Lodha Group records 271% jump in FY22 net profit at Rs 1,262 crore

For the quarter ended March, net profit grew 97% from a year ago Rs 573 crore on the back of Rs 36% rise in revenue at Rs 3,445 crore.

The company reported its best ever quarterly and annual pre-sales performance along with robust margins. For the quarter ended March, Lodha had 37% on-year growth in pre-sales and 36% growth in collections.

Operating profit for the quarter rose 33% to Rs 1,230 crore, while it grew 111% for the year to Rs 3,243 crore.

“On the ground demand for quality housing remains very strong. With each passing quarter, demand only strengthens on the back of rising consumer confidence on the strong real estate brands on the back of growing economy and per capita income. All the segments of the portfolio are showing strong interest from consumers,” said Abhishek Lodha, MD & CEO, Macrotech Developers.

According to him, the company has delivered India pre-sales at Rs 9,024 crores for the financial year 2021-22 thus meeting its stated guidance, despite disruption due to Covid second wave in Apr-May2021 as well as impact of Omicron in January 2022.

Lodha is confident of achieving around 25% compounded annual growth rate (CAGR) growth in pre-sales over the medium term led by the company’s joint development agreement (JDA) strategy.

The company entered into 11 JDAs with gross development value of nearly Rs 15,000 crore during the financial year and expects to maintain this run-rate of new project additions through JDAs.

Lodha’s UK investments have continued to outperform its business plan enabling the company to pre-pay $170 million of the US Dollar bonds a year ahead of its scheduled maturity. The remaining outstanding of $55 million will be paid out of receivables from already sold units.

“Our debt reduction plans will get accelerated as our investment in the UK is repatriated back starting FY23,” Lodha said.

During the quarter, the company continued its de-leveraging as its net debt declined to Rs 9,300 crores surpassing the full year guidance for 2021-22.

The company’s average cost of debt has come down to 10.5% in March 2022 from 12.3% in March 2021 with new borrowings taking place below 9%. Lodha expects the downward trajectory in interest costs to continue even in 2022-23.