Lodha Developers Ltd. · NSE:LODHA
Lodha Developers — Macrotech Developers Limited (Lodha) — Q3 FY2025 Earnings Presentation
58 slides from Lodha Developers's earnings presentation, Jan 25, 2025
Slide 1: Cover letter to stock exchanges
January 25, 2025 BSE Limited Scrip Code: 543287 Debt Segment – 974511, 974986, 975115, 975192, 975560, 976262 National Stock Exchange of India Limited Trading Symbol: LODHA Dear Sirs, Sub: Investor Presentation on Financial Results for the quarter and nine months ended December 31, 2024 Ref: Securit
Slide 2: Investor Presentation Third Quarter FY2025
Investor Presentation Third Quarter FY2025 25th Jan, 2025
Slide 3: Index
Index Page No Highlights 04 Growth Drivers 10 Performance Update 21 Financials 32 Company Overview 35 Annexures 45 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 45.1bn ( 32% YoY), best ever quarterly pre-sales Pre-sales ✓ INR 128.2bn ( 25% YoY) in 9MFY25, on track for 20% growth in FY25 Embedded ✓ ~35% for Q3 and ~34% for 9MFY25 EBITDA Margin1 ✓ One project with INR 28bn of GDV in Bangalore; INR ~195bn GDV in 9MFY25 >90% of
Slide 7: Q3FY25 - Other Operating Highlights
Q3FY25 - Other Operating Highlights Price Growth Launches ~4% 2.7 msf with GDV Average YTD price of INR ~42bn growth1 Handovers Net Debt INR 43.1bn • Net D/E at 0.22, well 1,631 units below our 0.5x equity ceiling • Avg. cost of debt at 8.8% (down 10 bps QoQ) 1YTD Price Growth– Weighted average of p
Slide 8: Cash Flow
Cash Flow INR bn Q3FY25 9MFY25 ‘For Sale’ Collections 42.5 99.5 Net Collections1 40.0 90.7 Op. Expenses 15.8 48.6 ( - ) Const. Exp 9.1 31.0 ( - ) SG&A 4.4 13.2 ( - ) Taxes 2.3 4.4 Operating cash flow 24.2 42.1 ( - ) Interest payments 1.3 4.1 9MFY25 Business Surplus for Growth & Capital Providers 22.
Slide 9: Guidance for FY25
Guidance for FY25 INR bn FY24 Actuals FY25 Guidance 9MFY25 Pre-Sales 145 175 128 Q3 OCF >2x of Q2 Operating Cashflow 57 65 42.6 New Project Additions 203 210 194 Net Debt/Equity 0.17x <= 0.5x 0.22x On track to deliver guidance on all the above KPIs 8
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 MMR - Eastern Suburbs JDA - -
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: 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 16: 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 17: Value unlock at Palava
Value unlock at Palava ✓ Another global large data centre player checks into Palava with land deal @ INR ~210mn/acres ✓ Palava to undergo paradigm shift in value unlocking with o Ongoing significant traction from high-value add economic activities o Launched premium housing development “Lodha Hangin
Slide 18: 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 5.2bn by FY31 ◼ Growing facilities management business ◼ Have a captive base of 65,
Slide 19: 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 1.7 0.1 3.0 3.2 10.1 RTMI 0.2 0.1 0.4 1.2 - UC 1.1 - 2.0 1.9 7.
Slide 20: 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, Xperia Mall (Palava) with 0.4 msf gross leasable area ✓ Potential to gen
Slide 21: Digital Infra. – Steady growth potential
Digital Infra. – Steady growth potential ✓ Acquired ~33 acres of land in NCR in Q3-25 ✓ Acquired ~45 acres of land in Chennai, first outside MMR in Q2-25 ✓ Further increased our stake in Digital Infrastructure platform ✓ Net leasing of 0.3 msf during the quarter including 0.2 msf to Zomato for its h
Slide 22: Performance Update
Upper Thane 03 Performance Update 21
Slide 23: Operational Performance
Operational Performance INR bn 25% 32% 128.2 45.1 103.0 34.1 Pre-Sales Q3FY24 Q3FY25 9MFY24 9MFY25 Collections 30% 66% 42.9 100.6 77.5 25.9 Q3FY24 Q3FY25 9MFY24 9MFY25 22
Slide 24: Pro-forma P&L (basis operating performance)
Pro-forma P&L (basis operating performance) FY24 FY25E 9MFY25 Particulars INR Bn % INR Bn % INR Bn % Pre-sales 145.2 175.0 128.2 Embedded EBITDA 44.0 30% 54.3 31% 43.6 34.0% D&A 2.0 2.0 1.9 Finance Cost 7.7 5.0 4.1 PBT 34.3 24% 47.3 27% 37.6 29.4% Taxes (assumed rate: 25.2%) 8.6 11.7 9.5 PAT 25.7 18
Slide 25: Financial Performance
Financial Performance INR bn 40.8 95.6 29.3 39% 63.0 52% Revenue Q3FY24 Q3FY25 9MFY24 9MFY25 15.9 35.1 10.7 48% 20.9 68% Adj. EBITDA 37% 39% 33% 37% Q3FY24 Q3FY25 9MFY24 9MFY25 9.4 18.4 5.7 66% ~2x Adj. PAT 9.5 19% 23% 15% 19% Q3FY24 Q3FY25 9MFY24 9MFY25 Adj. PAT Margin expands on operating leverage
Slide 26: Micro-market performance for Q3FY25
Micro-market performance for Q3FY25 INR bn Average Sales Price Construction Micro-markets Pre-Sales1 Collections2 (INR psf) spends MMR - South & Central 15.5 39,936 16.3 2.2 MMR – Thane 2.6 11,646 2.8 1.1 MMR - Extended Eastern Suburbs 11.4 7,305 8.9 2.8 MMR - Western Suburbs 6.9 33,300 2.2 0.7 Pune
Slide 27: Micro-market performance for 9MFY25
