 "Housing market, Homes, Real estate, Realty")
Macrotech Developers will invest around Rs 2,500 crore this fiscal to buy land and to pay its joint venture partners against land acquired in the previous years.
Mumbai-headquartered Macrotech Developers, which sells its properties under the Lodha brand, is one of the leading real estate firms in the country. It buys land outright as well as enters into joint development agreements (JDAs) with land owners to create a pipeline of future projects.
"The total investment that we envisage this year into land is about Rs 2,500 crore, which includes all the new land plus any partner share for whatever land we have taken on JDA (joint development agreement) in the past years," Macrotech Developers MD and CEO Abhishek Lodha told investors.
According to a transcript of interactions with investors posted on stock exchanges, Lodha said the JDA projects tend to have investments, which is between 5 per cent and 10 per cent of the GDV (gross development value).
"And the outright lands tend to have investment, which is closer to 20 per cent of the GDV," he added.
Also Read
During the last fiscal year, Macrotech Developers aggressively acquired land parcels, which have potential to generate revenue of nearly Rs 20,000 crore after development.
For the current 2023-24 financial year, the company has given a guidance that it will acquire land outright and enter into JDAs that can help generate at least Rs 17,500 crore revenue.
The company would further expand business in Mumbai Metropolitan Region (MMR), Pune and Bengaluru.
Apart from land, Macrotech Developers Ltd will invest Rs 4,500 crore this fiscal year on construction of real estate projects as it seeks to ramp up execution capabilities amid strong housing demand.
Its sales bookings grew 34 per cent in 2022-23 to Rs 12,014 crore and it has set a target of 20 per cent growth to Rs 14,500 crore in the current financial year.
Recently, Macrotech Developers reported a 39 per cent increase in its consolidated net profit at Rs 744.36 crore for the quarter ended March.
It also announced an issue of bonus shares to shareholders in a ratio of 1:1.
Total income fell to Rs 3,271.71 crore in the January-March period from Rs 3,481.92 crore in the corresponding quarter of the previous year.
Net profit fell to Rs 486.63 crore in 2022-23 from Rs 1,202.37 crore in the previous year, due to the provision of Rs 1,177.39 crore for doubtful receivables/advances.
Total income rose to Rs 9,611.16 crore in last fiscal from Rs 9,525.59 crore in 2021-22.
Macrotech Developers has delivered around 94 million square feet of real estate. It is currently developing about 105 million square feet under its ongoing and planned portfolio. The company has over 4,300 acres of land beyond its ongoing and planned portfolio.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
