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Macrotech Developers to invest Rs 4,500 cr in FY23 on real estate projects

Macrotech Developers Ltd will invest Rs 4,500 crore this fiscal year on construction of real estate projects as it seeks to ramp up execution capabilities amid strong housing demand

Real Estate

Real estate development (Photo: Wikimedia Commons)

Press Trust of India New Delhi

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Macrotech Developers Ltd will invest Rs 4,500 crore this fiscal year on construction of real estate projects as it seeks to ramp up execution capabilities amid strong housing demand.
Mumbai-headquartered Macrotech Developers, which sells its properties under the Lodha brand, is one of the leading real estate firms in the country.
In an interview with PTI, Macrotech Developers MD and CEO Abhishek Lodha noted that the demand for residential properties continues to be strong despite increase in mortgage rates as well as housing prices.
Its sales bookings grew 34 per cent in 2022-23 to Rs 12,014 crore and it has set a target of 20 per cent growth to Rs 14,500 crore in the current financial year, he highlighted.
Lodha noted that the company generated Rs 4,600 crore worth of net operating cash flow surplus which reflects its strength to convert land into real estate products, and then building as well as selling it in a timely manner.
The surplus cash flow was used for investment on land and debt reduction, he said.
Asked about construction expenditure in last fiscal and the projection for 2023-24, Lodha said, "In fiscal 2022-23, we spent a little over Rs 3,300 crore on construction, and this fiscal year that will ramp up by around one third."

The investment on construction will be Rs 4,300-4500 crore, he said.
"Our sales bookings have grown 34 per cent last fiscal. So, the construction spend will also rise accordingly. It follows the same cycle with a slight lag," Lodha said.
Moreover, he said the company last fiscal aggressively acquired land parcels that have an estimated revenue potential of nearly Rs 20,000 crore after development.
Under new business development, Macrotech Developers acquires land outrightly and also enter into joint development agreements (JDAs) with landowners to create land bank for future projects.
"Pipeline remains strong for the addition of new land parcles. We have given guidance of Rs 17,500 crore plus of new business development for this fiscal," Lodha said.
He said the company would further expand business in Mumbai Metropolitan Region (MMR) and Pune markets. It will also launch two projects in Bengaluru this fiscal.
Lodha said the recent RBI monetary policy announcement of a pause on the interest rate front should stimulate the economy, create more jobs and thereby boost housing.
Recently, Macrotech Developers reported a 39 per cent increase in its consolidated net profit at Rs 744.36 crore for the quarter ended March.
It also announced issue of bonus shares to shareholders in a ratio of 1:1.
Total income fell to Rs 3,271.71 crore in the January-March period from Rs 3,481.92 crore in the corresponding quarter of the previous year.
Net profit fell to Rs 486.63 crore in 2022-23 from Rs 1,202.37 crore in the previous year, due to the provision of Rs 1,177.39 crore for doubtful receivables/advances.
Total income rose to Rs 9,611.16 crore in last fiscal from Rs 9,525.59 crore in 2021-22.
Macrotech Developers has delivered around 94 million square feet of real estate. It is currently developing about 105 million square feet under its ongoing and planned portfolio.The company has over 4,300 acres of land beyond its ongoing and planned portfolio.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Apr 30 2023 | 2:37 PM IST

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