01 Highlights 77
Slide 9: Key Performance Indicators
Key Performance Indicators ✓ FY24 Pre-sales at INR 145.2bn ( 20% YoY), meeting the guidance Pre-sales ✓ INR 42.3bn ( 40% YoY) in Q4, best ever quarter Embedded ✓ ~30% for FY24; ~31% for Q4 EBITDA Margin1 Operating ✓ INR 57.2bn in FY24; INR 20.5bn in Q4 Cashflow New Projects ✓ INR 203bn of GDV added
Slide 10: FY24 - Other Operating Highlights
FY24 - Other Operating Highlights Price Growth Launches ~5% 11.7 msf FY24 average price growth1 Handovers Net Debt INR 30.1bn • INR 40.6bn reduction 8,144 units • Net D/E at 0.34x before QIP impact in Mar-242 • Credit Rating upgraded to AA- (Stable) by ICRA 1YTD Price Growth– Weighted average of pro
Slide 11: Q4FY24 - Other Operating Highlights
Q4FY24 - Other Operating Highlights Price Growth Launches ~5% 5.0 msf FY24 average price growth1 Handovers Net Debt INR 30.1bn • Raised INR 33bn equity 1,809 units • Avg. borrowing cost reduced by 10bps to ~9.4% vs Dec-232 1YTD Price Growth– Weighted average of projects having sales in Q4FY24 vs. Sa
Slide 12: Cash Flow
Cash Flow INR bn Office & Retail ‘For Sale’ Land Sales Q4FY24 FY24 (for rent) Pre-Sales 41.0 - 1.3 42.3 145.2 Collections 32.4 0.5 2.3 35.1 112.6 Repatriation from UK Invest. - - - - 5.5 1 Net Collections incl. UK Repatriation 29.3 0.5 2.3 32.1 106.8 Op. Expenses 11.4 - 0.2 11.6 49.6 - Const. Exp 8.
Slide 13: Growth Drivers
Palava 02 Growth Drivers 1212
Slide 14: 75-100 mn new households to become 'home ownership capable' this decade
75-100 mn new households to become ‘home ownership capable’ this decade Annual 2021 2030 Per capital income seen rising HH HH GDP: USD 3tn GDP: USD 7-8tn Income Category ~2.5x over FY20-32 HH: 296mn HH: 386mn (INR mn) >2.8 High Per Capital Income (USD) 9mn 23mn (6%) (3%) 6,000 68mn 125 mn (32%) 5,00
Slide 15: Significant headroom for our growth in existing markets
Significant headroom for our growth in existing markets INR bn MMR Pune Bangalore FY24 market share ~10% ~5% ~2% ~2,350 ~850 ~950 ~10 % ~10 % ~10 % CAGR CAGR CAGR ~1,000 ~350 ~400 Market Size FY22 FY31 FY22 FY31 FY22 FY31 Likely market share ~20% ~15% ~12% by decade end FY31 Pre-sales ~470 ~130 ~120
Slide 16: Robust launch pipeline for FY25
Robust launch pipeline for FY25 Own/ JDA Est. GDV (INR Micro-market Area (Mn .Sq.ft) No of Projects Project bn) New Project Launches Eastern Suburbs JDA 0.2 6.0 1 Eastern Suburbs Own 0.7 10.0 1 Extended Eastern Suburbs Own 0.5 4.4 1 Pune Own 0.5 3.9 1 South Central JDA 1.0 22.0 2 Western Suburbs JDA
Slide 17: Palava is at the epicenter of MMR's infrastructure upgrades
Palava is at the epicenter of Mumbai Metropolitan Region (MMR)’s infrastructure upgrades Towards Ahmedabad Palava Palava Katai Naka Bullet Train Station ~40 min Drive Airoli Katai Naka Corridor Palava to Airoli ~10-15 mins ~5 mins Palava ~20 mins Tunnel Through Parsik Hills Airoli – To BKC Navi Mumb
Slide 18: Industrial land prices have risen substantially over 3 years
Industrial land prices have risen substantially over 3 years. Housing prices to follow suit INR mn/acre 65 2.5x in three years 50 29 26 Lodha Morgan Stanley JV Lodha GDIP Coldchain Logistic Co. Specialty Petroleum Product Manufacturer 2021 2022 2023 2023 (INR bn) Jan-21 to Mar-24 FY24 Q4FY24 Cashflo
Slide 19: Palava: Large pricing arbitrage compared to competing markets
Palava: Large pricing arbitrage compared to competing markets. Opportunity to increase price + volume Palava 10k Thane 16k-21k BKC Airoli 50k- 18k- 65k 22k Goregaon 32k -40k Mulund 22k -26k Palava & Upper Thane set to deliver US$175-200 bn of sales over next 3 decades with ~50% EBITDA margins Nos in
Slide 20: Gradually building annuity income pool
Gradually building annuity income pool Digital ◼ 3 ongoing locations with ~5.5 msf Infrastructure ◼ Likely to scale to 5 locations in FY25 (warehousing & industrial) ◼ Growing facilities management business ◼ Have a captive base of 65,000 households, growing inline with our residential business Annu
Slide 21: Digital Infra.: potential to generate significant recurring income
Digital Infra.: potential to generate significant recurring income ✓ Strong demand from end users of diverse industries E- Commerce, Fashion & Sportswear retailers, Consumer Goods, 3-PL, Logistics, Data Center, EV Ecosystem, FMCG, Engineering Goods, Life Sciences, etc. ✓ Pursuing land acquisition in
Slide 22: Office & retail assets with rent potential of INR ~3.0 bn p.a.
