Stock Report

Macrotech Developers Limited - Q2FY23 Operational Update

Posted On : 2022-10-06 10:21:12( TIMEZONE : IST )

Macrotech Developers Limited has announced the key operational updates for 2QFY23:

Pre-Sales: Lodha achieved its best ever Q2 pre-sales performance of INR 3,148 crore* showing a growth of 57% on a YoY basis. Our H1 sales totaled to INR 6,004 crore which is ~52% of our full year guidance of INR 11,500 crore. Generally, Q2 is the weakest quarter of the year due to monsoons and inauspicious period (Pitrupaksh / Shraadh) and consequently, H1 tends to be ~40-45% of full year sales. Our strong performance in H1FY23, inspite of rising home loan rates and rising prices, evidences the strength of housing demand from Tier-1 developers in India and indicates the start of a long-term upcycle for quality housing in India.

Collections: Collections were INR 2,375 crore in 2QFY23 up 24% on a YoY basis. Collections were predictably impacted by seasonal factors - lower construction activity during monsoon and deferral of registerations during 15 day inauspicious period (Pitrupaksh / Shraadh).

Business Development: We added 4 new projects having ~2.2 million sq. ft. of saleable area with GDV of INR ~3,100 crore across various micro-markets of MMR and Pune. In H1, we have added ~INR 9,300 crore of GDV which is ~62% of our full year guidance of ~INR 15,000 of GDV addition. We continue to have a robust pipeline of business development opportunities as landowners witness the value creation for them due to Lodha's involvement.

Net debt: Net debt reduced by ~INR 60 crore to INR 8,796 crore.

London Investments: The US$225 million bonds were fully repaid in September 2022, 6 months ahead of schedule. With this, there is no further obligation on MDL's balance sheet wrt the London investments. Further, this quarter saw repatriation of ~INR 100 crore from UK to India. Inspite of the challenging economic environment in the UK, we expect additional repatriation of ~INR 1000 crore from the UK to India in CY2023.