Macrotech Developers, a leading real estate company, has reported a significant reduction in its net debt by 7% in the March quarter, bringing it down to nearly Rs 4,000 crore. This decrease in debt is attributed to the company’s improved sales performance during the quarter.
The company’s net debt stood at Rs 4,294 crore as of March 31, 2023, which is a reduction from Rs 4,623 crore in the previous quarter. This decrease in debt is a result of the company’s focus on reducing its debt burden through improved sales and cash flows.
Macrotech Developers, which operates under the Lodha brand, has been working towards reducing its debt over the past few years. The company has been focusing on executing its existing projects, improving sales, and generating cash flows to reduce its debt. The reduction in debt is expected to have a positive impact on the company’s financial performance and credit profile.
The company’s sales performance has been improving over the past few quarters, with a significant increase in sales bookings. The company’s sales bookings stood at Rs 2,705 crore in the March quarter, which is a growth of 22% year-on-year. The company’s sales performance has been driven by the demand for its projects in the affordable and mid-income housing segments.
The reduction in debt and improvement in sales performance are expected to have a positive impact on the company’s financial performance. The company’s EBITDA (earnings before interest, tax, depreciation, and amortization) margins are expected to improve, driven by the reduction in debt and improvement in sales. The company’s net profit is also expected to improve, driven by the reduction in interest costs and improvement in sales.
Overall, Macrotech Developers’ reduction in net debt by 7% in the March quarter is a positive development for the company. The company’s focus on reducing its debt and improving its sales performance is expected to have a positive impact on its financial performance and credit profile. The company’s improved sales performance and reduction in debt are expected to make it more competitive in the market and improve its ability to execute its projects.
The real estate sector has been facing challenges in recent times, including a slowdown in demand and a liquidity crunch. However, Macrotech Developers’ performance suggests that the company is well-positioned to navigate these challenges and take advantage of the opportunities in the market. The company’s focus on affordable and mid-income housing is expected to drive its sales performance, and its reduction in debt is expected to improve its financial performance.