Bangalore & Pune will contribute in FY14: Kolte-Patil

The company has improved on margins this quarter substantially, says Sujay Kalele, group CEO, Kolte-Patil Developers.

Speaking to CNBC-TV18 about the financial performance of the company, he said apart from margin improvement, the average sales price realisation was better than expected. It stood at about Rs 4800 per square foot, a 24 percent jump over the average sales price realised over the last financial year. He added that in this quarter, the company received new approvals for about one and half million square feet, and as the year progresses, more new launches are expected. Also read: Kolte-Patil Q4 profit jumps 4.35x at Rs 50.5 cr
In FY13, the company’s main contribution came from Pune. In financial year 2014, they hope to have contributions coming in both from Pune and Bangalore. Here is the edited transcript of his interview with CNBC-TV18 Q: Take us through what went right in this quarter? You have as promised, shown a Rs 200 crore revenue gain in this quarter as well. A: Yes, so the total operating income for this particular quarter stands at about Rs 210 crore, and including other income the total revenue stands at about Rs 227 crore. We have actually improved on margins substantially. On an overall consolidated basis, for FY12-13, we have reported a total profit after tax of about Rs 107 crore. Q: Can you take us through how much you sold by way of square feet in Q4 and more importantly, what are the expectations of sales in FY14, at least the first two quarters? A: In Q4, we sold about 0.45 million square feet which gave us a total sold area of about 2.65 million square feet, completely in line with our guidance. What was better than expected was the average sales price realisation, which last year stood at about Rs 4800/sq ft, a 24 percent jump over the average sales price realised over the last financial year. Going forward, we hope to maintain this momentum. In this quarter we have received new approvals for about one and half million square feet and this new run rate will also continue. So for the first two quarters we will maintain the momentum of Q4 and then as the year progresses, we will see new launches which will also add on. Q: Is the entire contribution right now coming from Pune? You also spoke about the Mumbai launch. When is that expected and once that happens, what kind of contribution will Mumbai have to your numbers? A: For FY13 100 percent contribution is from Pune. We will start seeing the first ones to be recognised is Bangalore which will now add incrementally more numbers starting immediate this quarter. Mumbai we would assume will still take some time because approvals are taking longer, so we hope that in this particular financial year 2014 we will have contribution from Pune and Bangalore. Q: So your run rate will remain at Rs 200 crore per quarter? A: Yes we hope to maintain that and with the support of new launches let us see where it goes.