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Macrotech Developers Plans Rs 5,000 Crore Investment in Realty Projects Amidst Strong Housing Demand

Macrotech Developers, the renowned real estate firm behind the Lodha brand, is set to ramp up its investment in construction projects, targeting over Rs 5,000 crore in the current fiscal year. According to MD and CEO Abhishek Lodha, this strategic move aligns with the company’s robust sales growth and increased supply.

Lodha revealed that Macrotech Developers aims to deliver more than 10,000 apartments in the fiscal year 2024-25, indicating a significant expansion in its operational capacity. In an interview, he emphasized the company’s successful achievement of major targets in the previous fiscal year, including pre-sales, land acquisitions, and debt reduction, driven by strong housing demand.

With India’s housing sector potentially entering its third year of a long-term upcycle, fueled by economic growth and growing preference for home ownership, Macrotech Developers plans to launch more projects and acquire additional land for future development. Lodha highlighted the company’s focus on maintaining a consistent and predictable growth trajectory.

Regarding construction expenditure, Lodha stated, “We spent around Rs 3,700 crore on construction last fiscal year. We are going to invest more than Rs 5,000 crore during the current fiscal.” He assured that any previous delays in project launches would be compensated for in the upcoming period.

Macrotech Developers, operating primarily in the Mumbai Metropolitan Region (MMR), Pune, and Bengaluru, reported successful forays into the Bengaluru property market, with encouraging sales in initial projects. The company plans to expand its presence in Bengaluru and is considering the possibility of launching a pilot project in another major tier I city.

In terms of sales targets, Macrotech aims to achieve properties worth Rs 17,500 crore in the fiscal year 2024-25, representing a 21% growth from the previous year. The company recorded a 20% increase in sale bookings during the last fiscal year, reaching a record Rs 14,520 crore.

To capitalize on the buoyant demand for high-quality homes in India, Macrotech Developers plans to launch multiple housing projects in the current fiscal year. Lodha emphasized the company’s continuous efforts to acquire land parcels for future development, both through outright acquisitions and partnerships with landowners.

Despite reporting an 11% decline in consolidated net profit in the March quarter, Macrotech Developers showcased impressive financial performance, with a three-fold jump in profit during the fiscal year 2023-24. The company’s total income also witnessed significant growth.

Regarding debt reduction, Lodha mentioned, “We have achieved our guidance of reducing our net debt well below 0.5 times of equity.” The company’s net debt decreased by over Rs 4,000 crore during the last fiscal year, standing at Rs 3,000 crore, less than 0.2 times of equity.

Macrotech Developers has delivered approximately 100 million square feet of real estate and is currently developing over 110 million square feet under its ongoing and planned portfolio. Lodha expressed confidence in the company’s brand strength and operational prowess, emphasizing its unique combination of pre-sales growth, business development, and debt reduction.

In conclusion, Macrotech Developers’ ambitious investment plans reflect its confidence in the Indian real estate market’s continued growth and its commitment to meeting the rising demand for quality housing.

Jhumpa Lahiri

Jhumpa Lahiri

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