Office & retail assets with rent potential of INR ~3.0 bn p.a. Annual Rental Asset Status Area (msf) Area Leased (msf) Potential1 (INR mn) One Lodha Place, Worli Ready 0.37 0.23 1,000 Ready 0.15 0.15 72 iThink, Palava U/C 0.43 206 Office Total 0.95 0.38 1,278 Xperia Mall, Palava Ready 0.42 0.39 350
Slide 23: Performance Update
Upper Thane 03 Performance Update 22
Slide 24: Operational Performance
Operational Performance INR bn 145.2 120.1 20% 40% 145.2 42.3 120.6 30.3 Pre-Sales 2.5 msf 3.3 msf 9.4 msf 11.1 msf Q4FY23 Q4FY24 FY23 FY24 112.6 35.1 106.1 6% 20% Collections 29.3 Q4FY23 Q4FY24 FY23 FY24 23
Slide 25: Pro-forma P&L (basis operating performance)
Pro-forma P&L (basis operating performance) FY24 FY25E Particulars INR Bn % INR Bn % Growing margin Pre-sales 145.2 175.0 Embedded EBITDA 44.0 30% 54.3 31% D&A 2.0 2.0 Finance Cost 7.7 5.0 PBT 34.3 24% 47.3 27% Taxes (assumed rate: 25.2%) 8.6 11.7 PAT 25.7 18% 35.4 20% ~19% (without impact of Q4 equ
Slide 26: Financial Performance
Financial Performance INR bn 40.2 103.2 9% 23% 94.7 32.6 Revenue Q4FY23 Q4FY24 FY23 FY24 13.4 34.3 37% 16% 9.8 29.7 Adj. EBITDA 30% 33% 31% 33% Q4FY23 Q4FY24 FY23 FY24 6.7 16.2 5.5 21% 20% Adj. PAT 13.5 17% 16% 14% 15% Q4FY23* Q4FY24 FY23* FY24* Adj. PAT Margin to expand as finance cost in cost of p
Slide 27: Micro-market performance for FY24
Micro-market performance for FY24 INR bn Average Sales Price Micro-markets Pre-Sales1 Collections2 Construction spends (INR psf) South & Central 42.9 32,469 34.9 8.1 Thane 14.2 10,910 15.0 5.8 Extended Eastern Suburbs 21.8 6,766 22.4 12.7 Western Suburbs 10.5 16,561 8.6 2.1 Pune 18.0 8,188 10.7 2.8
Slide 28: Micro-market performance for Q4FY24
Micro-market performance for Q4FY24 INR bn Average Sales Price Construction Micro-markets Pre-Sales1 Collections2 (INR psf) spends South & Central 8.7 41,594 9.3 1.9 Thane 4.6 11,332 3.7 1.4 Extended Eastern Suburbs 7.0 6,937 6.3 2.9 Western Suburbs 3.6 16,801 2.5 0.5 Pune 5.0 8,941 3.5 0.8 Eastern
Slide 29: Launches in FY24
Launches in FY24 Micro-market Own/ JDA Project Area (Mn .Sq.ft) Est. GDV (INR bn) No of Project New Project Launches South & Central Own 0.6 51.3 2 Bangalore Own 1.6 18.8 2 Eastern JDA 0.8 17.2 2 Pune JDA 1.2 10.7 2 Pune Own 0.3 4.7 1 Western JDA 0.3 8.8 1 Thane Own 0.5 8.1 1 Extended Eastern Suburb
Slide 30: Launches in Q4FY24
Launches in Q4FY24 Micro-market Own/ JDA Project Area (Mn .Sq.ft) Est. GDV (INR bn) No of Project New Project Launches South & Central Own 0.3 39.0 1 Bangalore Own 0.9 10.2 1 Western JDA 0.3 8.8 1 Pune JDA 1.0 8.2 2 Extended Eastern Suburbs Own 0.7 5.7 1 Eastern JDA 0.1 2.2 1 Total 3.4 74.1 7 New ph
Slide 31: Business Development FY24: Surpassed guidance
Business Development FY24: Surpassed guidance INR bn Micro-market Saleable Area (msf) Est. GDV MMR – South Central 4.3 74 MMR – South Central 1.1 16 MMR – South Central 0.4 12 MMR – Western Suburbs 0.3 10 Bangalore – South 1.0 8 MMR – Eastern Suburbs 0.7 13 MMR – Western Suburbs 0.5 10 MMR – South C
Slide 32: Micro-market wise supply
Micro-market wise supply Planned Inventory Launches Residual Collections Ready Ongoing In next 12 months1 Beyond 12 months Land Micro-markets from Sold unsold unsold Bank Own JDA Own JDA units Land Projects Land Projects Largest land INR bn Mn. Sq. ft. bank amongst South & Central 37.3 1.2 2.1 - 1.0
Slide 33: Micro-market wise completion plan of ongoing 'for sale' projects (1/2)
Micro-market wise completion plan of ongoing ‘for sale’ projects (1/2) Mn.sq ft. FY25 FY26 FY27 >= FY28 Sold/ Micro-market Total area Unsold1 Own JDA Own JDA Own JDA Own JDA Sold-PCM 0.21 - 0.02 0.00 0.11 0.06 - - South & Central 3.22 Sold-POCM 0.18 - 0.15 0.05 0.04 0.24 0.07 - Mumbai Unsold 0.34 -
