Macrotech Developers Ltd Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Pritesh Sheth - Axis Capital - Analyst : Yeah. Thank you for the opportunity and congrats on great results. First is on the demand itself since Abhishek, you highlighted about some slowness in terms of macro. I mean, how are you seeing the trends in the residential market, while obviously, I think this quarter number was good. But if you break it down on a monthly trend, anything to note there? And particularly now July -- sorry, now with January also almost at the end, are you seeing some signs of any slowness in terms of inquiries, conversions, et cetera, if you can highlight? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 27, 2025 / 7:30AM, MACE.NS - Q3 2025 Macrotech Developers Ltd Earnings Call

Question: Pritesh Sheth - Axis Capital - Analyst : Yeah. Thank you. Interesting. Thanks for that insight. Second question is on the land transactions that we have been doing since last couple of quarters, both going to data centers, operators. In general, through your conversation, have you come across what kind of capacity that they are looking to build in whatever like 40, 45 acres or 20, 25 acres, they are -- they are undertaking from us? And from the scope perspective, how big this data center AI opportunity can be for us so as to get a good value of our land parcel that we own in Palava, Upper Thane? Yeah.

Question: Pritesh Sheth - Axis Capital - Analyst : Got it. Very helpful again. And just lastly, just trying to get a sense on the mix of business development that we have done this year. So almost INR19,000 crore, INR20,000 crore of GDV that we have added, what would be our share of revenue in that? I mean, just to get a sense of mix, I know, I mean, from a margin perspective, how we should look at, but just getting a sense in terms of mix.

Question: Pritesh Sheth - Axis Capital - Analyst : Sure, sure, got it. Thanks for that and all the best.

Question: Murtuza Arsiwalla - Kotak Securities - Analyst : Abhishek, sorry, but one more question on Palava. I know the previous two participants have also asked on Palava. But Palava is a large 4,000 acre sort of land development. And we've done well so far in terms of how things are shaping up. But do you have a larger -- can you outline a larger sort of vision in terms of a master layout plan, a timing in terms of how soon this 4,000 acres or it's still stage wise as you sort of progress you can see what to do with the residual land? Or is there -- are you at a stage where you can see how much of this is fully developed and a timeline that you could potentially put to it? Or it's still going to happen in phase wise manner?

Question: Murtuza Arsiwalla - Kotak Securities - Analyst : And just in terms of more near term, the infrastructure development of Palava, which is again important for the sort of evolution of Palava, any color you can give -- the Airoli-Katai Naka I think is the first of research infrastructure projects. So in the near term, which are the key sort of infrastructure developments and what stage they are at so that we get better sort of visibility?

Question: Murtuza Arsiwalla - Kotak Securities - Analyst : Fantastic. Thank you so much, sir.

Question: Parvez Qazi - Nuvama Group - Analyst : Hi, good afternoon and thanks for taking my question. And congratulations for the great set of numbers. So my question is regarding the shift in our strategy towards slightly higher in the segment. I think in the previous quarter con call you had alluded that may be going ahead, we will progressively move towards having 50% of our sales coming from the slightly higher end segment. Now I mean, in economy or in real estate, we do talk about the K-shaped curve, which is happening in India. Now real estate, considering it's a long gestation business, how confident we are that this kind of strategy will work over the next four to five years, particularly when we are taking into account the business development that we are doing?

Question: Parvez Qazi - Nuvama Group - Analyst : Sure. Thanks and all the best.

Question: Abhinav Sinha - Jefferies - Analyst : Hi. Just wanted to check on Palava. It seems that if we take out the data center transaction, we still have seen a good jump in sales on a QoQ basis. Now how much of this is driven by the premium launches?

Question: Abhinav Sinha - Jefferies - Analyst : And what is the pricing at the upper end here versus the standard product?

Question: Abhinav Sinha - Jefferies - Analyst : Okay. Secondly, on the cash flow front, so we had a good quarter in 3Q, and I'm assuming roughly similar, we should see in 4Q. But broadly, on the gearing side, where do you see the net gearing currently -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 27, 2025 / 7:30AM, MACE.NS - Q3 2025 Macrotech Developers Ltd Earnings Call

Question: Abhinav Sinha - Jefferies - Analyst : Sorry. I will just complete my question then. So in context of the good cash flow that we are seeing, where do you see the gearing level settling by, say, March '25 and even if you can provide some heads-up for March '26?

Question: Abhinav Sinha - Jefferies - Analyst : Okay. And sir, finally, referring to the launch slide, which is slide number 9. Can you provide some clarity to the launches that we are expecting in maybe the Southern and Central micro market and the Eastern one?

Question: Abhinav Sinha - Jefferies - Analyst : Okay, great. Thanks and all the best.

Question: Puneet Gulati - HSBC - Analyst : Yeah, thank you so much and congrats on great numbers. My first question is we've seen a nice healthy pickup in the collections without the increase in construction cost. Can you give some sense on whether the collection would continue? Or is there some large amount which got recorded in this quarter? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 27, 2025 / 7:30AM, MACE.NS - Q3 2025 Macrotech Developers Ltd Earnings Call

Question: Puneet Gulati - HSBC - Analyst : Right. And in terms of newer markets, so you've got Pune and Bangalore both out of the experiment stage. And are you evaluating any other market beyond these?

Question: Puneet Gulati - HSBC - Analyst : Can you talk about which are these markets?

Question: Puneet Gulati - HSBC - Analyst : Okay. Great. And lastly, if you can give a number for gross cash and how much of this cash is locked in their account?

Question: Puneet Gulati - HSBC - Analyst : And how much of it is RERA cash?

Question: Puneet Gulati - HSBC - Analyst : Okay. That's all from my side. Thank you so much and all the best.