Lodha Developers (LODHA) Q4 22/23 earnings summary

Executive summary

• FY23 pre-sales hit a record ₹120.6 Bn, up 34% YoY; collections rose 23% to ₹106.1 Bn. 9,623 homes covering 9.3 msf were completed.

• Cash flow after interest and taxes was ₹46.6 Bn; this funded ₹200 Bn GDV of new projects and a ₹22.3 Bn reduction in net debt.

Financial highlights

• Consolidated revenue was ₹94.7 Bn, up ~3% YoY; reported EBITDA was ₹20.7 Bn and adjusted EBITDA was ₹29.7 Bn, down 8% YoY.

• Adjusted EBITDA margin was 30.9%, versus 35.1% in FY22; consolidated PAT was ₹4.9 Bn versus ₹12.1 Bn.

• Excluding the ₹11.8 Bn exceptional provision for UK loans, profit before exceptional items and tax was ₹16.3 Bn, versus ₹17.2 Bn in FY22.

Outlook and guidance

• Targeting consistent pre-sales growth of over 20% annually and a long-term 20% CAGR in pre-sales, with a target ~20% ROE over the decade.

• FY24 guidance: pre-sales growth of 20%; launches planned in underserved MMR and Pune micro-markets and select Bengaluru projects.

• Expected home-price growth of 6%-8% in FY24; digital infrastructure lease rentals are expected to start in FY24 and scale over 3-5 years.

• Net debt ceiling is the lower of 1x operating cash flow or 0.5x equity; expected to be below this ceiling during FY24.