Macrotech Developers is hopeful of exceeding its full-year sales guidance of Rs 11,500 crore, and could possibly close at Rs 13,000 crore, as analysts estimate.
The company posted a consolidated net loss of Rs 933 crore for the quarter ended September due to an exceptional item of Rs 1,177 crore on account of reduction in expected realisable value of outstanding loans along with accrued interest in its UK subsidiaries. Excluding exceptional items and forex, the real estate developer posted a Rs 367 crore net profit, up 28% on a year-on-year basis.
“The group has given loans to Lodha Developers UK Limited and its subsidiaries from time to time for UK projects and has accrued interest thereon. The current economic uncertainty in European countries alongside adverse geopolitical developments, high inflation coupled with recessionary economic outlook etc. has led to reduction in expected realisable value of outstanding loans along with accrued interest. Accordingly. a provision of Rs 1,177 crore has been recognised as an ‘exceptional item’ during the quarter against the same,” the company said in notes to profit and loss account.
Sushil Kumar Modi, CFO, Macrotech Developers, said while the demand in the first half of the financial year 2022-2023 gives the company confidence of surpassing its revenue guidance for the year, macro factors like high interest rates need to be watched out for.
The company clocked revenue from operations of Rs 1,765 crore during the quarter, which was a 17% y-o-y decline. The Ebitda (earnings before interest, tax, depreciation and amortisation) also fell sharply by 33% y-o-y to Rs 525 crore. However, the company recorded Rs 3,148 crore of pre-sales registering a rise of 57% y-o-y, while collections surged 24% y-o-y to Rs 2,375 crore.
According to Modi, the company had an average realisation of Rs 11,000-Rs 12,000 a square feet as it operates across the spectrum of affordable to luxury housing. The company has taken price hikes in the range of 2-2.5% in the quarter across its projects.
Additionally, the company has a pipeline of Rs 10,000 crore of projects, and expects 10-20% of this to come on stream in FY23.
Modi also said that Macrotech is on track to reduce its debt levels and is working towards delivering 1x of its operating cash flow as net debt in the next two to three quarters along with net debt to equity of 0.5x.