Macrotech Developers Sees 43.5% Rise in Net Debt to Rs 4,320 Crore in Q1 FY25

Macrotech Developers, one of India’s leading real estate developers, has reported a significant increase in its net debt for the first quarter of the 2024-25 financial year. The company’s net debt rose by 43.5% to Rs 4,320 crore as of June 30, 2024, compared to Rs 3,010 crore at the end of the March quarter of 2023-24.

Image: A cityscape of Mumbai, where Macrotech Developers has a significant presence.

According to the company’s latest investors presentation, the increase in net debt was largely due to higher investment in land acquisition and construction. Despite this, the company’s net debt remains well below the ceiling of 0.5 times equity, standing at 0.24 times equity.

“In spite of the significant level of business development plus a significant ramp up in construction spend in this quarter, our net debt stood at Rs 4,300 crores, which is 0.24 times of equity,” said Abhishek Lodha, MD and CEO of Macrotech Developers.

“This is really an exemplification of the fact that our business delivers strong underlying cash flows, and as we continue to ramp up our investment in construction, we will see in the second half of the year significant acceleration in the free cash flow generation and operating cash flow generation for the company,” he added.

Image: A construction site, representing Macrotech Developers’ increased investment in construction.

The company also reported a 20% growth in sale bookings to Rs 4,030 crore for the first quarter of this fiscal, driven by strong housing demand. The collection from customers rose 12% to Rs 2,690 crore in the April-June period of 2024-25 from Rs 2,400 crore in the corresponding period of the previous year.

Macrotech Developers has a significant presence in the Mumbai Metropolitan Region (MMR) and Pune, and has recently entered the Bengaluru property market. The company has delivered around 100 million square feet of real estate and is developing over 110 million square feet under its ongoing and planned portfolio.

Image: A cityscape of Bengaluru, where Macrotech Developers has recently entered the property market.

The company has given guidance of achieving 21% annual growth in sale bookings this fiscal to Rs 17,500 crore. Recently, Macrotech Developers reported a 2.7-fold jump in its consolidated net profit to Rs 475.3 crore for the June 2024 quarter on higher income.

Image: A financial graph, representing Macrotech Developers’ growth in net profit.

Overall, Macrotech Developers’ Q1 FY25 results reflect the company’s continued growth and expansion in the Indian real estate market. Despite the increase in net debt, the company remains committed to delivering strong cash flows and accelerating its investment in construction.