Macrotech developers invests Rs 10 bn, plans project expansion

Macrotech Developers, known for its Lodha brand properties and a prominent presence in Mumbai Metropolitan Region (MMR) and Pune, has made substantial investments in its projects. During the April-June period, the company invested Rs 10 billion in various construction ventures. Looking ahead, it plans to inject additional Rs 35 billion by March next year, as part of its strategy to enhance execution capabilities.

In an interview, Abhishek Lodha, the MD and CEO of Macrotech Developers, expressed contentment with the company's operational performance in the first quarter of the fiscal year. He is confident in achieving the targeted 20 per cent growth in sales bookings, aiming to reach Rs 145 billion.

The demand for housing has been robust over the past two years, driven by pent-up demand post-COVID and people's aspirations to own better and larger homes from reputable developers. To capitalise on this demand, Macrotech Developers intends to launch 22 new projects by March next year, spanning across MMR, Pune, and Bengaluru, covering a vast area of 9.4 million square feet and an estimated sales revenue potential of Rs 125.6 billion.

In the first quarter of this fiscal year, the company launched projects covering 1.8 million square feet, with a sales revenue potential of Rs 15.1 billion. Despite not launching many projects during that time, the company achieved a 17 per cent increase in sales bookings, totalling Rs 33.5 billion, primarily driven by inventories in on-going projects.

Looking ahead, Macrotech Developers has a strong launch pipeline for the second half of the fiscal year. The company's total construction expenditure for the entire fiscal year is projected to be around Rs 45 billion.

Lodha remains optimistic about the future, expecting the housing demand momentum to continue, and anticipates a decline in interest rates on home loans in the coming months.

In the last fiscal year (2022-23), the company's sales bookings witnessed substantial growth of 34 per cent, reaching Rs 120.14 billion. For the current fiscal year, the company targets a 20 per cent growth in sales bookings, aiming to achieve Rs 145 billion.

Furthermore, in the first quarter of this fiscal year, Macrotech Developers acquired five new land parcels, including plots in the western suburbs of MMR, Bengaluru, and Alibaug. It anticipates generating approximately Rs 120 billion in revenue by developing real estate projects on these parcels.

Macrotech Developers employs a comprehensive approach to new business development, which includes acquiring land out rightly and forming joint development agreements (JDAs) with landowners to create a land bank for future projects. The company has set a guidance of Rs 175 billion for new business development, with Rs 120 billion already achieved in the first quarter.