Traders did not miss the point that despite reporting record pre-sales for June quarter, Macrotech Developers, better known as Lodha, saw a drop in its net profits and revenue. At the same time its debt also increased.
The company’s revenue from operations came in at Rs 1,617 crore, falling from Rs 2,676 crore in the same quarter last year. Consequently, its net profit also fell to Rs 179 crore, down from Rs 271 crore.
As of 9.50 am on July 28, Macrotech Developers shares traded at Rs 710, down 2.36 percent on BSE.
Also read: Macrotech Developers Q1 pre sales up 17%, net debt increases marginally
The company reported its best ever first quarter pre-sales performance at Rs 3,353 crore alongside a “very strong” business development of Rs 12,000 crore. The company said that the new projects it added include projects in the western Suburbs of Mumbai Metropolitan Region (MMR), Bengaluru, and Alibaug.
Net debt increases
Its net debt increased marginally to over Rs 7,200 crore compared to over Rs 7,000 crore from the previous quarter.
The company in a regulatory filing said that its EBITDA margin for Q1 FY24 stood at 30 percent.
“Our pre-sales for the quarter at Rs 3,353 crores grew by 17 percent. Our ‘for-sale’ business has shown a stupendous growth of 30 percent. This reinforces our belief in the sustainable nature of the strong housing demand. With the likelihood of downward journey of interest rates in next few quarters after witnessing a pause by the RBI, we see momentum for housing continuing to strengthen," said Abhishek Lodha, MD & CEO, Macrotech Developers Ltd.
"Our net debt has increased marginally, primarily on account of front loaded business development investment. We remain on the path to achieve our full year guidance of reduction of net debt to lower of 0.5x equity and 1x Operating Cash flow, with significant debt reduction to be seen in H2," Lodha added.
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