Macrotech Developers adds 7 land lots in H1 to construct housing projects valued at Rs 14,300 crore

 Macrotech Developers adds 7 land lots in H1 to construct housing projects valued at Rs 14,300 crore

The land parcels were acquired by Macrotech Developers, a company that offers real estate under the 'Lodha' name, via both direct acquisitions and cooperative agreements with landlords.

Six of the seven land pieces in the Mumbai Metropolitan Area have been added.

In an effort to grow its clientele, Macrotech Developers acquired seven more land lots in the Bengaluru and Mumbai areas between April and September in order to build home complexes with a combined sales value of Rs 14,300 crore.

The land parcels were acquired by Macrotech Developers, a company that offers real estate under the 'Lodha' name, via both direct acquisitions and cooperative agreements with landlords.

Abhishek Lodha, director of operations and chief executive officer of Macrotech Developers, stated in an interview with PTI that the company added several land parcels during the first half of the 2023–24 fiscal year. These parcels have a possible saleable area of 8.3 million square feet along with an estimated revenue potential of Rs 14,300 crore. "We provided a projection of Rs 17,500 crore for new business development for current fiscal year. With a total development value of Rs 14,300 crore, we have added new projects. Thus, we have already surpassed 80% of our yearly goal," he said.

Six of the seven land pieces are now part of the Mumbai Metropolitan Region (MMR), while the Bengaluru parcel has the potential to generate sales of Rs 800 crore. According to Lodha, the business is in discussions with landlords to add additional land parcels to its portfolio, mostly in Pune and MMR.

"We will stick to the annual guidance of Rs 17,500 crore," Lodha said when asked whether the corporation will raise the estimate. However, it will comfortably surpass the goal. When asked about upcoming pipeline projects and releases in the first half of 2023–2024, he said that the business unveiled a 3.7 million square foot area valued at about Rs 4,000 crore between April and September.

"We plan to launch an 8 million kilometers area in the second half of this semester with an estimated sales value of around Rs 12,000 crore," added Lodha. He also said that the business will be starting its maiden project in Bengaluru this month.

Lodha expressed optimism that the business will easily meet the Rs 14,500 crore sales booking goal set for the current fiscal year as opposed to Rs 12,070 crore in the previous year because of a robust launch pipeline. In the first half of current fiscal year, sales bookings of Rs 6,890 crore have already been reached.

According to Lodha, the business's operational efficiency in terms of revenues bookings, customer collections, and new land purchases was quite robust during the first half of the current fiscal year. As a company, we are committed to providing consistent and dependable development. We are doing it consistently, as shown by the first half of this fiscal year. We have met 80% of our business development and 48% of our sales targets for FY24, and our embedded EBIDTA margin is still high at 30%, according to Lodha.

The MD and CEO of the firm said that the real estate industry, which is now in the third year of a long-term upcycle that would last at least 15 years, will continue to see demand. Home loan interest rates have peaked, he added, and are now projected to decline "on the ground demand conditions continue to bolster on the back of strong affordability and consumers confidence."

"Persistent the desire of consumers to own quality homes with exceptional set of amenities from branded developers remains to drive consolidation benefiting branded competitors like us," added Lodha. He pointed out that mortgage rates have peaked due to fierce competition among lenders, the RBI's halt, and the anticipated decline in the rate cycle in 2024.

"Likely reduction in the interest rate as well as government's low-income housing incentives will act as a further headwind for the demand especially for the affordable property segment where we have a significant presence," added Lodha. In the second quarter of current fiscal year, Macrotech Developers reported a combined net profit of Rs 202.8 crore.

In the same time last year, the business reported a net loss of Rs 932.9 crore. From Rs 1,761.2 crore in the equivalent period of the previous year to Rs 1,755.1 crore in the July–September fiscal year of 2023–24, total income decreased somewhat.

Macrotech Developers is now building around 110 million square feet as part of its ongoing and projected portfolio, having already delivered over 95 million square feet of real estate.