Lodha Group clocks 2000 cr sales in Dec quarter supported by funding housing brand
Lodha’s earnings in 2018-19 were at $7000 crore, and given that the March quarter is normally the strongest in terms of sales, the programmer may surpass it in 2019-20.
The October-December quarter earnings were up 30 percent compared to the corresponding quarter a year ago, and so were largely driven by its recently launched affordable home brand, Crown.
“While a lot of the earnings may have come in the affordable housing projects, we have sold well across price points, including the premium jobs. The takeaway from this is that demand is strong, end-users are looking to buy and the marketplace is moving towards larger developers who have delivered in the past,” said managing director Abhishek Lodha in a telephonic interview.
Mumbai-based Lodha Group launched its affordable housing brand this past year and sells houses in the $25-50 lakh price bracket under’Crown’.
Over the next 12-19 months, Lodha plans to monetize the ready, unsold stock in its own premium and luxury projects before launch new developments. It’s only launched a relatively small job in Lower Parel in recent times.
“.In 2020, we expect our affordable housing company to grow further, from the 60% of sales that it represents now. We expect this year to be a more powerful one compared to the past, with growth driven by both residential together with our office and warehousing business,” Lodha said.
Lodha is currently gearing up towards a bond issue primarily to repay debt. Around $325 million worth of bonds are maturing by March.
Lodha said around $1000 crore of debt, the company has recently repaid besides the bond issue and has approximately $16,000 crore from its India business. Another $2000 crore of debt will be in London from its projects.
The firm plans to repay around $6000 crore by May, he said. Lodha, which had planned to an initial public offering (IPO) to raise almost $5000 crore last year, didn’t launch it.