Macrotech Developers plans to launch 16 new projects in the second half of this fiscal with an estimated sales potential of Rs 10,300 crore as it seeks to tap rising housing demand.
Macrotech Developers, which sells its properties under the Lodha brand, is one of the leading real estate firms in the country. It has a major presence in Mumbai Metropolitan Region (MMR) and Pune property markets, while recently making an entry into the Bengaluru market with one housing project.
According to an investor’s presentation, the company launched a 4.4 million square feet area during the April-September period of this fiscal with an estimated sales booking of Rs 8,480 crore.
For the second half of this fiscal, Macrotech Developers has lined up new launches of 16 projects, comprising a 7.3 million square feet area with an estimated sales value of Rs 10,300 crore.
These projects would be a mix of fully-owned and joint development with landowners.
In an interview with PTI last week, the company’s MD and CEO Abhishek Lodha noted that housing demand has been strong despite a rise in interest rates on home loans following the RBI’s move to hike the repo rate by 190 basis points since May this year.
Lodha highlighted that sales have remained strong during October, the festive month, and he strongly believed that the momentum would continue going forward driven by India’s economic growth, job security and wage growth.
“As we have been saying, this is the start of a long-term upcycle in housing in India, which in turn will create significant value for consumers because anybody who buys now will benefit from the value growth, which will happen. So, I think the cycle is in a good place and that we have seen in our numbers,” he observed.
During the April-September period, the company has clocked record sales bookings of Rs 6,004 crore against Rs 2,960 crore in the corresponding period of the previous year.
It has already met more than half of its Rs 11,500 crore sales guidance for the full 2022-23 financial year.
“The festive season has ended in October and the demand continues to remain quite strong. Broadly, we remain quite positive about the underlying strength of the demand,” Lodha said.
He mentioned that housing demand, of late, has been shifting towards large credible players who have a good track record of executing projects on time. “The industry is witnessing consolidation in demand-supply.”
Recently, Macrotech Developers reported a consolidated net loss of Rs 933 crore for the quarter that ended September due to provisions made for a loan given to its British arm for the development of projects. Its net profit stood at Rs 223.36 crore in the year-ago period.
The profit (excluding exceptional items and forex) stood at Rs 367 crore, up 28 per cent year-on-year.
The company’s total income also fell to Rs 1,761.23 crore in the second quarter of this fiscal from Rs 2,137.76 crore in the year-ago period.
Macrotech suffered a loss because of an exceptional item of Rs 1,177 crore.
The group had given loans to Lodha Developers UK Ltd and its subsidiaries from time to time for UK projects and has accrued interest thereon, Macrotech Developers said.
“The current economic uncertainty in European countries alongside adverse geopolitical developments, high inflation coupled with recessionary economic outlook etc has led to a reduction in the expected realisable value of outstanding loans along with accrued interest,” the company had said.
Accordingly, a provision of Rs 1,177 crore has been recognised as an ”exceptional item” during the quarter against the same, it explained.
Lodha UK has developed two housing projects in London.
Macrotech Developers has delivered more than 89 million square feet of real estate and is developing around 100 million square feet under its ongoing and planned portfolio.
The Lodha Group has about 4,400 acres of land beyond its ongoing and planned portfolio, which will be utilised in developing further residential, commercial and industrial and logistics spaces.
