Lodha Developers Limited — Annual Report 2023

Apr 22, 2023

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April 22, 2023

BSE Limited Scrip Code: 543287 Debt Segment – 974163, 974199, 974473, 974511

National Stock Exchange of India Limited Trading Symbol: LODHA

Dear Sir,

Sub: Press Release

In continuation of our letter of even date, regarding the submission of Audited Consolidated and Standalone Financial Results for the quarter and year ended March 31, 2023, we enclose herewith a copy of Press Release issued by the Company in this regard.

The press release is also being uploaded on the Company’s website at www.lodhagroup.in

You are requested to inform your members accordingly.

Thanking you,

Yours faithfully, For Macrotech Developers Limited

SANJYOT NILESH RANGNEKAR Digitally signed by SANJYOT NILESH RANGNEKAR DN: c=IN, o=PERSONAL, pseudonym=6df6cf47a87859531ee4f50a489e7721, 2.5.4.20=C7812C81AE26D822A965B197D5195BDF6D50F8443987A023DF50FD6BEF4C5021, postalCode=400607, st=MAHARASHTRA, serialNumber=d7712af3da22c028adfaa23a93cc85029417e4c3cba448af2f6d982f99722a49, cn=SANJYOT NILESH RANGNEKAR Date: 2023.04.22 17:36:44 +05'30'

Sanjyot Rangnekar Company Secretary & Compliance Officer Membership No.: F4154

Encl.: As above

Macrotech Developers Limited : Lodha Excelus , NM Joshi Marg, Mahalaxmi, Mumbai 400 011, India • T + 91 22 6773 7373 Regd. Office : 412, Floor-4, 17G Vardhaman Chamber, Cawasji Patel Road, Horniman Circle, Fort, Mumbai 400 001, India

CIN: L45200MH1995PLC093041 www.lodhagroup.in

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Lodha achieves best ever annual pre-sales in FY23, exceeds guidance

• Best ever annual pre-sales of INR 12,064 crores (+34% YoY)

• Net Debt down by INR 2,229 to INR 7,071 crores

• Adds 12 projects in FY23 for INR ~19,800 crores GDV

• Dividend of INR 2 per share and 1:1 Bonus shares

• Ranked in top-10 among global real estate companies by Morningstar Sustainalytics in ESG

April 22, 2023, Mumbai: Lodha, India’s No. 1* real estate developer, announced its financial results for the year ended March 31, 2023. Company reported its best ever annual pre-sales performance as well as very strong cash flow generation enabling steep reduction in net debt. For the quarter ended March’23, Lodha reported pre-sales of INR 3,025 crores and collections of INR 2,933 crores.

Operational & Financial Overview

• Pre-sales: FY23 at INR 12,064 crores (+34% YoY); Q4FY23 at INR 3,025 crores

• Embedded EBITDA Margins on Pre-sales: FY23 at 32%; Q4FY23 at ~31%

• Revenues from ops.: FY23 at INR 9,470 crores (+3% YoY); Q4FY23 at INR 3,255 crores

• Adjusted EBITDA: FY23 at INR 2,970 crores (-8% YoY); Q4FY23 at INR 977 crores

• PAT adj. for forex & exceptional: FY23 at INR 1,769 crores (+40% YoY); Q4FY23 at INR 751 crores

Commenting on the performance, Mr. Abhishek Lodha, MD & CEO, Macrotech Developers Ltd. said, “We are extremely pleased to report our best ever annual pre-sales performance. What is even more heartening is that we have surpassed our full year guidance in the face of the steep increase in interest rates. Recent monetary policy announcement by the RBI of pause on interest rate front should stimulate the economy, create more jobs and thereby boost housing.

We delivered pre-sales at INR 12,064 crores for FY23 thus outperforming our annual guidance by registering a 34% yoy growth. The growth journey of Indian housing market on the back of rising incomes and favorable demography is just in the 2[nd] year of a multi-year cycle. Our strategy of capitalizing on industry consolidation by expanding into under-represented micro-markets of MMR and Pune is playing out well. Following our micro-market based growth strategy, in a short span of time, we have become a formidable player in Pune and Eastern Suburbs of MMR achieving INR 1,126 crores and INR 1,232 crores respectively. Price increase of nearly 8% for FY23 - below average wage growth, will lead to improvement in affordability and also reward existing home owners – both drivers of demand.

Driven by strong demand fundamentals and supply consolidation, we are very confident of achieving 20% CAGR in pre-sales over medium term. In line with this, we expect to grow our pre-sales to INR ~14,500 crores in FY24.

Our strong brand, unique sales & marketing abilities as well as our ability to quickly monetize any land asset continue to make landowners prefer Lodha for maximizing their land value. We added new projects with GDV (sales) potential of INR ~20,000 crores in FY23. This is in addition to the 11 projects added in previous financial year for INR ~15,000 crores. We expect to maintain a similar run-rate of new project additions primarily through JDAs on the back of robust business development pipeline. This will help us deliver our growth objectives in a predictable and consistent manner.

Lodha’s ability to reward its shareholders alongside growth is another of its unique strength. I am happy to share that we have commenced paying dividend from this year. Our board took note of the robust performance and decided to reward shareholders by way of a 1:1 bonus issue as well as dividend INR 2/ share (pre-bonus). As communicated earlier, as per our dividend policy, we intend to pay 15% to 20% of our PAT as dividend (subject to remaining below our internal debt ceiling).

Lodha continues to demonstrate unique ability to generate surplus operating cash flow alongside substantial growth. This has enabled us to reduce our net debt by INR 2,229 crores to INR 7,071 crores in FY23 of which reduction of INR 971 crores was achieved in Q4FY23. Company also was able to bring down interest costs

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significantly during the year despite 250 bps increase in policy rates: average cost of debt for Lodha has come down by ~70 bps during the year to 9.8%. Lodha intends to continue to further reduce its net debt in FY24, focusing on going continually below our stated ceiling.”

Building on philosophy of ‘Do good, do well, Lodha has launched Lodha Genius Program in partnership with Ashoka University – a leading Indian liberal arts and sciences University, to develop high potential children (Grade 9 onwards) and inculcate spirit of service to nation & society.

The company continues to receive a significant endorsement to its ESG practices. Lodha received exceptional score and was ranked in the top-10 among the 280+ global real estate companies and in the top 7% of the 15,300+ globally rated companies by Morningstar Sustainalytics.

• By Cumulative Residential Sales since FY14

About Lodha

Lodha is among the largest real estate developer in India that delivers with scale since 1980s. Core business of Lodha is residential real estate development with a focus on affordable and mid-income housing. The company also has a growing Digital Infrastructure park business where in a short span of time, it has scaled up and made its mark. Lodha has delivered ~94 million square feet of real estate and is currently developing ~105 million square feet under its ongoing and planned portfolio. Lodha has over 4,300 acres of land beyond its ongoing and planned portfolio which will be utilized in developing further Residential, Commercial and Digital Infrastructure spaces. Thriving at building the world’s finest developments, Lodha has created several iconic landmarks across the MMR notable among which are The World Towers, Lodha Altamount, Lodha Park, Lodha New Cuffe Parade and Palava City.

Disclaimer

Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statements. Macrotech Developers Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.