Lodha reports record quarterly pre-sales of ~INR 3450 crores
October 07, 2021 | By
• Pre-sales of Rs. 2003 cr. in India and ~Rs. 1450 in UK in Q2 FY 22; best ever performance for second quarter of FY
• Collections of INR 1912 Cr. in Q2FY22
• 1 new joint development agreements (JDA) in Q2FY22 and 5 JDAs in the year so far
Mumbai, October 06, 2021: Underling the strong sentiment for housing in India, Lodha – the country’s No. 1* residential developer, reported bumper quarterly sales of ~INR 3450 crores:
• Inspite of the early part of the quarter being affected by Covid and impact of monsoon in Mumbai Region, Lodha had its best ever performance for the 2 nd quarter of a FY with over Rs. 2000 crores of sales in India.
• Additionally, Lodha had ~INR 1450 crores of sales in UK
The pre-sales in India showed 88% growth on YoY basis (compared to Q2FY21) and 109% on QoQ basis (compared to Q1FY22)
Commenting on the performance, Abhishek Lodha, MD & CEO, Lodha said “Led by the strength of our brand and resilient industry trends, we have shown strong pre-sales growth of 88% during the quarter on a YoY basis and more than doubled our pre-sales on a QoQ basis. We are seeing strength of demand across our portfolio, both in ready as well as under construction projects, which is truly a testimony to our brand strength and demonstrates the consumers’ trust in us. With the upcoming festive season, we are confident that we will see huge increase in sales because consumers are so keen to move into a bigger and better home. We notice that consumers are catching onto the trend of buying a home instead of renting as they realize that this is critical for family stability, social prestige and will ensure significant wealth creation over time. With the vision of providing high quality homes to every Indian, our growth strategy of focusing on identified micro markets of MMR and Pune continues to see good traction having signed five JDAs since IPO with cumulative GDV of ~Rs 4,500 crore for estimated saleable area of ~4 mn sqft in the fiscal year so far. Rising customer footfalls at all of our developments and improving conversions give us great confidence of strong underlying demand as we enter the festive season. We are also seeing good demand in our Digital Infrastructure vertical with Grade A companies wanting to take space in our Palava parks. We remain confident of achieving our pre-sales guidance of ~Rs. 9000 crores for the FY and reducing our net debt to ~Rs. 10,000 crores.”
The company thrives at being a consumer-first brand and ahead of curve in fulfilling the evolving consumer needs. The stellar performance for the quarter is also basis the current sentiments around the sector which is at an all-time positive. The company reported net debt for its India business largely stable at ~ INR 12508 Cr. and remains focused on deleveraging coupled with disciplined growth trajectory.
“With the ease in travel restrictions to UK, we are seeing tremendous potential and increase in enquires for our London projects. The performance of ~INR 1450 Cr. in the quarter has exceeded the projected numbers for the quarter and if the trend continues, we expect to sell out the project ahead of our business plan of FY 24, expediting release of capital for our growth and deleveraging.”, added Abhishek Lodha on the developments for the UK business.
The upsurge in company’s business performance is a testament to the fact that home is considered the safest asset, both emotionally as well as financially; and housing industry continues to be in a critical position towards nation-building and economic growth.
* Sales from FY 2014-2021