Slide 1: Cover letter to stock exchanges: Investor Presentation
January 25, 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 Third Quarter FY2022
Investor Presentation Third Quarter FY2022 25th January 2022
Slide 3: Index
INDEX Page No Highlights 4 Performance Update 13 Financials 22 Company Overview 28 Annexure 35 2
Slide 4: Lodha – India's leading real estate developer, strong growth ahead
Lodha – India’s leading real estate developer, strong growth ahead 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% MMR & Pune
Slide 5: Highlights
“World Tower – Ball Room” 01 Highlights 44
Slide 6: Housing has entered multi-year up-cycle
Housing has entered multi-year up-cycle Sustained housing demand a consensus view “A lot of optimism in the air on the potential of the housing and real estate sector. This isn’t just feel-good talk, it is real. The Indian real estate market is on the cusp of a new growth cycle”: Deepak Parekh, Ch
Slide 7: 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 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 8: 3Q FY22: All round strong performance (1/2)
3Q FY22: All round strong performance (1/2) Strong Pre-sales performance at INR 2,608 crores 40% YoY, highest in last 12 quarters o Affordable & mid-income segment accounted for 63% sales. Collections at 2,127 crores ( 44% YoY) Adj. EBITDA at INR 698 crores ( 55% YoY); Adj. EBITDA margin remai
Slide 9: 3Q FY22: All round strong performance (2/2)
3Q FY22: All round strong performance (2/2) Successfully raised INR 4,000 crore through a QIP with participation of marquee global investors Benefitted from 50% rebate on early payment of premium / FSI cost; not only has this resulted in significant savings (~600 cr.) but will also lead to signi
Slide 10: Impact of Omicron on Operations
Impact of Omicron on Operations Omicron wave intensified in MMR in mid-December. Minor impact on sales in current quarter (Q4FY22) so far INR ~200 cr No significant impact on construction progress Impact in MMR seems to have now peaked and city is normalizing quickly Assuming no significan
Slide 11: Utilization of QIP Proceeds towards Investments
Utilization of QIP Proceeds towards Investments Total Net amount raised 3,946 JDA/ JV Projects (new land) 369 Payments to take benefit of 50% savings on approval costs* 752 Buyout of minority interest in Palava^ 646 Surplus 2,179 This surplus is largely intended to be used for growth through capital
Slide 12: Update on Digital Infrastructure
Update on Digital Infrastructure Palava Ecosystem: Economic activity ramping up, set to create virtuous cycle o A hospital chain buying land to set up 100 bed hospital o Pharma company buying land to set up an R&D facility Global retailer to set up a India/APAC logistics hub spread over 1 mn sqf
Slide 13: UK Investments: Strongest ever quarterly performance
UK Investments: Strongest ever quarterly performance UK projects quarterly performance: o GSQ best ever quarterly sales performance (£ 177) o LSQ sales at £ 14mn Collections at £ 140mn After ease of restrictions on international travel in Q2FY22, GSQ continued strong performance with sales of
Slide 14: Performance Update
Palava 02 Performance Update 13
Slide 15: 3Q FY22 Operational Performance
3Q FY22 Operational Performance 11,873 10,649 10,146 10,597 10,484 INR/sf 5,568 5,968 INR Cr 2,608 1,862 40% Pre-Sales 3,351 66% 1.6 msf 2.4 msf 3.3 msf 5.0 msf 5.1 msf 3Q FY21 3Q FY22 9M FY21 9M FY22 FY21 2,127 5,754 INR Cr 5,052 1,472 44% ~2x Collections 2,893 3Q FY21 3Q FY22 9M FY21 9M FY22 FY21
Slide 16: 3Q FY22 Financial Performance
3Q FY22 Financial Performance INR Cr 2,059 5,789 5,449 1,514 36% Revenue 2x 2,915 9M FY21 9M FY22 FY21 3Q FY21 3Q FY22 698 2,013 450 55% 1,540 30% 34% Adj. EBITDA 3.3x 618 21% 35% 28% 3Q FY21 3Q FY22 9M FY21 9M FY22 FY21 13% 11.4% 8% 279 689 2.2x 5.9% 125 1.5% 14x 670 340 286 PAT 49 48 232 (264) 3QF
Slide 17: Micro-market performance for 3Q FY22
Micro-market performance for 3Q FY22 INR Cr Average Sales Construction Area delivered Micro-markets Pre-Sales Collections Price (INR psf) spends (Mn. sq. ft.) South & Central 975 25,790 957 208 1.0 Thane 459 9,722 512 109 -- Extended Eastern Suburbs 639 5,743 327 190 -- Western Suburbs 333 14,190 12
Slide 18: Micro-market performance for 9M FY22
Micro-market performance for 9M FY22 INR Cr Average Sales Construction Area delivered Micro-markets Pre-Sales Collections Price (INR psf) spend (Mn. sq. ft.) South & Central 2,092 27,319 2,200 640 1.8 Thane 1,132 9,557 1,577 348 0.3 Extended Eastern Suburbs 1,265 5,577 956 564 0.2 Western Suburbs 43
Slide 19: 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^ units JDA JDA Own Land Own Land Projects Projects INR Cr Mn. Sq. ft. Acres South & Central 1,948 5,247 2,959 0.9 0.8 1.4 1.1
