Lodha delivers pre-sales of Rs4,518cr in Q3FY22, profit rises by 24% yoy; Stock under pressure

27 Jan 2022 , 11:00 AM

Macrotech Developers Limited (Lodha Group) announced its financial results for the quarter ended December 31, 2021. The company reported a 24% yoy higher profit at Rs286cr in Q3FY22 against Rs231.7cr in Q3FY21. Revenue jumped 36% yoy to Rs2,059cr from Rs1,514.1cr yoy. Adjusted EBITDA at Rs698cr (up 55% yoy). And strong Adjusted EBITDA margin at 34%. PAT margin at 13%. PAT adjusted for forex stood at Rs279cr (124% yoy).

On the back of the continued strength in housing demand and its strong brand, the company reported its best Pre-sales in the last 12 quarters. For the October – December quarter, the real estate company had a 40% growth in pre-sales and 44% growth in collections compared to Q3FY21.

At around 11.03 am, Macrotech Developers was trading at Rs1241.75 per share down Rs41.75 or 3.25% on the BSE.

Operational & Financial Overview for the Q3FY22

• Total pre-sales of ~Rs4,518 cr. India Pre-sales at Rs2,608cr (up 40% yoy) and UK pre-sales of GBP 191 milllion (~Rs1,910cr)
• Collections at Rs2,127cr (up 44% yoy)
• Signed up 6 JDAs for ~4.8 msf amounting to ~Rs10,000cr. GDV during the quarter
• Net Debt down to Rs9,896cr
• Further reduced average cost of borrowing by ~30 bps

Abhishek Lodha, MD & CEO, Macrotech Developers Ltd. said, “Housing market has seen a remarkable turnaround in last 12 months. The fact that this strong performance comes on the back of an equally strong base of the previous quarter as well as the same quarter in FY21 showcases that the recovery in housing market has taken root and the multi-year up-cycle in housing market is well underway. We are witnessing strong demand across our portfolio and at all price points.

On the supply side, consolidation is accelerating at a great pace creating a goldilocks situation for strong brands like us. The accelerating consolidation in the market has presented to us several lucrative opportunities to add
new projects across MMR & Pune through the capital light JDA route. To capture these opportunities, the company successfully completed its maiden QIP offering and raised equity of Rs4,000cr from marquee global and Indian institutional investors. During the quarter, the company signed on 6 more JDAs for ~4.8 million square feet with ~Rs10,000cr GDV.”

He further added, “Since our IPO (April 21), we have now added 11 JDA project totalling for ~8.8 million square feet with GDV potential of ~Rs14,600cr, which gives us significant visibility of future growth. We are focused on this capital light growth model – delivering scale with a prudent balance sheet. Strong operating performance and robust free cash flow will enable us to continue our de-leveraging journey. Our UK business continues to perform ahead of expectations and we are pleased that the USD 225 million bond will be pre-paid in the near future from the sales at our One Grosvenor Square development, well ahead of the bond maturity.”