Macrotech Developers Limited, (Lodha) on Wednesday announced its operational update for the first quarter of FY 2023 (Q1FY23).
On a sequential basis, sales bookings of Lodha declined by 19% in Q1FY23. Still, it was the best ever sales booking for any April-June quarter for the company. Analysts at Edelweiss Securities Ltd said, “This healthy performance came despite a weakening first quarter on account of the holiday period and the onset of monsoon and 1% increase in stamp duty from April 1, 2022.”
Compared to the year-ago period, sales bookings increased by 194%. The company has 11,500 crore pre-sales guidance for FY23. The management said that despite evolving in macro-economic conditions, the demand for reliable Grade A developers across sectors remains strong.
Analysts at Edelweiss say the company has already achieved 75% of the incremental sales growth needed to meet FY13 guidance. “We believe that Lodha can achieve its guidance given the revival in Mumbai housing demand and a strong launch pipeline of around Rs 13,300 crore for FY23.”
Another important measure was debt reduction 442 crore sequentially 8,858 crore for India business. Note that the company’s management aims to reduce its net debt. 6,000 crore in FY23.
“We believe that the company is now “off the treadmill” in the form of strong operating cash flows, reduction in interest cost (primarily due to reduction in full debt) and light land bank additions of assets in FY 2013-24E. There will be a reduction in organic net debt,” said analysts at ICICI Securities Ltd.
In addition to reducing debt, rapid land monetization, portfolio growth, geographic diversification and annuity asset sales could be potential stock catalysts in Palawa, the Edelweiss report said.
Meanwhile, the company recently entered the Bengaluru market with a joint development agreement of 1.2 million sq ft. In Q1FY23, the company added three such new projects in the Mumbai Metropolitan Region, Pune and Bengaluru.