Mumbai, realty firm Macrotech Developers Ltd is set to acquire new land parcels through joint development agreements with landlords this financial year to create housing projects as part of its expansion plan to capitalize on the surge in demand for residential properties. Will invest Rs 3,500-4,000 crore in a year. ,
Macrotech Developers, which markets its properties under the Lodha brand, is one of the leading developers in the country. It has a major presence in the Mumbai Metropolitan Region (MMR) and Pune, while the company has just entered the Bengaluru market.
According to the transcript of the earnings call with analysts, Abhishek Lodha, managing director and chief executive officer of the macrotech developer, said the company will invest Rs 3,500-4,000 crore on new business development, which means acquiring land parcels for future growth. .
The total spend on "new business development" will be around "Rs 35 to 4 billion", he said, adding that there will be some outflow for land acquired in previous years.In case of Joint Development Agreements (JDA) with landlords, real estate developers pay some upfront amount to the land owners. Builders share the revenues or with homeowners.
"Our target mix is 60 per cent owned land and 40 per cent from JDA. You know we have a very large amount of owned land. So to maintain this 60:4 mix the incremental GDV (gross development value) The increase is likely to be perhaps 50 per cent from JDA and 50 per cent from owned land,” Lodha said.During the last financial year, macrotech developers added several new land parcels to build housing projects with a potential sales value of over Rs 20,000 crore.
“In terms of our business growth, we added about Rs 20,000 crore of GD through new projects, which was directly above our guidance of Rs 17,500 crore. Along with JDA, we are seeing a steady and strong pipeline of new projects. Let's continue to see the pipeline of projects coming,” Lodha said.
Mumbai-headquartered Macroteh Developers reported 20 per cent growth in sales bookings (pre-sales) to a record Rs 14,520 crore in the 2022-23 financial year from Rs 12,06 crore in the previous fiscal.
It has guided sales bookings to achieve 21 per cent annual growth to reach Rs 17,500 crore this financial year.Recently, Lodha explained that the company was not in a "rat race" to become the top builder in terms of sales bookings and it would focus on achieving consistent and predictable growth with high profit margins.
To achieve the sales booking target, Macrotech Developers will launch 17 housing projects this financial year, covering 10 million sq ft of salable area and a revenue potential of Rs 12,000 crore.
The company will launch 10 new projects and seven new phases of existing residential projects in the three cities during financial year 2024-25. However the company said guidance for this fiscal year's launch pipeline may increase as it may acquire more land parcels and be able to launch housing projects at those sites in this fiscal year itself.
Also during FY24, Macrotech Developers reported that the company initiated projects worth Rs 18,000 crore against guidance of Rs 13,000 crore.Macrotech Developers is bullish on the overall demand scenario in the housing segment.
To capitalize on this, the company will increase its investment in construction projects to more than Rs 5,000 crore this financial year.
Lodha said the company is aiming to deliver over 10,000 apartments during 2024-25, compared to around 8,200 units in the last financial year.
Recently, Macrotech Developers reported an 11 per cent decline in its consolidated net profit to Rs 665.5 crore in the March quarter from Rs 744. crore in the year-ago period.
In the quarter under review, the company's total income increased to Rs 4,083.9 crore from Rs 3,271.7 crore a year ago.Macrotech Developers' profit tripled to Rs 1,549.1 crore during FY 2023-24, compared to Rs 486.7 crore in FY 2022-23.
The company's total income increased from Rs 9,611 crore to Rs 10,469.5 crore in the last financial year. Crore in the financial year 2022-23.
Macrotech Developers has delivered approximately 100 million sq ft of real estate and is currently developing over 110 million sq ft under its ongoing and planned portfolio.
Macrotech Developers, which markets its properties under the Lodha brand, is one of the leading developers in the country. It has a major presence in the Mumbai Metropolitan Region (MMR) and Pune, while the company has just entered the Bengaluru market.
According to the transcript of the earnings call with analysts, Abhishek Lodha, managing director and chief executive officer of the macrotech developer, said the company will invest Rs 3,500-4,000 crore on new business development, which means acquiring land parcels for future growth. .
The total spend on "new business development" will be around "Rs 35 to 4 billion", he said, adding that there will be some outflow for land acquired in previous years.In case of Joint Development Agreements (JDA) with landlords, real estate developers pay some upfront amount to the land owners. Builders share the revenues or with homeowners.
"Our target mix is 60 per cent owned land and 40 per cent from JDA. You know we have a very large amount of owned land. So to maintain this 60:4 mix the incremental GDV (gross development value) The increase is likely to be perhaps 50 per cent from JDA and 50 per cent from owned land,” Lodha said.During the last financial year, macrotech developers added several new land parcels to build housing projects with a potential sales value of over Rs 20,000 crore.
“In terms of our business growth, we added about Rs 20,000 crore of GD through new projects, which was directly above our guidance of Rs 17,500 crore. Along with JDA, we are seeing a steady and strong pipeline of new projects. Let's continue to see the pipeline of projects coming,” Lodha said.
Mumbai-headquartered Macroteh Developers reported 20 per cent growth in sales bookings (pre-sales) to a record Rs 14,520 crore in the 2022-23 financial year from Rs 12,06 crore in the previous fiscal.
It has guided sales bookings to achieve 21 per cent annual growth to reach Rs 17,500 crore this financial year.Recently, Lodha explained that the company was not in a "rat race" to become the top builder in terms of sales bookings and it would focus on achieving consistent and predictable growth with high profit margins.
To achieve the sales booking target, Macrotech Developers will launch 17 housing projects this financial year, covering 10 million sq ft of salable area and a revenue potential of Rs 12,000 crore.
The company will launch 10 new projects and seven new phases of existing residential projects in the three cities during financial year 2024-25. However the company said guidance for this fiscal year's launch pipeline may increase as it may acquire more land parcels and be able to launch housing projects at those sites in this fiscal year itself.
Also during FY24, Macrotech Developers reported that the company initiated projects worth Rs 18,000 crore against guidance of Rs 13,000 crore.Macrotech Developers is bullish on the overall demand scenario in the housing segment.
To capitalize on this, the company will increase its investment in construction projects to more than Rs 5,000 crore this financial year.
Lodha said the company is aiming to deliver over 10,000 apartments during 2024-25, compared to around 8,200 units in the last financial year.
Recently, Macrotech Developers reported an 11 per cent decline in its consolidated net profit to Rs 665.5 crore in the March quarter from Rs 744. crore in the year-ago period.
In the quarter under review, the company's total income increased to Rs 4,083.9 crore from Rs 3,271.7 crore a year ago.Macrotech Developers' profit tripled to Rs 1,549.1 crore during FY 2023-24, compared to Rs 486.7 crore in FY 2022-23.
The company's total income increased from Rs 9,611 crore to Rs 10,469.5 crore in the last financial year. Crore in the financial year 2022-23.
Macrotech Developers has delivered approximately 100 million sq ft of real estate and is currently developing over 110 million sq ft under its ongoing and planned portfolio.