Pune-based listed real estate developer Kolte Patil Developers Limited (KPDL) plans to focus on micro markets of Mumbai and Navi Mumbai, including Western and Central Mumbai, by focusing on units with a price range of Rs 1.5 crore to Rs 3.5 crore. The company also plans to enter newer micro-markets of Pune and focus on unit launches at a per sq ft rate of Rs 6,000 to Rs 8,000.
Overall, the company aims to launch close to 3 million sq ft of projects in the first half of this financial year and overall, in FY24, looks to secure deals with a cumulative revenue of Rs 8,000 crore, Rahul Talele, group chief executive officer said on May 26 during the Q4FY23 earnings conference call.
"We are hopeful of launching close to 3 million sq ft in the first half of this financial year. Our goal is to achieve a robust sales value of Rs 2,800 crore, further strengthening our position in key markets. In FY24, we are confident of our ability to secure deals with a cumulative top line of Rs 8,000 crore. Our proactive approach to business development ensures that we capitalise on emerging market trends and customer preferences," Talele said during the earnings call.
Mumbai strategy
On a question whether the company’s incremental projects will be from the existing three suburbs of Mumbai -- Western, Central, and Navi Mumbai -- Talele said, "See, this will be our priority area in Mumbai at least for the next two to three years. There is a tremendous opportunity in the western suburbs where we have multiple projects, as well as in Central and Navi Mumbai."
Also read: Kolte-Patil Developers plans to invest Rs 1,500 crore in Pune, Mumbai, Bengaluru
He added, “We want to capitalise in the price bracket of Rs 6,000 to Rs 8,000 per square foot, particularly for the Pune projects and in Mumbai, like I mentioned earlier, Rs 1.5 crore to Rs 3.5 crore."
Pune and Bengaluru strategy
According to the company, it wants to strengthen its position in the Pune market by entering new micro markets.
"If you see our project portfolio, we have a presence in a few micro markets which are doing good, but we do not have a presence at all in multiple micro markets of Pune. Since we have a legacy of 30 years, there is a good brand recall in Pune market. So we want to capitalise on this opportunity by entering new micro markets of Pune, which will give us additional value and volume," said Talele.
In Bengaluru, he said, the plan is to acquire ongoing projects of about 1 million square feet. "There are a couple of opportunities that we are currently evaluating. We will get clarity maybe in the second half of this financial year," he said.
Q4 results
KPDL on May 25 had announced its -quarter results wherein it announced a net profit of Rs 103 crore for FY23, up 29 percent over the previous year. The board recommended a final dividend of Rs 4 per equity share for FY23.
On June 7, KPDL shares were trading at Rs 345.10 each at 12.20 pm on the National Stock Exchange, up 0.79 percent from the previous close.
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