Macrotech Developers aims to be debt-free company by FY24

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New Delhi: Realty firm Macrotech Developers is targeting to bring down its net debt to zero over the next three years from the current borrowing level of around Rs 16,000 crore, as it remains bullish on housing and warehousing segments despite the Covid-19 pandemic.

Mumbai-based Macrotech Developer, earlier known as Lodha Developers, is one of the leading real estate firms in the country. It got listed on the stock exchanges last month after a successful launch of its Rs 2,500-crore initial public offering (IPO).

In an interview with PTI, the company’s Managing Director and Chief Executive Officer Abhishek Lodha said the company’s debt stood at around Rs 16,000 crore at the end of the financial year 2020-21.

“Our net debt will come down to Rs 12,000 crore level at the end of this April-June quarter with the help of the IPO proceeds and infusion of funds by promoters,” he told PTI.

Lodha said the company’s net debt will fall significantly during this fiscal year on strong operating cash flow. “Our aim is to become debt free by 2023-24 fiscal,” he said.

Lodha said the company’s sales bookings and collections from homebuyers remained strong in 2020-21 fiscal despite the health pandemic. “We believe that for FY22, we will do Rs 9,000 crore or upward of sales,” he said.

Macrotech Developers, which has a major presence in Mumbai Metropolitan Region and Pune, sold properties worth Rs 5,968 crore during the financial year 2020-21 as against Rs 6,570 crore in the previous year.

Out of the total sales bookings achiever in FY21, he said the housing segment, primarly affordable and mid-income, contributed around 90%, while warehousing accounted for the remaining 10%.

On the outlook for the current quarter and the entire fiscal year, Lodha said, “We believe that the first two months will have an impact of the second wave of Covid-19.” “But, all the positivity we are seeing on the ground makes us very confident that like last year as soon as the market reopens housing demand will catch up,” he said.

Lodha said he does not foresee any significant impact on the full-year performance. On expansion to new property markets, Lodha said the company would continue to focus on MMR and Pune over the next few years.

To speed up the pace of construction, Lodha said the company will double its investment on construction to Rs 2,800 crore in this fiscal. The company’s construction spend stood at around Rs 1,400 crore during the last fiscal year. It delivered 2.7 million sq ft area last fiscal year as against 15.7 million sq ft in 2019-20.