Whalesbook
Lodha's Ambitious Data Center Plans
Lodha Developers plans to more than tenfold its annuity income, aiming for over ₹3,000 crore within six years. A key part of this aggressive growth strategy is developing a large 1 GW data center on a built-to-suit basis in Palava, near Mumbai. This venture, covering over 100 acres, is expected to significantly contribute to recurring rental revenue.
₹15,000 Crore Data Center Investment
The real estate giant plans to invest between ₹13,000 crore and ₹15,000 crore in its data center business, excluding land costs. Lodha aims to fund this expansion by selling some Palava land parcels, which could host up to 2 GW of data center capacity. The developer recently signed a memorandum of understanding with the Maharashtra government to build a large green data center park in Palava on 400 acres.
Strong Financials Fuel Expansion
These strategic plans are supported by strong financial results. For the March quarter, Macrotech Developers Ltd. (Lodha Developers) reported a 24% year-on-year rise in net profit to ₹3,431 crore. Full-year revenue climbed 21% to ₹16,680 crore, driven by record pre-sales performance. The company achieved its highest annual pre-sales, surpassing ₹20,000 crore. Despite this, its market share in India's top six cities is about 3.5%, suggesting significant growth potential.
Debt Reduction and Margin Gains
Lodha Developers also strengthened its financial position by cutting net debt by ₹800 crore, lowering the total to ₹5,377 crore. This was achieved through better collections and operational efficiencies. The company's net margin for the year reached 20.0%, its highest ever and an increase from 19.5% the previous year.