Macrotech Developers Q3 net profit jumps 124%, revenue up 36%

Realty major Lodha Group, listed as Macrotech Developers, has reported 124% on-year rise in consolidated net profit at Rs 279 crore for the quarter ended December

Revenues from operations also rose 36% on-year to Rs 2,059 crore on the back of the continued strength in demand for housing. During the quarter, Lodha witnessed 40% on-year growth in pre-sales, while collections rose 44% to Rs 2,127 crores.

The developer’s total pre-sales rose to Rs 4,518 crore including pre-sales worth Rs 2,608 crores in India operations, up 40% and UK pre-sales of 191 milllion pounds of Rs 1,910 crore.

“Housing market has seen a remarkable turnaround in the last 12 months. The fact that this strong performance comes on the back of an equally strong base of the previous quarter as well as the same quarter in FY21 showcases that the recovery in the housing market has taken root and the multi-year up-cycle in the housing market is well underway. We are witnessing strong demand across our portfolio and at all price points,” said Abhishek Lodha, MD & CEO, Macrotech Developers.

During the quarter, net debt for the company’s India business reduced significantly to Rs 9,896 crores thus achieving the full year guidance for FY22. The company also was able to bring down interest costs.

Lodha’s average cost of debt has come down to 11.1% as on December end from 12.3% in March and will continue to follow the downward trajectory, the company said while adding new borrowings in single digit interest rates are already reflecting improved financials.

“Our UK business continues to perform ahead of expectations, and we are pleased that the $225 million bond will be pre-paid in the near future from the sales at our One Grosvenor Square development, well ahead of the bond maturity,” Lodha added.

During the quarter, the company signed on 6 more joint development agreements for 4.8 million sq ft with Rs 10,000 crores gross development value.