Macrotech Developers Q4 profit down 11% at ₹665.5 cr
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Hitachi Energy is looking to open more global capability centers in India to expand local operations, amid growing energy demand and a push to scale up renewable energy generation in the country.
Zurich-based Hitachi Energy, which makes transformers and large-scale power transmitters, operates a GCC in the country, where high power demand has led to the government ramping up generation, including in renewable energy.
“We are looking at Hyderabad for our GCC... and also looking at Pune. It might take six months to one year,” said Venu Nuguri, the managing director and CEO of the company’s India unit. The center could be in either or both cities depending on the demand, he said.
The new GCC—a low-cost, offshore facility—will work alongside Hitachi Energy India, but will be part of a separate non-listed Indian entity of Hitachi Energy in Switzerland, Nuguri said.
India’s government last year rolled out incentives for green energy transition, with an aim to have 500 GW of installed capacity through non-fossil fuel sources by 2030.
India’s power consumption grew 8% in fiscal year 2023. The International Energy Agency estimates that India will add electricity demand roughly equivalent to the current consumption of the United Kingdom over the next three years. “To meet the projected demand, market needs to generate at least 3-4 times than what is being done. And accordingly, our order book will also grow two or three times, higher than market growth,” Nuguri said.
Realty firm Macrotech Developers Ltd on Wednesday reported an 11% decline in consolidated net profit at ₹665.5 crore in the March quarter.
However, for the full fiscal year, the company registered a threefold jump in profit to ₹1,549.1 crore.
Macrotech’s net profit stood at ₹744.4 crore in the fourth quarter of 2022-23 and ₹486.7 crore for the full fiscal year.
The company’s total income grew to ₹4,083.9 crore in the quarter under review from ₹3,271.7 crore in the year-ago period, the company said in a regulatory filing.
During 2023-24, the company’s total income rose to ₹10,469.5 crore from ₹9,611.2 crore in the 2022-23 fiscal.
Macrotech is one of the leading real estate firms in the country. The company markets its properties under Lodha brand.
Abhishek Lodha, Macrotech Developers’ managing director (MD) and chief executive officer (CEO), said, “Our best ever quarterly and annual performance showcases the buoyancy in demand for high quality homes in India from branded developers.”
Driven by the strength of its brand, Lodha said the company delivered pre-sales of ₹14,500 crore for FY24, thus meeting its guidance of delivering consistent and predictable 20% growth.
“We are pleased to note that we have achieved our guidance of reducing our net debt well below 0.5x of equity.
“Robust operating cash flows and our capital raise led to net debt coming down by over ₹4,000 crore during the year to ₹3,000 crore which is less than 0.2x of equity,” Lodha said.
The company has also added new projects of over ₹20,000 crore during the last fiscal year.
“This makes us unique housing company to achieve the troika of significant presales growth, robust business development, along with significant debt reduction showcasing our brand strength and operational prowess,” Lodha said.
The company’s enhanced financial strength will provide an opportunity to accelerate margin as well as top line growth as the capital is invested over the next 6-12 months, he said.