Macrotech net debt rises 43.5% to Rs 4.3K cr in Q1 on higher capex for land

Realty firm Macrotech Developers Ltd's net debt rose 43.5 per cent to Rs 4,320 crore during the first quarter of this fiscal year due to higher investment in land acquisition and construction.

Mumbai-based Macrotech Developers, which sells its projects under the Lodha brand, is one of the leading developers in the country.

According to its latest investors presentation, the company's net debt stood at Rs 4,320 crore as of June 30, 2024, against Rs 3,010 crore at the end of the March quarter of 2023-24.

The net debt stood at Rs 4,320 crore, 0.24 times equity, well below the ceiling of 0.5 times equity, the presentation said.

The investment in growth led to an increase in net debt, the company added.

According to a transcript of discussions with analysts, Macrotech Developers MD and CEO Abhishek Lodha said, "In spite of the significant level of business development plus a significant ramp up in construction spend in this quarter, our net debt stood at Rs 4,300 crores, which is 0.24 times of equity".

"This is really an exemplification of the fact that our business delivers strong underlying cash flows, and as we continue to ramp up our investment in construction, we will see in the second half of the year significant acceleration in the free cash flow generation and operating cash flow generation for the company," he added.

Lodha highlighted that the average cost of funds came down by around 30 basis points to about 9.1 per cent.

On the operational performance front, Macrotech Developers posted a 20 per cent growth in sale bookings to Rs 4,030 crore for the first quarter of this fiscal on strong housing demand.

Sale bookings stood at Rs 3,350 crore in the year-ago period.

The collection from customers rose 12 per cent to Rs 2,690 crore in the April-June period of 2024-25 from Rs 2,400 crore in the corresponding period of the previous year.

Macrotech Developers had registered a 20 per cent growth in its sale bookings (pre-sales) to a record Rs 14,520 crore during 2023-24 against Rs 12,060 crore in the previous year.

It has given the guidance of achieving 21 per cent annual growth in sale bookings this fiscal to Rs 17,500 crore.

Recently, Macrotech Developers reported a 2.7-fold jump in its consolidated net profit to Rs 475.3 crore for the June 2024 quarter on higher income.

Its net profit stood at Rs 178.4 crore in the year-ago period.

Its total income grew to Rs 2,918.3 crore during the April-June period of this fiscal from Rs 1,671.8 crore in the corresponding period of the preceding year.

Macrotech Developers has a significant presence in Mumbai Metropolitan Region (MMR) and Pune and has just entered the Bengaluru property market.

It has delivered around 100 million square feet of real estate and is developing more than 110 million square feet under its ongoing and planned portfolio.