Lodha’s strong third quarter earnings came largely in stock

Investors will remember that its operating update on January 6, a pre-cursor of earnings, already points to a stellar Q3 performance. on sale booking 2,608 crore saw a 40% year-on-year (YoY) improvement and was the highest in the last 12 quarters.

The affordable housing segment contributed 63% of its total sales and the rest came from the luxury segment. In Q3FY22, Collections 2,127 crore, up 44% year-on-year.

“The pre-sale numbers released last week more or less indicated that the actual results would be stronger. On the positive side, debt is no longer a concern and listed companies continue to benefit from the consolidation. But given the sharp rally in the stock Over the past year, many of these positives have already been included,” said an analyst at a domestic brokerage house requesting anonymity.

Lodha’s net debt declined to Rs 9,896 crore from Rs 12,500 crore in 2QFY22. With this, the company has achieved its FY22 debt reduction guidance, the management said. In addition, the cost of credit declined from 12.3 per cent in the March quarter to 11.1 per cent at the end of the December quarter. One basis point is one hundredth of a percentile. Management said the interest cost will continue to decline going forward.

Ahead of its third quarter earnings announcement on Tuesday evening, the stock rose 5% on the NSE. In the last year, Lodha stock has gained 175%, outperforming the Nifty Realty Index, which has gained 51% in the same period.

“We expect Lodha to see good sales in Q4FY22 as well. But how sales pan out in the calendar year 2022, it remains to be seen as the benefits of stamp duty cut are no longer there and prices on increased input cost Further, a higher FY22 base may curtail FY23 sales growth,” the analyst said.

Meanwhile, Lodha signed six more Joint Development Agreements (JDAs) during the December quarter for about 4.8 million sq ft with a Gross Development Value (GDV) of around Rs 10,000 crore. The company’s press release said, “Since our IPO (April 21), we have now added 11 JDA projects totaling approximately 8.8 million sq ft with a GDV potential of approximately Rs 14,600 crore, which gives us a chance for future growth. provide significant visibility.”