Shares of Mumbai-based real estate developer Macrotech Developers Ltd (Lodha) rose nearly 2% in Friday’s intraday trade on the NSE, reacting to the company’s Q3FY22 operational update.
In a press release, the company said that its sales bookings are at this stage. 2,608 crore, a growth of 30% sequentially and 40% y-o-y (YoY) basis and collections up 11% sequentially and 44% y-o-y 2,127 crores. In addition, the company said its London properties continued to sell well. 1,900 crores is the best quarter ever with 3QFY22.
“With underlying consolidation and strong momentum in MMR, Lodha, a key player in MMR, is poised to become a major beneficiary,” analysts at Antique Stock Broking Ltd said in a report on January 7.
Investors should note that property sales in the Mumbai Metropolitan Region (MMR) have strengthened in recent months due to lower interest rates, better affordability and stable real estate prices. According to the latest report published by property advisory firm Knight Frank India, the Mumbai residential market contributed 30% of the launches and 27% of the sales volume during 2021 at the all-India level. Launches registered a growth of 27% YoY during H22021, 64% of these were in Q4 2021, said Knight Frank’s report.
The report further stated that the company is on the path of deleverage. “Lodha continues to de-leverage the balance sheet on the back of strong collections and Qualified Institutional Placement (QIP) funds. Net debt in the quarter is on 9,925 crore and less 2,552 crore, already achieving its full year guidance.” Recently, the company raised 4,000 crore through QIP and used the funds for acquisition of projects under joint development.
Sharing a positive outlook on the company’s performance, analysts at ICICI Securities Ltd. said, “As per our channel investigation, the company is all set to launch the final tower in the Park, Worli project, named “codenamed 2024” on January 22nd of the company. Has secured 9MFY22 sales bookings 5,570 crore in India business and we believe it is on track to meet its FY12 sales guidance 9,000 crores.”
“Whereas it implies sales bookings in excess of Q4FY22 3,000 crore, we believe that the continued momentum in residential sales and logistics/warehousing verticals can enable the company to achieve its guidance,” the ICICI report said.
That said, the domestic brokerage house cautioned that any adverse impact from the third COVID wave poses significant risks to the guidance.
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