About
Macrotech Developers Ltd
Macrotech Developers Limited (Formerly known Lodha Developers Limited) was incorporated on September 25th, 1995. Lodha Group is among the largest real estate developers in India and has been involved in the real estate business since 1980s. Being as an Indian multinational real estate company headquartered in Mumbai, India, the Company developed residential & commercial properties in Mumbai, Thane, Hyderabad, Pune and London.
The Company commenced operations in Mumbai, developing affordable housing projects in the suburbs of Mumbai, and later diversified into other segments and regions in the MMR and Pune. Some of the notable projects include Lodha Altamount, The World Towers, Lodha Bellissimo, Trump Tower Mumbai and Lodha Park. Moreover, the Company is presently credited for developing Palava, an integrated smart city near Mumbai.
The Company commenced operations in Mumbai, developing affordable housing projects in the suburbs of Mumbai, and later diversified into other segments and regions in the MMR and Pune. Some of the notable projects include Lodha Altamount, The World Towers, Lodha Bellissimo, Trump Tower Mumbai and Lodha Park. Moreover, the Company is presently credited for developing Palava, an integrated smart city near Mumbai. The Company also develop commercial real estate, as part of mixed-use developments in and around our core residential projects to bring vibrancy to our residential developments.
The Company created several brands including 'Lodha', 'CASA by Lodha' and 'Crown - Lodha Quality Homes' for its affordable and mid-income housing projects, the 'Lodha' and 'Lodha Luxury' brands for premium and luxury housing projects, and the 'iThink', 'Lodha Excelus', 'Lodha Supremus' and 'Lodha Signet' brands for office. The Company have over 90 completed projects comprising a staggering 80 million square feet of developable area, of which nearly 60 million square feet is in affordable and mid income housing. Currently, the Company is engaged in developing more than 50 ongoing and planned projects across 75 million square feet of area and recognized for quality, focus on details, and elegant craftsmanship.
To bring new ideas, the Company collaborated with globally renowned names from Armani/Casa, Jade Jagger, Buro Happold, Pei Cobb Freed & Partners to reimagining personalised service in luxury with Saint Amand. Few of the world's finest developments include the iconic The World Towers which have transformed the skyline of Mumbai, Lodha Altamount - one of the most exclusive addresses, and Palava - India's No.1 Smart City.
The Company's large ongoing portfolio of affordable and mid-income housing projects include Palava (Navi Mumbai, Dombivali Region), Upper Thane (Thane outskirts), Amara (Thane), Lodha Sterling (Thane), Lodha Luxuria (Thane), Crown Thane (Thane), Bel Air (Jogeshwari), Lodha Belmondo (Pune), Lodha Splendora (Thane) and Casa Maxima (Mira Road). The large townships are located at Palava (Navi Mumbai, Dombivali Region) and Upper Thane (Thane outskirts).
The premium and luxury housing projects include Lodha Park (Worli), Lodha World Towers (Lower Parel), Lodha Venezia (Parel) and New Cuffe Parade (Wadala). In addition, the Group have a few projects under the 'Lodha Luxury' brand, which comprises small-scale, high-value developments such as Lodha Altamount (Altamount Road), Lodha Seamont (Walkeshwar) and Lodha Maison (Worli).
As a part of industrial & logistics park portfolio, the Lodha Group are developing a logistics and industrial park spread over 800 acres of land near Palava, which is strategically located near the Jawaharlal Nehru Port, the proposed international airport in Navi Mumbai and the industrial hub of Taloja. The Company seeks to utilize more of land parcel in Palava & Upper Thane and take it up to 3,500 acres over a period. The Company have monetized nearly 165 acres of land in the Palava Logistics & Industrial Park (PLIP) either through JVs with reputed investors such as Morgan Stanley or through outright sales to some of the marquee global players like FM Logistics- a French 3PL firm. Thus, so far, the Company already monetized more than 255 acres of the industrial park segment through JV or outright sale.
In September 2007, the Deutsche Bank made an investment of Rs 1,640 crore (US$218 million) by subscribing to the compulsorily convertible debentures (CCDs) of Lodha's subsidiary, Cowtown Land Development Limited.
In May of the year 2010, Macrotech Developers emerged the highest bidder to acquire a 22.5-acre plot in Wadala, Mumbai, for Rs 4,053 crore (US$538 million) from Mumbai Metropolitan Region Development Authority (MMRDA).
In December 2012, the Company acquired Washington House, a residential building owned by the US consulate on Altamont Road, for Rs 341.82 crore (US$45 million), which was developed into Lodha Altamount. Further, the Company purchased a 17 acres land in Mumbai's prime location from DLF for about Rs 2,700 crore (US$359 million), nearly four times higher than the price at which DLF had bought the land in 2005.
In September 2013, the Group partnered with Donald Trump for development of Trump Tower Mumbai, an 800-ft-tall, 77-storey residential tower in Lower Parel, Mumbai. and with a number of celebrities to be brand ambassadors, including Aishwarya Rai, Amitabh Bachchan,Akshay Kumar and Twinkle Khanna.
In the year of May 2016, it received an investment of Rs 425 crore from Piramal Fund Management for one of Company's project.
