The demand for ready-to-move-in residential houses is strong and the property prices are expected to increase by 4-5 percent going ahead, said Prashant Bindal, chief sales officer (CSO), Macrotech Developers (formerly known as Lodha Developers).
Speaking to CNBC-TV18, Bindal also discussed the demand trend and expansion plan of the company.
“If salary increases close to 7-8 percent in the organised sector, then we believe that 4-5 percent price increase in real estate prices is absolutely doable. Our idea is to increase the prices twice, we did once in April and another post-Dhanteras, immediately after the festive season. A modest price increase of 2-3 percent every six months can be done,” Bindal said.
According to him, the demand for housing and ready-to-move inventory is robust.
“The demand for ready-to-move-in and near-to-ready-to-move in housing is very high. And that gives us a lot of confidence because we have close to Rs 4,000 crore worth of inventory that is ready to move in and a lot of it has moved out in the course of the last eight months and we have another Rs 12,000 crore of inventory which is in a very advanced stage of construction,” said Bindal.
He further said that the company will cross the 4-digit number in bookings in the festive season.
On debt, Bindal said, “We should have less than Rs 10,000 crore debt at the end of the year. There is a certain gap between the sale and the cash flow, so by the end of the year, we should be at those numbers which we have committed and also the cost of borrowing came down from 12.3 percent to 11.6 percent. Therefore, as the debt comes down below Rs 10,000 crore the cost of borrowing will also come down.”
Meanwhile, Brickwork Ratings has revised the credit ratings of Macrotech Developers upwards.
The stock price of Macrotech Developers has doubled since its listing in April 2021. At 1:50 pm, the share price was trading 1.42 percent higher at Rs 904.45 apiece on the BSE.
For the entire management interview, watch the video