Slide 1: Exchange filing cover letter
November 1, 2022 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 Scr
Slide 2: Investor Presentation Second Quarter FY2023
Investor Presentation Second Quarter FY2023 01st November 2022
Slide 3: Index
INDEX Page No Highlights 4 Performance Update 17 Financials 21 Company Overview 26 Annexure 33 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 India’s Largest Real Estate Developer^ Strong profitability track record; to further Working towards predictable growth of expand due to scale up, price growth & 20%+ p.a. in p
Slide 5: Highlights
World Tower – Ball Room 01 Highlights 44
Slide 6: Our KPIs
Our KPIs INR 3,148 crores, 57% YoY, best ever 2Q performance Pre-sales* 1HFY23 Pre-sales at INR 6,004 crore, ~52% of annual guidance of INR 11,500 crores ~33% for Q2 and ~34% in 1H Embedded EBITDA Margin# One more step towards enhancing disclosure quality, enabling stakeholders to estimate b
Slide 7: Operating performance at a glance
Operating performance at a glance Pre-sales Collections Sales-mix INR 3,148 crores INR 2,375 crores^ 62% 57% yoy 24% yoy Of sales from affordable and mid-income projects Price Growth Launches Net Debt INR 8,795 crores ~2% 1.7 msf • Reduced INR ~61 crores • A+ Rating assigned by Average YTD price Lau
Slide 8: Operational Performance
Operational Performance INR Cr For Sale Others* 6,004 3,148 2,003 2,885 5,354 52% Pre-Sales 2,960 97% 1,892 2,713 1.9 msf 2.1 msf 2.6 msf 4.4 msf 2Q FY22 2Q FY23 1H FY22 1H FY23 4,991 2,375 1,912 3,626 24% 38% Collections 2Q FY22 2Q FY23 1H FY22 1H FY23 2.9 4.1 msf 3.2x Completions 3.1x 0.9 1.3 2Q F
Slide 9: Financial Performance (1/2)
Financial Performance (1/2) INR Cr 4,441 3,729 19% 2,124 1,765 -17% Revenue 2Q FY22 2Q FY23 1H FY22 1H FY23 1,428 778 1,316 8% -33% 525 Adj. EBITDA 37% 30% 32% 35% 2QFY22 2QFY23 1HFY22 1HFY23 722 367 76% 28% 410 287 Adj. PAT 13% 19% 10% 16% 2QFY22 2QFY23 1HFY22 1HFY23 Adj. EBITDA = After Grossing up
Slide 10: Financial Performance (2/2)
Financial Performance (2/2) Revenue recognition affected by higher contribution of completion volume from affordable segment; Pre-sales better indicator of current business performance Lower Adj. EBITDA Margin on account of period’s overhead costs being in-line with strong Pre-sales performance
Slide 11: Guidance for FY23
Guidance for FY23 INR cr FY22 FY23 Guidance % growth 1H FY23 Pre-Sales 9,024 11,500 27% 6,004 For Sale 8,443 10,500 24% 5,354 Others* 581 1,000 72% 650 Operating Cashflow 3,950 ~ 6,000 ~ 50% 2,369 New Project Additions 14,600 ~ 15,000 9,300 Net Debt 9,309 ~ 6,000 8,795 *Others include Digital Infra,
Slide 12: New launches in 1HFY23
New launches in 1HFY23 Own/ JDA Launch Est. GDV Micro-market Area (Mn .Sq.ft) Est. OC Remarks Project Period (INR cr) Extended Eastern Suburbs Own 1QFY23 1.2 770 FY25 Palava / Upper Thane Thane Own 1QFY23 0.4 400 FY25 Crown Kolshet Eastern Suburbs JDA 1QFY23 0.2 390 FY26 Bellagio – Powai South Centr
Slide 13: Planned launches for the rest of FY23
Planned launches for the rest of FY23 Own/ JDA Est. GDV (INR Micro-market Area (Mn .Sq.ft) No of Projects Project cr) Extended Eastern Suburbs Own 1.8 1,050 1 Eastern Suburbs JDA 0.6 1,020 2 Western Suburbs JDA 0.6 930 2 Pune JDA 1.2 870 2 Pune Own 0.3 420 2 South Central Own 0.3 950 1 South Central
Slide 14: New Projects: Added four projects in 2QFY23
New Projects: Added four projects in 2QFY23 INR Cr Launched/ Saleable Area Lodha’s Commercial Micro-market Est. GDV Est. (msf) interest Launch Signed in FY22 8.8 14,600 Already Launched 3.2 5,100 New Additions MMR - South Central 0.5 2,400 50% of Revenue FY23 MMR – Western Suburbs# 0.8 1,250 Attribu
Slide 15: Construction cost – inflation moderation since Mar-22
Construction cost – inflation moderation since Mar-22 Mar’21 to Mar’22 Mar’21 to Sep’22 Commodity/Component % Share in total cost % Change Weighted Impact % Change Weighed Impact Steel 12.9% 35.1% 4.5% 9.4% 1.2% Flooring Tiles 5.0% 23.9% 1.2% 18.7% 0.9% Electrical/Plumbing 11.8% 10.1% 1.2% 5.7% 0.7%
Slide 16: Digital Infrastructure: potential to generate recurring income