In 2018, the company bagged CNBC Awaaz Real Estate Award for the project, Lodha Altamount by CNBC.In November 2013, Macrotech Developers Group brought Macdonald House, London a seven-storey building in central London from the Government of Canada for Rs 3,120 crore (US$414 million), thru which the company acquired 87 acres of land in Thane from Clariant Chemicals India for Rs 1,102.5 crore (US$146 million).
The Board of Directors of the Company at its meeting held on 27 March 2019, have approved a Scheme of Arrangement u/s 230-232 of
the Companies Act, 2013, between the Company and NCP Commercials Pvt. Ltd. (Resulting Company) and their respective shareholders and creditors for demerger of Project Lodha Excelus, New Cuffe Parade' (Demerged Undertaking) and its associated assets and liabilities and transfer and vesting thereof to and in the Resulting Company, as a going concern'. The National Company Law Tribunal, Mumbai Bench (NCLT) had approved the above scheme on 01st October 2019. Accordingly, all asset and associated liabilities was transferred from the Company to NCP Commercial Private Limited at its carrying value. Upon demerger of the project, the Company sold off its equity shares in NCP Commercial Private Limited to an unrelated buyer.
In terms of the Shareholders Agreement dated 25th March 2020 (Effective Date), in view of changes in the management rights of the Company over relevant activities in Lodha Developers UK Limited (LDUK) and the Company's agreement to sell the legal and beneficial interest representing 24% of the entire issued and paid up ordinary share capital of LDUK at par to its fellow subsidiary within 120 days from the Effective Date, LDUK (including its subsidiaries) ceased to be a subsidiary of the Company and has become a Joint Venture with effect from March 25, 2020.
Tata Power Company Limited, an Indian electric utility company based in Mumbai entered into a partnership agreement with Macrotech Developers for setting up EV charging stations in housing societies and offices in September 2021.
During the financial year 2020-21, the Company completed an Initial Public Offering (IPO), comprising a fresh issue of 5,14,40,328 equity shares having a face value of Rs. 10, which got listed on BSE Limited and National Stock Exchange of India Limited with effect from April 19, 2021.
During year 2020-21, the Schemes of Arrangement were approved by the National Company Law Tribunal (NCLT) for Demerger of One Lodha Place' into One Place Commercials Private Limited effective September 25, 2020 and amalgamation of Copious Developers and Farms Private Limited and Ramshyam Infracon Private Limited effective June 18, 2021. Withdrawal application for demerger of esidential towers from the Belmondo and Splendora projects into two wholly owned subsidiaries viz Luxuria Complex Private Limited and Renovar Green Consultants Private Limited respectively was approved by NCLT, Mumbai Bench vide Order dated December 18, 2020.
During the financial year 2021-22, Company launched 13 new projects or subsequent phases of existing projects with total salable area
of ~5.6 million square feet, which included Codename Premier at Palava, Lodha Woods at Kandivali, Casa Supremo at Mira Road, Lodha Bellagio at Powai in MMR and Lodha Bella Vita in Pune etc. In FY22, it introduced 11 new projects located largely in micro-markets of MMR and Pune currently underserved by them, having 8.8 million square feet of salable area under capital light JDA route of which 4 projects having salable area of 2.0 million square feet were launched in the micro-markets of Western Suburbs, Eastern Suburbs and Pune.
As on March 31, 2022, the Company had 29 consolidating subsidiaries, of which 18 subsidiaries were considered as joint ventures and 2 associates, including 1 associate was considered as a subsidiary. Digirealty Technologies Private Limited, Bellissimo Digital Infrastructure Development Management Private Limited, Thane Commercial Tower A Management Private Limited, Bellissimo Digital Infrastructure Investment Management Private Limited, Palava Induslogic 4 Private Limited and 1GS Quarters Holdings Limited became subsidiaries of the Company during FY22. Copious Developers and Farms Private Limited, Ramshyam Infracon Private Limited and Palava Dwellers Private Limited ceased to be subsidiaries of the Company during FY22. Apart from these, Anantnath Constructions and Farms Private Limited, Sitaldas Estate Private Limited, MMR Social Housing Private Limited, Bellissimo Estate Private Limited, Renovar Green Consultants Private Limited, Kora Constructions Private Limited, Luxuria Complex Private Limited, Odeon Theatres and Properties Private Limited and Palava Industrial and Logistics Park Private Limited ceased to be subsidiaries of the Company on account of mergers in April 2022.
Macrotech Developers Ltd
Chairman Speech
Letter to Stakeholders
Managing director & CEO's Letter to Stakeholders
^^Our philosophy is not only to "Do Well" but also to "Do Good"//
DEAR STAKEHOLDERS,
I hope this letter finds you in good health. In the past two years, we have faced
unprecedented circumstances because of the pandemic. FY22 started in a rather gloomy
environment with the onset of the second wave of COVID-19. I am glad that the immense
collective efforts put in by the Government, corporates and fellow citizens have borne
fruit, and we were able to surpass the tough times in a short period. It is encouraging to
note the ever-rising vaccination rate in the country, with nearly all eligible citizens
being vaccinated with at least one dose. The benefits of the broad rollout of vaccination
were clearly visible as the impact of the third wave of COVID was minimised. On the other
hand, the coordinated effort from the Indian Government and the Central Bank has brought
the economy swiftly on the growth path.
