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Macrotech Developers Ltd reported a good set of numbers for Q1FY22

Macrotech Developers Ltd (Lodha) reported pre-sales growth of 88% YoY. The company reported pre-sales of ₹957 Crores as against ₹509 crores in Q1FY21. Despite state-wise lockdown due to 2nd covid wave. April & May months were very weak for the company and June month demand saw demand picking up with reduction in covid restrictions. Collections were also strong in Q1FY22, up by 346% YoY at ₹1714 crores but down by 18% QoQ as Q1FY21 was a low base quarter. The company has reduced its debt by ₹3600 crores in Q1FY21 from the proceeds of the IPO. In Q1FY21 company has entered into 2 new JV projects with a sellable area of 1.5 msf. Overall, the company reported a good set of numbers in Q1FY22 on YoY basis but was not able to cross the pre-sales of Q4FY21 due to state-wise lockdown in various cities. We expect the company to perform well in Q2FY22 with the easing of lockdown by various states. We have a Neutral view on Lodha Limited.

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