Macrotech Developers, a leading Indian real estate firm, has reported a stellar performance in the first quarter of fiscal year 2024-25, with its net profit soaring 2.7-fold to INR 475.3 crore. The company's total income grew substantially to INR 2,918.3 crore, driven by strong pre-sales that reached a remarkable INR 4,030 crore - the second consecutive quarter exceeding INR 4,000 crore. The company's robust embedded EBITDA margins of 33% and its strategic expansion into new markets like Pune have positioned it for continued growth. Leveraging its strong brand and balance sheet, Macrotech Developers has added new projects worth over INR 65,000 crore since its IPO, demonstrating its ability to capitalize on the country's growing housing demand.
Macrotech Developers, a leading real estate firm, has reported a significant jump in its consolidated net profit for the June 2024 quarter. The company's net profit soared 2.7-fold to reach INR 475.3 crore, up from INR 178.4 crore in the year-ago period, driven by higher income.
The company's total income grew substantially to INR 2,918.3 crore during the April-June period of the current fiscal year, up from INR 1,671.8 crore in the corresponding period of the previous year.
Abhishek Lodha, the Managing Director and CEO of Macrotech Developers, expressed delight at the company's performance, stating that the first quarter of fiscal year 2024-25 was their best ever, with pre-sales reaching a remarkable INR 4,030 crore - the second consecutive quarter exceeding INR 4,000 crore in pre-sales. Lodha highlighted that these strong pre-sales were achieved alongside robust embedded EBITDA margins of 33%.
Lodha emphasized that the delivery of strong pre-sales from a diverse portfolio of projects with high margins showcases the predictability and consistency of the company's business model. He noted that the company's pre-sales in Pune stood at more than INR 1,000 crore in the first quarter, accounting for over 50% of its pre-sales in Pune in the previous year, positioning Macrotech Developers to become the largest player in the city in the near future.
Lodha acknowledged that the strong 20% year-on-year growth in pre-sales was achieved despite the challenges posed by inclement weather conditions and the election season, which had an impact on footfalls.
The company has achieved more than 50% of its business development guidance in the first quarter itself, having added three new projects at prominent locations in the Mumbai Metropolitan Region (MMR) and Pune, with a total Gross Development Value (GDV) of INR 11,100 crore. Leveraging the attractiveness of its brand to landowners and its strong balance sheet, Macrotech Developers has been able to add new projects worth over INR 65,000 crore since its IPO, following a "supermarket" strategy in each micro-market.
Lodha emphasized that the large number of projects tied up across various micro-markets provides the company with the opportunity to grow on a granular basis in a predictable manner over a longer term.
Macrotech Developers has delivered around 100 million square feet of real estate and is currently developing more than 110 million square feet under its ongoing and planned portfolio. The company's net profit for the entire 2023-24 fiscal stood at INR 1,549.1 crore, with a total income of INR 10,469.5 crore.
The real estate firm believes that India is in the early stages of a multi-decade housing up-cycle as the country transitions from a low-income to a middle-income economy. The company is optimistic that the continuity of growth-oriented policies, as well as the government's focus on housing, infrastructure development, and urban planning, will further support investments and growth in the economy, leading to sustained housing demand strength.
Macrotech Developers' exceptional first-quarter performance underscores its ability to navigate challenges and deliver consistent growth. As the company continues to capitalize on its robust project pipeline and strong brand recognition, it is well-poised to solidify its position as a leading player in the rapidly evolving Indian real estate landscape.
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