I am proud that your Company and its employees have played a significant role in
minimising the impact of the pandemic. In moments of extreme distress, our strong sense of
purpose ensured that we heeded the call of duty toward humanity. In the spirit of helping
our fellow citizens, we set up 8 Vaccination Centres for residents across Lodha projects.
We ensured the vaccination of over 40,000 citizens, our employees and their dependents,
third party contractors as well as residents of our developments. For our efforts, we were
recognised by Nanavati MAX Super Specialty Hospital (a leading hospital in Mumbai) as one
of the top procurers of vaccines amongst private entities for use in vaccination drives
conducted in the city.
Notwithstanding the hardships faced, your Company reported its best-ever performance
registering substantial growth across both operating and financial metrics. COVID-19, on
the one hand, has been a stressful experience for everyone, but on the other hand, it has
also changed the consumer outlook toward home ownership. India's housing needs are
immense, and the demand for quality and bigger homes with self-sufficient social
ecosystems has never been this strong. The trend that started last year continues to gain
ground and is expected to hold for the foreseeable future. By virtue of being the largest
residential real estate player, your Company was able to capitalise on this trend very
early by innovating products tailored to meet evolving needs of the consumer. Similarly,
the pace of digitisation of the economy has accelerated on the back of disruptions posed
by the pandemic, throwing up immense opportunities for us in our fledgling digital
businesses.
This was also a remarkable year for your Company with respect to the progress made
towards creating a truly 'Sustainable Enterprise'. Our philosophy is not only to "Do
Well" but also to "Do Good". Your Company has committed to becoming a 'net
zero carbon emission' organisation by 2035 and is making rapid progress in achieving this
goal much ahead of time. We also committed to set decarbonisation targets with the Science
Based Targets initiative (SBTi) within 2022. We have brought all our under-construction
residential projects within the ambit of Green Certifications. With this, the entire
portfolio of the Company - commercial, residential and digital infrastructure - will be
green certified. We were ranked amongst the top 13% of real estate companies for our
sustainability practices by S&P Global in their Corporate Sustainability Assessment,
2021 and aim to be a global leader in sustainability
in the real estate industry. We intend to make net zero a new normal for the built
environment and have created "Lodha Net Zero Urban, Accelerator" with technical
support from our long standing partner RMI. We have also set an internal carbon price of
US$40 per tCO2e, this will help us accelerate our transition to a low carbon
future and de-risk our growth. This will help us to know our carbon We have also signed a
charter facilitated by WRI-India, "Value-chain Approach to Decarbonise the Building
and Construction Sector in India".
We also undertook an ambitious goal to drive gender diversity and increase the mix of
women associates to >44% (excluding construction workforce) by 2027. Our recent
initiative 'Lodha Brain Gain' will select exceptional students and empower and support
them to get into top educational institutions like IITs and the IIMs, that will also help
build India into the world's third largest economy within the next two decades.
STRONG FINISH TO THE YEAR
Strong fundamentals enabled us to achieve the twin objectives of achieving business
growth targets and also reducing our leverage substantially. We are now on the path to
becoming a fastgrowing low leverage Company.
The second wave of the pandemic brought life to a standstill once again at the
beginning of the financial year. However, strong underlying fundamentals soon overcame the
shortlived mobility restrictions, and housing demand came roaring back. On the back of
consistently improving housing demand, your Company was able to grow its pre-sales every
quarter and delivered its best ever pre-sales of Rs.9,024 crore for FY22. Incidentally, Q4
FY22 at Rs.3,456 crore of pre-sales was our best ever quarter as well.
During the reporting year, your Company expanded into newer micro-markets across Mumbai
Metropolitan Region (MMR) and Pune through the capital light JDA route. We added eleven
new projects in FY22, amounting to nearly Rs.15,000 crore of cumulative GDV.
We made rapid progress in the digital infrastructure park segment as well. We concluded
a JV with Morgan Stanley for development of a Grade A digital industrial park at Palava
amongst other land sale transactions with other marquee investors. Recently, we have
concluded a Green Digital Infrastructure Partnership with lvanhoe Cambridge (real estate
arm of Canadian Pension Fund CDPQ) and Bain Capital. The platform will establish a
pan-India presence in the digital infrastructure space that includes logistics and light
industrial parks and in-city fulfillment centres. The platform will jointly invest about
US$ 1 billion to create approximately 30 msq. ft. of operating assets to serve India's
digital economy as well as create new employment.
I am also delighted to share the outstanding performance of our UK investments during
FY22. The projects witnessed a strong rebound in presales once travel in the UK resumed in
the second half of the year. They delivered their best ever annual pre-sales performance
of GBP 531 million in the reporting year. This enabled us to prepay our US$ bond (US$ 170
million out of US$ 225 million) a year ahead of its maturity. We are likely to get part of
our investment repatriated during FY23 and balance in FY24, providing us capital to grow
our business in India further.
ROBUST BUSINESS FUNDAMENTALS AHEAD
FY23 has started on an uncertain note with geopolitical tensions in Europe and
COVID-led severe lockdowns in China.
