Lodha Group, listed as Macrotech Developers, has reported its highest ever first quarter pre-sales at Rs 3,353 crores, marking a strong start to the financial year 2023-24. The company has added five new projects during the quarter, with a potential gross development value of Rs 12,000 crores. This performance is in line with their guidance of 20% pre-sales growth for FY24. The demand conditions in the housing market remain robust, reflecting a strong consumer desire to buy a home. Abhishek Lodha, the MD & CEO of Lodha, believes that housing will be a key driver of India’s future growth, supported by job creation, affordability, and mortgage availability. He also mentioned that the Reserve Bank of India (RBI) pausing its interest rate hiking cycle and the likelihood of interest rates decreasing in the future will further strengthen the momentum for housing. With the pace of new project additions and a strong business development pipeline, the company expects to surpass its full-year guidance.
During the quarter, the company’s collections rose to Rs 2,403 crore, and they anticipate further growth in the remaining quarters of the financial year. However, net debt increased by 3% to Rs 7,264 crores, primarily due to front-loaded business development investment. Lodha emphasized that this marginal increase is based on a significantly enlarged base of sales and business development. The company remains committed to achieving its full-year guidance for the reduction of net debt. They aim to lower it to either 0.5 times equity or 1-time operating cash flow, with significant debt reduction expected in the second half of the year.
Lodha Group has a strong track record in the real estate sector, having delivered over 94 million sq ft of real estate so far. Currently, they are developing over 100 million sq ft under their ongoing and planned development portfolio. In addition to this, the group holds around 4,400 acres of land beyond their current portfolio, which will be utilized for future residential, commercial, and industrial & logistics spaces.
For more information, read the full article on The Economic Times.
