Property 07/11/2023 0 Comments

Mumbai air pollution: Supply chain issues may crop up if heavy vehicles are banned from entering city, says Macrotech Developers


Mumbai air pollution: Supply chain issues may crop up if heavy vehicles are banned from entering city, says Macrotech Developers

Mumbai air quality: Macrotech Developers said that it is largely compliant with the BMC’s air pollution guidelines.

Given the rising levels of air pollution in Mumbai, Macrotech Developers has warned that if heavy vehicle movement within the city is discontinued in an attempt to reduce pollution, specific supply chain problems could arise. “There is a downside risk, but there is no impact on our construction schedule or spend,” stated Rajib Das, president of the listed real estate company that goes by the Lodha brand in the Eastern Suburbs and Navi Mumbai. During the company’s Q2FY24 results conference call, he was speaking.

After the country’s financial center’s air quality deteriorated, the Brihanmumbai Municipal Corporation (BMC), Mumbai’s civic body, released anti-pollution recommendations in October.

Furthermore, a campaign to prosecute people accountable for pollution during building and demolition activities has been launched by the BMC. The BMC announced on November 5 that fines from violators over the course of three days, from November 3 to November 5, were Rs 4.71 lakh.

How real estate has been impacted

According to Macrotech Developers, it complies with the BMC requirements for the most part. “I would argue that we mostly comply with them. .. However, if they stop heavy vehicle mobility within the city to address pollution-related issues, there’s a chance that certain supply chain problems would arise, Das added.

Das made it clear that this would depend on if the air quality was deemed bad.

“At this stage, I would say there is no impact on our construction schedule or spend, but there is a downside risk in case the air quality crosses the threshold that has been stated to be severe,” Das noted.

Also read: Mumbai air quality: BMC issues pollution control guidelines to 6k construction sites

Environmental, Social, and Governance achievement

Abhishek Lodha, Managing Director of Macrotech Developers, expressed during the call that the company is now proud of its position as the top-ranked real estate company in Asia and the second-ranked company globally on reputable ESG indices.

“As we look at the concerns around climate change and more specifically in our major cities around air quality and pollution, this shows that it is very much possible in India to operate at the highest standards of ESG and still continue to deliver long-term sustainable growth,” Lodha said on the conference call.

Global concerns over Middle East conflict 

Despite the ongoing unrest around the world, particularly in the Middle East, India’s economy is growing steadily during what is obviously a very unstable time, according to Lodha. “After some initial worries, we had a very good monsoon, and reports suggest that food output is at record levels. As a result, food inflation is beginning to decline, and this trend is probably going to continue, according to Lodha.

Q2FY24 performance  

According to the corporation, it earned its highest pre-sales ever in the second quarter of the current financial year, which is also typically the weakest part of the year, at roughly Rs 35.3 billion.

Also read: Anant Raj Limited expects to rake in Rs 4,000 crore from four projects For commercial space

Strong cash flows resulted from it, and we reduced our net debt to Rs 67.3 billion from Rs 5.4 billion. On an underlying pre-sales basis, our adjusted EBITDA margin for the quarter was at almost 30 percent, which once again demonstrated the company’s solid ongoing profitability,” Lodha continued.