Kolte-Patil Developers Ltd Q1FY21 consolidated loss at Rs. 26.98 crore

KOLTE-PATIL DEVELOPERS LTD. has reported financial results for the period ended June 30, 2020.

Financial Results (Q1 FY 2020-21) - QoQ Comparison

The company has reported total income of Rs.143.99 crores during the period ended June 30, 2020 as compared to Rs.230.85 crores during the period ended March 31, 2020.

The company has posted net profit / (loss) of Rs.(26.98) crores for the period ended June 30, 2020 as against net profit / (loss) of Rs.(16.47) crores for the period ended March 31, 2020.

The company has reported EPS of Rs.(3.54) for the period ended June 30, 2020 as compared to Rs.(2.16) for the period ended March 31, 2020.

Financials	Q1 FY2020-21	Q4 FY19-20	% Change
Total Income	₹ 143.99 crs	₹ 230.85 crs	-37.63%
Net Profit	₹ (26.98) crs	₹ (16.47) crs	63.81%
EPS	₹ (3.54)	₹ (2.16)	63.89%

Financial Results (Q1 FY 2020-21) - YoY Comparison

The company has reported total income of Rs.143.99 crores during the period ended June 30, 2020 as compared to Rs.615.88 crores during the period ended June 30, 2019.

The company has posted net profit / (loss) of Rs.(26.98) crores for the period ended June 30, 2020 as against net profit / (loss) of Rs.115.88 crores for the period ended June 30, 2019.

The company has reported EPS of Rs.(3.54) for the period ended June 30, 2020 as compared to Rs.15.21 for the period ended June 30, 2019.

Financials	Q1 FY2020-21	Q1 FY2019-20	% Change
Total Income	₹ 143.99 crs	₹ 615.88 crs	-76.62%
Net Profit	₹ (26.98) crs	₹ 115.88 crs	-123.28%
EPS	₹ (3.54)	₹ 15.21	-123.27%

Commenting on the performance for Q1 FY21, Mr. Gopal Sarda, Group CEO, Kolte-Patil Developers Limited said, "In the first quarter, various phases of lockdown led to the curtailment of human as well as business activity weighing down on almost every sector of the Indian economy, particularly real estate. Our entire organization has continued to work efficiently within our business continuity and risk management framework ensuring minimum impact on all stakeholders. While prioritizing the health and safety of all whose lives we touch, we have progressed on our customer commitments, conserved financial resources and maintained resource readiness to resume full operations at the earliest upon the return to normalized conditions.

As could be expected, sales momentum in Q1 has been weaker with volume at 0.31 msf and sales value at Rs. 164 crore during the quarter. However, we are highly encouraged by the number of deal closures achieved across projects and products in the backdrop of widespread and protracted weakness in all discretionary spending activity. Our customer visibility was supported by digitized interactions while physical visits and site experiences remained constrained. We promptly revamped our overall ecosystem scaling up digital sales platform to ensure secure, dedicated virtual collaboration & communication with customers. Advanced digital tools and user friendly virtual assistance heightened the customer confidence.

Given the lockdown for major portion of the quarter, construction, banking and registration activity suffered severely, thereby adversely impacting collections. However, the labor force strength is gradually increasing and reached at ~55-60% in mid-August from ~40% at the end of June. We are already recording month-on-month improvement in sales, collections and construction activities, which are expected to deliver an improvement in the second quarter.

Efficient working capital management and sustained cash flow generation has resulted in stable liquidity position for the Company. We have sufficient undrawn bank limits, good pipeline of new launches, sufficient sold receivables, meaningful RTMI inventory with OC and unreleased inventory which will further improve our free cash flows.

We see the current situation as one of demand deferment. Our value offerings in the affordable, MIG and even 24K segments continue to find strong interest that should translate into sales velocity in future. While current sales activity is driven by sustenance sales in existing projects across cities, we have a strong pipeline of new launches in Pune, Mumbai and Bengaluru with aggregate sales area of ~4.5 msf and topline potential of ~Rs. 4,150 crore. Contributions from these projects should expand our growth visibility and once again accelerate the virtuous cycle of sales, execution and cash flows. Our overall performance during the remaining nine months of FY21 is expected to be better.

The sudden change in our operating environment has also instilled increased usage of technology across the Company. We look forward to taking this learning to build a differentiated position in our target markets as customers find greater comfort in brand, quality, governance and execution led developers."

Shares of KOLTE-PATIL DEVELOPERS LTD. was last trading in BSE at Rs.176.5 as compared to the previous close of Rs. 173.9. The total number of shares traded during the day was 37412 in over 1163 trades.

The stock hit an intraday high of Rs. 178.2 and intraday low of 170.25. The net turnover during the day was Rs. 6578230.

Source : Equity Bulls

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