Slide 1: Filing cover letter to BSE and NSE
October 25, 2024 BSE Limited Scrip Code: 543287 Debt Segment – 974511, 974986, 975115, 975192, 975560 National Stock Exchange of India Limited Trading Symbol: LODHA Dear Sirs, Sub: Investor Presentation on Financial Results for the quarter and half year ended September 30, 2024 Ref: Securities and E
Slide 2: Investor Presentation Second Quarter FY2025
Investor Presentation Second Quarter FY2025 25th Oct, 2024
Slide 3: Index
Index Page No Highlights 04 Growth Drivers 10 Performance Update 22 Financials 33 Company Overview 36 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 with low leverage Planned consistent growth of ~20% p.a. Developers in housing
Slide 5: Highlights
World Tower – Ball Room 01 Highlights 44
Slide 6: Key Performance Indicators
Key Performance Indicators ✓ INR 42.9bn ( 21% YoY), best ever quarterly performance despite ‘Shradhh’ Pre-sales falling in Sep. in this FY (vs in Oct. in FY24) Embedded ✓ ~34% for Q2 and ~34% for 1HFY25 EBITDA Margin1 ✓ 4 projects with INR 55bn of GDV in Pune and Bangalore; INR 166bn GDV in 1HFY25 >
Slide 7: Q2FY25 - Other Operating Highlights
Q2FY25 - Other Operating Highlights Price Growth Launches ~3% 1.8 msf with GDV Average YTD price of INR ~31 bn growth1 Handovers Net Debt INR 49.2bn • Net D/E at 0.27, well 808 units below our 0.5x equity ceiling • Avg. cost of debt at 8.9% (down 20 bps QoQ) 1YTD Price Growth– Weighted average of pr
Slide 8: Cash Flow
Cash Flow INR bn Q2FY25 1HFY25 ‘For Sale’ Collections 30.4 57.0 Net Collections1 27.6 50.7 Op. Expenses 16.2 32.8 ( - ) Const. Exp 10.1 21.9 ( - ) SG&A 4.8 8.9 ( - ) Taxes 1.2 2.1 Operating cash flow 11.4 17.9 ( - ) Interest payments 1.3 3.0 H1FY25 Business Surplus for Growth & Capital Providers 10.
Slide 9: Guidance for FY25
Guidance for FY25 INR bn FY24 Actuals FY25 Guidance 1HFY25 Q2 OCF ~75% Pre-Sales 145 175 83 higher than Q1; Significant growth planned in H2 as construction picks Operating Cashflow 57 65 18 up post monsoon, and aids collections New Project Additions 203 210 166 Net Debt/Equity 0.17x <= 0.5x 0.27x O
Slide 10: Robust launch pipeline for rest of FY25
Robust launch pipeline for rest of FY25 New Phase of existing New Projects Total projects Own/ JDA Micro-market Project Area Est. GDV No of Area Est. GDV No of Area Est. GDV No of (Mn .Sq.ft) (INR bn) Projects (Mn .Sq.ft) (INR bn) Projects (Mn .Sq.ft) (INR bn) Projects Eastern Suburbs JDA - - - 1.2
Slide 11: Growth Drivers
Palava 02 Growth Drivers 1010
Slide 12: 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 capita 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%) 5,000
Slide 13: '20:20' Action Plan
‘20:20’ Action Plan INR bn Focus to deliver ~20% Pre-sales CAGR & 20% RoE with net debt ceiling of 0.5x D/E 210 ~20% ~20 % CAGR 17% ~300bps 145 FY24 FY26 FY24 FY26 Pre-Sales RoE (Proforma) 12
Slide 14: 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 15: BLR - Entering growth phase, aiming ~15% market share
BLR - Entering growth phase, aiming ~15% market share in medium term ✓ Launched two projects in last 12 months to strong consumers response - achieved INR 14bn of sales ✓ Lodha – received as premium brand, reflected in price premium ✓ Construction in full swing ✓ Local empowered team in place o P&L
Slide 16: 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 17: 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 18: Value unlock at Palava