This has disrupted the global supply chains, leading to a high inflationary
environment, tighter monetary policies, and an upward bias on interest rate trajectory
globally.
We remain optimistic about the demand for housing, which is well poised even after
considering global challenges.
We believe we are just at the beginning of the multi-year growth journey of the Indian
housing market. On the back of rising incomes and improving demography, the industry has
the potential to grow 3 to 4 times over the next decade.
Against the backdrop of strong industry growth, larger branded developers like your
Company have disproportionately large growth opportunities. Our Joint Development
Agreement (JDA) strategy will enable us to actualise this growth in a capital-light manner
enabling a highly resilient balance sheet. Our strong brand, constructions, sales and
marketing abilities, as well as our ability to quickly monetise any land asset continue to
make landowners prefer Lodha for maximising their land value. We believe we will grow the
pace of project addition and deliver ~20% CAGR in Pre-Sales in the medium term and
accelerate our launches, sales and constructions. Your Company has decided to focus on
growth in various under penetrated markets of MMR and Pune. In view of its strategic
position as India's tech hub, the Company also intends to grow gradually in the Bengaluru
market using its capital light JDA model and create strong operating capability through a
local team in Bengaluru. Bengaluru has a steady but fragmented housing market with top 5
players having market share of around 30%. Combined with growth in the quality aspirations
of potential buyers, your company sees the opportunity to create a profitable business in
the city.
In the coming years, we will also meaningfully grow our digital infrastructure business
in a capital light manner. With two marquee financial partners on board our digital
infrastructure platform, we expect to leverage the country's fast growing digital economy.
With the platform, we aim to leverage our development capabilities to create recurring
income streams, through our share of rental income as well as through fee income. The
platform will also help us in our strategy of monetising surplus land around our
townships. Rising economic activity on the back of the growth in the digital
infrastructure segment in the vicinity of our residential township will also create a
virtuous cycle for the residential demand.
The progress made by our startup 'DigiRealty' which intends to use a technology
platform to serve the 'near commerce' needs of our ever growing base of customers is
heartening. While it is still early days, this platform can create significant value for
your Company in the years to come.
Our progress across multiple growth opportunities has only been possible with the
quality and commitment of our 3,300+ associates. They are the true flag bearers of the
Lodha values of honesty, integrity, responsibility, innovation and seeking excellence. As
an organisation, we are poised to chart the next phase in our growth story even amidst the
current uncertainty, with unwavering support from our entire team. I would like to thank
all our associates and my colleagues on the Board for their valuable guidance and support.
On behalf of Lodha, I would like to thank all our stakeholders for their continued
support and look forward to meeting you at the annual shareholder's meeting.
Abhishek Lodha
Managing Director & CEO.
Macrotech Developers Ltd
Company History
Macrotech Developers Limited (Formerly known Lodha Developers Limited) was incorporated on September 25th, 1995. Lodha Group is among the largest real estate developers in India and has been involved in the real estate business since 1980s. Being as an Indian multinational real estate company headquartered in Mumbai, India, the Company developed residential & commercial properties in Mumbai, Thane, Hyderabad, Pune and London.
The Company commenced operations in Mumbai, developing affordable housing projects in the suburbs of Mumbai, and later diversified into other segments and regions in the MMR and Pune. Some of the notable projects include Lodha Altamount, The World Towers, Lodha Bellissimo, Trump Tower Mumbai and Lodha Park. Moreover, the Company is presently credited for developing Palava, an integrated smart city near Mumbai.
The Company commenced operations in Mumbai, developing affordable housing projects in the suburbs of Mumbai, and later diversified into other segments and regions in the MMR and Pune. Some of the notable projects include Lodha Altamount, The World Towers, Lodha Bellissimo, Trump Tower Mumbai and Lodha Park. Moreover, the Company is presently credited for developing Palava, an integrated smart city near Mumbai. The Company also develop commercial real estate, as part of mixed-use developments in and around our core residential projects to bring vibrancy to our residential developments.
The Company created several brands including 'Lodha', 'CASA by Lodha' and 'Crown - Lodha Quality Homes' for its affordable and mid-income housing projects, the 'Lodha' and 'Lodha Luxury' brands for premium and luxury housing projects, and the 'iThink', 'Lodha Excelus', 'Lodha Supremus' and 'Lodha Signet' brands for office. The Company have over 90 completed projects comprising a staggering 80 million square feet of developable area, of which nearly 60 million square feet is in affordable and mid income housing. Currently, the Company is engaged in developing more than 50 ongoing and planned projects across 75 million square feet of area and recognized for quality, focus on details, and elegant craftsmanship.
To bring new ideas, the Company collaborated with globally renowned names from Armani/Casa, Jade Jagger, Buro Happold, Pei Cobb Freed & Partners to reimagining personalised service in luxury with Saint Amand. Few of the world's finest developments include the iconic The World Towers which have transformed the skyline of Mumbai, Lodha Altamount - one of the most exclusive addresses, and Palava - India's No.1 Smart City.
