Kolte-Patil Developers posted stellar numbers in the second quarter ended September. Sujay Kalele, Group CEO, Kolte-Patil Developers, says seasonally second half (H2) is always better than the first. He says the company's performance in H2 will atleast be on par with the first half, if not better.
Also Read: Maintain FY14 topline target of Rs 900cr: Kolte-Patil
He expects average realisation to be Rs 5,200-Rs 5,400 per sq ft for the entire financial year. The company is likely to launch its Khar, Mumbai project in the fourth quarter this fiscal, Kalele says. Kolte-Patil is primarily a Pune-based real estate company.
Below is the verbatim transcript of Sujay Kalele's interview on CNBC-TV18
Q: Things have been looking up for Kolte-Patil, what can you guide with respect to what the revenue as well as the margin performance will be in the second half of the year, do things get better?
A: Seasonally second half is better and we hope that what we have seen in the first half of this financial year, we should be able to do at least similar. Even if the markets persist like what they are and depending upon the new launches and everything, hopefully the pickup should be better in the second half.
Q: Have you launched your project in Mumbai, the Khar project and if yes, what has been the demand?
A: No, we haven't yet launched the project. We should be launching that project formally in the last quarter of this financial year. We have just received most of the approvals for that and hopefully in Q4 of this financial year, we should be able to launch that project.
Q: What is the ticket size you are looking at and what kind of rates would you be looking at?
A: Yes, for the residential portion we are looking at anywhere around Rs 50,000 a sq ft on the carpet area and for the retail since it is high street we are looking at about Rs 90,000 to Rs 1,00,000 on the carpet area.
Q: What is the expectation for average realisations for the company, in the last quarter it went up despite being a lean season in your main market Pune, can you continue to record such a high growth in your realisations?
A: As we explained during our presentation after the last quarter results, the bump up in the average realisations was not only on account of the increase in average realisations but also the change in the product mix, which tilted more towards commercial. But we are maintaining our average realisation to be in the range of about 5,200 to 5,400 for the entire financial year this year.
Q: How is your Bangalore business doing and is there a plan to scale that up?
A: Yes, I think it is doing very well. From the first project that we launched we have seen good demand there. Hopefully that project should contribute into the topline as well as the bottomline in the last quarter of this financial year. Next financial year we should have increased contribution from our Bangalore business as well.
Q: Except the Khar project in Mumbai, have you identified any other Mumbai project that you all will be doing in the next year?
A: There are projects in the pipeline but nothing is up for closure in the near future. So we will announce as we close few transactions.
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