Lodha has announced its financial results for the quarter ending 30 September 2024, marking its highest-ever quarterly pre-sales achievement of INR 42.9 billion. The company managed this impressive performance despite facing seasonally challenging conditions due to monsoons, as well as the traditionally inauspicious "Shradh" period, which this year fell in September, contrasting with October last year. This quarter saw Lodha complete its third consecutive quarter with pre-sales exceeding INR 40 billion, a reflection, according to the company, of its stable and reliable business model. In a notable move, Lodha also completed a major land sale at its Palava location to a global data centre operator, marking Palava's growing significance as a data centre hub in the region. The land, intended for data centre use, was sold at a rate of approximately INR 120 million per acre.

The quarter also saw Lodha's expansion through the acquisition of four new projects in Pune and Bengaluru, which collectively carry a Gross Development Value (GDV) of INR 55 billion. "We achieved our best ever quarterly Pre-sales performance of INR 42.9 billion in Q2FY25," said Abhishek Lodha, Managing Director and CEO of Macrotech Developers Ltd. He emphasised the challenges of the quarter, particularly the "Shradh" period and heavy rains, but noted that the company's sustained sales results demonstrate its business model's resilience. Lodha further commented on the company's robust embedded EBITDA margins of 34% for the quarter, suggesting that strong profitability remains a hallmark of the underlying business model.

For the first half of FY25, Lodha has reached INR 83 billion in pre-sales, and the company is optimistic about achieving its full-year target of INR 175 billion, especially with the festive season underway. Early indicators suggest heightened demand for quality branded housing, driven by solid affordability and increased consumer confidence. The competitive environment among mortgage providers, along with the anticipated reduction in interest rates in the latter half of FY25, is expected to provide further support for the housing market, particularly in the mid-income segment where Lodha holds a substantial share.

The two new projects each in Pune and Bengaluru, valued at INR 17 billion and INR 38 billion respectively, aim to fuel the company's accelerated growth in Bengaluru in the coming years. Lodha's business development activities have reached INR 166 billion for the first half of FY25, which constitutes over 75% of the annual target of INR 210 billion. Lodha reports a strong pipeline of residential business development opportunities, offering a promising outlook for growth.

In addition to the data centre transaction, Lodha has also increased its stake in its Digital Infrastructure platform from 33% to approximately 67%, furthering its strategy to bolster annuity income to INR 15 billion by FY31. Furthermore, Lodha acquired around 45 acres in Chennai intended for its digital infrastructure business, focusing on warehousing and industrial facilities.

Despite significant investments in business development this quarter, Lodha reported that its net debt stands at INR 49 billion, which translates to a Net Debt-to-Equity ratio of 0.27x, well within its maximum limit of 0.5x. Additionally, the company's exit cost of debt fell slightly to 8.9% in Q2FY25, down around 20 basis points, positioning it among the most competitive debt costs in the industry.

Lodha's financial results for the quarter ending 30 September 2024 highlight a record pre-sales achievement of INR 42.9 billion, showcasing the company's resilience amid challenging conditions. Strategic land sales and new project acquisitions reinforce its growth trajectory, while strong EBITDA margins suggest robust profitability. With pre-sales for the first half of FY25 reaching INR 83 billion, Lodha remains optimistic about meeting its full-year target of INR 175 billion, supported by rising consumer demand and anticipated interest rate reductions, positioning the company well for future expansion.