Value unlock at Palava INR mn/acre ✓ Signed up a leading global hyperscale data center player on ~38 acres @ INR ~120mn/acres ✓ Palava to undergo paradigm shift in value unlocking with o Ongoing significant traction from high-value add economic activities o Introduction of planned premium housing de
Slide 19: Gradually building annuity income pool
Gradually building annuity income pool ◼ Focus on developing premium high street retail as adjunct to residential developments Office & ◼ Select high quality offices Retail ◼ 2.9 msf area with rental potential of INR 5.6bn by FY31 ◼ Growing facilities management business ◼ Have a captive base of 65,
Slide 20: Strong visibility of rental income from already acquired assets
Strong visibility of rental income from already acquired assets Already Balance Total Area Potential Annual Rental Annuity Asset Type Area leased (msf) invested investment (msf) income (FY31) (INR bn) (INR bn) (INR bn) Highstreet Retail 1.64 0.11 3.31 3.15 9.88 RTMI 0.20 0.11 0.45 1.24 0.00 UC 1.05
Slide 21: Retail – Annuity stream adjunct to our core resi. business
Retail – Annuity stream adjunct to our core resi. business ✓ Creating portfolio of High Street retail across our developments o Significant contributor to our annuity stream o Enhance quality of our developments ✓ Additionally, have a mall at Palava with 0.4 msf gross leasable area ✓ Potential to ge
Slide 22: Digital Infra. – Steady growth potential
Digital Infra. – Steady growth potential ✓ Acquired ~45 acres of land in Chennai, first outside MMR ✓ In advance discussion for acquiring land in other cities ✓ Increased our stake in the rental income (PropCo) from our Digital Infrastructure platform to 66.7% (from earlier ~33%). ✓ Strong demand fr
Slide 23: Performance Update
Upper Thane 03 Performance Update 22
Slide 24: Operational Performance
Operational Performance INR bn 21% 21% 83.2 42.9 35.4 68.9 Pre-Sales Q2FY24 Q2FY25 1HFY24 1HFY25 11% 12% Collections 30.7 57.6 27.6 51.6 Q2FY24 Q2FY25 1HFY24 1HFY25 23
Slide 25: Pro-forma P&L (basis operating performance)
Pro-forma P&L (basis operating performance) FY24 FY25E 1HFY25 Particulars INR Bn % INR Bn % INR Bn % Pre-sales 145.2 175.0 83.2 Embedded EBITDA 44.0 30% 54.3 31% 27.9 34% D&A 2.0 2.0 1.3 Finance Cost 7.7 5.0 2.5 PBT 34.3 24% 47.3 27% 24.1 29% Taxes (assumed rate: 25.2%) 8.6 11.7 6.1 PAT 25.7 18% 35.
Slide 26: Financial Performance
Financial Performance INR bn 54.7 26.3 33.7 63% 50% 17.5 Revenue Q2FY24 Q2FY25 1HFY24 1HFY25 9.6 19.2 74% 10.2 89% 5.5 Adj. EBITDA 32% 37% 30% 35% Q2FY24 Q2FY25 1HFY24 1HFY25 4.2 9.0 2.1 2.0x Adj. PAT 2.4x 3.8 12% 16% 11% 16% Q2FY24 Q2FY25 1HFY24 1HFY25 Adj. PAT Margin expands on operating leverage
Slide 27: Micro-market performance for Q2FY25
Micro-market performance for Q2FY25 INR bn Average Sales Price Construction Micro-markets Pre-Sales1 Collections2 (INR psf) spends South & Central 13.7 32,853 8.1 2.5 Thane 2.1 10,669 2.7 1.1 Extended Eastern Suburbs 6.6 7,765 5.5 3.2 Western Suburbs 9.8 30,054 2.2 0.8 Pune 2.6 8,665 4.5 1.4 Eastern
Slide 28: Micro-market performance for 1HFY25
Micro-market performance for 1HFY25 INR bn Average Sales Price Construction Micro-markets Pre-Sales1 Collections2 (INR psf) spends South & Central 22.7 33,482 13.8 5.4 Thane 5.0 11,113 5.2 2.5 Extended Eastern Suburbs 10.3 7,443 9.6 7.3 Western Suburbs 15.2 29,701 3.7 1.7 Pune 12.6 10,246 7.6 2.8 Ea
Slide 29: Launches in 1HFY25
Launches in 1HFY25 New Project / Location New Phase Total Own/ JDA Launch Micro-market Project Period Area (Mn Est. GDV No of Area (Mn Est. GDV No of Area (Mn Est. GDV No of .Sq.ft) (INR bn) Projects .Sq.ft) (INR bn) Projects .Sq.ft) (INR bn) Projects Extended Eastern Suburbs Own Q1 0.3 2.2 1 0.6 3.
