Macrotech Developers will invest around Rs 2,500 crore this fiscal to buy land and 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 with landowners 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 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 of between 5% and 10% of the gross development value.
"And the outright lands tend to have investment, which is closer to 20% of the GDV," he added.
During the last fiscal year, Macrotech Developers aggressively acquired land parcels, which have the potential to generate revenue of nearly Rs 20,000 crore after development.
For the current 2023–24 financial year, the company has given guidance that it will acquire land outright and enter into JDAs that can help generate at least Rs 17,500 crore in revenue.
The company would further expand business in the Mumbai Metropolitan Region, Pune, and Bengaluru.
Apart from land, Macrotech Developers Ltd. will invest Rs 4,500 crore this fiscal year in the construction of real estate projects as it seeks to ramp up execution capabilities amid strong housing demand.
Its sales bookings grew 34% in 2022–23 to Rs 12,014 crore, and it has set a target of 20% growth to Rs 14,500 crore in the current financial year.
Recently, Macrotech Developers reported a 39% increase in its consolidated net profit to 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 and advances.
Total income rose to Rs 9,611.16 crore in the last fiscal year 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.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
