Realty company Macrotech Developers announced Q1FY24 results: Best Q1 pre-sales of Rs 33.5 billion (+17% YoY) Adds 5 projects with Rs ~120 billion GDV Robust embedded EBITDA Margin of ~30% Became part of the prestigious FTSE4Good Index Series Pre-sales: Rs 33.5 billion (+17% YoY) Embedded EBITDA Margins on Pre-sales: ~30% Revenues from ops.: Rs 16.2 billion Adjusted EBITDA: Rs 4.6 billion PAT: Rs 1.8 billion Commenting on the performance, Abhishek Lodha, MD & CEO, Microtech Developers said, “It is heartening to note that Q1FY24 has turned out to be our best 1st quarter pre-sales performance. Our pre-sales for the quarter at Rs 33.5 billion grew by 17%. Our ‘for-sale’ business has shown a stupendous growth of 30%. This reinforces our belief in the sustainable nature of the strong housing demand. With the likelihood of a downward journey of interest rates in the next few quarters after witnessing a pause by the RBI, we see momentum for housing continuing to strengthen. Robust job creation led by PLI schemes and strong growth of GCCs could offset short-term concerns originating in other parts of the economy. Combined with good affordability and mortgage availability, this housing cycle in India has the potential to continue for more than a decade in our view. Our strong start and industry tailwind have positioned us extremely well on our path to achieving our pre-sales guidance for the year. Strong demand conditions, improving seasonality, along with forthcoming launches at multiple new locations will lead to continuing momentum for our business in FY24. We have a burgeoning pipeline of business development opportunities on the back of our strong brand and proven ability to quickly monetize any land asset making landowners prefer Lodha. We added five new projects with GDV potential of Rs ~120 billion in Q1FY24. The new projects include projects in the Western Suburbs of MMR, Bengaluru, and Alibaug. Offering at a super-prime location in Alibaug, a market that is starved of tier-1 brands, will not only serve the primary demand from MMR but will also enable us to tap the 2nd home segment. This location is well connected to MMR including through the waterway and is a dream destination for MMR residents. Having proven strength in creating destinations at several locations in the past, this too will provide a significant fillip to our brand, diversity in offerings, and thereby growth. Our net debt has increased marginally, primarily on account of front-loaded business development investment. We remain on the path to achieving our full-year guidance of reduction of net debt to a lower of 0.5x equity and 1x Operating Cash flow, with significant debt reduction to be seen in H2. It is pleasing to note that, continuing strengthening of the balance sheet has led to further credit rating (or outlook) upgrades for us - by ICRA to A+/ Positive and by India Ratings to A+/ Stable. Our average cost of funds continues to trend down despite rising policy rates and was at ~9.65% (down 15bps for the quarter).” Result PDF