Macrotech Developers (Lodha)'s consolidated net profit surged 72.4% to Rs 535.46 crore on a 36% jump in net sales to Rs 3,444.56 crore in Q4 FY22 over Q4 FY21.
Consolidated profit before tax (PBT) soared 44.7% to Rs 802.30 crore in Q4 March 2022 as against Rs 554.50 crore in Q4 March 2021. However, total expenses also increased by 31.95% to Rs 2714.10 crore in Q4 March 2022 as compared to Rs 2056.90 crore in Q4 March 2021.
On a yearly basis, Macrotech Developers (Lodha) reported a consolidated net profit of Rs 1208.51 crore in FY22 as against net profit of Rs 47.89 crore in FY21. Revenue from operations climbed 69.58% to Rs 9233.20 crore in FY22 over FY21.
India Q4 FY22 pre-sales stood at Rs 3,456 crore, growing 37% Y-o-Y during the quarter as against the corresponding quarter, last year. Adjusted EBITDA in Q4 FY22 was at Rs 1,230 crore, rising 33% Y-o-Y in Q4 March 2022 from Q4 March 2021.
Commenting on the Q4 performance, Abhishek Lodha, the managing director (MD) and chief executive officer (CEO) of Macrotech Developers, said, We are extremely pleased to report our best ever quarterly and annual pre-sales performance. It's a true testimony of the strong brand and the consumer trust that it inspires. On the ground demand for quality housing remains very strong. With each passing quarter, demand only strengthens on the back of rising consumer confidence on the strong real estate brands on the back of growing economy and per capita income. All the segments of portfolio are showing strong interest from consumers.
We delivered India pre-sales at Rs 9,024 crores for FY22 thus meeting our guidance, despite disruption due to COVID-19 second wave in Apr-May'21 as well as impact of Omicron in Jan'22. Our 'for-sale' part of the business outperformed our annual guidance by registering a 57% YoY growth. The growth journey of Indian housing market on the back of rising incomes and favorable demography has just begun. Industry after several years has entered into a positive price-demand cycle enabling conversion of latent demand into actual sales in a shorter time frame. We are very confident of achieving around 25% CAGR growth in pre-sales over medium term. Our JDA strategy will enable us to achieve this growth in a very capital light manner. Our brand, sales & marketing abilities as well as our ability to quickly monetize any land asset continue to make landowners prefer Lodha for maximizing their land value. This has enabled us to sign up 11 JDAs for nearly Rs 15,000 cr. GDV during FY22. We expect to maintain this run-rate of new project additions through JDAs.
We are also pleased with the performance of our UK investments which continue to outperform our business plan. This has enabled us to pre-pay $170 million of the USD bonds a year ahead of its scheduled maturity. The remaining outstanding of $55 million will be paid out of receivables from already sold units. Our debt reduction plans will get accelerated as our investment in the UK is repatriated back starting FY23. During the quarter, company continued its de-leveraging journey alongside showing superlative business growth. Net debt came down sharply through organic means to Rs 9,300 crore thus surpassing the full year guidance for FY22. Reflecting the improved financials and balance sheet of the company as well as strong growth prospects, Crisil rated the company to 'A/ Stable'. This rating is a 2 notch upgrade from Lodha's previous rating - BBB+ by India Ratings. The company also was able to bring down interest costs significantly. Our average cost of debt has come down to from 12.3% in Mar'21 to 10.5% in Mar'22 with new borrowings already happening below 9%. The downward trajectory in interest costs is expected to continue even in FY23, Mr Lodha signed off.
Meanwhile, Abhishek Lodha was appointed as the MD and CEO for a term of five years with effect from 1 March 2023 till 29 February 2028.
Shares of Macrotech Developers (Lodha) shed 1.60% to Rs 996 on BSE. Lodha Group is among the largest real estate developer in India that delivers with scale since 1980s. Core business of Lodha Group is residential real estate development with a focus on affordable and mid-income housing.
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