Lodha investors upbeat on Q4FY22 pre-sales, debt reduction

Lodha’s pre-sales grew 37 per cent year-on-year to a record high in the March quarter. 3,460 crores. With this the company has met its pre-sales target. 9,000 crore for FY22. Collections grew by 36% in the March quarter of FY12 and 34% sequentially.

Strong sales and better collections helped the company reduce some of its debt. For your India business, net debt declined 590 crores sequentially 9,310 crores. Investors will recall that the company had raised funds through qualified institutional placements in the December quarter.

According to the company’s management, its projects in the UK also performed well in 4QFY22, with a selling price equal to 1,700 crores. For FY22, sales of projects in the UK stood at 5,300 crores.

According to a press release, during the March quarter, Lodha expeditiously encashed senior secured notes of $170 million out of the total outstanding amount of $225 million.

According to analysts at Jefferies India Pvt Ltd. Ltd., with UK bond pre-payments, Lodha’s consolidated net debt estimated to decline approx. 1,800 crore sequentially 9,600 crores.

As far as the sales outlook is concerned, analysts at Jefferies expect Lodha’s FY23 pre-sales to grow at 18% year-on-year. 10,600 crores. “Given the strong 4Q exit momentum, and a weak Covid impacted 1Q in base, we believe a significant upgrade to the estimate is possible,” the Jefferies report added.

Sharing the optimism, analysts at ICICI Securities Ltd said, Lodha has added new projects in 9MFY22 with a total salable area of ​​8.8 million sq ft, most of which are slated for FY23 launch. “Given the strong launch pipeline and momentum in subsistence sales, we anticipate sales bookings of Rs 11,010 crore in FY23E and Rs 11,900 crore in FY24E,” the report said.

While these developments are positive, investors in this stock will look for comment on new launches, projects in the pipeline, and price hikes when the company announces its fourth-quarter earnings.