Growth investment led to an increase in net debt, Macrotech said. | Representation
Real estate firm Macrotech Developers Ltd’s net debt rose 43.5 per cent to Rs 4,320 crore during the first quarter of this fiscal due to higher investment in land acquisition and construction.
Mumbai-based Macrotech Developers, which sells its projects under the Lodha brand, is one of the country’s leading developers.
According to its latest investor presentation, the company’s net debt stood at Rs 4,320 crore as of June 30, 2024, up from Rs 3,010 crore at the end of the March quarter of 2023-24.
Net debt stood at Rs 4,320 crore, or 0.24 times equity, well below the limit of 0.5 times equity, the filing said.
Growth investment led to an increase in net debt, the company added.
According to a transcript of the conversations with analysts, Macrotech Developers MD and CEO Abhishek Lodha said, “Despite significant level of business development plus significant increase in construction expenditure in this quarter, our net debt stood at Rs 4,300 crore, which is equivalent to 0.24 times equity.”
“This is really an exemplification of the fact that our business offers strong underlying cash flows and as we continue to increase our investment in construction, we will see in the second half of the year a significant acceleration in free cash flow generation and operating cash flow generation for the company,” he added.
Lodha noted that the average cost of funds has come down by around 30 basis points to about 9.1 per cent.
In terms of operational performance, Macrotech Developers posted a 20 per cent growth in sales bookings at Rs 4,030 crore for the first quarter of this fiscal on the back of strong demand for housing.
Sales bookings stood at Rs 3,350 crore in the same period last year.
Collection from customers rose 12 per cent to Rs 2,690 crore in the April-June period of 2024-25 from Rs 2,400 crore in the corresponding period of the previous year.
Macrotech Developers had registered a 20 per cent growth in its sales bookings (presales) to a record Rs 14,520 crore during 2023-24 from Rs 12,060 crore in the previous year.
It has set a target of achieving 21 per cent annual growth in sales bookings this fiscal year to reach Rs 17,500 crore.
Recently, Macrotech Developers reported a 2.7-fold increase in its consolidated net profit at Rs 475.3 crore for the June 2024 quarter on the back of higher revenues.
Its net profit stood at Rs 178.4 crore in the same period last year.
Its total income grew to Rs 2,918.3 crore during the April-June period this fiscal from Rs 1,671.8 crore in the corresponding period last year.
Macrotech Developers has a significant presence in the Mumbai Metropolitan Region (MMR) and Pune and has recently entered the Bengaluru real estate market.
It has delivered around 100 million square feet of real estate and is developing over 110 million square feet under its current and planned portfolio.
First published: August 18, 2024 | 1:10 PM IS
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