May see 5-6% deviation from revenue guidance: Kolte Patil

It has been a disappointing third quarter for Kolte Patil, with its margins declining by 390 basis points. Gopal Sarda, regional head - Mumbai at Kolte Patil, says there may be a 5-6 percent deviation from the revenue guidance given by the company.

However, he adds that the company hasn't undertaken any price cuts.Below is the transcript of Gopal Sarda’s interview with Sonia Shenoy on CNBC-TV18.Q: Can you take us through how much you have sold this quarter, and given that you had an earlier guidance of Rs 750 crore revenues by the end of the year, you have clocked in about close to Rs 500 crore in the nine months FY16. Do you think you will be able to meet the FY16 revenue guidance?A: Yes, this quarter we have sold around 0.52 million sq ft at an average price realisation of Rs 5,863. So, total sale value for this particular quarter is around Rs 304 crore. As far as our yearly guidance is concerned, we hope maximum 5-6 percent deviation will be there, not more than that. That too, because we were expecting approvals of R1 sector out of Life Republic, which is going to come in first quarter of financial year 2017.Q: So, have you taken any kind of price cuts this quarter as well, similar to what you did last quarter?A: No, there is absolutely no price cut as such but obviously, out of the total pre-sales area, we have sold 63 percent out of our mid-income group (MIG) project, let us call it as Corolla and Three Jewels wherein the average price realisation is between Rs 4,500 per sq ft and Rs 5,000 per sq ft. So, that is the reason the price realisation has come down.Q: You said that there will be a 5-6 percent deviation in your revenue guidance but what about your volume guidance? You had guided for about 3.5 million sq ft and you have done about 1.5 million sq ft. You will miss that guidance as well?A: As far as my last conversation is concerned, I have given a guidance of two million is bare minimum we will do and in between 2.3 million and 2.5 million depends on the new launches. So, barely two million we are going to complete this year and if the new launch, Wakad which is a million sq ft, which we are launching in this quarter itself, if we get a good response then obviously we can further enhance our guidance by let us assume 0.1 or 0.2 million.