Macrotech shares extend rally on best Q3 pre-sales performance

Shares of Macrotech Developers extended the previous session’s rally, rising 9 percent in early deals after a positive Q3 business update. The realty firm on January 4 informed exchanges that it achieved its best-ever third quarter pre-sales performance of Rs 3,410 crore, showing a growth of around 12 percent on an annual basis.

This strong performance is despite the inauspicious ‘Shradhh’ period falling in October, the company stated in its exchange filing.

For the first three quarters of FY24, Macrotech‘s pre-sales are Rs 10,300 crore, a 14 percent on-year growth, which is keeping the firm on track to deliver its pre-sales guidance of Rs 14,500 crore for FY24.

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The company stated that it saw excellent response to the launch of the first project in Bengaluru with first phase sold out in three days which showcases brand strength in new geographies.

In the December quarter, Macrotech’s collections came in at Rs 2,590 crore. The company added three projects with around 2 million sq. ft. of saleable area for a gross development value (GDV) of Rs 6,000 crore. “Our business development for 9M FY24 at Rs 20,300 crore has surpassed our full-year guidance of Rs 17,500 crore for the year,” the company said in a BSE filing.

Macrotech’s net debt in the quarter remained largely stable at Rs 6,750 crore. “We are pleased to note that, despite high level of business development activity during the year, our net debt has remained on a glide down path YTD with our net debt at Rs 6,750 crore (vs Rs 7,073 crore in March 2023).

“We remain on course to achieve our full-year guidance for reduction of net debt to lower of 0.5x equity and 1x Operating Cash flow, with further debt reduction seen in Q4,” MD and CEO Abhishek Lodha said.

The company has exited the UK market after realisation of the entire balance from UK investments. It has completed the development of two projects in London. “From here on, we are going to be solely focussed on the significant opportunities in India,” Lodha said.

Also Read | Lodha Group finalises acquisition of Goel Ganga Ventures

Marcotech shares cooled off from the day’s high and were trading over 1 percent higher at Rs 1,110.10 at 10:18am on the National Stock Exchange (NSE). The stock has doubled investors’ money in the last one year, rallying 105 percent. In comparison, benchmark Nifty 50 has risen around 20 percent.

In the last one month only, the Macrotech Developers share price has risen around 21 percent.

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