Macrotech Developers to invest Rs 3,500-4,000 crore this fiscal year in land acquisitions

Realty firm Macrotech Developers Ltd plans to invest Rs 3,500-4,000 crore this fiscal year to acquire new land parcels and enter joint development agreements for housing projects, capitalizing on the increasing demand for residential properties. Known for its Lodha brand, Macrotech Developers is a leading developer with a strong presence in the Mumbai Metropolitan Region (MMR) and Pune, and it has recently expanded into Bengaluru.

In a recent earnings call, Managing Director and CEO Abhishek Lodha disclosed the company's intention to allocate Rs 3,500-4,000 crore for new business development, focusing on land acquisition for future projects. The planned expenditure on new business development amounts to Rs 35-40 billion, with some funds allocated for previously acquired land. The company aims for a 60:40 mix of owned land to joint development agreements (JDAs).

Last fiscal year, Macrotech Developers added land parcels for housing projects with a potential sales value exceeding Rs 20,000 crore, surpassing their guidance of Rs 17,500 crore. The company saw a 20 percent increase in sale bookings to Rs 14,520 crore, with a target of 21 percent growth to Rs 17,500 crore this fiscal year. To achieve this, Macrotech Developers plans to launch 17 housing projects, covering 10 million square feet and a revenue potential of Rs 12,000 crore, across three cities. The company may increase its launch pipeline if more land is acquired.

Macrotech Developers is optimistic about the housing market and plans to invest over Rs 5,000 crore in project construction this fiscal year, aiming to deliver more than 10,000 apartments, up from around 8,200 units last year. Despite a recent 11 percent decline in consolidated net profit to Rs 665.5 crore in the March quarter, the company's total income grew to Rs 4,083.9 crore. For the 2023-24 fiscal year, Macrotech Developers reported a three-fold increase in profit to Rs 1,549.1 crore, with total in