Investor Presentaiton
Low risk to margins from construction cost inflation
✓ Construction costs typically forms 25% to 45% of the sales price
O Of which, one-third is related to low skilled and semi-skilled labor: plentiful supply though migration
from rural areas (250+ mn people estimated to be 'underemployed' in agriculture). Hence, labour
inflation is low and keep inflation from being 'sticky'
✓ Commodity inflation, though often sharp, generally of short cycles as demand and supply adjust to new
normal, bringing price moderation in the short term
Spurt in commodity price due to Russia-Ukraine war is reversing
~3 year period of construction provides flexibility to manage costs across the project lifecycle
✓ Ready and advance under-construction inventory provides hedge against the commodity price inflation
LODHA
BUILDING A BETTER LIFE
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