Macrotech Developers reported a 17 per cent increase in pre-sales in the first quarter of FY24, though collections fell 8 per cent and its debt increased a bit.
The real estate developer, which sells homes under the Lodha brand, booked sales worth Rs 3,353 crore in the June quarter, which it said was the best-ever first-quarter sales. At Rs 2,403 crore, however, collections fell 8 per cent from a year ago, and the company said it expected a pick-up in collections over the year.
The company also saw its debt rise 3 per cent on year to end the quarter at Rs 7,264 crore. It has been assiduously trying to keep its debt under control, and attributed the rise in debt to business development investments.
“This marginal increase is on a significantly enlarged base of sales and business development,” it said, adding that it was on track to achieve a debt level at 0.5x of equity and 1x of operating cash flow.
The company also added five new projects with a revenue potential of Rs 12,000 crore.
The company said its performance in the quarter was in line with its objective of recording 20 per cent annual growth in pre-sales in FY24.
“Demand conditions remain robust with strong consumer desire to buy a home. With RBI pausing its interest rate hiking cycle and the likelihood of a decline in interest rates in the next few quarters, we see momentum for housing continuing to strengthen,” it said.
At 10.52 am shares of Macrotech Developers were down 0.7 per cent at Rs 694.75 on the NSE.