Macrotech Developers Projects 20% Growth In Bookings Due To Rise In Demand

Mumbai-based, largest realty firm Macrotech Developers projects 20 per cent growth in sales booking in FY24 due to strong housing demand. The firm has set a target to sell properties worth Rs 14,500 crore this fiscal, and will acquire more land for the future growth.

The company sells its properties under the Lodha brand, is one of the leading real estate firms in the country. In an interview with PTI, Macrotech Developers MD and CEO Abhishek Lodha said the company's sales bookings grew 34 per cent in FY 23 to Rs 12,014 crore, exceeding the annual guidance of Rs 11,500 crore.

When Lodha was asked for a guidance for the current fiscal 2023-24, he expects pre-sales of Rs 14,500, was the reply. On new business development, which means acquiring land outrightly and through joint venture with landowners, Lodha informed that during the previous fiscal the company added many land parcels with a total revenue potential of Rs 19,800 crore. "Pipeline remains strong for the addition of new projects. We have given guidance of Rs 17,500 crore plus of new business development for this fiscal," he said.

Lodha highlighted that the company's debt reduced to Rs 7,071 crore as on March 31, 2023, after an overall reduction of Rs 2,229 crore during the year. "Last fiscal year, we generated net surplus of Rs 4,600 crore, of which Rs 2,400 crore was used for investment in land and Rs 2,200 crore for reduction of debt,"

On Saturday, Macrotech Developers reported a 39 per cent increase in its consolidated net profit at Rs 744.36 crore for the quarter ended March. It also announced issue of bonus shares to shareholders in a ratio of 1:1.

Total income declined to Rs 3,271.71 crore for the January-March quarter from Rs 3,481.92 crore against the corresponding period of the previous year. Net profit was down to Rs 486.63 crore in the 2022-23 fiscal from Rs 1,202.37 crore over previous year, due to the provision of Rs 1,177.39 crore for doubtful receivables/advances.

Total income rose to Rs 9,611.16 crore for FY 23 from Rs 9,525.59 crore in the 2021-22 financial year. Lodha said that the recent RBI monetary policy announcement of a pause on the interest rate front should stimulate the economy, create more jobs and thereby boost housing.

"The growth journey of Indian housing market on the back of rising incomes and favourable demography is just in the 2nd year of a multi-year cycle. Our strategy of capitalizing on industry consolidation by expanding into under-represented micro-markets of MMR and Pune is playing out well," Lodha said.

Macrotech Developers has executed and delivered around 94 million square feet of real estate. It is currently developing about 105 million square feet under its ongoing and planned portfolio. The company has over 4,300 acres of land beyond its ongoing and planned portfolio.

The current market price of Macrotech Developers Ltd stock is Rs 912 per share, up by 0.45% over previous day's closing. It 52-week high is at Rs 1,191 per share and 52-week low is at Rs 711 per share. In last one year the share price has fallen down by 7.36% while over three years it has surged by 74. 36%