Lodha Group Secures Pre-Sales of Rs. 2,608 Crore in Mumbai Real Estate Projects, Reducing Debt

Lodha Group, one of India' leading real estate developer, recently stated that it secured pre-sales of Rs. 4500 crore in the October-December quarter of 2021, including Rs. 2,608 crore from projects in India and £191 million or Rs. 1900 crore from projects in the United Kingdom.

The Mumbai-based real estate developer announced the addition of six new projects with a potential gross development value (GDV) of Rs. 10,000 crore and the reduction of its debt to below Rs. 10,000 crore. It currently has a net debt of Rs. 9,925 crore.

Pre-sales were up 40% year over year, while collections were up 44% year over year, making this India's highest quarterly sales performance in the previous 12 quarters.

As per Abhishek Lodha, Lodha's MD and CEO this is a testament to the demand for high-quality houses in India and real estate buyers’ faith in the Lodha brand. He also expressed that it is their goal to ensure that every Indian family has access to a high-quality house and sn opportunity to realize their full potential.

After a similarly impressive Q2FY22, it is clear that the multi-year housing market up-cycle is well begun.

Despite Covid's potential effect, Lodha Group is confident in their pre-sales projection of INR 9000 crores for the Financial Year because of the underlying strength of demand for housing In India and the rapid consolidation on the real estate supply side.Lodha Group’s UK investments, which are outperforming the business plan, are also giving them great satisfaction. It looks like an important chunk of their investment in India will be returned in FY23 if the present trend continues.

Through a capital-light JDA strategy, they have taken advantage of the increasing market consolidation to grow into underserved micro-markets in MMR and Pune. Because of this, it executed its first QIP offering and obtained INR 4000 crores in equity from renowned worldwide and Indian institutional investors to take advantage of these possibilities During the third quarter, the business inked six additional joint development agreements (JDAs) totaling 4.8 million square feet and INR 10,000 crores in gross development value. As of April 2021, they have added 11 JDA projects totaling 9.3 million square feet with GDV potential of INR 14,500 crores, which provides Lodha Group with tremendous insight into future growth.

Focusing on capital-light expansion, this leading real estate development company in India can offer scalability while maintaining a strong financial position.

At the conclusion of the quarter, the company's net debt was at INR 9925 crores, a decrease from the previous quarter. The corporation is steadfast in its pursuit of debt reduction and a strategy of measured expansion.

S&P Global Corporate Sustainability Assessment has ranked Lodha Group as one of the top 13% of companies reviewed worldwide this year.

It is apparent that Lodha Group will focus on creating a more residential real estate in India as the home is the safest asset, both emotionally and financially, as seen by the company's improved business results. The Indian housing sector will continue to grow as the demand keeps increasing and the Lodha Group is perfectly poised to meet these demands.