Earnings Outlook
Demand tailwind may drive Macrotech Developers revenue, PAT
This story was originally published at 13:44 IST on 23 January 2025
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KOLKATA – Demand tailwinds are expected to help real estate companies such as Macrotech Developers Ltd. register healthy sales, which could effectively translate into good profit growth.
Macrotech Developers is expected to report a 21% on-year jump in its consolidated profit for Oct-Dec at INR 6.1 billion and the consolidated revenue is expected to rise 22.7% on year to INR 35.9 billion, according to the average of the estimates of five brokerages. Sequentially, it could be a 44% jump in profit and a 36.9% increase in revenue.
The company had reported a consolidated net profit of INR 5.0 billion for the December quarter of 2023 and INR 4.2 billion for Jul-Sept. Its consolidated sales were INR 29.3 billion in Oct-Dec of FY24, and INR 26.3 billion in Jul-Sept.
Macrotech Developers will detail its Oct-Dec financial results on Saturday.
Brokerages seem to vary widely in their revenue and profit projections for the company. Kotak Institutional Equities gave the highest estimate for the revenue as well as the profit, and earnings before interest, tax, depreciation, and amortisation, and HDFC Securities Ltd. has the lowest estimate for the same. According to Kotak Institutional Equities, Macrotech Developers may report a profit of INR 7.7 billion and revenue of INR 40.4 billion, and report an EBITDA of nearly INR 12 billion. HDFC Securities estimated the profit at INR 4.4 billion, the revenue at INR 27.8 billion, and the EBITDA at INR 7.5 billion.
Overall, Macrotech Developers is expected to report earnings before interest, tax, depreciation, and amortisation of INR 9.7 billion, according to the average of the estimates of four brokerages.
The vast difference in the estimates of brokerages is on account of their individual analysis of the real estate market's performance in Oct-Dec. Kotak Institutional Equities, in a note, said the real estate company's revenue surge was owing to better deliveries during the quarter, and liquidation of extant inventory and land sales at Palava near Thane.
HDFC Securities said that pre-sales in the real estate market are expected to be mixed as approval challenges have impacted launches. Excluding south India, real estate developers are expected to deliver a steady pre-sales performance. Delays have temporarily held back new project launches, but demand in the residential segment remains resilient across key markets, HDFC Securities said.
JM Financial Institutional Securities Pvt. Ltd. said Macrotech Developers could potentially launch over INR 70 billion of inventory across south-central and eastern suburbs in Mumbai along with a new project in Bengaluru.
According to Motilal Oswal Financial Services Ltd., the Lodha Group company reported bookings of INR 45 billion, up 32% on year, and collected INR 43 billion, up 66% on year.
At the current price, the stock is trading flat after the company announced its September quarter earnings on Oct. 25. On the day of its earnings, the stock closed had closed higher, and also opened higher at INR 1,111.0, up 2.6% on the following day and ended flat at INR 1,108.2, after hitting a high of nearly INR 1,137.
Following are the Oct-Dec earnings estimates for Macrotech Developers based on reports from five brokerage firms in descending order of the estimate of net profit:
Brokerage firm | Net sales (in INR million) | Net profit (in INR million) | EBITDA (in INR million) |
Kotak Institutional Equities | 40,445.00 | 7,685.00 | 11,955.00 |
Sharekhan Ltd | 39,590.00 | 6,820.00 |
|
Motilal Oswal Financial Services Ltd | 38,732.00 | 5,955.00 | 10,264.00 |
JM Financial Institutional Securities Pvt Ltd | 33,116.00 | 5,623.00 | 8,941.00 |
HDFC Securities Ltd | 27,832.00 | 4,370.00 | 7,531.00 |
Average | 35,943.00 | 6,090.60 | 9,672.75 |
At 1255 IST, shares of Macrotech Developers traded 0.3% higher at INR 1,080.3 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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