Macrotech Developers Q3 net profit rises to Rs 404.98 cr; cuts debt by Rs 753 cr

NewsDrum Desk
24 Jan 2023

New Delhi, Jan 24 (PTI) Realty firm Macrotech Developers Ltd on Tuesday reported a 41 per cent increase in its consolidated net profit at Rs 404.98 crore for the quarter ended in December.

Its net profit stood at Rs 286.38 crore in the year-ago period, the company said in a regulatory filing.

However, the total income fell to Rs 1,902.44 crore in the third quarter of this fiscal year from Rs 2,155.70 crore in the corresponding period of the previous year.

Macrotech Developers, which is one of the leading real estate firms in the country, markets its properties under the Lodha brand. It focuses on Mumbai Metropolitan Region (MMR) and Pune -- the two biggest property markets in Maharashtra. It has recently forayed into the Bengaluru residential market.

"Demand for quality housing from trusted brands continues to remain strong despite the increase seen in mortgage rates. This reinforces our view that the housing upcycle is long-term in nature on the back of strong affordability, job creation and income growth," Abhishek Lodha, MD & CEO of Macrotech Developers Ltd, said.

There is an increasing likelihood of mortgage rates peaking in the first half of 2023 and thereafter likely reduction in the rates from the second half of the year, he said.

"This will only strengthen the consumer sentiments going ahead. Combined with the consolidation on the supply side and our strategy of capital light expansion through JDAs (joint development agreements), we believe that we can deliver 20 per cent CAGR in pre-sales and about 20 per cent ROEs (return on equity) over medium term," Lodha said.

Macrotech achieved its best-ever Q3 sales bookings performance at Rs 3,035 crore, showing 16 per cent YoY (year-on-year) growth.

This strong pre-sales performance has helped us achieve pre-sales of Rs 9,039 crore during the April-December period, surpassing the pre-sales recorded in the entire full year of FY22.

The company also added four new projects during the quarter in MMR and Pune, aggregating to 5 million square feet of saleable area and a combined GDV (gross development value) of Rs 8,500 crore.

"With this, we have already added Rs 17,800 crore of GDV in the April-December period exceeding our full year guidance of Rs 15,000 crore," Lodha said.

The company reduced net debt by Rs 753 crore during the December quarter to Rs 8,042 crore.

Macrotech Developers has delivered around 90 million square feet of real estate and is currently developing around 107 million square feet under its ongoing and planned portfolio. PTI MJH SHW

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