Macrotech Developers Q4 Profit Up 39% to Rs 744 Crore; to Issue Bonus Shares in 1:1 Ratio
Key Highlights :
Macrotech Developers, one of India's leading real estate companies, reported a 39% increase in its consolidated net profit to Rs 744.36 crore for the quarter ending March 2022-23. The company has also announced the issue of bonus shares to shareholders in a ratio of 1:1.
The total income of Macrotech Developers for the quarter stood at Rs 3,271.71 crore, a decrease from Rs 3,481.92 crore in the corresponding period of the previous year. Net profit for the year ended March 2022-23 was Rs 486.63 crore, a decrease from Rs 1,202.37 crore in the previous year. This was attributed to a provision of Rs 1,177.39 crore for doubtful receivables/advances.
The company achieved pre-sales of Rs 12,064 crore for FY23, which was a 34% year-on-year growth and surpassed its annual guidance. Abhishek Lodha, MD & CEO of Macrotech Developers, said the growth journey of the Indian housing market was in the second year of a multi-year cycle. He also said the company was confident of achieving a 20% compound annual growth rate (CAGR) in pre-sales over the medium term.
Macrotech Developers has delivered around 94 million square feet of real estate and is currently developing around 105 million square feet under its ongoing and planned portfolio. The company has over 4,300 acre of land beyond its ongoing and planned portfolio.
The board of Macrotech Developers has approved the issue of bonus shares in the proportion of one new fully paid up equity share of Rs 10 each for every existing share of Rs 10 each held by members of the company on the record date. The company will seek shareholders’ approvals on bonus issue through postal ballot.
The recent monetary policy announcement by the Reserve Bank of India (RBI) of a pause on interest rate front should stimulate the economy, create more jobs and thereby boost housing, Lodha said. He added that the company was well positioned to capitalize on the industry consolidation and expand into under-represented micro-markets of Mumbai Metropolitan Region (MMR) and Pune.
Macrotech Developers' announcement of a 39% increase in its consolidated net profit and the issue of bonus shares in a 1:1 ratio is likely to be welcomed by shareholders and investors. The company's focus on capitalizing on industry consolidation and expanding into MMR and Pune is likely to help it achieve its goal of a 20% CAGR in pre-sales over the medium term.