Slide 34: Micro-market wise completion plan of ongoing 'for sale' projects (2/2)
Micro-market wise completion plan for ongoing ‘for sale’ projects (2/2) Mn.sq ft. Sold/ FY25 FY26 FY27 >= FY28 Micro-market Total area Unsold1 Own JDA Own JDA Own JDA Own JDA Sold-PCM - 0.17 - 0.32 0.00 0.20 - - Eastern Suburbs 3.74 Sold-POCM - 0.06 - 0.09 0.00 0.90 - - Unsold - 0.11 - 0.19 0.00 1.6
Slide 35: Financials
Lodha Amara – Club House 03 Financials 34
Slide 36: Financial highlights for Q4FY24
Financial highlights for Q4FY24 INR bn Particulars Q4FY24 Q4FY23 Growth % FY24 FY23 Growth % Revenue 40.2 32.6 23.4% 103.2 94.7 8.9% Adj. EBITDA1 13.4 9.8 37.2% 34.3 29.7 15.6% Adj. EBITDA (%) 33.4% 30.0% 340bps 33.3% 31.4% 190bps Adj. PAT2 6.7 5.5 21.2% 16.2 13.5 19.6% Adj. PAT (%) 16.3% 16.8% -50b
Slide 37: Consolidated Summary Balance Sheet
Consolidated Summary Balance Sheet INR bn As at As at As at As at EQUITY AND LIABLITIES ASSETS 31-Mar-24 31-Mar-23 31-Mar-24 31-Mar-23 Equity Share Capital 9.9 4.8 Tangible Assets 7.2 13.0 Other Equity 164.7 121.8 Intangible Assets 4.6 5.3 Non-Controlling Interests 0.6 0.6 Investments 25.0 2.4 Total
Slide 38: Company Overview
The Park 04 Company Overview 37 37
Slide 39: Eminent Board of Directors
Eminent Board of Directors Mukund Chitale, Independent Director and Chairman ◼ Formerly Director on the Board of L&T ◼ Former President of ICAI and Chairman of Ethics Committee of BSE Rajinder Pal Singh, Non-Executive Director ◼ Director on the Board of Maruti Suzuki ◼ Former Chairman and Managing D
Slide 40: Strong management team
Strong management team Shaishav Dharia Deepak Chitnis Sushil Kumar Modi Chief Designer CEO – Townships, Director – GDI Chief Financial Officer Platform ◼ Previously served as senior architect ◼ Formerly worked at GMR, Aditya 27+ Excellent at Oberoi domain knowledge Constructions Pvt Ltd 25+ ◼ Former
Slide 41: Our Sustainability Strategy: Do Good, Do Well
Our Sustainability Strategy: Do Good, Do Well Identifying initiatives that enhance our impact and brings together our larger set of stakeholders to partner in the journey with us OUR ESG GOALS Ensure sustainability in our product E and operations by positively impacting the natural environment Posit
Slide 42: We are best-in-class globally when it comes to measured ESG performance
We are best-in-class globally when it comes to measured ESG performance S&P Global Corporate GRESB Development Benchmark GRESB Standing Investments Sustainability Assessment 2023 2023 Benchmark 2023 Third highest CSA score out of ~300 Ranked 1st in Asia with a 5-star rating Ranked 8th in Asia with a
Slide 43: First Real Estate Company in India to have SBTi validated Net-Zero Targets
First Real Estate Company in India to have SBTi validated Net-Zero Targets • Near-term targets: • Reduce absolute scope 1 and 2 GHG emissions 97.9% by FY2028 from a FY2022 base year • Reduce scope 3 GHG emissions 51.6% per square meter of area developed by FY2030 from a FY2022 base year • Long-term
Slide 44: Our commitment to becoming the global ESG leader in RE
Our commitment to becoming the global ESG leader in RE: Progress across key focus areas Environment • Green Certification received for ~50 million sqft across projects; process ongoing for ~42.9 million sqft across 35 residential projects • ~98% of renewable energy share in our total electricity con
Slide 45: Annexure
World Towers 05 Annexure 4444
Slide 46: Palava & Upper Thane set to deliver US$175-200 bn of sales over next 3 decades
Palava & Upper Thane set to deliver US$175-200 bn of sales over next 3 decades with ~50% EBITDA margins 3 mega trends moving Palava & Upper Thane to becoming sought after suburbs 1. Mumbai – World’s densest metropolis, sea restricts expansion in West and South 2. India going through once in a countr