The Company's large ongoing portfolio of affordable and mid-income housing projects include Palava (Navi Mumbai, Dombivali Region), Upper Thane (Thane outskirts), Amara (Thane), Lodha Sterling (Thane), Lodha Luxuria (Thane), Crown Thane (Thane), Bel Air (Jogeshwari), Lodha Belmondo (Pune), Lodha Splendora (Thane) and Casa Maxima (Mira Road). The large townships are located at Palava (Navi Mumbai, Dombivali Region) and Upper Thane (Thane outskirts).
The premium and luxury housing projects include Lodha Park (Worli), Lodha World Towers (Lower Parel), Lodha Venezia (Parel) and New Cuffe Parade (Wadala). In addition, the Group have a few projects under the 'Lodha Luxury' brand, which comprises small-scale, high-value developments such as Lodha Altamount (Altamount Road), Lodha Seamont (Walkeshwar) and Lodha Maison (Worli).
As a part of industrial & logistics park portfolio, the Lodha Group are developing a logistics and industrial park spread over 800 acres of land near Palava, which is strategically located near the Jawaharlal Nehru Port, the proposed international airport in Navi Mumbai and the industrial hub of Taloja. The Company seeks to utilize more of land parcel in Palava & Upper Thane and take it up to 3,500 acres over a period. The Company have monetized nearly 165 acres of land in the Palava Logistics & Industrial Park (PLIP) either through JVs with reputed investors such as Morgan Stanley or through outright sales to some of the marquee global players like FM Logistics- a French 3PL firm. Thus, so far, the Company already monetized more than 255 acres of the industrial park segment through JV or outright sale.
In September 2007, the Deutsche Bank made an investment of Rs 1,640 crore (US$218 million) by subscribing to the compulsorily convertible debentures (CCDs) of Lodha's subsidiary, Cowtown Land Development Limited.
In May of the year 2010, Macrotech Developers emerged the highest bidder to acquire a 22.5-acre plot in Wadala, Mumbai, for Rs 4,053 crore (US$538 million) from Mumbai Metropolitan Region Development Authority (MMRDA).
In December 2012, the Company acquired Washington House, a residential building owned by the US consulate on Altamont Road, for Rs 341.82 crore (US$45 million), which was developed into Lodha Altamount. Further, the Company purchased a 17 acres land in Mumbai's prime location from DLF for about Rs 2,700 crore (US$359 million), nearly four times higher than the price at which DLF had bought the land in 2005.
In September 2013, the Group partnered with Donald Trump for development of Trump Tower Mumbai, an 800-ft-tall, 77-storey residential tower in Lower Parel, Mumbai. and with a number of celebrities to be brand ambassadors, including Aishwarya Rai, Amitabh Bachchan,Akshay Kumar and Twinkle Khanna.
In the year of May 2016, it received an investment of Rs 425 crore from Piramal Fund Management for one of Company's project.
In 2018, the company bagged CNBC Awaaz Real Estate Award for the project, Lodha Altamount by CNBC.In November 2013, Macrotech Developers Group brought Macdonald House, London a seven-storey building in central London from the Government of Canada for Rs 3,120 crore (US$414 million), thru which the company acquired 87 acres of land in Thane from Clariant Chemicals India for Rs 1,102.5 crore (US$146 million).
The Board of Directors of the Company at its meeting held on 27 March 2019, have approved a Scheme of Arrangement u/s 230-232 of
the Companies Act, 2013, between the Company and NCP Commercials Pvt. Ltd. (Resulting Company) and their respective shareholders and creditors for demerger of Project Lodha Excelus, New Cuffe Parade' (Demerged Undertaking) and its associated assets and liabilities and transfer and vesting thereof to and in the Resulting Company, as a going concern'. The National Company Law Tribunal, Mumbai Bench (NCLT) had approved the above scheme on 01st October 2019. Accordingly, all asset and associated liabilities was transferred from the Company to NCP Commercial Private Limited at its carrying value. Upon demerger of the project, the Company sold off its equity shares in NCP Commercial Private Limited to an unrelated buyer.
In terms of the Shareholders Agreement dated 25th March 2020 (Effective Date), in view of changes in the management rights of the Company over relevant activities in Lodha Developers UK Limited (LDUK) and the Company's agreement to sell the legal and beneficial interest representing 24% of the entire issued and paid up ordinary share capital of LDUK at par to its fellow subsidiary within 120 days from the Effective Date, LDUK (including its subsidiaries) ceased to be a subsidiary of the Company and has become a Joint Venture with effect from March 25, 2020.
Tata Power Company Limited, an Indian electric utility company based in Mumbai entered into a partnership agreement with Macrotech Developers for setting up EV charging stations in housing societies and offices in September 2021.
During the financial year 2020-21, the Company completed an Initial Public Offering (IPO), comprising a fresh issue of 5,14,40,328 equity shares having a face value of Rs. 10, which got listed on BSE Limited and National Stock Exchange of India Limited with effect from April 19, 2021.
During year 2020-21, the Schemes of Arrangement were approved by the National Company Law Tribunal (NCLT) for Demerger of One Lodha Place' into One Place Commercials Private Limited effective September 25, 2020 and amalgamation of Copious Developers and Farms Private Limited and Ramshyam Infracon Private Limited effective June 18, 2021. Withdrawal application for demerger of esidential towers from the Belmondo and Splendora projects into two wholly owned subsidiaries viz Luxuria Complex Private Limited and Renovar Green Consultants Private Limited respectively was approved by NCLT, Mumbai Bench vide Order dated December 18, 2020.
