Macrotech Developers, a prominent real estate company, reported a significant decline of 33.95% in its net consolidated profit during the quarter ended June 30, 2023. Despite the decrease in profit and total income, the company's MD & CEO expressed positive results, with pre-sales showing growth and the 'for-sale' business segment performing well. The company remains on track to achieve its full-year guidance of reducing net debt and has displayed financial stability with favorable operating and net profit margins. Additionally, Macrotech Developers demonstrated commitment to employee incentives and effective capital utilization through the issuance of equity shares and bonus equity shares.
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Macrotech Developers, a prominent real estate company, has reported a significant decline of 33.95% in its net consolidated profit during the quarter ended June 30, 2023. The company's profit after tax stood at Rs 179.20 crore in Q1 FY24 compared to Rs 271.30 crore in the corresponding quarter of the previous fiscal, as stated in a BSE filing. Additionally, the company's net consolidated total income also witnessed a dip of 37.52% to Rs 1,671.80 crore in Q1 FY24 from Rs 2,675.80 crore in the same quarter last year.
Abhishek Lodha, the MD & CEO of Macrotech Developers, expressed positive results for the quarter, with pre-sales reaching Rs 33.5 billion, marking a 17% growth. The 'for-sale' business segment displayed remarkable growth of 30%. Despite a marginal increase in net debt due to business development investments, the company remains on track to achieve its full-year guidance of reducing net debt to the lower of 0.5x equity and 1x operating cash flow. The average cost of funds trended down to ~9.65% despite rising policy rates.
As of June 30, 2023, the company's debt-equity ratio stood at 0.71, total debts to total assets at 0.22, operating margin at 28.09%, net profit margin at 10.72%, and current liability ratio at 0.91, according to the regulatory filing. These figures highlight the company's financial stability and positive performance in the real estate market.
In the quarter ending June 30, 2023, Macrotech Developers issued 3,50,851 equity shares at a face value of Rs 10 each through the exercise of options under the Employee Stock Option Schemes. Additionally, the company allocated 48,18,05,547 fully paid-up bonus equity shares of Rs 10 each, utilizing Rs 4,818 million from securities premium and capital redemption reserve. These actions demonstrate the company's commitment to employee incentives and effective capital utilization strategies, strengthening its financial position.
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