Slide 20: New Launches: 9M FY22 and likely launches for the rest of FY22
New Launches: 9M FY22 and likely launches for the rest of FY22 Own/ JDA Est. GDV Micro-market Launch Qtr/ Yr Area (Mn .Sq.ft) Est. OC Remarks Project (INR cr) Already launched during FY22 South & Central Own 1QFY22 0.2 575 2025 Park Signet Crown Thane/ Thane Own 1QFY22 0.4 375 2025 Crown Ghodbunder
Slide 21: JDA Update: 11 JDA Projects signed since IPO
JDA Update: 11 JDA Projects signed since IPO INR Cr Launched Saleable Area Lodha’s Commercial Micro-market Est. GDV / Est. (msf) interest Launch MMR - Eastern Suburbs # 1.5 2,450 Attributable PBT at 18% of GDV FY23 MMR - South Central # 0.8 2,100 65% of Revenue FY23 MMR - South Central # 0.8 2,030 6
Slide 22: 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 0.41 0.58 0.42 0.15: Ready Area Under development Ready Area (Est. completion in FY23) 0.41: Re
Slide 23: Financials
“Lodha Amara – Club House” 03 Financials 22
Slide 24: Financial highlights for 3Q FY22
Financial highlights for 3Q FY22 INR Cr INR Cr 3Q FY22 3Q FY21 Growth % 9M FY22 9M FY21 Growth (%) Revenue 2,059 1,514 36% 5,789 2,915 99% Adj. EBITDA^ 698 450 55% 2,013 618 3.3x Adj. EBITDA (%) 33.9% 29.7% 420bps 34.8% 21.2% 1,360bps PAT (ex. Forex & 279 125 2.2x 689 49 14x Exceptional Items) PAT (
Slide 25: Consolidated Summary Balance Sheet
Consolidated Summary Balance Sheet INR Cr EQUITY AND As at As at As at As at As at 30- As at LIABLITIES 31-Mar-21 30-Sep-21 31-Dec-21 ASSETS 31-Mar-21 Sep-2021 31-Dec-21 Equity Share Capital 396 447 481 Tangible Assets 1,406 1,375 1,364 Other Equity 4,203 6,969 11,071 Intangible Assets 547 543 541 N
Slide 26: Cash Flow - 3Q FY22
Cash Flow - 3Q FY22 INR Cr Office & Retail Residential Industrial Other Land Total (for rent) Pre-Sales 2,606 -- -- 1 2,608 Collections 1,998 19 108 2 2,127 Net* Collections 1,812 19 108 2 1,941 Op. Expenses 830 42 -- -- 964 -Const. Exp 578 39 -- -- 617 -SG&A 252 3 -- -- 255 -Taxes 91 Cash flow from
Slide 27: Market wise completion plan for ongoing 'for sale' projects
Market wise completion plan for ongoing ‘for sale’ projects Mn.sq ft. >FY24 Total area under Sold/ Business FY22^ FY23 FY24 JDA construction Unsold* Own Projects Sold 0.37 0.16 0.19 0.08 -- South & Central Mumbai 2.10 Unsold 0.19 0.02 0.99 0.10 -- Sold 0.51 0.71 2.30 0.29 -- Thane 7.07 Unsold 0.09 0
Slide 28: Significant progress towards the goal of net cash positive
Significant progress towards the goal of net cash positive INR Cr Trend for Net Debt for India business Cash flow from ready & ongoing projects 6,176 6,150 3,275 23,282 12,701 20,007 16,076 7,280 12,477 RTMI Unsold Pending Pending Surplus Surplus Total inventory ongoing collections const. costs from
Slide 29: Company Overview
Palava 04 Company Overview 2828
Slide 30: 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 be implemented at the earliest;
Slide 31: 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 Direc
Slide 32: Strong management team
Strong management team Shaishav Dharia Sushil Kumar Modi CEO – Townships and Rental Assets Chief Financial Officer Formerly worked with McKinsey & 25 Formerly served as Group CFO- Strong senior-level 20 Company and Logic Tools + Strategic Finance at GMR Group + management team of ~100 executives
Slide 33: 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 34: 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 61,000+ vaccinations for 3.5 lakhs free meals provided getting quality education till date across programs employees, de
Slide 35: Continued focus on improving transparency and internal controls
Continued focus on improving transparency and internal controls Existing Corporate Governance Policies No Gifts Policy Lodha Code of Conduct Anti Money Laundering, Anti- Guidelines on non-acceptance of gifts Outlines organizational values, Bribery and Anti-Corruption offered by existing or potential
Slide 36: Annexure
“ESR Park” 05 Annexure 35
Slide 37: Consolidated Profit & Loss Summary
Consolidated Profit & Loss Summary INR Cr Quarter ended Period Ended Year ended Sr. No. Particulars 31-12-2021 31-12-2020 30-09-2021 31-12-2021 31-12-2020 31-03-2021 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) 1 Income a) Revenue From Operations 2,059 1,514 2,124 5,789 2,91
Slide 38: Palava Digital Infrastructure Park- Strategically located in MMR
Palava Digital Infrastructure 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 39: 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 38
Slide 40: Key premium & luxury projects delivered
Key premium & luxury projects delivered Unique ability to create destinations New Cuffe Parade Lodha Altamount World Towers Lodha Park 39
Slide 41: 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 42: Thank You!
Thank You! For any further information, please write to investor.relations@lodhagroup.com 41