Macrotech Developers, renowned for its Lodha brand, reported a Q4 FY24 net profit decline of 10.61% to INR 667 crore, yet full-year FY24 profit tripled to INR 1,554 crore compared to FY23. They've raised pre-sales guidance by 20% to INR 17,500 crore for FY25, banking on strong demand, especially in the middle-income segment. With record pre-sales of INR 14,520 crore in FY24, they solidify their position among India's top real estate developers. Financially, they reduced net debt by over INR 4,000 crore in FY24, reaching a manageable INR 3,010 crore, and improved their net worth. Total income rose, with Q4 FY24 seeing a significant increase to INR 4,083.9 crore. Lodha plans to launch seven new projects in Mumbai and Pune, totaling 3.4 million square feet, and expand into Bengaluru after successful ventures.
Macrotech Developers, known for its Lodha brand, reported a net profit decline of 10.61% to INR 667 crore in Q4 FY24 (Jan-March). However, the company remains optimistic, with full-year FY24 profit tripling to INR 1,554 crore compared to INR 490 crore in FY23. This resilience underscores Lodha's focus on long-term growth strategies.
Looking ahead, Lodha is brimming with optimism for FY25. They've raised their pre-sales guidance by a significant 20% to a target of INR 17,500 crore. This ambitious goal is backed by strong demand for their properties, particularly in the middle-income segment (typically INR 40 Lakh - INR 80 Lakh). Industry experts predict a stable year for residential real estate with a focus on affordability, potentially leading to increased sales opportunities for developers like Lodha, who achieved record pre-sales of INR 14,520 crore in FY24, solidifying their position as one of India's top four real estate developers alongside DLF Ltd., Prestige Group, and Godrej Properties Ltd.
Lodha has made significant strides in improving its financial health. During FY24, they reduced their net debt by over INR 4,000 crore, bringing it down to a manageable INR 3,010 crore. This represents a net debt-to-equity ratio of less than 0.2, a significant improvement from the previous year. Their average cost of funds has also come down to approximately 9.4%, indicating their increasing financial attractiveness. As of March 31, 2024, their net worth stood at INR 17,099.80 crore, the current liability ratio was 0.96, and the total debt to total assets ratio was 0.16.
Macrotech Developers' total income grew in tandem with their profit increase. They reported an INR 812.2 crore rise in total income for Q4 FY24, reaching INR 4,083.9 crore compared to INR 3,271.7 crore in the same period last year. This trend continued throughout FY24, with their total income reaching INR 10,469.5 crore, a significant increase from INR 9,611.2 crore in FY23.
Lodha plans to launch seven new projects across Mumbai and Pune in FY25, totaling 3.4 million square feet of saleable area. Additionally, they will launch new phases in existing projects, adding another 6.7 million square feet. This strategic expansion will not only increase their market reach but also cater to the growing demand for quality housing in these key cities.
Looking beyond established markets, Lodha's venture into Bengaluru in FY24 proved to be a success story. They achieved pre-sales of INR 1,200 crore within just two quarters from their two operational projects in the city. Encouraged by this positive response, Lodha plans to expand its presence in Bengaluru, recognising the city's potential for further growth.
An interesting aspect of Lodha's growth strategy lies in its focus on innovative construction methods. The company has been actively implementing prefabrication techniques to ensure faster project completion times and higher quality standards. In March, they raised INR 3,300 crore by selling shares to institutional investors, and half of the funds raised have been used to reduce debt, with the remainder planned for deployment in growth initiatives like prefabrication capabilities. This focus on innovation could potentially give them a competitive edge in the market, especially as they target increased pre-sales figures.
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