During the financial year 2021-22, Company launched 13 new projects or subsequent phases of existing projects with total salable area
of ~5.6 million square feet, which included Codename Premier at Palava, Lodha Woods at Kandivali, Casa Supremo at Mira Road, Lodha Bellagio at Powai in MMR and Lodha Bella Vita in Pune etc. In FY22, it introduced 11 new projects located largely in micro-markets of MMR and Pune currently underserved by them, having 8.8 million square feet of salable area under capital light JDA route of which 4 projects having salable area of 2.0 million square feet were launched in the micro-markets of Western Suburbs, Eastern Suburbs and Pune.
As on March 31, 2022, the Company had 29 consolidating subsidiaries, of which 18 subsidiaries were considered as joint ventures and 2 associates, including 1 associate was considered as a subsidiary. Digirealty Technologies Private Limited, Bellissimo Digital Infrastructure Development Management Private Limited, Thane Commercial Tower A Management Private Limited, Bellissimo Digital Infrastructure Investment Management Private Limited, Palava Induslogic 4 Private Limited and 1GS Quarters Holdings Limited became subsidiaries of the Company during FY22. Copious Developers and Farms Private Limited, Ramshyam Infracon Private Limited and Palava Dwellers Private Limited ceased to be subsidiaries of the Company during FY22. Apart from these, Anantnath Constructions and Farms Private Limited, Sitaldas Estate Private Limited, MMR Social Housing Private Limited, Bellissimo Estate Private Limited, Renovar Green Consultants Private Limited, Kora Constructions Private Limited, Luxuria Complex Private Limited, Odeon Theatres and Properties Private Limited and Palava Industrial and Logistics Park Private Limited ceased to be subsidiaries of the Company on account of mergers in April 2022.
Macrotech Developers Ltd
Directors Reports
To the Members,
The Directors are pleased to present the 27th Annual Report (and the 1st
Integrated Report) of the Company for the financial year ended March 31, 2022.
OVERVIEW OF OPERATIONS
We are the largest real estate developer in India, by residential sales value for FY16
to FY22. Our core business is residential real estate developments with a focus on
affordable and mid-income housing. Recently, we have diversified into Digital
Infrastructure Park development focusing on the needs of the digital economy like
warehousing, logistics, light industrial parks, R&D centers etc. In furtherance of the
same, in partnership with two marquee financial investors, we have created a
next-generation pan India green digital infrastructure platform in the current year
entailing an investment of US$ 1 billion. We also develop commercial real estate as part
of mixed-use developments in and around our core residential projects. In our commercial
portfolio, our office space projects comprise corporate offices, IT campuses and boutique
office spaces, concentrated in suburban locations. and our retail projects focus on high
street retail with shopping and entertainment options for the local community.
A year of remarkable business
FY22 has been a remarkable year in which we achieved our best ever pre-sales of
Rs.9,024 crore (a 57% YoY growth), despite two COVID waves. The last quarter of FY22 saw
our best ever quarterly performance with pre-sales of Rs.3,456 crore (a 37% YoY growth).
The share of our affordable and mid-income portfolio continues to expand and stood at 62%
for FY22.
During the financial year, the Company launched 13 new projects or subsequent phases of
existing projects with total saleable area of ~5.6 million square feet. Some of the key
launches for the year included Codename Premier at Palava, Lodha Woods at Kandivali, Casa
Supremo at Mira Road, Lodha Bellagio at Powai in MMR and Lodha Bella Vita in Pune etc.
In FY22, the Company added 11 new projects located largely in the micro-markets of MMR
and Pune currently underserved by us, having 8.8 million square feet of saleable area
under the capital light JDA route. Four of these projects having saleable area of 2.0
million square feet were launched in the micro-markets of Western Suburbs, Eastern Suburbs
and Pune. This showcases our ability to quickly monetize any land asset making us the
partner of preferred choice for landowners.
In terms of completion, the Company received occupation certificates for 5.3 million
square feet. Significant ramp up in construction was seen in Rs.2 FY22 as effects of the
severe Delta wave of Covid waned, resulting in completion of nearly 2.8 million square
feet in Q4 FY22. With construction now in full swing, we expect completions to go up
further in FY23 and onwards.
Focusing on green growth
During the year, we made significant progress towards creating a truly 'sustainable
enterprise' in line with our corporate philosophy of "Do Good, Do Well". Your
Company is committed to becoming a 'net zero emission' company by 2035 and is making rapid
progress in achieving this goal much ahead of time.
During the year, the Company committed to set de-carbonization targets with Science
Based Targets initiative (SBTi). We brought all our under-construction residential
projects within the ambit of Green Certifications. With this, the entire portfolio of the
Company - commercial, residential and digital infra will be green certified. We were
ranked amongst the top 13% of real estate companies by S&P global in the Corporate
Sustainability Assesement in 2021 and aim to be a global leader in Sustainability in the
real estate industry in coming years.
