Listed real estate developer Macrotech Developers on July 27 reported a more than 17 percent increase in Q1 pre sales at Rs 3,353 crore for the June 2023 quarter, while net debt increased marginally to over Rs 7,200 crore compared to over Rs 7,000 crore from the previous quarter.
Macrotech Developers sells properties under the Lodha brand and is one of the leading real estate companies in India.
The company in a regulatory filing said that its EBITDA margin for Q1 FY24 stood at 30 percent.
“It is heartening to note that Q1FY24 has turned out to be our best ever 1st quarter pre-sales performance. Our pre-sales for the quarter at Rs 3,353 crores grew by 17 percent. Our ‘for-sale’ business has shown a stupendous growth of 30 percent. This reinforces our belief in the sustainable nature of the strong housing demand. With the likelihood of downward journey of interest rates in next few quarters after witnessing a pause by the RBI, we see momentum for housing continuing to strengthen," said Abhishek Lodha, MD & CEO, Macrotech Developers Ltd.
Macrotech added five projects with Rs 12,000 crore gross development value (GDV). The company said that the new projects it added include projects in the western Suburbs of Mumbai Metropolitan Region (MMR), Bengaluru and in Alibaug.
Offering at a super-prime location in Alibag, a market which is starved of tier-1 brand, will not only serve the primary demand from MMR but will also enable us to tap the 2nd home segment.
This location is well connected from MMR including through waterway and is a dream destination for MMR residents. Having proven strength in creating destinations at several locations in past, this too will provide a significant fillip to our brand, diversity in offerings, and thereby growth, company said in the regulatory filing.
Also read: Macrotech Developers Q4 profit up 39% to Rs 744 cr; to issue bonus shares in 1:1 ratio
Net debt increase marginally:
"Our net debt has increased marginally, primarily on account of front loaded business development investment. We remain on the path to achieve our full year guidance of reduction of net debt to lower of 0.5x equity and 1x Operating Cash flow, with significant debt reduction to be seen in H2," Lodha added.
"It is pleasing to note that, continuing strengthening of balance sheet has led to further credit rating (or outlook) upgrades for us - by ICRA to A+/ Positive and by India Ratings to A+/ Stable. Our average cost of funds continues to trend down despite rising policy rates and was at ~9.65% (down 15bps for the quarter)," Lodha further added.
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