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Informist, Monday, Jan. 27, 2025

By Avishek Rakshit

KOLKATA – Macrotech Developers Ltd. is planning to foray into major Indian cities in the coming three to four months as part of its plan to diversify its base and de-risk itself from its presence in single markets like Mumbai, Managing Director and Chief Executive Officer, Abhishek Lodha said Monday.

In a post-earnings call with sector analysts on Monday, Lodha said that after the company's foray into Pune and Bengaluru with major real-estate projects, Macrotech Developers is planning its entry into major Indian cities where it currently does not have a presence.

Lodha said the plan is at a pilot stage now and the company will announce the new foray to investors after three to four months once the analysis of the new markets is completed and the pros and cons weighed.

Going ahead, Macrotech Developers will continue to focus on collections from its completed projects and expect to maintain the collections at INR 40 billion – 43 billion each in the next five quarters. "We are increasing our construction spends in this (Jan-Mar) and the coming quarters," Lodha said. Collections refer to the company's earnings from existing projects and contribute largely towards top-line growth.

During Oct-Dec, the company recorded its strongest-ever collection in any quarter at INR 42.9 billion, which, along with a demand tailwind, helped the company to report a consolidated net profit of INR 9.4 billion, up by 87.6% on year, far higher than the analysts' estimates of INR 6.1 billion. The profit was also boosted due to an absence of any exceptional items during the quarter compared with INR 2.6 billion a year ago.

The consolidated revenue in Oct-Dec increased by 39.3% on year to 40.8 billion on account of strong collections, higher than Street's projection of INR 35.9 billion. This is the fourth consecutive quarter when the company achieved pre-sales of higher 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 for its 20% targeted growth, or INR 175 billion of pre-sales in the current financial year.

In the real estate industry, pre-sales, or off-plan sale, refers to the agreement when a buyer commits to purchasing a property before it is built.

Lodha said the company will continue to focus on the low-mid income consumer segment which accounts for 60% of its projects. The company will also take up projects to build data centres. Typically, every 5 MW of power consumption in a data centre requires an acre of land, and such data centres are built on 40-70 acres depending on the size of the centre. The installed capacity for data centres is measured in MW.

The Lodha group company will launch six projects in Maharashtra and Bengaluru in Jan-Mar.

At 1518 IST, shares of Macrotech Developers traded 0.5% up at INR 1,105.30 on the National Stock Exchange. End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Saji George Titus

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