Slide 30: Business Development H1FY25
Business Development H1FY25 INR bn Micro-market Period Added Saleable Area (msf) Est. GDV MMR – Western Suburbs Q1-25 1.1 77 MMR – Western Suburbs Q1-25 0.2 16 Pune - West Q1-25 1.4 18 Bangalore – North Q2-25 2.1 24 Bangalore – South Q2-25 1.7 14 Pune – South West Q2-25 0.3 0.4 Pune – Pimpri Chinchw
Slide 31: Micro-market wise supply
Micro-market wise supply Planned Inventory Launches Residual Collections Ready Ongoing In next 12 months1 12 to 60 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 in major metro amongst South & Central 46.8
Slide 32: 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. 2HFY25 FY26 FY27 >= FY28 Sold/ Micro-market Total area Unsold1 Own JDA Own JDA Own JDA Own JDA Sold-PCM 0.08 - 0.02 - 0.11 0.06 - - South & Central 2.85 Sold-POCM 0.11 - 0.31 - 0.05 0.42 0.12 - Mumbai Unsold 0.19 - 0.14
Slide 33: Micro-market wise completion plan for ongoing 'for sale' projects (2/2)
Micro-market wise completion plan for ongoing ‘for sale’ projects (2/2) Mn.sq ft. Sold/ 2HFY25 FY26 FY27 >= FY28 Micro-market Total area Unsold1 Own JDA Own JDA Own JDA Own JDA Sold-PCM - 0.17 - 0.31 - 0.20 - - Eastern Suburbs 4.49 Sold-POCM - 0.08 - 0.11 - 1.16 0.07 0.09 Unsold - 0.10 - 0.17 - 1.27
Slide 34: Financials
Lodha Amara – Club House 04 Financials 33
Slide 35: Financial highlights for Q2FY25
Financial highlights for Q2FY25 INR bn Particulars Q2FY25 Q2FY24 Growth % 1HFY25 1HFY24 Growth % Revenue 26.3 17.5 50.1% 54.7 33.7 62.5% Adj. EBITDA1 9.6 5.5 73.7% 19.2 10.2 88.7% Adj. EBITDA (%) 36.5% 31.6% 490bps 35.0% 30.2% 480bps Adj. PAT2 4.2 2.1 98.6% 9.0 3.8 136.5% Adj. PAT (%) 15.8% 12.1% 37
Slide 36: Consolidated Summary Balance Sheet
Consolidated Summary Balance Sheet INR bn As at As at As at As at EQUITY AND LIABLITIES ASSETS 30-Sep-24 31-Mar-24 30-Sep-24 31-Mar-24 Equity Share Capital 10.0 9.9 Tangible Assets 8.6 7.2 Other Equity 171.9 164.7 Intangible Assets 4.0 4.6 Non-Controlling Interests 0.7 0.6 Investments 14.6 25.0 Tota
Slide 37: Company Overview
The Park 05 Company Overview 36 36
Slide 38: 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 ◼ Formerly Director on the Board of Maruti Suzuki ◼ Former Chairman and M
Slide 39: Strong management team
Strong management team Shaishav Dharia Deepak Chitnis Sushil Kumar Modi CEO – Extended Eastern Suburbs, Chief Designer Thane, Annuity Assets Chief Financial Officer ◼ Previously served as senior architect ◼ Formerly worked with McKinsey & ◼ Formerly worked at GMR, Aditya 27+ Excellent at Oberoi doma
Slide 40: 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 Sustainability Assessment 2023 MSCI ESG Rating 2024 Fifth highest CSA score out of Received relative of rating ‘A’ Ranked 1st in Asia with a 5-star rating ~500 companies globally
Slide 41: Our Sustainability Strategy: Do Good, Do Well
Our Sustainability Strategy: Do Good, Do Well We recognize ESG issues as long-term risks that also present opportunities for value creation when strategically addressed. Our strategy enables us to identify initiatives that amplify our impact and foster collaboration with our diverse stakeholders on
Slide 42: Our Environmental Strategy: Resilience & Decarbonisation
Our Environmental Strategy: Resilience & Decarbonisation Our environmental sustainability strategy rests on two fundamental pillars: decarbonisation and resilience. While we actively pursue measures to DECARBONISATION reduce our footprint and transition towards net-zero, we also prioritize making ou
Slide 43: Our Social Strategy: Creating impact through business & philanthropy
Our Social Strategy: Creating impact through business & philanthropy We drive significant social impact through both our business operations and philanthropic efforts. Within our business, we engage with our stakeholders, including customers, residents, employees, workers and value chain. In our phi
Slide 44: Our Approach to Governance: Philosophy, Pillars & Goals
Our Approach to Governance: Philosophy, Pillars & Goals OUR GOVERNANCE FRAMEWORK PILLARS OF GOVERNANCE Diverse Board which plays a crucial role in overseeing 1 and safeguarding long term interests of stakeholders Responsible Integrity and Business Conduct Transparency Transparent procedures and prac
Slide 45: Annexure
World Towers 06 Annexure 4444
Slide 46: Palava & Upper Thane set to deliver US$175-200 bn of sales
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: Establishing presence across MMR through 'Supermarket' strategy
Establishing presence across MMR through ‘Supermarket’ strategy 4. Thane 1. Extended Western Suburbs Vasai Naigaon Added 2 projects with GDV of INR 15bn Potential growth market for Lodha 1 Bhayander Absorption: INR 135bn Absorption: INR 85bn Mira Road Ghodbunder 4 5. Extended Eastern Suburbs Kalyan
Slide 49: 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 50: Bengaluru – Good start to two pilot projects, entering growth phase
Bengaluru – Good start to two pilot projects, entering growth phase 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 Tied up INR ~58bn of GDV with development potential of ~6.1 msf across four projects Source: An
Slide 51: 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% 34% Incremental supply from Developers count branded developers 2x Remaining
Slide 52: 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 2HFY25 52% 44% 45% ✓ Strong performance of mortgages 39% 34% through all part
Slide 53: 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 54: Moderate construction cost inflation
Moderate construction cost inflation Mar’21 to Sep’24 Commodity/Component % Share in total cost % Change Weighed Impact Steel 11.7% -10.5% -1.2% Flooring materials 5.2% 16.5% 0.9% Electrical 3.9% 11.8% 0.5% Plumbing 2.2% -8.8% -0.2% Labour 34.0% 14.2% 4.8% External Windows 3.3% 10.1% 0.3% RMC 12.3%
Slide 55: 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 56: 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 57: Thank You!
Thank You! For any further information, please write to investor.relations@lodhagroup.com 56