Macrotech Developers looks to cut debt to below Rs 6,000 crore

Macrotech Developers, the real estate company renowned for its Lodha brand, is strategically working to reduce its net debt to below Rs 6,000 crore by the end of March next year. The current debt stands at Rs 6,730 crore as of the September quarter. Macrotech's Managing Director and CEO, Abhishek Lodha, expressed confidence in achieving this target through enhanced cash flow.

The company showcased strong performance in the September quarter across key metrics, including sales bookings, fund collections from customers, and the acquisition of new land parcels for business expansion.

During the first half of the fiscal year, Macrotech Developers demonstrated steady growth, achieving 48 per cent of its sales guidance for FY24 and 80 per cent of its business development target. The embedded EBIDTA margin remained robust at 30 per cent.

On the operational front, the company reported sales bookings of Rs 6,890 crore in the initial six months, compared to Rs 6,000 crore in the same period the previous year. With a robust launch pipeline, Lodha expressed confidence in surpassing the Rs 14,500 crore sales booking target for the current fiscal year.

Macrotech Developers plans to launch 8 million square feet in the second half of the fiscal year, with an estimated sales value of around Rs 12,000 crore. The company added seven new land parcels in the Mumbai Metropolitan Region (MMR) and Bengaluru during the April-September period, targeting housing projects with a sales potential of Rs 14,300 crore.

While sticking to the annual guidance of Rs 17,500 crore for new business development, Macrotech Developers is optimistic about exceeding the target. Lodha highlighted the sustained demand in the real estate sector, which is in the third year of a long-term up-cycle lasting at least 15 years.

For the second quarter of the fiscal year, Macrotech Developers reported a consolidated net profit of Rs 202.8 crore, a significant improvement from the net loss of Rs 932.9 crore in the same period the previous year. Total income marginally declined to Rs 1,755.1 crore in July-September 2023-24 compared to Rs 1,761.2 crore in the corresponding period of the previous year.

Having delivered around 95 million square feet of real estate and with over 110 million square feet under ongoing and planned development, Macrotech Developers remains a key player in the real estate market.

(With PTI inputs)