Macrotech Developers surges 14% in 2 days post June quarter business update

Shares of Macrotech Developers, the recently listed real estate company, surged 10 per cent to Rs 754 on the BSE in the intra-day trade on Friday, having rallied 14 per cent in two days, after the company released operational performance for the quarter ended June 2021 (Q1FY22).

The stock was trading at its highest level since its listing on April 19, 2021. Besides, with the past two days' rally, Macrotech Developers is now up 55 per cent against its issue price of Rs 486 per share. At 01:50 pm, it was trading 7 per cent higher at Rs 734 as compared to a 0.39 per cent rise in the S&P BSE Sensex. A combined 1.5 million shares have changed hands on the counter on the NSE and BSE till the time of writing of this report.

In its quarterly business update, Macrotech Developers said that it pre-sales clocked a growth of 88 per cent YoY at Rs 957 crore relative to Rs 509 crore reported in Q1FY21. The company's pre-sales, however, were down by 62 per cent compared with Rs 2,531 crore in Q4FY21.

"While April and May had very limited pre-sales on account of the second Covid wave in India, June saw pre-sales of Rs 654 crore. This pick-up in June is despite some continuing Covid related restrictions in our operating markets," the management said. It added that subject to no further Covid related disruptions, the company is on track to meet its pre-sales guidance.

Customer collections, meanwhile, stood at Rs 1,714 crore in the first quarter of the current financial year, higher by 346 per cent compared with the corresponding period a year before. Sequentially, the collections have declined by 18 per cent from Rs 2,089 crore in Q4FY21. The copany has reduced consolidated net debt by Rs 3,600 crore during the quarter.

Separately, Macrotech Developers has entered into joint development agreements (JDA) with two new projects totaling 1.5 million sq ft of saleable area during the quarter. These 2 projects are in addition to 2 projects which were informed with Q4FY21 results in May 21.

Incorporated in 1995, Macrotech Developers [formerly known as Lodha Developers] is one of the largest real estate developers in India. The company is primarily engaged in affordable residential real estate developments and, in 2019, it entered into the development of logistics and industrial parks and also develop commercial real estate. The company generated maximum revenue from this segment as of fiscal 2020 which was 57.77 per cent of total revenue.

Under the logistic and industrial park portfolio, it plans to develop an industrial park of over 800 acres of land near Palava. However, the commercial real estate portfolio includes projects like corporate offices, IT campuses, and boutique office spaces. As on December 31, 2020, the firm had successfully completed 91 projects comprising 77.22 million sq. ft. of developable area, with 59.13 million sq. ft. in the affordable housing segment.