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.

The Lodha brothers, Abhishek Lodha (Managing Director and CEO of Macrotech Developers Ltd) and Abhinandan Lodha, have amicably resolved their outstanding disputes, including a high-profile trademark infringement case, under the guidance of their parents. The settlement establishes clear brand ownership: Macrotech Developers will have exclusive rights to the “Lodha” and “Lodha Group” trademarks, while Abhinandan Lodha will retain exclusive rights to the “House of Abhinandan Lodha” (HoABL) brand.

The parties have agreed that there is no connection between the “Lodha Group” and “HoABL”, and both entities will communicate this distinction publicly. Abhinandan Lodha will have no rights or claims in Macrotech Developers or Abhishek’s other ventures, and vice versa. The resolution brings to a close a ₹5,000 crore trademark infringement suit filed in the Bombay High Court, where Macrotech Developers had accused HoABL of misusing the ‘Lodha’ brand.

Former Supreme Court judge Justice R.V. Raveendran served as the mediator in the case, which was referred to mediation by the court on January 31. The Bombay High Court had been hearing the matter since then. The resolution is a significant development in the long-standing dispute between the Lodha brothers, and brings an end to a contentious and high-stakes legal battle.

Macrotech Developers Ltd, a leading real estate developer operating under the ‘Lodha’ brand, has surpassed its pre-sales projections for 2024-25. The company announced that it has sold Rs 17,630 crore worth of properties in 2024-25, exceeding its guidance of Rs 17,500 crore and its previous year’s sales of Rs 14,520 crore. The company attributed this success to its “best-ever quarter” pre-sales of Rs 4,810 crore in the January-March quarter, which represents a 14% year-on-year growth.

Macrotech Developers has added 10 new projects with a gross development value of Rs 23,700 crore across Mumbai, Bengaluru, and Pune. Additionally, the company has expanded its digital infrastructure business by adding two new locations in the National Capital Region (NCR) and Chennai.

The company has also reduced its net debt to Rs 3,990 crore from Rs 4,320 crore in the previous quarter, thanks to strong collections. Macrotech Developers is one of the top-selling developers in India, along with Godrej Properties, DLF, and Prestige Group.

It’s worth noting that DLF, India’s largest real estate developer, has also surpassed its FY25 sales guidance of Rs 17,000 crore in the December quarter itself, with sales bookings of Rs 19,187 crore for the first nine months of FY25.

However, Macrotech Developers is currently embroiled in a legal battle with House of Abhinandan Lodha (HoABL), led by Abhinandan Lodha, who is the younger brother of Abhishek Lodha, the chairman of Macrotech Developers. The company has accused entities owned by HoABL of forging documents to gain access to the ‘Lodha’ brand name.