Macrotech Developers reports net debt of ₹4,920 crore and is focused on growth

Macrotech Developers’ net debt rises 14% to ₹4,920 crore in the September quarter due to business expansion

Macrotech Developers Ltda leading real estate company operating under the umbrella Lodha The brand reported a 14% increase in net debt in the fiscal second quarter. The company’s debt mounted ₹4,920 crore as of September 30, 2024, primarily due to its focus on Land acquisition And construction as part of its expansion strategy.

Debt levels and financial performance

According to the last operational update, Macrotech Developers’ net debt was at ₹4,920 croreupwards from ₹4,320 crore on June 30, 2024 and ₹3,010 crore at the end of the 2023-24 fiscal year. Despite this increase, the company assured that its debt would remain well under controlwhereby the ratio of net debt to equity is maintained 0.5 timeswhich is within the company’s upper limit.

Main driver for the increase in debt

The significant increase in net debt can be attributed to the company aggressive investments In:

1. Land acquisition: Expansion into new markets and expansion of the portfolio to include first-class properties.
2. Construction activities: Rapid project development to meet the growing demand in the real estate sector.

Record sales despite economic challenges

Macrotech Developers also did it Record sales transactions in the period July-September 2024. Sales bookings increased by 21% year-on-year To ₹4,290 crorecompared to ₹3,530 crore in the same period last year. Despite the unfavorable ‘Shradhh’ period in September, the company registered its best quarterly pre-sales ever Perfomance.

• Growth before sales: ₹4,290 Crore in Q2FY25, as against ₹3,530 Crore in Q2FY24.
• Annual sales growth target: The company aims 21% growth in sales bookings for the 2024-25 financial year, with a target of ₹17,500 crorebuilding on last year’s growth of 20%.

Expansion of market presence

Macrotech Developers continues to expand its presence in key real estate markets:

• Mumbai Metropolitan Region (MMR) And Pune remain their core markets.
• Recently entered Bengaluru market to tap into the growing real estate demand in the region.

Track record and future development

The company has an impressive delivery track record 100 million square meters of real estate and is actively developing 110 million square feet across ongoing and planned projects. This extensive portfolio positions Macrotech Developers as one of the largest and most prominent players in the Indian real estate market.