Kolte-Patil Developers eyes Rs 300-350cr revenue in FY12

In an interview with CNBC-TV18, Sujay Kalele, VP - Business Development, Kolte-Patil Developers said the company hopes to achieve Rs 300-350 crore revenue in FY12.

Below is the transcript of his interview with CNBC-TV18's Latha Venkatesh and Gautam Broker. Also watch the accompanying video.

Q: What is the general pick up of sales in the industry? Are you witnessing a slowdown compare to year ago levels, compared to six month ago levels or are you seeing an incline?

A: If we have to compare a general year-on-year trend, there is a definite increase. I must say that the price realisation per sq foot has definitely gone up. As compared to the last six months, given the mortgage rate hike and everything, definitely the sales have slowed down, but not to alarming levels really. We continue to see a lot of traction as far as residential sales go.

The office market is slowly picking up, though it is not getting reflected that much on the price per sq foot realisation in the rental per se and retail as well continues to lag.

Q: If you have to speak in terms of 1000 sq feet sold by your company, if you have to compare the January-March quarter to the current quarter or to a year ago quarters, how has it performed?

A: This calendar year, since January we have sold almost seven lakh sq feet which compares with equal amount of sq feet that we have sold almost all throughout the last calendar year. So that actually is a reflection of the market and also is the reflection of the products that we have been putting in the market really.

Q: You have a very ambitious target of six million odd sq feet in the next six months if I am not wrong. What kind of a revenue pick up can we expect? In FY11, you did about Rs 200 crore, what can we expect in FY12?

A: As compared to FY10, on the top-line, we jumped 40%, and on the profit 50%. We hope to better our performance this year. It is too early in the year to give a target per se, but it would definitely be better than what we did last year.

Q: If you can give us an idea of what you may do in terms of revenues this year as well as next year, if you can give a slightly broader trajectory?

A: We hope to do better in this financial year. Hope to close between Rs 300-350 crore and probably cross a Rs 450 crore target in the next financial year really.

Q: What is your debt at?

A: The debt to equity right now, at the consolidated level, is 0.13 and at a standalone level it is 0.7 really.

Q: What was your average realisation per square feet in the last year and what are you expecting for FY12, will it go down?

A: No, it has actually gone up. Our average realisation last year was around Rs 3,000 per sq ft on the residential side and today we are at Rs 3,400 per sq ft for this calendar year.

Q: What would be the capex plans for this 450 acre township in Pune and Bangalore as well, how much money will you need?

A: We have already launched the first phase of the township; the total development size is 15 million, of which we launched 20% right now. We are envisioning around Rs 500 odd crores as total capex which would be majorly funded from internal accruals. We have already closed sales worth around Rs 225 crore. For the remaining, we have already credit line sanctioned from the banks. But we would hope to finance most of the capex plans for this township through internal accruals because it is primarily residential play that we have.

Bangalore is also picking up nicely. We have two projects which have already been launched this year and two we hope to launch in the next couple of months.