Property sales: House of Abhinandan Lodha aims over 30 pc growth

We have launched more than 6,000 plots in the last three years and we plan to launch more than 2,000 plots by the end of this calendar year - Abhinandan Lodha, Chairman, House of Abhinandan Lodha

Mumbai: Realty firm The House of Abhinandan Lodha, which is into development of residential plots, reported a 3-fold jump in sales bookings last financial year to Rs 1,800 crore and is targeting at least a 30 per cent growth in 2024-25, amid strong consumer demand.

Mumbai-based The House of Abhinandan Lodha, which was formed in 2021, has already launched nearly 10 plotted development projects covering 650 acres in Maharashtra, Goa, and Ayodhya in Uttar Pradesh. The company has sold plots in a price range of Rs 10 lakh to Rs 15 crore, depending on the location.

The company's Chairman Abhinandan Lodha noted that the demand for housing plots has been very strong post-Covid pandemic. Asked about operational performances, he said, "In the last fiscal, we did close to Rs 1,800 crore of sales bookings as against around Rs 570 crore in the 2022-23 fiscal. We expect our sales to continue to grow at 30 per cent or more in the current fiscal."

Lodha said the company's profit at EBIDTA (earning before interest, depreciation, tax and amortisation) level stood at more than 40 per cent and "we hope to maintain that kind of profitability." He noted that the plotted development is a "high-risk" business because of the cumbersome process of aggregating land parcels. "We have identified 48 locations across the country. We have put up a local team in place in many of these cities. We end up buying land directly from farmers," Lodha said, adding that the company launches a project after making land contiguous, getting land transferred in the company's name and securing all government approvals. "These are time consuming. For example, we started buying land in Ayodhya three years ago and we were able to launch plots in January 2024," he said. Asked about allegations of forcibly buying land from Ayodhya farmers, Lodha said, "I don't think these allegations really merit response. We bought land in Ayodhya from more than 1,400 farmers and we do not have single complaints from farmers." He said the company paid 3-5 times more rate to farmers than the prevailing market price in Ayodhya. On future investment plans, Lodha said the company will invest Rs 1,800 crore this fiscal year on purchase of land and construction of projects. "The total capital expenditure outlay for 2024-25 fiscal is around Rs 1,800 crore of which Rs 550 crore will be on construction and the remaining on land buying." He said the company is net debt free and would meet this capex from internal accruals.

Elaborating on the expansion plan, Lodha said, "We have launched more than 6,000 plots in the last three years and we plan to launch more than 2,000 plots by the end of this calendar year." The House of Abhinandan Lodha will soon launch housing plots in cities like Amritsar, Varanasi and Shimla. Lodha said the company's journey has been "quite tremendous" over the past three years with the launch of around 650 acres of housing plots and delivery of 150 acres.

"We started this company in April 2021. Our first development was spread over 100 acre at Dapoli in Maharashtra. We are a technology-based company and market our properties online across the world. Hardly any customer visits our sites before buying." Many celebrities, including Amitabh Bachchan, have bought plots in its projects, he said, adding that the company's projects get completely sold out within weeks of launch.

"Land in India held properly with clear possession, clear title and clear goals for a long period of time is the best bet," Lodha said, and emphasised that promoting land as an asset class has been an underlying theme of his company.

Lodha said the company has delivered two projects so far. Its first project at Dapoli and also one 18-acre development in Goa have been handed over to customers. More projects will get delivered by the end of this calendar year. The House of Abhinandan Lodha is part of Lodha Ventures, which was established by Abhinandan after quitting Macrotech Developers (erstwhile Lodha Developers).