Bengaluru: Macrotech Developers Ltd, which sells under the Lodha brand, will reduce its debt to ₹10,000 crore by March 2022, through collections from home sales along with sale of land and one rental office asset, said a top executive.
The Mumbai-based developer’s net debt for its India business is at around ₹12,508 crore.
Following the second wave of the covid-19 pandemic, Macrotech clocked ₹3,450 crore of sales for the September-ended quarter. Its sales bookings in India stood at ₹2,003 crore during the second quarter, and an additional ₹1,450 crore from its two projects in London— Grosvenor Square and Lincoln Square.
Collections (from sales) for the quarter stood at ₹1,912 crore.
The company, which listed on the stock exchange in April, is aiming to achieve its pre-sales guidance of around ₹9,000 crore in 2021-22.
“The September quarter is seasonally a weak quarter for real estate, so in that context, we have done very well. But like last year, 2021 is also a unique year. Collections follow sales, and so, after a disruption (like the second wave), collections get impacted. We have been on a debt reduction mode, and it will be done mostly through regular sales and the rest will be through sale of (non-core) assets like warehousing assets as well as a commercial rental asset,” Abhishek Lodha, managing director and CEO, Lodha Group said in an interview.
Lodha expects about ₹8,000 crore to come in from home sales and another ₹1,000 crore from the asset monetization, which is expected to pick in the second half of the current financial year.
The company’s debt, which stood at ₹16,076 crore as on 31 March 2021, was reduced by 23% to ₹12,435 crore at the end of the April-June quarter.
During the July-September period, Macrotech also closed a new joint development agreement in Mulund, in suburban Mumbai. With this, it has signed five JDAs since April, in Mumbai Metropolitan Region (MMR) and Pune, where the projects hold a cumulative gross development value of about ₹4,500 crore for an estimated saleable area of around 4 million sq ft.
“Sales have been good across price points and the positive thing is, even our under-construction projects are selling well. We have a significant launch pipeline and plan to launch 4.5-5 million sq ft in the coming months. The upcoming projects will allow us to enter new micro-markets in MMR,” said Lodha.
Home sales in MMR during the January-August period have risen more than three times to ₹1.33 trillion, according to a recent joint report by CREDAI-MCHI and CRE Matrix. During January-August 2020, MMR saw sales of ₹41,353 crore because of the adverse impact of the pandemic.
“With the upcoming festive season, we are confident that we will see a huge increase in sales because consumers are so keen to move into a bigger and better home,” he added.
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