Digital Infrastructure: potential to generate significant recurring/ annuity income Palava Ecosystem: Economic activity ramping up, set to create virtuous cycle for resi. and Digital Infra. o Concluded transaction with Schlumberger, to set up a facility for its filtration business o Skechers: Cons
Slide 17: Commercial Rental Assets
Commercial Rental Assets One Lodha Place iThink Thane iThink Palava Palava Mall Area in msf Location Worli (World Towers) Thane (Clariant Plot) Palava (Office) Xperia Mall* Leasable Area^ 0.75 0.11 0.58 0.42 0.15: Ready Area OC received for the Ready Area building 0.11: Ready Area 0.43: Under develo
Slide 18: Performance Update
Upper Thane 02 Performance Update 17
Slide 19: Micro-market performance for 2QFY23
Micro-market performance for 2QFY23 INR Cr Average Sales Construction Area delivered Micro-markets Pre-Sales# Collections** Price (INR psf) spends (Mn. sq. ft.) South & Central 1,110 33,923 836 234 0.03 Thane 209 10,969 389 141 - Extended Eastern Suburbs 449 5,839 442 299 2.5 Western Suburbs 657 14,
Slide 20: Micro-market performance for 1HFY23
Micro-market performance for 1HFY23 INR Cr Average Sales Construction Area delivered Micro-markets Pre-Sales# Collections** Price (INR psf) spends (Mn. sq. ft.) South & Central 1,965 34,049 1,747 465 0.03 Thane 637 10,504 879 279 - Extended Eastern Suburbs 1,129 6,069 826 657 2.6 Western Suburbs 812
Slide 21: 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# JDA JDA units Own Land Own Land Projects Projects INR Cr Mn. Sq. ft. Acres South & Central 2,473 3,850 7,840 0.5 0.9 0.9 0.8
Slide 22: Financials
Lodha Amara – Club House 03 Financials 21
Slide 23: Financial highlights for 2Q FY23
Financial highlights for 2Q FY23 INR Cr INR Cr 2QFY23 2QFY22 Growth % 1HFY23 1HFY22 Growth (%) Revenue 1,765 2,124 -16.9% 4,441 3,729 19.1% Adj. EBITDA^ 525 778 -32.5% 1,428 1,316 8.5% Adj. EBITDA (%) 29.7% 36.6% -690bps 32.1% 35.3% -320bps Adj. PAT* 367 287 28.0% 722 410 76.0% Adj. PAT (%) 19.5% 13
Slide 24: Consolidated Summary Balance Sheet
Consolidated Summary Balance Sheet INR Cr As at As at As at As at ASSETS EQUITY AND LIABLITIES 30-Sep-22 31-Mar-22 30-Sep-22 31-Mar-22 Equity Share Capital 482 482 Tangible Assets 1,289 1,384 Other Equity 10,987 11,624 Intangible Assets 535 539 Non-Controlling Interests 57 57 Investments 314 574 Tot
Slide 25: Cash Flow – 2Q FY23
Cash Flow – 2Q FY23 INR Cr Office & Retail Residential Industrial Other Land Total (for rent) Pre-Sales 2,885 20 133 110 3,148 Collections 2,062 47 158 108 2,375 Net* Collections 1,848 47 158 108 2,161 Op. Expenses 1,139 4 - - 1,143 -Const. Exp 823 4 - - 827 -SG&A 272 - - - 272 -Taxes 45 Cash flow f
Slide 26: Market wise completion plan for ongoing 'for sale' projects
Market wise completion plan for ongoing ‘for sale’ projects Mn.sq ft. Revenue New sales from Sales from under- Sale of Sale of recognition for ready unsold construction project annuity Land the period Inventory obtaining OC during assets the period Total area Sold/ FY24 FY25 >= FY26 Business under U
Slide 27: Company Overview
The Park 04 Company Overview 26 26
Slide 28: Investing for the next phase of growth
Investing for the next phase of growth Three focus areas- Technology, People and ESG Technology Undergoing a Tech. Transformation to achieve operational improvement, revenue growth, superior customer & employee experience Roadmap to ensure high value solutions be implemented at the earliest; Ini
Slide 29: 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 and Chairman of Ethics Committee of BSE Rajinder Pal Singh, Non-Executive Director Director on the Board of Maruti Suzuki Former Chairman and Managing Director o
Slide 30: Strong management team
Strong management team Shaishav Dharia Deepak Chitnis Sushil Kumar Modi CEO – Townships, Director – Digital Chief Designer Infra Chief Financial Officer Previously served as senior architect Formerly worked with McKinsey & Formerly worked at GMR, Aditya Excellent domain knowledge 24+ 27+ at Ob
Slide 31: Environmental Strategy
