In an interview with PTI, Sushil Kumar Modi, Executive Director – Finance at Macrotech Developers, said housing demand remains strong, particularly for reputed brands with a solid track record of project execution.
To drive business growth, the company has set a target to acquire multiple land parcels this financial year for projects expected to generate Rs 25,000 crore in revenue.
Under its business development strategy, Macrotech acquires land outright and also enters into joint development agreements (JDAs) with landowners, involving some upfront payments.
Also Read: 25 Transformative Investment Ideas: RIL, SBI among HDFC Securities’ high-conviction stock picks
In FY25 so far, Macrotech has acquired 10 land parcels across MMR, Pune, and Bengaluru, with an estimated revenue potential of Rs 23,700 crore.
“Last fiscal year, we invested Rs 7,000 crore for new business development. To add new projects worth Rs 25,000 crore, we will have to invest more than Rs 8,000 crore in the current fiscal,” Modi said.
On operational performance, Modi noted that the company has guided for Rs 21,000 crore worth of sale bookings this fiscal, nearly 20% higher than FY24.
Also Read: Stocks in news: Ultratech Cement, Adani Green, RIL, IDFC First Bank, Hindustan Zinc
Earlier this month, Macrotech reported a 21% rise in sale bookings during FY24 to a record Rs 17,630 crore, compared with Rs 14,520 crore in FY23. The company had earlier set a pre-sales guidance of Rs 17,500 crore for FY24.
On Thursday, Macrotech reported a 38% jump in consolidated net profit to Rs 921.7 crore for the March quarter, up from Rs 665.5 crore a year ago. Total income rose to Rs 4,420.3 crore in the quarter from Rs 4,083.9 crore in the year-ago period.
For the full fiscal year, total income grew to Rs 14,169.8 crore from Rs 10,469.5 crore in FY23.
Macrotech Developers has delivered around 100 million square feet of real estate so far and is currently developing over 110 million square feet under its ongoing and planned projects.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
