Lodha Developers (LODHA) Q1 24/25 earnings summary

Executive summary

• Achieved record Q1FY25 pre-sales of INR 40.3bn, up 20% year-over-year, with embedded EBITDA margin at ~33%.

• Net debt remains low at INR 43.2bn (0.24x equity), reflecting strong cash flows and conservative leverage.

• Added three new projects with INR 111bn GDV and 2.7 mn sq ft saleable area in Q1FY25.

• Unaudited consolidated and standalone financial results for the quarter ended June 30, 2024, 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 at INR 28.5bn, up 76% year-over-year; adjusted EBITDA at INR 9.6bn, up 107%.

• Adjusted PAT for Q1FY25 at INR 4.8bn, up 186% year-over-year; PAT margin expanded to 16.3%.

• Standalone revenue from operations for Q1FY25 was INR 27.85bn, up from INR 14.08bn in Q1FY24.

• Standalone net profit for Q1FY25 was INR 4.66bn, compared to INR 1.35bn in Q1FY24.

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

Outlook and guidance

• FY25 pre-sales guidance at INR 175bn, up from INR 145bn in FY24, with 20% growth targeted.

• Operating cash flow guidance for FY25 at INR 65bn, with higher collections expected in H2.

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

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

• Palava and Upper Thane expected to deliver 20% sales growth, targeting INR 8,000 crore by decade-end.