Real estate firm Macrotech Developers, also known as Lodha Developers, on July 30 reported a profit after tax (PAT) of ₹480 crore, an increase of 186% year-on- year (YoY) for the first quarter (Q1) of FY 25. This company also reported pre- sales of ₹4,300 crore in the Q1 FY25, an increase of 20% YoY.
The company’s collections rose by 12% YoY to over ₹2,600 crore and its revenue from operations increased by 76% YoY to ₹2,850 crore in the Q1 FY25, it said in a statement issued on July 30.
The company also added three more projects during the quarter in the Mumbai Metropolitan Region (MMR) and Pune with a combined gross development value of ₹11,100 crore.
The company reported a debt of ₹4,320 crore in the first quarter of FY25.
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Lodha said that the company’s pre-sales in Pune stood at more than ₹1,000 crore in Q1 (more than 50% of its pre-sales in Pune in the previous year), setting the stage for becoming the largest player in the city in the next few years.
“What is also heartening to note is that this strong 20% YoY (year-on-year) growth in pre-sales has come despite inclement hot weather conditions and election season impacting footfalls,” he said.
Lodha said the company has achieved more than 50% of its business development guidance in the first quarter itself.
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“Q1FY25 was our best ever first quarter with ₹4,300 bn of pre-sales Delivery of strong pre-sales from a diverse portfolio of projects with strong margins showcases the predictability and consistency of our business model. We are enthused by our performance in Pune, setting the stage for becoming the largest player in the city in the next few years. We believe we are in the early stage of a multi-decade housing up-cycle as India transitions from being a low-income economy to a middle-income economy,” said Abhishek Lodha, MD and CEO, Macrotech Developers Ltd.
“During the quarter, we added three more projects at marquee locations in the MMR and Pune with ₹11,100 crore of GDV (gross development value). On the back of the attractiveness of our brand to land owners and strong balance sheet, we have been able to add new projects worth over ₹65,000 crore since our IPO following ‘super market’ strategy in each micro-market,” he added.
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Changes in LTCG may lead to short term disruption in secondary sale transactions
In its investors presentation for Q1FY25, the company said that the removal of indexation for long term capital gains tax (LTCG) and the lowering of tax rate from 20% to 12.5% will encourage real estate as a long-term investment avenue.
The company said that more tax liability on sale of old properties, will nudge taxpayers to invest in new residential houses to save on tax. However, the company noted that change in LTCG may lead to short term disruption in secondary sale transactions.
