Lodha Developers (LODHA) Q2 24/25 earnings summary

Executive summary

• Achieved record Q2FY25 pre-sales of INR 42.9 billion, up 21% YoY, with H1FY25 pre-sales at INR 83.2 billion, representing 48% of annual guidance.

• Embedded EBITDA margin reached ~34% for Q2FY25, above full-year guidance, reflecting strong profitability.

• Net debt at INR 49.2 billion (Net D/E at 0.27x), well below the 0.5x ceiling, driven by growth investments.

• Added new projects in Pune and Bangalore in Q2, with total GDV of INR 55 billion; H1FY25 new project additions at INR 166 billion GDV, over 75% of full-year guidance.

• ESG leadership recognized with top global rankings and increased stake in digital infrastructure platform to 66.7%.

Financial highlights

• Q2FY25 revenue at INR 26.3 billion, up 50% YoY; H1FY25 revenue at INR 54.7 billion, up 62.5%.

• Adjusted EBITDA for Q2FY25 at INR 9.6 billion (36.5% margin), up 74% YoY; H1FY25 at INR 19.2 billion (35% margin), up 89%.

• Adjusted PAT for Q2FY25 at INR 4.2 billion (15.8% margin), up 99% YoY; H1FY25 at INR 9.0 billion (16.1% margin), up 137%.

• Net worth as of Sep 30, 2024, at INR 182.5 billion.

• Average cost of funds reduced to 8.9% from 9.1% last quarter.

Outlook and guidance

• FY25 pre-sales guidance at INR 175 billion, with H1FY25 already achieving INR 83 billion.

• Operating cash flow guidance for FY25 at INR 65 billion; H1FY25 at INR 18 billion.

• New project additions guidance for FY25 at INR 210 billion GDV; H1FY25 at INR 166 billion.

• Net debt/equity to remain below 0.5x; current at 0.27x.

• Rental income visibility of INR 1,200 crore for FY31, with a target of INR 1,500 crore.