Lodha Developers Aims for ₹3000 Crore Annuity Income with 1 GW Data Centre at Palava
Lodha Developers, a leading real estate developer in India, is looking to significantly boost its annuity income over the next six years. The company aims to grow its annuity income by 10 times to over ₹3,000 crore, driven by strategic developments in data centres, retail, warehousing, and select office spaces. A top executive of the company outlined these ambitious plans, which include a major focus on the development of a 1 GW data centre at Palava, near Mumbai.
The 1 GW data centre will be developed on a built-to-suit basis (BTS) over 100 acres, generating substantial rental income. The company plans to invest ₹13,000-15,000 crore, excluding land costs, in this data centre business. To support this investment, Lodha Developers will monetize land parcels in Palava that can accommodate up to 2 GW of data centre capacity. The developer recently signed a memorandum of understanding (MoU) with the government of Maharashtra to set up a green data centre park in Palava, spanning 400 acres.
Lodha Developers has reported strong financial performance in the recent quarter, with a 24% year-on-year rise in net profit to ₹3,431 crore for the quarter ended March. Total revenue for the year grew by 21% to ₹16,680 crore, driven by its best quarterly and annual pre-sales performance. For the fourth quarter, the company posted a net profit of ₹1,010 crore, up 9% from the previous year. Total revenue grew 12% year-on-year to ₹4,710 crore.
Abhishek Lodha, Managing Director of Lodha Developers, highlighted the company's achievements despite multiple geopolitical headwinds in the past 12 months. '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 ₹20,000 crore of pre-sales for the year, and yet, our market share is only 3.5% (in value terms) out of primary housing sales in the top six cities in India, indicating a long growth runway,' he said.
The company has also made significant strides in reducing its net debt, which was reduced by ₹800 crore to ₹5,377 crore, thanks to rising collections and operational efficiencies. The company's net margin for the year stood at 20.0%, compared to 19.5% in the previous year, marking the first time it has reached 20%.
Lodha Developers' strategic focus on diversification and sustainable growth is evident in its plans to develop the 1 GW data centre at Palava. This project not only aligns with the growing demand for data centre infrastructure in India but also positions the company to capitalize on the lucrative annuity income stream. With a strong financial foundation and a clear vision, Lodha Developers is well poised to achieve its ambitious goals and continue its leadership in the real estate sector.
