Lodha receives 'A/ Stable' rating from CRISIL Ratings

Lodha, India's No.1* real estate developer has received 'A/ Stable' rating from CRISIL Ratings (S&P Global company). The rating reflects the exceptionally strong improvement in the Company's balance sheet over the last nine months as well as the growth it has been able to achieve in the same period.

This rating is a 2 notch upgrade from Lodha's previous rating - 'BBB+/ Positive' by India Ratings (also rated 'A-/ Stable' by Brickworks).

The 'A/Stable' rating given by CRISIL not only reflects Company's strong brand positioning in the MMR and Pune markets where it operates but also the strength in its balance sheet and financial flexibility that it possesses.

Lodha has consistently shown strong operating cash flows in each of the quarters in FY22. Coupled with two landmark equity raises through an IPO and QIP, this has resulted in an unprecedented reduction in its net debt by more than INR ~6,200 crores.

Commenting on the assigned rating by CRISIL, Mr. Abhishek Lodha, MD & CEO, Macrotech Developers Ltd. said, "We are pleased that Lodha has achieved 'A' rating from CRISIL which is considered the gold standard of the ratings. This establishes Lodha's credentials of making significant progress towards having a resilient balance sheet. Company's ability to bring down its debt in parallel with significant amount of investment into growth is truly a testimony of its brand strength and the consumer's trust that it enjoys. In a short period of nine months, Lodha has not only achieved its guidance of reducing net debt to below INR 10,000 crore with a quarter to spare, it has also been able to tie-up 11 JDA projects totaling for ~8.8 million square feet with GDV potential of INR ~14,600 crores. This gives us pathway of future growth in a very low leverage working paradigm thus de-risking the business to a large extent from the usual business cyclicality."

With this ratings upgrade, the company will continue to focus on reducing its debt levels as well as its cost of debt. The company remains committed to continue its journey of de-leveraging as well as capital light expansion strategy. This will enable the company to achieve the twin objective of becoming a very low leverage company along with a significant growth runway ahead.

Shares of Macrotech Developers Limited was last trading in BSE at Rs. 1299.35 as compared to the previous close of Rs. 1287.75. The total number of shares traded during the day was 3093 in over 443 trades.

The stock hit an intraday high of Rs. 1309.90 and intraday low of 1284.00. The net turnover during the day was Rs. 4002537.00.

Source : Equity Bulls

Keywords

MacrotechDevelopers INE670K01029 LODHA Realty RealEstate RatingUpgrade