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Informist, Thursday, Apr. 24, 2025

By Avishek Rakshit

KOLKATA – The continuing streak of high profit growth since the June quarter of the last financial year for Macrotech Developers Ltd. came to a halt Thursday, after the company reported its lowest quarterly profit growth in the past four quarters. However, the company outdid the Street's expectations on profit but failed to meet the expectations on revenue.

For the quarter ended March, Macrotech Developers reported a 38.5% on-year jump in its consolidated net profit to INR 9.2 billion against the Street's expectation of INR 8.7 billion. The consolidated revenue, which grew by 5.1% on year to INR 42.2 billion, fell short of the Street's expectation of INR 44.5 billion. The company's high profit growth has been on a decline. In the June quarter, the profit growth was 166.4%, which fell to 109.5% in the September quarter, and declined further to 87.6% in the December quarter.

However, the company registered its best ever pre-sales during the March quarter at INR 48.1 billion, which grew by 14% on year. This is the fifth consecutive quarter the company has achieved pre-sales greater than INR 40 billion. Collections were up by 26% on year at INR 44.4 billion, and adjusted earnings before interest, tax, depreciation, and amortisation were up by 9% on year at INR 14.6 billion.

In real estate, pre-sales refer to sales of a property before it is fully constructed or completed. This involves securing commitments from potential buyers with an initial payment, before construction is complete. This helps developers secure funding, gauge market demand, and demonstrate project viability.

"Driven by the strength of our brand, we delivered pre-sales of INR 176 billion for FY25 (2024-25 (Apr-Mar)), thus meeting our guidance of delivering consistent and predictable 20% growth - now for four consecutive years since our IPO," Abhishek Lodha, managing director & chief executive officer of Macrotech Developers, said in a statement. "Our micro market led super market strategy enabled us to deliver INR 25 billion of pre-sales in the Western Suburbs of MMR (Mumbai Metropolitan Region), registering 140% growth on year-on-year basis. Our new business development for FY25 across MMR, Pune and Bengaluru stands at INR 237 billion of GDV (gross development value) (10 projects), thus surpassing our full year guidance."

During Jan-Mar, the real estate developer added two more projects in Pune with a gross development value of INR 43 billion. With this, the company now has presence in nine locations across Pune.

"Having achieved over INR 25 billion of pre-sales in Pune in FY25, the larger base of projects sets us on path to further increase our market share and continue to grow towards becoming the No. 1 developer in Pune. Similarly, we have entered FY26 with five locations in Bengaluru setting the stage for our growth phase," Lodha said. "Despite investments in business development in this quarter, we further reduced our net debt by INR 3.1 billion to INR 39.9 billion - well below our ceiling of 0.5X Net Debt/Equity."

Lodha said the debt reduction was on the back of strong operating cash flow generation of INR 23.4 billion during the quarter under review. India Ratings has upgraded the credit rating of the company to AA with a stable outlook.

"Our exit cost of debt continues to go down and stands at 8.7% (down 10 basis points during the quarter) - among the lowest in the industry," Lodha said.

For the year ended March, the company's consolidated net profit surged by 78.5% to INR 27.6 billion from INR 15.5 in the year ago period. Consolidated sales increased by 33.6% to INR 137.8 billion from INR 103.2 billion year ago. The company's board approved a final dividend of INR 4.3 per share.

On Thursday, shares of Macrotech Developers ended 3.4% lower at INR 1,320.20 on the National Stock Exchange. The company declared its financial results for the quarter and year ended March after trading hours. End

Edited by Ashish Shirke

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