Macrotech Developers to reduce net debt by 40% by December 2023

Macrotech Developers Limited hopes to reduce its net debt by over 40% to roughly Rs 5,000 crore by the end of current calendar year with the aid of extra cash flow from robust home sales. For the company, the fiscal year of 2022-23 started off with voluminous sales bookings and cash flows which led to a reduction in debt of Rs 753 crore in the December quarter to Rs 8,042 crore.

For the quarter ending December 2022, Macrotech Developers' sales bookings increased by 16% to Rs 3,035 crore. In the first three quarters of current fiscal year the company sold real estate worth Rs 9,039 crore compared to Rs 5,570 crore in the same period last year. Most sales reservations or pre-sales were made for housing projects.

Macrotech Developers recorded a combined net profit rise of 41% to Rs 404.98 crore for the quarter ending December 2022. The embedded EBIDTA margin was 31% in Q3 and 33% from April to December. The overall income decreased from Rs 2,155.70 crore in the same quarter last year to Rs 1,902.44 crore in the third quarter of current fiscal.

So far, Macrotech Developers Ltd has delivered about 90 million square feet of real estate space and is actively working on projects that will total about 107 million square feet. The company is expected to increase its sales income to an estimated Rs 17,800 crore from the guideline of Rs 15,000 crore for the whole year.

In terms of strategy, Macrotech Developers is known to buy land outright and usually partners with landowners in joint ventures to build up land banks for future construction. The company will keep concentrating on the Pune markets and Mumbai Metropolitan Region (MMR). It recently launched one housing project in the Bengaluru residential market and is currently in discussions to add another.

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Macrotech Developers to reduce net debt by 40% by December 2023

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