Macrotech Developers drops as Q4 PAT slides 11% YoY

Macrotech Developers slipped 4.03% to Rs 1,201.10 after the company's consolidated net profit declined 10.6% to Rs 665.5 crore in Q4 FY24 as against Rs 744.4 crore recorded in Q4 FY23.

However, revenue from operations jumped 23.44% year on year (YoY) to Rs 4,018.5 crore in the quarter ended 31 March 2024.

The realtor reported pre-sales of Rs 4,230 crore in Q4 FY24, recording a growth of 40% on a YoY basis. Collections grew by 20% YoY at Rs 3,510 crore during the quarter.

The company delivered robust pre-sales and collections on the back of strong operating cash flow generation coupled with the recently concluded QIP, net debt further reduced sharply to Rs 3,010 crore (0.17x of equity) for the firm well below its guided ceiling of 0.5x of equity, said the company.

Profit before tax in Q4 FY24 was at Rs 878.5 crore, up 37.65% from Rs 638.2 crore posted in Q4 FY23.

Total expenses spiked 21.83% YoY to Rs 3,204.7 crore during the quarter. Cost of projects stood at Rs 2,522.1 crore (up 21.76% YoY) and employee benefits expense came in at Rs 119.6 (up 15.56% YoY).

Adjusted EBITDA jumped 36.73% to Rs 1,340 crore in the March quarter as against Rs 980 crore recorded in Q4 FY23. Adjusted EBITDA margin improved to 33% in Q4 FY24 as compared to 30% registered in the same period a year ago.

For FY24, the real estate developer reported a consolidated net profit of Rs 1549.1 crore, steeply higher than Rs 486.7 crore reported in FY23. Revenue from operations grew 8.93% YoY to Rs 10316.1 crore in FY24.

Abhishek Lodha, MD & CEO, Macrotech Developers, said, Driven by the strength of our brand, we delivered pre-sales of Rs 145 billion for FY24, thus meeting our guidance of delivering consistent and predictable 20% growth. Our Q4FY24 pre-sales stood at Rs 42.3 billion showing a strong 40% YoY growth.

We have achieved our guidance of reducing our net debt well below 0.5x of equity. Robust operating cash flows and our capital raise led to net debt coming down by over Rs 40 billion during the year to Rs ~30 billion which is less than 0.2x of equity. The sharp reduction in net debt has happened along-side addition of new projects of over Rs 200 billion during the year. Our enhanced financial strength will provide us an opportunity to accelerate margin as well as top line growth as the capital is invested over the next 6-12 months.

Meanwhile, the companys board recommended a final dividend of Rs 2.25 for the financial year ended 31 March 2024.

Macrotech Developers (Lodha Group) is among the largest real estate developer in India that delivers with scale since 1980s. Core business of Lodha Group is residential real estate development with a focus on affordable and mid-income housing.

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