We are also one of the signatories to a charter 'Value-chain approach to decarbonize
the building and construction sector in India', launched by WRI India in an effort to
combat climate change. We are certified for ISO 45001:2018 and ISO 14001:2015, both
internationally recognised standards for Environmental, Health and Safety management.
We received several awards during the year which showcase the strength of our brand.
Notable awards received during the year include 'Iconic Luxurious Real Estate Brand of the
year', 'Times Real Estate Conclave Award 2021', 'Top 30 Companies with Great Managers
Awards 2021', 'Best Brand 2021' at Economics Times Best Brands 2021 and 'Award for PR
communication strategy' in the 'Real Estate & Construction category Kaleido Awards
2021' by ET Brand Equity.
HIGHLIGHTS OF OPERATING & FINANCIAL RESULTS
| Operating Results |
|
|
|
| Particulars |
UoM |
Year ended March 31, 2022 |
Year ended March 31, 2021 |
| Pre Sales (Developable Area) |
Million square feet |
8.0 |
5.1 |
| Pre Sales |
Number of units |
7,237 |
5,053 |
| Pre Sales Value |
H in crore |
9,024 |
5,968 |
| Collections |
H in crore |
8,597 |
5,052 |
| Completed Developable Area |
Million square feet |
5.3 |
2.7 |
| Completed units |
Number of units |
4,551 |
2,865 |
Financial Results
Standalone Financial Highlights
|
|
(Rs. in Crore) |
| Particulars |
FY 2021-22 |
FY 2020-21 |
| Revenue from operations |
8,366 |
5,926 |
| Total Income |
8,520 |
6,023 |
| EBIDTA before exceptional items |
1,904 |
1,438 |
| Interest |
403 |
850 |
| Profit Before tax |
1,598 |
156 |
| Profit for the year |
1,133 |
122 |
Revenue from operations increased by ~41% YoY to Rs.8,366 crore, primarily due to
significant ramp up in construction activity leading to higher project completions and
consequently higher receipt of occupancy certificates. The ramp-up in sales momentum
especially in the second half of FY22 also contributed significantly to the revenue
increase.
Profit for FY22 was Rs.1,133 crore as compared to profit of Rs.122 crore during the
previous FY. The sharp improvement in profit was on account of higher revenues as well as
improving operating margin on the back of rising realizations and operating leverage.
Sharp drop in debt and lower interest cost has further boosted profit for the year.
Consolidated Financial Highlights
The Audited Consolidated Financial Statements for the financial year ended March 31,
2022 have been prepared in accordance with Indian Accounting Standard (Ind AS)-110 on
'Consolidated Financial Statement' read with Ind AS-28 on 'Investments in Associates and
Joint Ventures', notified under the Act, read with the Indian Accounting Standards Rules
as applicable and same are in compliance with the Companies Act, 2013.
|
|
(Rs. in Crore) |
| Particulars |
FY 2021-22 |
FY 2020-21 |
| Revenue from operations |
9,233 |
5,449 |
| Total Income |
9,579 |
5,772 |
| EBIDTA before exceptional items |
2,125 |
1,372 |
| Finance Costs |
680 |
1,126 |
| Profit Before tax |
1,717 |
33 |
| Profit for the year |
1,209 |
48 |
Revenue from operations increased by ~69% YoY to Rs.9,233 crore, primarily due to
significant increase in pre-sales and area completed. Finance costs decreased by ~40% to
Rs.680 crore in FY22, primarily on account of sharp reduction in debt levels and lower
interest rates.
Profit for the year was Rs.1,209 crore as compared to Rs.48 crore in FY21 . The sharp
improvement in profit was due to positive operating and financial leverage due to strong
revenue growth and substantial reduction in finance cost on account of lower debt.
The consolidated financial results and the results of operations are further discussed
in the Management Discussion and Analysis which forms part of this Integrated Annual
Report.
Performance of UK Investments
UK projects achieved their best ever annual Pre-sales performance at GBP 531 million of
which Grosvenor Square alone had a pre-sales of GBP 439 million. This enabled us to
pre-pay US$ 170 million of the US$ 225 million bond - a year prior to its scheduled
maturity. Receivables from sold units now completely cover the entire debt associated with
the UK projects. Surplus from the projects is expected to be repatriated back to India,
partly during FY23 and balance in FY24.
COVID 2019
The 2nd wave of the COVID-19 pandemic starting April 2021, registered a much higher
rate of transmission and greater intensity and caused significant disturbance and led to a
slowdown in economic activity and business operations. The 3rd wave which hit
us in January 2022 was more infectious but less virulent and caused far lesser disruptions
in the business. The situation continues to evolve and is being closely monitored to
identify key risks and mitigants to minimise potential disruption to our business. The
Company had all necessary protocols in place to handle and mitigate the business impact of
the pandemic to a certain extent. As COVID-19 cases reduced and restrictions started
easing in the domestic market, a faster-than-anticipated recovery in demand in the second
half led to a healthy growth for the full year.
DIVIDEND AND RESERVES
The Board does not recommend any dividend for the FY under review. The Company has not
transferred any amount to General Reserve during the year. The Dividend Distribution
Policy is available on our website at https://www.lodhagroup.in/investor- relations.
