Macrotech Developers’ net debt rises 43.5% in Q1 on higher capex for land, construction

Realty firm Macrotech Developers Ltd‘s net debt rose 43.5 per cent to ₹4,320 crore during the first quarter of this fiscal year due to higher investment in land acquisition and construction.

According to its latest investors presentation, this Mumbai-based company’s net debt were at ₹3,010 crore at the end of the March quarter of 2023-24.

The net debt stood at ₹4,320 crore, 0.24 times equity, well below the ceiling of 0.5 times equity.

“The investment in growth led to an increase in net debt,” the company added.

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Macrotech Developers MD and CEO Abhishek Lodha said, “In spite of the significant level of business development plus a significant ramp up in construction spend in this quarter, our net debt stood at ₹4,300 crore, which is 0.24 times of equity”.

“This is really an exemplification of the fact that our business delivers strong underlying cash flows, and as we continue to ramp up our investment in construction, we will see in the second half of the year significant acceleration in the free cash flow generation and operating cash flow generation for the company,” he added.

Lodha highlighted that the average cost of funds came down by around 30 basis points to about 9.1 per cent.

Q1 earnings 2024

On the operational performance front, Macrotech Developers posted a 20 per cent growth in sale bookings to ₹4,030 crore for the first quarter of this fiscal on strong housing demand.

Sale bookings stood at ₹3,350 crore in the year-ago period.

The collection from customers rose 12 per cent to ₹2,690 crore in the April-June period of 2024-25 from ₹2,400 crore in the corresponding period of the previous year.

Macrotech Developers had registered a 20 per cent growth in its sale bookings (pre-sales) to a record ₹14,520 crore during 2023-24 against ₹12,060 crore in the previous year.

It has given the guidance of achieving 21 per cent annual growth in sale bookings this fiscal to ₹17,500 crore.

Recently, Macrotech Developers reported a 2.7-fold jump in its consolidated net profit to ₹475.3 crore for the June 2024 quarter on higher income.

Its net profit stood at ₹178.4 crore in the year-ago period.

Its total income grew to ₹2,918.3 crore during the April-June period of this fiscal from ₹1,671.8 crore in the corresponding period of the preceding year.