Macrotech Developers recorded a total pre-sales of Rs 4,518 crore where India pre-sales stood at Rs 2,608 crore, rising 40% Y-o-Y (year-on-year) and UK pre-sales was at GBP 191 million (or Rs 1,910 crore) in Q3 FY22 over Q3 FY21. Collections jumped 44% at Rs 2,127 crore in Q3 FY22 from Q3 FY21. Adjusted EBITDA stood at Rs 698 crore, rising 55% Y-o-Y in Q3 FY22. Strong Adjusted EBITDA margin was at 34% while PAT margin stood at 13% during the quarter.

Commenting on the Q3 FY22 performance, Abhishek Lodha, the managing director (MD) and chief executive officer (CEO) of Macrotech Developers, said, "Housing market has seen a remarkable turnaround in last 12 months. The fact that this strong performance comes on the back of an equally strong base of the previous quarter as well as the same quarter in FY21 showcases that the recovery in housing market has taken root and the multi-year up-cycle in housing market is well underway. We are witnessing strong demand across our portfolio and at all price points."

"On the supply side, consolidation is accelerating at a great pace creating a goldilocks situation for strong brands like us. The accelerating consolidation in the market has presented to us several lucrative opportunities to add new projects across MMR & Pune through the capital light JDA route. To capture these opportunities, the company successfully completed its maiden QIP offering and raised equity of Rs 4,000 crore from marquee global and Indian institutional investors. During the quarter, the company signed on 6 more JDAs for 4.8 million square feet with Rs 10,000 crore GDV. Since our IPO (April 21), we have now added 11 JDA project totaling for 8.8 million square feet with GDV potential of Rs 14,600 crore, which gives us significant visibility of future growth. We are focused on this capital light growth model - delivering scale with a prudent balance sheet. Strong operating performance and robust free cash flow will enable us to continue our de-leveraging journey."

"Our UK business continues to perform ahead of expectations and we are pleased that the $225 million bond will be pre-paid in the near future from the sales at our One Grosvenor Square development, well ahead of the bond maturity. While COVID-19 has affected India in January, it is heartening to note that the wave seems to be subsiding and global experts are envisaging that COVID-19, while endemic, is likely to become far less disruptive. If this plays out, we expect housing demand to further strengthen during the course of the next 12 months on the back of strength in the Indian economy and supportive government policies for housing," he added.

During the quarter, the net debt for the India business came down to Rs 9,896 crore, achieving the full year guidance for FY22. The company also was able to bring down interest costs. The average cost of debt has come down to 11.1% in December 2021 from 12.3% in March 2021 and is expected to continue to follow the downward trajectory. During the quarter, the company received a significant endorsement to its ESG practices.

Meanwhile, the board has considered and approved the scheme of merger by absorption of Roselabs Finance (RFL), National Standard (India) (NSIL) and Sanathnagar Enterprises (SEL) (RFL, NSIL and SEL together 'Transferor Companies') with Macrotech Developers (Transferee Company) and their respective shareholders. Macrotech Developers (MDL) held 74.25%, 72.70% and 73.94% of these 3 listed entities respectively.

As a part of its focus on ESG, MDL has been working on simplifying its corporate structure in order to improve transparency for all its stakeholders. Towards this end, MDL has proposed merger of nine unlisted wholly owned subsidiaries in December 2021 and has now proposed merger of three listed subsidiaries.

The market capitalization of National Standard (India) (NSIL) was at Rs 100 crore prior to COVID-19. It has run up to Rs 20,000 crore now with infrequent trading. The book value of NSIL currently stands at Rs 225 crore.

Furthermore, the total new equity proposed to be issued by MDL will be 0.1% of its overall equity base. Hence, these mergers will have no material impact on MDL's shareholders. As part of the process, the mergers will proceed only after approval of the majority of the minority shareholders of these three companies which are proposed to be merged.

Shares of Macrotech Developers declined 3.04% to Rs 1,244.50 on BSE. Lodha Group is among the largest real estate developer in India that delivers with scale since 1980s. Core business of Lodha Group is residential real estate development with a focus on affordable and mid-income housing.