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.

Lodha Developers Limited , a prominent real estate developer, has announced robust financial results for the first quarter, showcasing significant growth across key metrics.

Financial Highlights

The company reported a consolidated net profit of ₹6,751.00 crore for Q1, representing a substantial 42% increase from ₹4,759.00 crore in the corresponding quarter of the previous year. This impressive growth in profitability underscores Lodha's strong market position and operational efficiency.

Revenue from operations also saw a notable uptick, reaching ₹34,917.00 crore compared to ₹28,465.00 crore in the same quarter last year, marking a 22.7% year-on-year growth. This increase in revenue indicates strong demand for Lodha's real estate offerings and successful project executions.

Standalone Performance

On a standalone basis, Lodha Developers demonstrated equally impressive results:

• Net profit stood at ₹6,443.00 crore, up from ₹4,516.00 crore in the previous year's quarter
• Standalone revenue increased to ₹33,493.00 crore from ₹28,110.00 crore in the previous year

Earnings Per Share and Other Metrics

The company's basic earnings per share (EPS) improved significantly to ₹6.76 from ₹4.78 year-over-year, reflecting enhanced shareholder value. The diluted EPS also saw a similar increase, rising to ₹6.74 from ₹4.76 in the same period last year.

Other key financial metrics for the quarter include:

Corporate Actions

During the quarter, Lodha Developers allotted 474,986 equity shares under its employee stock option schemes, demonstrating its commitment to employee incentivization and retention.

Management Commentary

The Board of Directors approved these unaudited financial results at their meeting held on July 26. While specific management comments were not provided in the available data, the strong financial performance speaks to the company's effective strategies and robust market demand for its properties.

Conclusion

Lodha Developers Limited's Q1 results reflect a company on a strong growth trajectory, with significant improvements in both top-line and bottom-line figures. The substantial increase in net profit and revenue, coupled with improved earnings per share, positions Lodha favorably in the competitive real estate market. As the company continues to execute its projects and capitalize on market opportunities, investors and stakeholders will likely keep a close watch on its future performance and strategic initiatives.