Slide 47: Ongoing infra projects to supercharge Palava's growth
Ongoing infra projects (Airport, Metro, Bullet Train etc.) to supercharge Palava’s growth Virar Extended Eastern Mumbai – Ahmedabad Suburbs High-Speed Rail (CY28/29) Virar – Alibaug Multimodal 1st station after BKC at Palava, Extended Western Corridor (CY30) travel time -20 mins Suburbs Puts Palava
Slide 48: Recurring Cash-flow generation through land monetization
Recurring Cash-flow generation through land monetization ✓ ~400 acres land monetized till date from land sales to industry ✓ Leading players from warehousing, sports retailing, pharma, cooling product, 3-PL, cold chain, specialty petroleum product, oil field service industries, specialty paint have
Slide 49: Significant opportunity to scale up in other micro-markets of MMR
Significant opportunity to scale up in other micro-markets of MMR Market leading position in most micro-markets, with potential for growth in other regions Market share by absorption in INR bn 4. Thane 1. Extended Western Suburbs Vasai Developer Market share (%) Developer Market share (%) Naigaon 1
Slide 50: Pune – Will contribute to growth in a sustainable manner
Pune – Will contribute to growth in a sustainable manner Accelerating growth in INR 550bn market by establishing presence across multiple locations 1. Pimpri-Chinchwad 4. Central Pre-IPO, had 1 project Pre-IPO, had no presence With annual sales potential of INR >2bn Added 1 projects with GDV of INR
Slide 51: Bengaluru – Good start to two pilot projects
Bengaluru – Good start to two pilot projects in Bengaluru Market size: INR ~550bn Micro-market Market Size (INR bn) 1 South 210.0 2 East 170.0 3 North 125.0 4 West 40.0 5 Central 5.0 Total 550.0 Launched two projects in FY24, Mirabelle & Azur; Both received phenomenal response Source: Anarock, 2023
Slide 52: Supply side consolidating - unlikely to keep pace with accelerating demand
Supply side consolidating - unlikely to keep pace with accelerating demand Consolidation wave due to policy reforms and liquidity crisis… …has led to market share gains for listed and leading non-listed developers 60% >50% 33% Incremental supply from Developers count branded developers 2x Remaining
Slide 53: Steady as it goes: Mortgage an enabler, not inducer of demand
Steady as it goes: Mortgage an enabler, not inducer of demand ✓ Conservative Central Bank, low risk mortgage market: LTV < 85%, no teaser rates Mortgage as % of GDP 89% ✓ Rate cycle seem to have peaked; 68% pivot likely in CY24 52% 44% 45% ✓ Strong performance of mortgages 39% 34% through all parts
Slide 54: Low risk to margins from construction cost inflation
Low risk to margins from construction cost inflation ✓ Construction costs typically forms 25% to 45% of the sales price o Of which, one-third is related to low skilled and semi-skilled labor: plentiful supply though migration from rural areas (250+ mn people estimated to be ‘underemployed’ in agricu
Slide 55: Construction cost – inflation moderation since Mar-22
Construction cost – inflation moderation since Mar-22 Mar’21 to Mar’22 Mar’21 to Mar’24 Commodity/Component % Share in total cost % Change Weighted Impact % Change Weighed Impact Steel 12.9% 35.1% 4.5% -3.9% -0.5% Flooring Tiles 5.0% 23.9% 1.2% 15.3% 0.8% Electrical/Plumbing 11.8% 10.1% 1.2% 5.0% 0.
Slide 56: 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 57: 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 58: Thank You!
Thank You! For any further information, please write to investor.relations@lodhagroup.com 57
Macrotech Developers Limited (Lodha) — Q4 FY2024 Earnings Presentation on 6ix