Micro-market performance for 9MFY25 INR bn Average Sales Price Construction Micro-markets Pre-Sales1 Collections2 (INR psf) spends MMR - South & Central 38.1 35,835 30.1 7.6 MMR – Thane 7.6 11,288 7.9 3.6 MMR - Extended Eastern Suburbs 21.7 7,380 18.6 10.0 MMR - Western Suburbs 22.1 30,745 5.9 2.3 P
Slide 28: Launches in 9MFY25
Launches in 9MFY25 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 MMR - Extended Eastern Own Q1 0.3 2.2 1 0.6 3.7
Slide 29: Business Development 9MFY25
Business Development 9MFY25 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 1.5 14 Pune – South West Q2-25 0.3 0.4 Pune – Pimpri Chinchw
Slide 30: 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 bank in major INR bn Mn. Sq. ft. metro amongst MMR - South & Centra
Slide 31: 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. Q4FY25 FY26 FY27 >= FY28 Sold/ Micro-market Total area Unsold1 Own JDA Own JDA Own JDA Own JDA Sold-PCM - - 0.04 - 0.11 0.06 - - MMR - South & 2.73 Sold-POCM - - 0.42 - 0.07 0.48 0.14 - Central Unsold 0.05 - 0.17 - 0.08
Slide 32: 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/ Q4FY25 FY26 FY27 >= FY28 Micro-market Total area Unsold1 Own JDA Own JDA Own JDA Own JDA Sold-PCM - 0.17 - 0.12 - 0.25 - 0.11 MMR - Eastern 5.30 Sold-POCM - 0.09 - 0.11 - 1.08 0.12 0.38 Suburbs Unsold - 0.09 - 0.
Slide 33: Financials
Lodha Amara – Club House 04 Financials 32
Slide 34: Financial highlights for Q3FY25
Financial highlights for Q3FY25 INR bn Particulars Q3FY25 Q3FY24 Growth % 9MFY25 9MFY24 Growth % Revenue 40.8 29.3 39.3% 95.6 63.0 51.7% Adj. EBITDA1 15.9 10.8 47.6% 35.0 20.9 67.5% Adj. EBITDA (%) 38.9% 36.7% 220bps 36.7% 33.2% 350bps Adj. PAT2 9.4 5.7 66.2% 18.4 9.5 94.5% Adj. PAT (%) 22.8% 19.2%
Slide 35: Consolidated Summary Balance Sheet
Consolidated Summary Balance Sheet INR bn As at As at As at As at EQUITY AND LIABLITIES ASSETS 31-Dec-24 31-Mar-24 31-Dec-24 31-Mar-24 Equity Share Capital 10.0 9.9 Tangible Assets 9.5 7.2 Other Equity 182.2 164.7 Intangible Assets 3.8 4.6 Non-Controlling Interests 0.7 0.6 Investments 21.0 25.0 Tota
Slide 36: Company Overview
The Park 05 Company Overview 35 35
Slide 37: Eminent Board of Directors (1/2)
Eminent Board of Directors (1/2) 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 Abhishek Lodha ◼
Slide 38: Eminent Board of Directors (2/2)
Eminent Board of Directors (2/2) Harita Gupta, Independent Director ◼ Formerly associated with Microsoft and NIIT Technologies ◼ Currently leading APAC and Global Enterprise Business at Sutherland Global Services Rajendra Lodha, Whole-Time Director ◼ 30+ years of experience in all facets of real est
Slide 39: Strong management team
Strong management team Shaishav Dharia Rajesh Sahana Sushil Kumar Modi Chief Customer Officer CEO – Extended Eastern Suburbs, Thane, Annuity Assets Executive Director – Finance ◼ Formerly worked with Globacom, ◼ Formerly worked with McKinsey & ◼ Formerly worked at GMR, Aditya 31+ Reliance Jio, Bhart
Slide 40: Best-in-class globally on measured ESG performance
We are best-in-class globally when it comes to measured ESG performance S&P Global Corporate WBA Urban Benchmark Sustainalytics Sustainability Assessment 2024 Included in the Dow Jones Sustainability Ranked 3rd among the 300 Received ESG Risk Rating of 13.2, Index (DJSI) Emerging Markets most influe
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: Lodha Philanthropic Foundation (LPF)
Lodha Philanthropic Foundation (LPF) – Contributing to nation building ✓ LPF endowed with initial corpus of INR ~200bn with transfer of share by the Lodha family ✓ Focused on helping India become a developed nation by 2047, as measured through three metrics: 1. GDP per capita, 2. Environmental Perfo
Slide 46: Annexure
World Towers 06 Annexure 4545
Slide 47: 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 48: 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 49: 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 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, entering growth phase 1. North Added 2 projects with GDV of INR 36bn Absorption: INR 125bn 4. East Potential growth market for Lodha 2. West Absorption: INR 170bn Potential growth market for Lodha Absorption: INR 40bn 5. South Added 3 projects with GDV o
Slide 52: Supply side consolidating - unlikely to keep pace with 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 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 CY25 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: Moderate construction cost inflation
Moderate construction cost inflation Mar’21 to Dec’24 Commodity/Component % Share in total cost % Change Weighed Impact Steel 11.7% -10.3% -1.2% Flooring materials 5.2% 17.8% 0.9% Electrical 3.9% 12.7% 0.5% Plumbing 2.2% -6.8% -0.2% Labour 34.0% 14.9% 5.1% External Windows 3.3% 10.8% 0.4% RMC 12.3%
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) — Q3 FY2025 Earnings Presentation on 6ix