Kolte-Patil Developers surges 18% on strong Q2 results

The stock surged 18% after the company posted 54% YoY jump in profit at Rs 19.3 crore in Q2FY17

Kolte-Patil Developers has surged 18% to Rs 112 on the BSE in otherwise range-bound market after the company reported a strong 54% year on year (YoY) jump in net profit at Rs 19.3 crore for the quarter ended September 2016 (Q2FY17), on back of healthy volume growth.

The Pune-based real estate player had profit of Rs 12.5 crore in the same period last year.

Revenues were up 25% YoY at Rs 226 crore in Q2F17 as compared to Rs 181 crore in Q2FY16.

EBITDA (earnings before interest, tax, depreciation and amortization) margin stood at 25.2% in Q2FY17 against 26.1% in Q2FY16.

“In a seasonally weak quarter we have delivered a good performance achieving pre-sales of 0.57 msf, or Rs 329 crore led by strong sales across our key MIG projects - Ivy Estate, Life Republic, Wakad and Three Jewels,” Rajesh Patil, chairman and managing director, Kolte-Patil Developers said.

The pre-sales in Q2 were higher by 24% YoY in value volume terms and 77% YoY in value terms. Collections remained healthy at Rs 234 crore, he added.

The company said going forward, increased contribution from asset-light Mumbai projects will enable ROCE expansion and increased average price realizations.

Expected fall in interest rates will result in reduction in finance costs, it added.

At 10:00 am; the stock was up 14% at Rs 108 on the BSE, as compared to 0.11% decline in the S&P BSE Sensex. The trading volumes on the counter jumped more than 10-fold with a combined 1.13 million shares changed hands on the BSE and NSE so far.