Macrotech Developers posts net profit of Rs 223.36 crore in Q2 FY22

 Macrotech Developers has reported a net consolidated profit of Rs 223.36 crore in the quarter ended September 2021, the company said in a BSE filing. It had recorded net loss of Rs 362.58 crore in the corresponding quarter previous year.

The company’s net consolidated total income stood at Rs 2,201.66 crore in Q2 FY22, a growth of 123 per cent from Rs 988.18 crore it registered in the similar quarter last fiscal.

During the quarter ended June 30, 2021, the company had completed the initial public offering (IPO) of its equity shares comprising a fresh issue of 5,14,40,328 equity shares having a face value of Rs 10 each at premium of Rs 476 per share aggregating Rs 2,500 crore. IPO expenses of Rs 55.21 crore net of taxes has been adjusted against share premium, the company said in a regulatory filing.

The company’s performance showed a strong rebound with strong pre-sales of over Rs 3,450 crore, including Rs 2,003 crore in India and £145 million in UK, it said in a media release.

“Long term potential of housing as wealth creator as well as employment generator is now being well recognized by all stake holders. Enablers for strong multi-year up-cycle in housing demand remain intact. To capture this strong growth, in a short period of time since our IPO, we have been able to add five JDA projects in the micro-markets of MMR and Pune where we have limited or no presence. Combined area of these JDAs is nearly 4 million sq ft with an estimated GDV of about Rs 4,600 crore,” said Abhishek Lodha, MD & CEO of the company.

“We see very strong pipeline of new JDAs with potential to add new projects in H2 with GDV potential of about Rs 7,000-10,000 crore. We are being presented with significant growth opportunities, largely in form of JDAs, with high RoEs in our target markets. In order to tap this exponential growth, we are contemplating raising growth capital in the next 12 months,” he added.

Credit rating for the company was further enhanced to A- during the quarter. Average cost of debt has come down from 12.3% at end of Mar 2021 to 11.4% at Sep 2021 end and will continue to follow the downward trajectory. During the quarter, net debt for the India business was largely stable and is expected to come down sharply in H2, it said in the media release.

Lodha Group said that it has initiated the process to completely transition to renewable energy on construction sites and are targeting upto 40% carbon emissions reduction in next two years.