Lodha Developers , a prominent real estate company, has reported impressive financial results for the first quarter, showcasing robust growth and strategic expansion. The company's performance highlights its strong position in the Indian real estate market.

Significant Profit Growth

Lodha Developers witnessed a remarkable 42% year-on-year increase in profit after tax (PAT), reaching Rs 680.00 crore compared to Rs 480.00 crore in the same period last year. This substantial growth in profitability underscores the company's efficient operations and market strategy.

Record-Breaking Pre-Sales

The company achieved its best-ever first quarter pre-sales of Rs 4,450.00 crore, marking a 10% growth. This record-breaking performance indicates strong demand for Lodha's properties and effective sales strategies.

Improved Margins

Lodha Developers demonstrated improved profitability metrics:

• PAT margin expanded to 18.60% from 16.30%
• Adjusted EBITDA margin reached 34.40%

These margin improvements reflect the company's ability to manage costs effectively while driving revenue growth.

Expansion of Project Portfolio

In a significant move, Lodha Developers added five new projects worth Rs 22,700.00 crore across key markets:

• Mumbai Metropolitan Region
• Pune
• Bengaluru

This expansion brings the total project value since the company's IPO to over Rs 1,00,000.00 crore across 48 projects, showcasing Lodha's aggressive growth strategy and confidence in the real estate market.

Financial Health and Debt Management

The company maintains a strong financial position:

• Net debt stood at Rs 5,080.00 crore
• Debt-to-equity ratio at 0.24x, well below the company's 0.5x ceiling
• Cost of debt decreased to 8.30%

These figures indicate prudent financial management and a healthy balance sheet.

Market Outlook and Strategy

Lodha Developers has already achieved over 90% of its business development guidance in the first quarter. The company expects continued healthy demand in the mid-income segment, suggesting a positive outlook for future quarters.

Stock Performance

Despite the strong financial results, Lodha Developers' shares closed 3.50% lower at Rs 1,279.30 on the day of the announcement. This movement may reflect broader market conditions or investor sentiment.

Compliance and Transparency

In line with regulatory requirements, Lodha Developers has submitted its Security Cover Certificate for the quarter ended June 30 to the BSE Limited and National Stock Exchange of India Limited. This demonstrates the company's commitment to transparency and adherence to listing obligations.

Lodha Developers' strong financial performance, strategic expansion, and prudent debt management position it well for continued growth in the Indian real estate market. Investors and market watchers will likely keep a close eye on the company's future developments and performance in the coming quarters.

Lodha Developers Limited , one of India's leading real estate companies, has reported robust financial results for the first quarter, demonstrating strong growth across key metrics.

Record-Breaking Pre-Sales

The company achieved its best-ever Q1 pre-sales performance, recording INR 44.50 billion, a 10% year-on-year increase. This impressive growth came despite a two-week disruption due to geopolitical tensions, highlighting the resilience of Lodha's business model.

Significant Profit Growth

Lodha's profit after tax (PAT) for Q1 surged by 42% to INR 6.80 billion, compared to INR 4.80 billion in the same quarter last year. The PAT margin expanded to 18.6% from 16.3% in the previous year's Q1, reflecting improved operational efficiency.

Financial Highlights

Strategic Business Development

In a significant move, Lodha added five new projects across Mumbai Metropolitan Region (MMR), Pune, and Bengaluru with a combined Gross Development Value (GDV) of INR 227 billion. This addition represents over 90% of the company's full-year guidance of INR 250 billion, demonstrating aggressive expansion plans.

Strong Balance Sheet

Despite substantial investments in business development, Lodha maintained a healthy balance sheet:

• Net debt stood at INR 50.80 billion, with a net debt-to-equity ratio of 0.24x, well below the company's ceiling of 0.5x
• The cost of debt decreased by 40 basis points to 8.3%, among the lowest in the industry

Market Outlook

Abhishek Lodha, Managing Director and CEO, expressed optimism about the company's future, citing structural industry tailwinds such as low home-ownership levels, rising household incomes, strong affordability, and low mortgage rates. He anticipates strengthened demand in the mid-income segment in the second half, driven by interest rate cuts and income tax benefits.

Sustainability Initiatives

Lodha continues to prioritize sustainability and social responsibility:

• Retained its position in the Top 100 'Great Place to Work' rankings out of over 2,000 companies in India
• Through the Unnati program, helped place 300 women in reputable organizations in Q1
• Manages over 60 million sq. ft. of green-certified portfolio
• Advancing low-carbon strategies with renewable Power Purchase Agreements (PPAs) of ~10 MW

Conclusion

Lodha Developers' strong Q1 performance, coupled with strategic project additions and a focus on sustainability, positions the company well for continued growth in the Indian real estate market. The company's ability to maintain robust financials while expanding its project portfolio demonstrates its resilience and strategic acumen in a dynamic market environment.