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New Delhi: Realty Firm Macrotech Developers Ltd aims to reduce its net debt by around 40 per cent to around Rs 5,000 crore by the end of this calendar year with the help of surplus cash flows from robust housing sales, a top company official said. Mumbai-based Macrotech Developers, one of the leading real estate firms in the country, markets its properties under the Lodha brand.
In an interview with PTI, MD & CEO of Macrotech Developers Abhishek Lodha There is a bullish view on the long-term growth potential of India’s residential real estate market.
He said sales bookings and cash flows have been very strong so far this fiscal, resulting in a reduction in debt by Rs 753 crore to Rs 8,042 crore in the December quarter.
“We are expecting to reduce the debt by Rs 1,000 crore to around Rs 7,000 crore by the end of this financial year,” Lodha said.
The company plans to cut debt by Rs 500-800 crore every quarter.
“We would expect to be close to Rs 5,000 crore of net debt by the end of this calendar year,” Lodha said.
However, he added that there are no plans to become a zero-debt company.
On the overall operational performance during the current financial year so far, Lodha said the company has performed well across all three key metrics – sales bookings, embedded EBITDA margin and new land parcels for future development.
“In pre-sales, we had the strongest third quarter with sales of over Rs 3,000 crore. So far, we have sold over Rs 9,000 crore in the first nine months of this fiscal, which is what we more than sales.” for the full year of FY’22 and puts us on course to exceed FY’23 guidance which is Rs 11,500 crore,” he said.
Sales bookings of Macrotech Developers grew 16 per cent to Rs 3,035 crore in the December quarter.
The company sold assets worth Rs 9,039 crore in the first three quarters of this fiscal as against Rs 5,570 crore in the same period last year.
There was a huge amount of sales booking or pre-sales for housing projects.
Lodha said the embedded EBITDA margin was 31 per cent in the third quarter and 33 per cent during April-December. “If we translate this for the full year, it would be around Rs 3,500 crore plus Ebitda.”
On new business development, Lodha said the company has added several land parcels so far this fiscal, which could generate an estimated Rs 17,800 crore of sales revenue against the full-year new business development guidance of Rs 15,000 crore.
Asked about the new sales guidance for FY23, Lodha said the company is now on track to exceed the FY’22 target, but has not set any new targets.
Demand for residential properties continues to increase on strong consumer sentiments, Lodha said, adding that supply-demand consolidation is taking place for credible developers.
Similarly, the company has not set any new target for project additions for the entire FY’23, but there will be some land acquisitions.
Macrotech developers acquire land outright and also form joint ventures with landowners to create a land bank for future development.
The company will continue to focus on the Mumbai Metropolitan Region (MMR) and Pune markets. It has recently entered the Bengaluru residential market with one housing project and is in talks to add one more.
Last week, Macrotech Developers reported a 41 per cent rise in its consolidated net profit to Rs 404.98 crore for the quarter ended December 2022.
Its net profit in the year-ago period stood at Rs 286.38 crore.
However, the total income in the third quarter of this fiscal declined to Rs 1,902.44 crore from Rs 2,155.70 crore in the same period last year.
Macrotech Developers has delivered around 90 million sq ft of real estate and is currently developing around 107 million sq ft under its ongoing and planned portfolio.
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