Macrotech Continued Business Momentum with Double-Digit Growth in Q1 FY25

Macrotech Developers Limited, known for its Lodha brand, released its business update for the first quarter (Q1) of the financial year 2025 (FY25), ending June 30, 2024. The report highlights positive growth across key metrics, coupled with strategic business development initiatives.

Robust Pre-Sales and Collections

Macrotech achieved a noteworthy pre-sales figure of ₹40.3 billion in Q1 FY25, reflecting a commendable 20% year-on-year (YoY) growth. This strong performance indicates sustained customer demand for the company’s residential properties. Additionally, collections during the quarter reached ₹26.9 billion, demonstrating a healthy 12% YoY increase. These positive figures suggest a robust cash flow cycle for the company.

Expanding Project Portfolio

Beyond sales growth, Macrotech actively expanded its project portfolio in strategic locations. The company strategically added three new projects in the Mumbai Metropolitan Region (MMR) and Pune, boasting a combined Gross Development Value (GDV) of ₹111 billion. This figure surpasses half of the company’s full-year GDV guidance of ₹210 billion, showcasing a commitment to exceeding initial targets. This expansion strengthens Macrotech’s presence in key markets and provides a wider range of property options for potential buyers.

Financial Strength and Recognition

Despite significant investments in business development, Macrotech maintained a healthy net debt position of ₹43.2 billion, well below their established ceiling of 0.5 times Net Debt to Equity ratio. This financial prudence demonstrates the company’s commitment to responsible growth and a strong balance sheet. Furthermore, Macrotech’s consistent performance and sound fundamentals were recognised by Crisil, a leading credit rating agency, with an upgrade to ‘AA- (Positive)’. This positive rating reflects investor confidence in Macrotech’s long-term prospects.

Looking Ahead: A Promising Quarter Sets the Stage for FY25

Macrotech’s Q1 FY25 business update paints a promising picture for the rest of the financial year. The company’s strong pre-sales, collections, strategic expansion, and robust financial position position them for continued success.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.