August18 , 2022

macrotech developers: Lodha Group to form alliances for Rs 15,000-crore development value projects in FY23

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Lodha Group, listed as , expects to enter into alliances to undertake joint development projects with a combined gross development value of Rs 15,000 crore in the current financial year 2022-23.

Of this, the company has already entered into three such partnerships in the June quarter to jointly develop projects spread over 5.1 million sq. ft. feet area with a gross development value of nearly Rs 6,200 crores.

“On the back of strong attractiveness of our brand to land owners and therefore a robust pipeline of JDAs, we expect to add new projects with a combined GDV of around Rs 15,000 crores in FY23,” said Abhishek Lodha, MD & CEO, Macrotech Developers.

Macrotech Developers, has reported 190% on-year growth in net profit adjusted for forex for the quarter ended June at Rs 355 crore on the back of 194% rise in pre-sales at Rs 2,814 crores.

The developer has recorded a 53% rise in collections at Rs 2,616 crore with 67% increase in revenue from operations at Rs 2,676 crores.

“This was our best first quarter with Rs 2,814 crores of pre-sales from our India business. With this strong start to the financial year, we are pleased that 75% of the sales growth that we had forecasted for this year has already been delivered. We are carefully monitoring the impact of inflation and rising interest rates but have not yet seen any impact on housing demand from quality developers,” Lodha said.

Over the medium and long-term, driven by good wage growth, increase in the relevance of housing to the family after Covid, and consolidation of supply with high-credibility developers, Lodha believes that the housing industry in India is in a structural upcycle.

During the quarter, the company has continued to see robust reduction in debt of around Rs 450 crores to Rs 8,856 crores. With this continued momentum in debt reduction, its average cost of funds has declined to 10.1% at end of June from 10.5% at end of the previous quarter, in spite of the broader increase in interest rates.

The company has taken two new initiatives in June quarter including its foray into the Bangalore property market which, according to Lodha, enables the developer to cover two-third of the housing demand by value in the top 7 Indian cities.

It has also formed a platform with Bain Capital and Ivanhoe Cambridge to create green digital infrastructure including logistics and industrial parks across India. This platform will invest $1 billion to set up 30 million sq ft of warehousing and industrial parks. Lodha expects both initiatives to contribute to growth from 2023-24.

The company’s London investments continue to be on track towards repatriation of investment starting this financial year helping strengthen the cash flows of the Indian business.

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