Maintain FY14 topline target of Rs 900cr: Kolte-Patil

Sujay Kalele, group chief executive officer, Kolte-Patil Developers expects the company to achieve its topline target of Rs 800-900 crore and sales volume of 2.5 million square feet in FY14.

Despite the challenging environment, the company posted strong numbers in Q2. Speaking to CNBC-TV18 on the same, Kalele says realisations were delayed due to slow construction activities. On the road ahead, Kalele is confident of logging an average realisation of Rs 5,500 in H2FY14 and says the company’s presence in Mumbai will start reaping only in FY15. Also read: Realty check: Why the NCR market is seeing a slowdown Below is the edited transcript of Kalele’s interview to CNBC-TV18. Q: This was a quarter that was mildly disappointing compared to the kind of numbers that you turned in, in the first quarter – give us an idea how the most important third quarter is panning out for you? A: It is very good. The Q2 was also good, we clocked in margins of about 17 percent on the profit after tax (PAT) side. As compared to same quarter last year when the profit was about Rs 19 crore, this quarter it has come at Rs 32 crore which was good in the challenging demand and pricing environment. In Q2 we did fresh new sales of about 0.45 million square feet across Pune and Bangalore markets at an average price realisation of about 5,700 plus. If one compares on quarter on quarter also, we are overall higher 14 percent. This quarter the revenue realisation was slightly delayed because of slower construction activity in July where we saw extended monsoon on some of the sites. Q: How much will you book – you said 0.45 million sq feet in second quarter, third quarter what is your target? A: We are targeting about new sales of anywhere between 0.5 to 0.7 million, predominately owing to new launches in September of about 1.8 million sq feet. We should be on target to achieve our annual sale run rate of about 2.5 million sq feet and annual top-line of range between Rs 800-900 crore. Q: Whether you will hold on to your run rate of Rs 1000 crore and 2.5-3 million sq feet? A word on average realizations, this time they have come in at around Rs 5700 per sq foot which is a good growth of 40 percent year on year and 20 percent quarter on quarter – for the second half of the year what could be the average realizations look like – ballpark? A: We should be closer to Rs 5,500 kind of a range. Q: You are foraying into the Mumbai market as well. Just give us an update on that – what kind of projects are in store and what kind of average run rate are you hoping to clock in within Mumbai itself? A: FY14 won’t see any revenue addition from Mumbai. Hopefully FY15 we should have first set of revenues coming in from Mumbai. I think whatever projects we have signed we have announced. There are some deals in the pipeline but nothing in the near horizon that we see could add on dramatically in the numbers.