Macrotech Developers: On a Good Wicket

Torbit - April 30, 2023 - - 0 |
Macrotech Developers: On a Good Wicket

Riding high on good financial position and strong business development in FY 23, Macrotech Developers aims to clock 20% increase in pre-sales of Rs 145 billion in FY24

According to a latest report by Motilal Oswal Financial Services Limited (MOFSL), the company has given a good operational performance. It has exceeded its FY23 pre-sales guidance of INR115billion  by delivering pre-sales of INR121billion, up 34% YoY.

Sales Performance

Sales volumes for 4Q declined 17% YoY to 2.5msf and blended realization rose 12% during the same period. In FY23, Lodha hiked prices by 8% at the portfolio level. It launched 3.7msf of projects and delivered 3.4msf in 4QFY23. Delivery and new launches for FY23 stood at 9.3msf and 10.4msf, respectively.

Cash Flow & Financial Performance

On the cash flow front, collections remained flat YoY, but increased 9% sequentially to INR29billion. OCF increased 11%/8% YoY/QoQ to INR16billion. In FY23, the company’s OCF grew 43% YoY to INR56billion.In-line with its revised guidance, the company reduced its net debt by INR9.7billion to INR71billion . It also received an inflow of INR3.3billion  from its UK investments. The company has so far received INR5.5billion  from the UK and expects to receive the remaining INR5.5billion in FY24. Lodha spent INR4billion on land acquisitions and on investments related to joint ventures. It added one new project in 4QFY23 in Eastern Suburbs of MMR with GDV of INR20billion. In FY23, the GDV of new projects stood at INR180billion , higher than its full-year guidance for business development worth 150 billion.

The company’s revenue fell 5% YoY and increased 84% QoQ to reach INR32billion, 27% higher than MOFSL estimate This was due to the completion of more number of projects than originally expected.EBITDA (excl. other income) declined 11% YoY to INR7.7billion, 29% above MOFSL estimate. Reported EBITDA margin dropped 150bp YoY to 23.7%. The management said the embedded EBITDA margin for pre-sales reported in 4Q stood at 31%. Adjusted EBITDA (excluding interest charge-off and capitalized interest) stood at INR9.8 billion, at a margin of 30%.Reported PAT grew 38% YoY to INR7.4billion  on account of lower taxes, resulting in a margin of 23%.

Guidance and Other Key Updates

On the  back of strong business development donein FY23, the company intends to launch 11msf in FY24 and is aiming to achieve pre-sales of INR145billion (20% higher than FY23).Additionally, the company intends to maintain its business development momentum, as the management is targeting new project additions worth INR175billion.

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