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Informist, Saturday, Jan. 25, 2025

 

--Macrotech Developers Oct-Dec consol net profit INR 9.44 bln

--Analysts saw Macrotech Developers Oct-Dec consol net profit INR 6.09 bln

--Macrotech Developers Oct-Dec consol PAT INR 9.4 bln vs INR 5.0 bln yr ago

--Macrotech Oct-Dec consol revenue INR 40.83 bln vs INR 29.31 bln yr ago

--Macrotech Apr-Dec consol net profit INR 18.43 bln vs INR 8.84 bln yr ago

--Macrotech Apr-Dec consol revenue INR 95.55 bln vs INR 62.98 bln yr ago

--Macrotech board appoints Sanjay Chauhan as CFO

 

By Avishek Rakshit

 

KOLKATA - Demand tailwinds and strongest-ever collections from its projects helped Mumbai-based real-estate developer Macrotech Developers Ltd. report best ever pre-sales and beat the Street by a wide margin in Oct-Dec. The Lodha group company reported a consolidated net profit of INR 9.4 billion, up 87.6% on year and far ahead of analysts' estimates of INR 6.1 billion. The profit was also boosted due to absence of any exceptional item as against INR 2.6 billion in the year-ago quarter.

 

The consolidated revenue, aided by strong collections, rose 39.3% on year to 40.8 billion, against the Street's projection of INR 35.9 billion. This was the fourth consecutive quarter when the company achieved pre-sales greater than INR 40 billion. With a total pre-sales of INR 128.2 billion during Apr-Dec, which is an increase of 25% on year, the company is on track to achieve 20% targeted growth, or INR 175 billion of pre-sales in the current financial year.

 

In the real estate industry, pre-sales, also known as off-plan sales, refer to the agreement when a buyer commits to purchasing a property before it is built.

 

"We continued making progress towards building our annuity portfolio in a calibrated manner and acquired 33 acres of land for our digital infrastructure (warehousing and industrial) business in the NCR (National Capital Region). We also entered into an agreement with our JV (joint venture) partner to further increase stake in our Digital Infrastructure platform," Managing Director & Chief Executive Officer Abhishek Lodha said in a statement.

 

During Oct-Dec, the company came up with new projects having a total area of 2.7 million square feet with gross development value of INR 42 billion. Gross development value or GDV refers to estimate of the value of a property once it's completed. The addition in area also includes its fifth new project in Bengaluru which had INR 28 billion of GDV during Oct-Dec. For 2024-25 (Apr-Mar), Macrotech Developers has given a guidance of INR 210 billion for this project.

 

"These new project additions in Bengaluru will provide opportunity to drive pre-sales growth from next FY (financial year) onwards in the city where we have entered the expansion phase now. Our new business development for 9mFY25 (Apr-Dec) across MMR (Mumbai Metropolitan Area), Pune and Bengaluru stands at INR 195 billion of GDV, thus achieving 90%+ (more than 90%) of our full year guidance," Lodha said.

 

During Jan-Dec, the company is set to launch 2.6 million square feet, comprising six projects that may have a GDV of INR 54 billion.

 

"Despite significant investments in business development in this quarter, we reduced our net debt by INR 6.1 billion to INR 43.1 billion - well below our ceiling of 0.5x Net Debt/Equity. This is on the back of strong operating cash flow generation of INR 24 billion during the quarter," Lodha said.

 

During Oct-Dec, ratings agency ICRA revised Macrotech Developers' credit rating outlook to AA+ from a negative rating.

 

"Our exit cost of debt continues to go down and stands at 8.8% (down 10 bps during the quarter) - among the lowest in the industry," Lodha said. As a result, the company's adjusted earnings before interest, tax, depreciation and amortisation rose by 48% on year to INR 15.9 billion, again beating the Street's estimate of INR 9.7 billion. The EBITDA margin during the quarter under review was 35%.

 

The company's consolidated net profit during Apr-Dec was INR 18.43 billion as compared to INR 8.84 billion in the year-ago period, and consolidated revenue was INR 95.55 billion as against INR 62.98 billion during Apr-Dec of FY24.

 

Although the company declared its results on a non-trading day, the Street seems to have factored in the positivity around the  financial results. Friday, Macrotech Developers' scrip closed 1.6% up at INR 1,099.55 on the National Stock Exchange.  End

 

Edited by Vandana Hingorani

 

 

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