Lodha Developers repaid Rs 2,542 crore to German investor Deutsche Bank in one of the biggest exits to any investor in recent years. Abhisheck Lodha, its managing director, talks to Raghavendra Kamath about the company financials. Excerpts:
There is a buzz in the market that you have raised loans at 23 to 24 per cent to repay Deutsche Bank.
It is obnoxious to say that. In the last round, we repaid Rs 700 crore with own funds, and another Rs 800 crore through issuance of non-convertible debentures (NCDs). Of the total Rs 2,542 crore, two-third was our own fund.
Who were the investors in these NCDs?
These are the NCDs listed on the exchanges. Every day, different investors come and buy them.
How did you manage to generate such cash flows in this environment?
It is not simple. It is hard to generate. But you have to run the business well to earn cash flows of Rs 125 crore to Rs 150 crore every month.
How much of debt is up for repayment this financial year and the next?
As any other company, we have normal maturing debt. No significant amount is to be repaid.
What kind of cash flows do you generate every month and how much goes towards debt repayment?
We get Rs 400 crore from customers every month, of which Rs 180 crore goes towards construction, Rs 25 crore towards interest payment, Rs 45 crore towards general expenses and remaining Rs 150 crore is free cash flow.
What sales have you done at World One in Lower Parel and New Cuffe Parade in Wadala, Mumbai?
In New Cuffe Parade, we sold off first tower and did sales of around Rs 1,500 crore in the first month. In World One, we have done sales of around Rs 2,300 crore to Rs 2,500 crore. We have sold 50 per cent of World One and a little less than that in World Crest.
