Macrotech Developers aims for 21% growth in pre-sales to Rs 17,500 crore in FY25 on robust housing demand

Realty firm Macrotech Developers has set a target to sell properties worth Rs 17,500 crore during the current fiscal, a 21 per cent growth from the previous year, as the company expects housing demand to remain strong, its MD and CEO Abhishek Lodha said.

Macrotech Developers, which sells its properties under the Lodha brand, registered a 20 per cent growth in its sale bookings (also called pre-sales) to a record Rs 14,520 crore last fiscal from Rs 12,060 crore in the 2022–23 financial year.

"We met our guidance of delivering consistent and predictable 20 per cent growth in sales bookings during the last fiscal year. The guidance for the current fiscal has been kept at Rs 17,500 crore, again 20 per cent growth from the 2023–24 fiscal," Lodha told PTI in an interview.

He expects housing demand to remain strong amid positive consumer sentiments and high economic growth. "Our best quarterly and annual performance showcases the buoyancy in demand for high-quality homes in India from branded developers," Lodha said. Macrotech Developers would launch multiple housing projects across its three focus markets: Mumbai Metropolitan Region (MMR), Pune, and Bengaluru to encash this consumer demand.

Lodha said the company would continue to add land parcels through outright acquisitions and partnerships with landowners for future development.

Earlier this week, Macrotech Developers reported an 11 per cent decline in its consolidated net profit to Rs 665.5 crore in the March quarter from Rs 744.4 crore in the year-ago period. The company's total income grew to Rs 4,083.9 crore in the quarter under review from Rs 3,271.7 crore in the year-ago period.

During the 2023–24 fiscal, Macrotech Developers registered a three-fold jump in profit to Rs 1,549.1 crore from Rs 486.7 crore in the 2022–23 fiscal. The company's total income rose to Rs 10,469.5 crore last fiscal from Rs 9,611.2 crore in the 2022–23 fiscal.

On debt, Lodha said, "We have achieved our guidance of reducing our net debt well below 0.5x of equity. Robust operating cash flows and our capital raise led to net debt coming down by over Rs 4,000 crore during the 2023–24 fiscal year to Rs 3,000 crore, which is less than 0.2x of equity." 

The company has also added new projects worth over Rs 20,000 crore during the last fiscal year. "This makes us a unique housing company to achieve the troika of significant pre-sales growth, robust business development, and significant debt reduction, showcasing our brand strength and operational prowess," Lodha said.

Macrotech Developers has delivered around 100 million square feet of real estate and is currently developing more than 110 million square feet under its ongoing and planned portfolio.