Kolte-Patil Developers reports robust growth in Q2 FY24 despite macro uncertainties

Pune-based real estate developer Kolte-Patil Developers Ltd (KPDL) has reported strong operational and financial performance in the second quarter of FY 2023-24 (Q2 FY24), with healthy growth in new sales, collections and revenues compared to the same period last year.

In its earnings release, KPDL said it achieved new sales of 0.98 million square feet worth Rs 632 crore in Q2 FY24, registering year-on-year growth of 75% in volume and 72% in value terms. This performance was driven by strong sales momentum across the company’s residential projects in Pune, Mumbai and Bengaluru. Cumulative sales for the first half of FY24 reached 1.91 million square feet valued at Rs 1,333 crore, up 63% in volume and 64% in value compared to H1 FY23.

Collections from customers grew by 17% year-on-year to Rs 472 crore during the quarter. For H1 FY24, collections stood at Rs 985 crore, 12% higher than the year-ago period. This provided the required liquidity for the company to expedite construction across projects.

On the financial front, KPDL recorded consolidated revenues of Rs 198 crore in Q2 FY24, a growth of 61% over Q2 FY23. EBITDA was Rs 3.5 crore versus a loss of Rs 5.6 crore last year. Net loss stood at Rs 25 crore compared to Rs 9 crore in the corresponding quarter of the previous year. For the first half, revenues grew 138% year-on-year to Rs 769 crore while EBITDA nearly doubled to Rs 95 crore. Net profit after minority interest rose 66% to Rs 21 crore in H1 FY24.

According to Rahul Talele, Group CEO of KPDL, the strong performance highlights robust demand for quality real estate from established developers like Kolte-Patil despite macroeconomic uncertainties. The company successfully launched new projects and witnessed healthy sales in existing projects across its focus markets.

Talele said new launches during the first half, including projects in Pune, Mumbai and Bengaluru, contributed around 55% to total sales. More new launches planned in the second half of FY24 will help maintain sales momentum.

Meanwhile, KPDL continues to strengthen its portfolio with value accretive land acquisitions. It has recently added 5 new projects with a revenue potential of Rs 3,450 crore through capital efficient structures. These projects will expand its presence in Pune, Mumbai’s western suburbs and allow entry into central Mumbai and Navi Mumbai.

According to Talele, KPDL is benefiting from its strong brand, execution capabilities, low leverage balance sheet and partnerships with financial institutions. The company remains positive on the long-term outlook for real estate demand given India’s economic growth. It aims to consistently create stakeholder value leveraging its positioning across key geographies.

The results demonstrate KPDL’s ability to deliver operationally despite macroeconomic headwinds like rising home loan rates and inflation. Its performance is commendable given that many real estate players have reported moderation in sales growth in recent quarters.