Macrotech Eyes Partnerships to Develop INR 15,000 Crore in New Projects

In the current fiscal year, Lodha Group, also known as Macrotech Developers, aims to engage into partnerships to execute joint development projects with a total gross development value of INR 15,000 crore.

In the June quarter, the business has already signed into three such agreements to jointly build projects spanning 5.1 million square feet with a gross development value of roughly INR 6,200 crores.

In FY23, Abhishek Lodha, MD & CEO of Macrotech Developers, anticipates the addition of new projects with a total GDV of over INR 15,000 crore due to the tremendous appeal of the Macrotech brand to landowners.

Macrotech Developers reported a 190 percent year-over-year increase in net profit adjustment for FX to 355 crore for the quarter ending in June, on the heels of a 194 percent increase in pre-sales to 2,814 crore.

The developer's collections increased by 53 percent to INR 2,616 crore, while operational income increased by 67 percent to INR 2,670 crore.

"This was our greatest first quarter with pre-sales of INR 2,814 billion from our India business. We have not yet noticed an effect on the demand for homes from quality developers," Lodha added.

Lodha thinks that the housing market in India is in a structural upswing over the medium to long term due to robust wage growth, a rise in the importance of housing to families as a result of Covid, and the consolidation of supply by developers with high reputation. Throughout the quarter, the company's debt decreased by around 450 crore rupees to 856 crore rupees.

In spite of the general rise in interest rates, the company's average cost of capital has decreased to 10.1% at the end of June, from 10.5% at the end of the previous quarter, due to the ongoing momentum in debt reduction.