Kolte-Patil Developers’ third quarter (October-December) profit after tax declined 3 percent year-on-year (up 56 percent sequentially) to Rs 19.8 crore, impacted by higher tax, finance cost and lower other income. Revenues grew 17 percent on yearly basis (up 40 percent quarter-on-quarter) to Rs 220 crore during the quarter.
In an interview to CNBC-TV18, Sujay Kalele, Group CEO, Kolte-Patil Developers, discusses the earnings and the road ahead.
Below is the transcript of Sujay Kalele's interview with CNBC-TV18's Sonia Shenoy and Anuj Singhal.
Sonia: Your EBITDA has gone up about 15 percent this time around and your revenues are up about 17 percent. Take us through the quarter and what you expect in the next quarter as well in terms of revenue recognition and revenue run rate?
A: In this quarter we recorded new sales bookings of about 0.64 million square feet which was up 46 percent year on year and the value of sales stood at Rs 390 crore which was up about 54 percent year on year.
The average price realisation stood at about Rs 6063 which is about 5 percent higher as compared to the same quarter last year.
The collections were strong at about Rs 260 crore up 13 percent year on year (YoY) and about 30 percent quarter on quarter (QoQ).
Anuj: If you could break it up between how much of it came from Pune and how much from non-Pune areas?
A: Of Rs 260 crore collection that happened, about 70 percent came from Pune and 30 percent from Bangalore.
Anuj: What about Mumbai, at what point would Mumbai start contributing to your revenues since you have some redevelopment projects in Mumbai?
A: Revenue recognition would start from Q2 of next financial year. Cash flows would come in from this quarter.
Sonia: If you can just tell us what the launch pipeline is going ahead and how much by way of revenue recognition are you hoping to see in Q4?A: We have four projects which are under construction and we hope to add two projects from these four projects into the revenue recognition threshold and two projects would be added in Q1 of FY16.Sonia: Just going through your 9 month numbers, in 9 months of FY15 you recorded bookings of 1.9 million square feet. How much do you think you will end the year with and what would your overall sales value be by the end of the year?A: At the start we had given a guidance of 2.5-3 million square feet for this financial year. Right now we look comfortable to achieve this guidance and we hopefully should end at about 2.7-2.8 million square feet. Even if we take the same average of Rs 6000 as the last quarter, we should end up at about Rs 1500 crore of new sales.
Anuj: What about the realisations because 9 month to 9 month it has only gone up by about Rs 400 or so. Do you get a sense that from now on it will have to be volumes game and not really the realisation game as you hit about say Rs 6000 a square feet kind of mark?A: Not really. It will depend upon project to project. If you see in the last 8 quarters consistently the quarterly average realisations have improved. So, depending upon the product mix one off quarters might have lower realisations others might have higher. It will not be correct to generalise it as a volume play.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
