Macrotech Developers Q1 Results: Profit Falls As Covid-19 Second Wave Hits Sales
The developer’s net profit fell 48% quarter-on-quarter at Rs 160.91 crore in the quarter ended June
Macrotech Developers Ltd.’s quarterly profit and revenue fell amid lower sales as the deadlier second wave of the Covid-19 pandemic led to fresh curbs in several states, disrupting business.
The Mumbai-headquartered company’s net profit fell 48% quarter-on-quarter to Rs 160.9 crore in the quarter ended June, according to its exchange filing.
Revenue decreased 37% sequentially to Rs 1,605.4 crore.
Margin stood at 23.4% compared to 31.9% in the preceding quarter.
Operating profit fell 54% sequentially to Rs 375.7 crore.
The developer, however, pared its debt by Rs 3,641 crore during the three-month period. Last month, its promoters repaid Rs 1,596-crore debt owed by them to the company.
It has also executed four new joint development agreements in Maharashtra—western suburbs Mumbai MMR and eastern suburbs MMR in Mumbai; and Eastern Pune—amounting to 3.3 million square feet with estimated sales value of Rs 3,500 crore.
Abhishek Lodha, the company’s managing director and chief executive officer, said the company is on a “disciplined growth path” with expansion across the Mumbai Metropolitan Region and Pune. “We’re focused on housing and digital infrastructure (warehousing, data centres, and industrial parks) and both these asset classes are benefiting significantly from the macro trends in our economy.”
“We see digital infrastructure as a huge opportunity. Number of ongoing discussions around our digital infrastructure park at Palava Township (in MMR) strengthens our belief in this space,” Lodha said.
The company, he said, recently concluded a sale transaction for around 22 acres to Flyjac Logistics, a subsidiary of Hitachi Transport System Group. “We have been approached by number of long-term investors for strategic partnership to capture this opportunity in the country.”
He anticipates housing to be at the start of a multi-year bull run which will see growth in prices as well as volumes.
During the quarter, the company also brought down its interest cost. “Our average cost of debt has come down from 12.3% in March 2021 to 11.6% in June 2021 and will continue to follow the downward trajectory,” the company said in its filing.