Lodha Developers plans to grow annuity income by 10 times to Rs 3,000 cr

Lodha Developers is looking to grow its annuity income by 10x to over Rs 3,000 crore over next 6 years led by its data center, retail, warehousing and select offices developments, said a top company executive.

Of this, key contribution will come from the company’s plan to develop 1 GW of data center on built-to-suit basis (BTS) at Palava near Mumbai over 100 acres, generating sizeable rental income.

The company plans to invest Rs 13,000-15,000 crore, excluding land costs, in the data centre business. To support this investment, it will monetise Palava land parcels that can accommodate up to 2 GW of data centre capacity.


The developer recently entered into a Memorandum of Understanding with the government of Maharashtra to set up a Green Data Centre Park in Palava spread across 400 acres.

The listed developer has reported 24% on-year rise in net profit of Rs 3,431 crore for the quarter ended March. Total revenue for the year grew 21% to Rs 16,680 crore supported by its best ever quarterly and annual pre-sales performance.

For the fourth quarter, the listed company posted net profit of Rs 1,010 crore, up 9% from a year ago. Total revenue for the quarter increased 12% year-on-year to Rs 4,710 crore.

“This performance has come through despite multiple geopolitical headwinds in the last 12 months... This is the first time that we have achieved more than Rs 20,000 crores of pre-sales for the year and yet, our market share is only 3.5% (in value terms) out of the primary housing sales in the top 6 cities in India, indicating long growth runway ahead,” said Abhishek Lodha, MD & CEO, Lodha Developers.

The developer reduced its net debt by Rs 800 crore to Rs 5,377 crore on the back of rising collections and operational efficiencies, the company said in a regulatory filing.

The company’s net margin for the year stood at 20.0% as against 19.5% in previous year, touching 20% for the first time.

During the year, Lodha added 12 projects with a gross development value (GDV) of Rs 60,000 crores across Mumbai region, Pune, Bengaluru and NCR. This is 2.4 times of its annual guidance.

The company has a total GDV amounting to Rs 2,00,000 crores available for sale, excluding land bank in townships which will be used beyond the next 5 years. It expects to reduce business development investments over the next 24 months and enhance free cash flow.