Kolte-Patil Developers gains on FY17 outlook

The stock moved higher by 11% to Rs 134 on the BSE on back of heavy volumes.

Kolte-Patil Developers has moved higher by 11% to Rs 134 on the BSE after the real estate company said that it expects to record 20% year-on-year growth in volume for the rest of the current fiscal (2016-17).

“Revenue trajectory is expected to improve in FY17 as a greater proportion of 100% owned projects come up for revenue recognition including contribution from Mumbai portfolio,” Kolte-Patil Developers said in Q1 FY17 earnings conference call of the Company.

Increased contribution from asset-light Mumbai projects will enable ROCE expansion and increase average price realizations. Our main focus in FY17 will be on execution. The company is targeting deliveries to the tune of 2,500 units in this financial year. Overall cost efficiencies will be maintained at all project sites which will facilitate margin expansion, it added.

The company said, debt levels, which saw a slight uptick during FY16 on account of the Corolla stake purchase and working capital investments in Mumbai expansion, are expected to taper off given the strong cash flows and focus on collections.

At 12:33 pm, the stock was up 8% to Rs 130 on the BSE, as compared to 0.35% decline in the S&P BSE Sensex. A combined 1.04 million shares changed hands on the counter on the NSE and BSE.