Why did Macrotech of the Lodha Group rally so sharply on 08 July?

Macrotech Developers of the Lodha Group, has reported 88% higher bookings for the quarter ended Jun-21. The bookings for the period stood at Rs.957 crore despite the pandemic related risks that were already quite elevated in the quarter. More importantly, the collections in the Jun-21 quarter improved by almost 4.5 times at Rs.1,714 crore.

In FY21, the sales bookings had fallen sharply from Rs.6,570 crore to Rs.5,968 crore, due to COVID 2.0 related pressures. However, markets were also impressed by the fact that as promised in the IPO prospectus, Macrotech had actually reduced its debt by Rs.3,600 crore. Macrotech targets to reduce the net debt to Rs.10,000 crore by end of current fiscal.