Kolte-Patil Developers spurts after signing new projects

Kolte-Patil Developers rose 5.62% to Rs 232.15 at 13:10 IST on BSE after the company said it signed three new projects in Pune under the development management model.

The announcement was made during market hours today, 4 July 2019.

Meanwhile, S&P BSE Sensex was up 79.26 points or 0.2% at 39,918.51.

On BSE, 5,582 shares were traded in Kolte-Patil Developers counter, compared to a 2-week average of 4,824 shares. The share price hit an intraday high of Rs 234.60 and an intraday low of Rs 220.50. It hit a 52-week high of Rs 317 on 14 September 2018 and a 52-week low of Rs 201.80 on 25 June 2019.

The projects are located at Wagholi in East Pune and Kiwale and Ravet in West Pune with a saleable potential of 1.2 million square feet and over 1,250 units to be developed.

As the development manager, Kolte-Patil will lend its brand to these projects and jointly collaborate with the land owners to oversee product design, sales and marketing, project quality and cash flow management leading to time-bound handover to buyers. The company expects to earn development management (DM) fees of Rs 60-65 crore from these projects over a period of 30-36 months. The project costs would continue to be borne by the respective projects.

Kolte-Patil Developers' consolidated net profit fell 1.2% to Rs 40.14 crore on 59.1% decline in net sales to Rs 195.44 crore in Q4 March 2019 over Q4 March 2018.

Kolte-Patil Developers is a Pune-based real estate developer.

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