Macrotech Developers aims to bring debt below Rs 10,000 crore by FY22 end

"We have made a strong and concerted focus towards becoming a net cash positive company by FY24 and we are fortunate to have some of the finest investors investing in our IPO," Abhishek Lodha, MD & CEO said.

CNBC-TV18

May 17, 2021 / 13:32 IST

Abhishek Lodha added that are seeing a significant growth trajectory ahead as the housing space in India resumes its growth (Image Source: Reuters)

Macrotech Developers aims to have a debt figure below Rs 10,000 crore by the end of FY22, Abhishek Lodha, MD & CEO, told CNBC-TV18.

Macrotech Developers (formerly known as Lodha Developers is an Indian real estate company) reported the first set of quarterly results post listing and it’s been a decent showing. The revenue and margins look good but profit after tax is low.

“At the end of FY22, we expect the debt to be at or just below Rs 10,000 crore. We have made a strong and concerted focus towards becoming a net cash positive company by FY24 and we are fortunate to have some of the finest investors investing in our initial public offering (IPO) and they are not only seeing our path towards becoming a net cash positive company by FY24 but they are also seeing a significant growth trajectory ahead as the housing space in India resumes its growth,” Lodha said.

On demand, he said, “People are aware that housing is much more central to their lives. The second lockdown has further augmented or focuses on the need for better housing. People want bigger homes, better homes and they are aware of the fact that housing as an asset class was resilient even in the worst of economic times. Therefore, given the supply is continuing to go down, prices are moving up and will further move up.”

“While we are very focused on housing, we also had our upcoming industrial parks business, which is warehousing and logistics and because of the boom in e-commerce and the consequent need for logistics – that has been performing strongly too. However, on office space, the market is ambivalent. There hasn’t been any loss of occupancy and at the same time, the net occupancy additions have been quite tepid. Therefore, office space demand for the next 12 months will be something to watch carefully,” said Lodha.