macrotech developers: macrotech developers seeking to enter Bangalore; targets annual sales bookings of Rs 20,000 cr by FY26
In an interview with PTI, Managing Director and CEO of Macrotech Developers, Abhishek Lodha, said the company would deploy Rs 3,000 crore, out of the total of Rs 4,000 crore recently raised via the sale of shares to institutional investors, for small cap growth in Mumbai Metropolitan Area (MMR) and Pune.
“Now that our balance sheet is as strong as it is now, the demand is just getting huge. This is why we raised new capital within seven months of our initial public offering (IPO),” he said. declared.
Of the Rs 4,000 crore raised through Qualified Institutional Placement (QIP), Rs 3,000 crore will be used for growth largely in MMR and Pune regions as there are many opportunities for growth. “We aim to have Rs 14,000 crore in sales by FY24 (fiscal year 2023-24) and Rs 20,000 crore by FY26 (2025-2026), which is almost three times our number before COVID,” Lodha said .
Macrotech Developers had booked sales bookings of Rs 5,970 crore in the last fiscal year and aims to reach Rs 9,000 crore during the current 2021-2022 period. âThe growth is huge. It will focus more on middle income and affordable housing. The geographic concentration will be around MMR and Pune where we will deploy funds with light capital. We will not buy large plots of land, âLodha said.
He pointed out that the company’s debt ratio is among the lowest. âWe are operating in a low-cap model where, because of the brand and the execution strength of the company, landowners partner with us. We are doing joint development.
âOur core strategy is to grow in MMR and Pune. We are exploring the Bengaluru market right now because we believe that the technological revolution taking place in the country, Bengaluru will be a big beneficiary,â Lodha said.
He said the Rs 3,000 crore earmarked for growth would be used to make an upfront payment in Joint Development Agreements (JDAs) with landowners and working capital.
Lodha said the company will enter into several JDAs in the second half of this fiscal year with sales potential of Rs 7,000-10,000 crore.
Regarding the demand for housing, he said the speed of sales has been very strong and momentum is accelerating. “The demand through the price is very strong and the supply is muted”.
In April of this year, Macrotech Developers went public raising Rs 2,500 through the IPO. Recently, Macrotech Developers announced a consolidated net profit of Rs 223.36 crore for the quarter ended in September. He had recorded a net loss of Rs 362.58 crore over the period last year.
Total income more than doubled to Rs 2,201.66 crore in the second quarter of this fiscal year from Rs 988.18 crore in the corresponding period of the previous year. The company’s debt stands at around Rs 12,500 crore, which will be reduced to around Rs 10,000 crore by the end of this fiscal year, according to guidelines.
Of the Rs 4,000 crore collected through QIP, the company will use Rs 1,000 crore for debt reduction. Macrotech Developers has delivered over 81 million square feet of real estate and is currently developing approximately 93 million square feet as part of its ongoing and planned portfolio.
The group owns more than 4,400 acres of land beyond its current and planned portfolio, which will be used to develop other residential, commercial, industrial and logistics spaces.
Besides India, Macrotech is also developing two projects in London, where it made a foray in 2013.