Lodha Targets INR 21,000 Crore in New Projects Amid Booming Indian Real Estate Market

Lodha, known in the market as Macrotech Developers, is setting its sights on substantial growth for the fiscal year 2024-25, underpinned by a strong housing market outlook. The company plans to add new projects valued at over ₹21,000 crore, following a previous year's addition of ₹20,300 crore in projects.

Since its Initial Public Offering in April 2021, Lodha has expanded its portfolio significantly, adding over 33 projects with a combined gross development value exceeding ₹54,700 crore. Abhishek Lodha, the Managing Director and CEO of Macrotech Developers, indicated that the company's robust operating cash flow and low leverage empower them to scale operations effectively as opportunities arise. For the current fiscal year, the projected operating cash flow is set to surpass ₹6,500 crore, an increase from ₹5,400 crore in the previous year.

During a recent earnings call, Lodha highlighted the strengths of their development platform, which supports profitable scaling due to their established brand and execution capabilities, enabling them to leverage market conditions for both pricing and volume benefits.

In a strategic move to bolster its financial position, the developer recently secured $400 million (over ₹3,300 crore) from investors like Invesco Oppenheimer, Blackrock, Carmignac, APG, and HDFC Life through a Qualified Institutional Placement (QIP) issue. This marked the fourth equity raise in the past 36 months, bringing the total capital raised to ₹13,000 crore, including the IPO.

The property market is currently experiencing a consolidation of demand and supply, providing a significant advantage for well-established real estate brands. Lodha aims to expand its presence in key regions such as the Mumbai Metropolitan Region (MMR), Pune, and Bengaluru, adopting a strategic approach to be accessible within every 2-4 km radius.

Conclusion:

For the upcoming financial year, Lodha anticipates a nearly 21% increase in pre-sales, targeting ₹17,500 crore. This follows a record-breaking year with the highest annual pre-sales exceeding ₹14,500 crore. The last quarter alone saw a 40% year-on-year increase in pre-sales amounting to ₹4,230 crore and a 20% rise in collections at ₹3,510 crore.
Lodha expects the new fiscal year's bookings to be driven by a combination of pricing strategies, volume increases, and market share gains, with significant contributions expected from operations in Bengaluru and Pune.