Kolte-Patil Developers posts Q4 net loss at Rs 2.18 cr

Kolte-Patil Developers' consolidated net loss of Rs 2.18 crore in Q4 March 2020 compared with net profit of Rs 33.65 crore in Q4 March 2019.

Consolidated net sales jumped 13.45% to Rs 221.74 crore in Q4 March 2020 over Rs 195.44 crore in Q4 March 2020. Consolidated pre-tax loss stood at Rs 3.18 crore in Q4 March 2020 as compared to a pre-tax profit of Rs 43.91 crore in Q4 March 2019. Current tax expenses fell 12.53% to Rs 18.28 crore in Q4 March 2020 as against Rs 20.90 crore in Q4 March 2019. The Q4 earnings was announced during market hours today, 22 June 2020.

New area sales volumes grew 6.1% to 0.67 million square feet (sq. ft) in Q4 FY20 from 0.63 million sq. ft in Q4 FY19. The value fell 0.1% to Rs 354.90 crore in Q4 FY20 over Rs 355.30 crore in Q4 FY19. Realization declined 5.9% to Rs 5,292 per sq. ft. in Q4 FY20 as against Rs 5,623 per sq. ft. in Q4 FY19. Collections jumped 12.3% to Rs 378.10 crore in Q4 FY20 as compared Rs 336.60 crore in Q4 FY19.

In revenue recognition method, EBITDA stood at Rs 3.8 crore in Q4 FY 2020 on comparison to Rs 76.80 crore in Q4 FY 2019. EBITDA margin stood at 1.7% during the quarter as against 39.3% in the corresponding quarter last year. Net debt decreased by Rs 83 crore in FY20 to Rs 434 crore.

Commenting on the Q4 earnings, Gopal Sarda, the group chief executive officer (CEO) of Kolte-Patil Developers, stated: "FY20 was the best ever year for KPDL in terms of collections - highest ever in the company's three-decade history. Further, we closed the financial year with positive sales momentum that has allowed us to achieve our stated guidance. It is noteworthy, that in absence of any launches, the sales performance was driven entirely by sustenance sales in existing projects across Pune, Mumbai and Bengaluru. This evidences our robust sales machinery as well as brand recognition."

"While liquidity has been a challenge for the sector, during FY20, there has been a reduction of Rs 83 crore in KPDL's net debt. Our liquidity remains stable given our strong saleability, collections, internal accruals and low debt. Further, we have a good pipeline of new launches, sufficient sold and unreleased inventory in ongoing projects and minimal completed unsold inventory which will further improve our free cash flows."

"While COVID-19 pandemic and the resultant lockdown of human and economic activity across the country has subdued consumer sentiment, demand trends have been incrementally positive each passing month. We believe in the structural demand theme of real estate and are optimistic that traction will first return to Affordable and MIG segments, which is the majority of our project portfolio. Efficient management of capital, human resources, supply chain and customers is the recipe for thriving in the current scenario," Sarda added.

Kolte Patil Developers is a Pune-based real estate developer. The stock surged 6.27% to Rs 168.55 on BSE. The stock hovered in the range of Rs 155 to Rs 173.20 in intraday trade.

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