Getty ImagesRealty developer Lodha Group, listed as has recorded net profit of Rs 296 crores, for the quarter ended December up 6% from a year ago. Revenue for the quarter declined 14% to Rs 1,775 crores.
The company reported its best-ever third quarter pre-sales performance achieving 16% on-year growth at Rs 3,035 crores.
“Demand for quality housing from trusted brands continues to remain strong despite the increase seen in mortgage rates. This reinforces our view that the housing upcycle is long term in nature on the back of strong affordability, job creation and income growth,” said Abhishek Lodha, MD & CEO, Macrotech Developers.
According to him, there is an increasing likelihood of mortgage rates peaking in the first half of 2023 and thereafter likely reduction in the rates from the second half of the year. This will strengthen the consumer sentiments going ahead.
Combined with the consolidation on the supply side and the company’s strategy of capital light expansion through joint development agreements (JDAs), he believes that the company can deliver 20% compounded annual growth rate (CAGR) in pre-sales and nearly 20% return on equity (ROE) over the medium term.
The company is confident of surpassing its guidance for 2022-23 of Rs 11,500 crores pre-sales. The developer has added four new projects during the quarter in Mumbai region and Pune aggregating to 5 million sq ft saleable area and a combined gross development value (GDV) of Rs 8,500 crores.
With this, the company has already added Rs 17,800 crores of GDV in the 9-month exceeding its full year guidance of Rs 15,000 crores.
The developer has managed to reduce its net debt by another Rs 753 crores during the quarter to Rs 8,042 crores.
“We are confident of achieving our leverage goals of net debt being lower than 0.5 times of equity and 1 times of operating cash flow, over the course of next six months,” Lodha added. Ends
The company reported its best-ever third quarter pre-sales performance achieving 16% on-year growth at Rs 3,035 crores.
“Demand for quality housing from trusted brands continues to remain strong despite the increase seen in mortgage rates. This reinforces our view that the housing upcycle is long term in nature on the back of strong affordability, job creation and income growth,” said Abhishek Lodha, MD & CEO, Macrotech Developers.
According to him, there is an increasing likelihood of mortgage rates peaking in the first half of 2023 and thereafter likely reduction in the rates from the second half of the year. This will strengthen the consumer sentiments going ahead.
Combined with the consolidation on the supply side and the company’s strategy of capital light expansion through joint development agreements (JDAs), he believes that the company can deliver 20% compounded annual growth rate (CAGR) in pre-sales and nearly 20% return on equity (ROE) over the medium term.
The company is confident of surpassing its guidance for 2022-23 of Rs 11,500 crores pre-sales. The developer has added four new projects during the quarter in Mumbai region and Pune aggregating to 5 million sq ft saleable area and a combined gross development value (GDV) of Rs 8,500 crores.
With this, the company has already added Rs 17,800 crores of GDV in the 9-month exceeding its full year guidance of Rs 15,000 crores.
The developer has managed to reduce its net debt by another Rs 753 crores during the quarter to Rs 8,042 crores.
“We are confident of achieving our leverage goals of net debt being lower than 0.5 times of equity and 1 times of operating cash flow, over the course of next six months,” Lodha added. Ends
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