Macrotech adds 12 land parcels in FY23 to build new projects to meet demand

Realty firm Macrotech Developers has added 12 land parcels for the development last fiscal, with an estimated revenue potential of nearly Rs 20,000 crore as it seeks to expand the business to tap rising housing demand.

The company had given a guidance of Rs 15,000 crore for new business development for 2022-23 fiscal.

Macrotech Developers, which sells its properties under the Lodha brand, acquires land outright and also enters into joint development agreements (JDAs) with landowners to expand the business. It mainly focuses on Mumbai Metropolitan Region (MMR) and the Pune market. It has entered Bengaluru recently.

"We continue to remain the preferred partner for various landowners across micro-markets for JDA partnerships," Macrotech Developers MD and CEO Abhishek Lodha said.

The company has added 12 projects in FY23 on 14 million square feet for a combined GDV (gross development value) of Rs 19,800 crore, he added.

"Business growth robustness continues to strengthen with a significant number of land proposals under evaluation," Abhishek said.

Meanwhile, Macrotech Developers' sales bookings rose 34 per cent to Rs 12,064 crore in the last fiscal on better demand despite the rise in interest rates on home loans.

The company surpassed the full-year guidance of Rs 11,500 crore.

The collections of money from customers stood at Rs 10,606 crore for FY23, up 23 per cent YoY (year-on-year).

Net debt has further reduced to Rs 7,071 crore, showing a decline of Rs 2,229 crore for the fiscal.

Abhishek said the company has achieved yet another quarter of strong performance enabling it to surpass its annual guidance.

"The icing on the cake is that this has happened in the face of one of the fastest-ever increases in interest rates," he said.

Lodha said the industry is poised to continue seeing demand acceleration for quality tier-1 branded homes.

"The on-ground demand fundamentals driven by improving affordability, consistent income growth, and above all consumer's desire to upgrade their lifestyle have continued to strengthen," he said.

Macrotech has delivered more than 89 million square feet of real estate and is currently developing around 100 million square feet under its ongoing and planned portfolio.

The group has approximately 4,400 acres of land beyond its ongoing and planned portfolio, which will be utilised in developing further residential, commercial and industrial & logistics spaces.