CHANGES IN SHARE CAPITAL
As on March 31,2022, the authorised capital of the Company was Rs.1,270.42 crore
divided into 1,25,77,31,750 equity shares of Rs.10 each aggregating to Rs.1,257.73 crore
and 1,26,86,250 Preference Shares of Rs.10 each aggregating to Rs.12.69 crore. The
authorised equity share capital increased by Rs.0.09 crore on account of merger of certain
subsidiaries with the Company.
During FY22, the Company issued and allotted 5,14,40,328 equity shares of face value of
Rs.10 each aggregating to Rs.2,500 crore pursuant to its Initial Public Offering (IPO) and
3,41,88,034 equity shares of face value Rs.10 each to Qualified Institutional Investors
aggregating to Rs.4,000 crore pursuant to a Qualified Institutions Placement (QIP). The
issued and paid up equity share capital of the Company as on March 31, 2022 is Rs.481.51
crore divided into 48,15,06,362 equity shares of face value of Rs.10 each.
The promoters' holding in the Company post the IPO & QIP is 82.22%. The Company
intends to comply with Minimum Public Shareholding requirements within the stipulated
timelines available uptil April 19, 2024.
MAJOR CORPORATE EVENTS
Initial Public Offering
The Company completed an Initial Public Offering (IPO) of its equity shares comprising
a fresh issue of 5,14,40,328 equity shares having a face value of Rs.10 each at premium of
Rs.476 per share, aggregating Rs.2,500 crore. The equity shares of the Company are listed
on BSE Limited and National Stock Exchange of India Limited (NSE) with effect from April
19, 2021.
The IPO witnessed strong participation from marquee anchor investors including some of
the largest long only, pension and sovereign funds amidst extremely volatile market
conditions due to increasing Covid cases. The net proceeds of the IPO were utilised for
the purposes for which they were raised i.e. deleveraging, capital expenditure including
acquisition of land, land development rights and general corporate purposes.
Qualified Institutions Placement (QIP)
The Company raised Rs.4,000 crore by way of a QIP in November, 2021. 3,41,88,034 Equity
shares were allotted to Qualified Institutional Investors at a price of Rs.1,170 per
Equity Share (including share premium of Rs.1,160 per Equity Share), at a discount of
Rs.14.70 per Equity Share (i.e. 1.24%) on the floor price of Rs.1,184.70. The net proceeds
of the QIP were utilised for the purposes for which they were raised i.e. deleveraging,
capital expenditure including acquisition of land, land development rights and general
corporate purposes.
Merger Schemes
Details on the merger schemes approved, filed and withdrawn during FY22 are provided in
note 63 to the Standalone financial statements.
Debentures
During the year, the Company has redeemed Non-Convertible Debentures of Rs.1,960 crore.
Early redemption of Senior Notes by subsidiary
Lodha Developers International Limited, Mauritius, wholly owned subsidiary of the
Company has redeemed US$ 170 million out of the US$ 225 million, SGX listed 14% Senior
Secured Notes, on March 12, 2022, one year prior to its contractual redemption date.
Repayment of debt by Promoters
The promoters repaid the entire debt of Rs.1,596 crore owed by them to the Company
during Q1FY22
Credit Ratings
Domestic rating agencies upgraded our ratings during FY22:
• India Ratings upgraded to A /positive in May 2022, a two notch upgrade from
their previous rating of 'BBB +/Positive' of November 2021.
• CRISIL Ratings gave a first time rating of A/Stable in February 2022
• Brickworks upgraded to 'A- Stable' by Brickworks, a two notch upgrade from their
previous rating of 'BBB+/Stable' and
The present ratings reflect the exceptionally strong improvement in the Company's
balance sheet and the growth achieved over the last twelve months. With these upgrades,
the Company has become an investment grade rated entity in domestic markets.
Exceptional ESG Score
We were ranked amongst the top 13% real estate companies which participated in the
S&P Global Corporate Sustainability Assessment (CSA 2021) and received a score of 58
out of 100 in our very first attempt.
Employee Stock Option Schemes
The Company has two Employee Stock Options schemes, namely the "Macrotech
Developers Limited Employee Stock Option Scheme 2021" (ESOP Scheme 2021) and the
Macrotech Developers Limited Employee Stock Option Scheme 2021 -II (ESOP Scheme 2021-II)
(ESOP Schemes), framed under SEBI (Share Based Employee Benefits) Regulations 2014 as
amended from time to time. The primary objective of both schemes is to reward employees
for their association, performance and contribution to the goals of the Company and to
attract, retain and motivate key talent by rewarding good performance and motivating them
to contribute to the overall corporate growth and profitability of the Company. The NRC
administers and monitors the Company's ESOP schemes.
The Company has recently amended ESOP Scheme 2021-II to align with the SEBI (Share
Based Employee Benefits and Sweat Equity) Regulations, 2021 (SBEB 2021). Both ESOP schemes
are in compliance with ESOP regulations. The Company has received a certificate from
Shravan A. Gupta & Associates, Secretarial Auditor of the Company, certifying that the
schemes are implemented in accordance with the ESOP Regulations and the resolutions passed
by the members. The certificate is available for inspection by members in electronic mode.
Details of ESOPs granted and vested are available in note 62 of