Realty firm Macrotech Developers has formed three joint ventures with landowners during April-June quarter to develop housing projects with an estimated sales value of Rs 6,200 crore and is exploring for more tie-ups.
In an interview with PTI, the company’s Managing Director and CEO Abhishek Lodha said the housing market remains in strong position and the company achieved the best-ever first quarter sales during April-June 2022 despite interest rate hikes.
He said the company is looking to form more partnerships across its three focus markets — Mumbai Metropolitan Region (MMR), Pune and Bengaluru to expand its business in a asset-light manner and achieve higher growth.
Mumbai-based Macrotech Developers, erstwhile Lodha Developers, is one of the leading real estate developers in the country and sells its properties under Lodha brand.
”We have added three JDAs (Joint Development Agreements) in the first quarter worth Rs 6,000 crore across MMR, Pune and Bengaluru,” he said. Asked about the plan for the next three quarters, Abhishek Lodha said: ”We had given a guidance of Rs 15,000 crore of new JDAs for this fiscal year. We have already done about Rs 6,000 crore. We are running ahead of the quarterly run rate. We are quite positive that we will achieve that”.
As per the investors presentation, the three JDAs have development potential of 5.1 million square feet and Gross Development Value (GDV) of about Rs 6,200 crore. Macrotech Developers has signed a JDA in the MMR having a development potential of 0.5 million square feet and sales bookings value of Rs 2,400 crore. The company will have 50 per cent share in the revenue.
In Pune, the company has signed a JDA to develop a housing project comprising 3.3 million square feet with potential sales bookings of Rs 2,600 crore. The company will have 75 per cent of revenue sharing in this project.
Macrotech Developers has forayed into Bengaluru property market where it will develop 1.3 million square feet area with sales bookings value of Rs 1,200 crore. The company has 70 per cent of revenue in this project.
On the residential market, Lodha said the housing demand continues to be strong, especially for large developers with good track record of execution of projects.
He noted that sales have not been hit despite rise in interest rates on home loans. ”Historical data suggests that housing demand gets impacted when home loan rate is higher than 9 per cent,” he added.
Macrotech Developers has reported a nearly three-fold jump annually in its sales bookings at Rs 2,814 crore in the April-June quarter of this fiscal. Lodha said the company has not revised the guidance of sales bookings for the full fiscal and expressed confidence to reach Rs 11,500 crore in 2022-23.
The company had achieved a sales bookings of Rs 9,024 crore in the last financial year. Earlier this week, Macrotech Developers reported a 68 per cent increase in its consolidated net profit to Rs 270.80 crore for the June quarter on better sales.
The company’s net profit stood at Rs 160.91 crore in the year-ago period. Total income rose to Rs 2,675.78 crore in the first quarter of this fiscal from Rs 1,749.97 crore in the corresponding period of the previous year.
Macrotech Developers has so far completed and delivered more than 86 million square feet of real estate. It currently has around 100 million square feet under its on-going and planned portfolio.
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