Lodha Developers (LODHA) Q1 24/25 earnings summary

Executive summary

• Achieved record Q1FY25 pre-sales of INR 4,030 crore (INR 40.3bn), up 20% year-over-year, with embedded EBITDA margin at ~33% and three new projects added with INR 111bn GDV.

• Net debt at INR 4,300 crore (INR 43.2bn), with net D/E at 0.24x, well below the 0.5x ceiling; average cost of debt reduced to 9.1%.

• Strong operating cash flow and robust launch pipeline support FY25 guidance, targeting pre-sales of INR 175bn and operating cash flow of INR 65bn.

• Unaudited consolidated and standalone financial results for Q1 FY25 were approved and reviewed with an unmodified auditor's conclusion.

• Board approved a merger by absorption of three listed subsidiaries (RFL, NSIL, SEL) into the company, aiming to simplify the corporate structure and enhance governance.

Financial highlights

• Q1FY25 consolidated revenue was INR 2,847 crore (INR 28.5bn), up 76% YoY; adjusted EBITDA at INR 959 crore (INR 9.6bn), up 107%; adjusted PAT at INR 476 crore (INR 4.8bn), up 186%.

• Standalone revenue for Q1FY25 was INR 2,785 crore (INR 27.85bn), with standalone net profit at INR 465.7 crore (INR 4,657m).

• Basic EPS (consolidated) for Q1FY25 was INR 4.78, up from INR 1.85 in Q1FY24.

• Price growth for Q1 was 2%; full-year guidance is 5%-7% YoY.

• Added 3 new projects with GDV of INR 11,000 crore (INR 111bn), over 50% of full-year guidance achieved in Q1.

Outlook and guidance

• FY25 guidance: pre-sales of INR 175bn, operating cash flow of INR 65bn, new project additions of INR 210bn GDV, and net D/E maintained below 0.5x.

• Robust launch pipeline with 18 projects totaling 9.6mn sq ft and INR 119.8bn GDV planned for FY25.

• Targeting 20% pre-sales CAGR and 20% ROE by FY26, with net debt ceiling of 0.5x D/E.

• Annuity income pool targeted at INR 5bn by FY26 and INR 15bn by FY31.

• The merger of subsidiaries is expected to complete in 6-9 months, subject to regulatory and shareholder approvals.