Macrotech Developers Q3 Results Review - Bengaluru Foray Off To A Promising Star: Motilal Oswal

Motilal Oswal Report

Macrotech Developers Ltd. achieved sales of Rs 34 billion (7% below our estimate), up 12% YoY but down 4% QoQ. Pre-sales for 9M FY24 stood at Rs 103 billion, up 14% YoY. The residential business generated bookings of Rs 32 billion in Q3 (up 5% YoY) and Rs 99 billion in 9M FY24 (up 16% YoY).

Sales volumes for Q3 rose 4% YoY to 2.6 msf. Blended realisation was flat YoY but declined 8% QoQ due to lower contributions from the South and Central Mumbai projects.

Its first project in Bengaluru fetched a strong response, as 80% of the inventory was sold within the first week. It contributed Rs 6.6 billion to the overall sales. The realisation was also superior at Rs 12,000/square feet versus Rs 8,000-9,000/sf prevailing in the micro-market.

Macrotech Developers reported its highest-ever revenue of Rs 29.3 billion, up 65% YoY/68% QoQ and in line with our estimate. Ebitda (excluding other income) jumped 116% YoY/112% QoQ to Rs 8.8 billion, as margin improved 700 basis points YoY/600bp QoQ to 30%. Macrotech exited the UK business and recognized an exceptional loss of Rs 1 billion, and hence, profit after tax growth moderated 25% YoY to Rs 5 billion.

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