Macrotech Developers Ltd, popularly known as Lodha Group, is set to invest Rs 4,500 crore in the current fiscal year to construct real estate projects as it aims to enhance its execution capabilities and cater to the surging demand for housing in India. The Mumbai-based real estate firm, which markets its properties under the Lodha brand, is one of the top players in the Indian real estate market.
According to Abhishek Lodha, the MD and CEO of Macrotech Developers, despite an increase in mortgage rates and housing prices, the demand for residential properties continues to remain strong. In the previous fiscal year, the company’s sales bookings increased by 34% to Rs 12,014 crore, and it is targeting a 20% growth to Rs 14,500 crore in the current fiscal year.
Lodha added that the company generated a net operating cash flow surplus of Rs 4,600 crore, indicating its ability to convert land into real estate products and build and sell them in a timely manner. This surplus was used for investment in land and debt reduction.
Regarding the construction expenditure in the last fiscal year and the projection for 2023-24, Lodha stated that the company spent over Rs 3,300 crore on construction in the fiscal year 2022-23, and the investment on construction would increase by about one-third to Rs 4,300-4,500 crore in the current fiscal year.
Lodha further revealed that the company had acquired land parcels aggressively in the previous fiscal year, which have an estimated revenue potential of almost Rs 20,000 crore after development. Under new business development, Macrotech Developers acquires land outrightly and enters into joint development agreements with landowners to create a land bank for future projects.
Lodha stated that the company aims to add Rs 17,500 crore of new business development in the current fiscal year.The company plans to expand its business in the Mumbai Metropolitan Region (MMR) and Pune markets and will launch two projects in Bengaluru in the current fiscal year.
Lodha expressed optimism that the recent RBI monetary policy announcement of a pause on the interest rate front would stimulate the economy, create more jobs, and thereby boost housing demand.
Recently, Macrotech Developers reported a 39% increase in its consolidated net profit at Rs 744.36 crore for the quarter that ended March. The company also announced the issuance of bonus shares to shareholders in a ratio of 1:1. Total income for the January-March period fell to Rs 3,271.71 crore from Rs 3,481.92 crore in the corresponding quarter of the previous year.
However, the company’s net profit decreased from Rs 1,202.37 crore in the previous year to Rs 486.63 crore in 2022-23 due to the provision of Rs 1,177.39 crore for doubtful receivables/advances. Total income rose to Rs 9,611.16 crore in the last fiscal year from Rs 9,525.59 crore in 2021-22.
Macrotech Developers has already delivered approximately 94 million square feet of real estate and is currently developing approximately 105 million square feet under its ongoing and planned portfolio. Moreover, the company possesses over 4,300 acres of land beyond its ongoing and planned portfolio.