Strategy to achieve the overarching ESG Goals Overarching Environmental Strategy Goals Be resilient to climate change while not contributing to global warming Achieve Carbon Neutrality in operations (Scope1, 2) by 2035 or before; Align Scope 3 emissions reduction roadmap with 1.5 ℃ ambition lLodha N
Slide 32: Social Strategy
Strategy to achieve the overarching ESG Goals Social Strategy Overarching Create a more diverse & inclusive workforce, with a workplace gender diversity ratio of 44% by 2027^ Goals Safety first: Ensuring a safe working environment to achieve zero fatality, zero hospitalization and lowest lost time i
Slide 33: Governance Strategy
Strategy to achieve the overarching ESG Goals Governance Strategy Overarching Strong board with diverse experiences to guide management through the business cycles Goals Meet expectation of diverse set of stakeholders through deeper engagement, transparent communication & ethical business conduct St
Slide 34: Annexure
ESR Park 05 Annexure 33
Slide 35: Industry at start of upcycle with increasing share for Tier 1 players
Urban housing in India’s Tier 1 cities: set for a sustained up-cycle Real Estate sector on course to become a USD 1 trillion market* Industry at start of upcycle with increasing share for Tier 1 players like Strong Entry of large educated workforce every year Structural Rapid urbanization and fa
Slide 36: Structural strength, affordability to sustain up-cycle
Structural strength, affordability to sustain up-cycle Rapid urbanization to create need India’s population will continue to grow till 2050 Family size getting smaller for quality urban housing 1,800 India - Urbanization 1,600 Urban Household size 60 1,400 5.6 1,200 50 1,000 5.2 40 800 600 4.8 30 40
Slide 37: Interest rate hike – Mitigation plan in place
Interest rate hike – Mitigation plan in place Previous interest rate hike cycle: Absorption growth remains robust until ~175 bps of rate hike Housing demand not sensitive to modest 9.0 8.50 200 8.0 180 increase in interest rate 7.0 160 6.0 140 5.0 6.75 120 After first 12-24 months from home purc
Slide 38: 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 39: Significant room for growth in housing volumes
Significant room for growth in housing volumes 52,719 89% 31,080 >150x 68% Mortgage value per capita (US$) 38,116 27,720 22,661 52% 15,795 3,942 44% 45% 39% 2,109 34% 1,560 235 20% 18% 11% India USA Germany Malaysia UK China Singapore Netherlands Thailand Japan Mortgage as % of GDP As India moves fr
Slide 40: 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 41: Pune - fourth largest housing market of India
Pune - fourth largest housing market of India Market size: INR ~36,500cr Micro-market Market Size (INR cr) 1 Central 1,000 2 North-East 7,500 3 South-East 4,000 4 South-West 5,500 5 North-West 10,000 6 Pimpri-Chinchwad 8,500 Total 36,500 Source: CRE Matrix 40
Slide 42: …will contribute to growth in a sustainable manner
…will contribute to growth in a sustainable manner Large & resilient market with a play on IT and manufacturing sector upswing Historically, we have only present through Lodha Belmondo in Pune (Pimpri-Chinchwad) Launched first project within the city, off NIBM Road (South-East) in Aug’21, sold
Slide 43: Entered Bangalore housing market…
Entered Bangalore housing market… Market size: INR ~40,000 crores Micro-market Market Size (INR cr) 1 South 18,500 2 East 8,000 3 North 11,200 4 West 2,000 5 Central 300 Total 40,000 Source: Knight Frank, Industry 42
Slide 44: …strategic choice to ensure brand presence in market
…strategic choice to ensure brand presence in market with good long-term prospects Key reasons for entering the market o Fragmented market with Top 5 players accounting for ~30% market share o Market with steady sales o Core hub for Technology in India Signed first project through JDA with devel
Slide 45: 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 44
Slide 46: Key premium & luxury projects delivered
Key premium & luxury projects delivered Unique ability to create destinations New Cuffe Parade Lodha Altamount World Towers Lodha Park 45
Slide 47: 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 48: Thank You!
Thank You! For any further information, please write to investor.relations@lodhagroup.com 47