Kolte-Patil Developers rallies 12% on heavy volumes post Q2 business update

Kolte-Patil Developers share price: Shares of Kolte-Patil Developers (KPDL) rallied 12 per cent to Rs 439.85 on the BSE in Thursday’s intra-day trade after the company said it achieved its highest-ever quarterly sales value of Rs 770 crore during September quarter (Q2FY25), showing an 8 per cent increase quarter-on-quarter (Q-o-Q) and a 22 per cent increase year-on-year (Y-o-Y). 

The company reported collections of Rs 550 crore for the quarter, down 10 per cent Q-o-Q but up 16 per cent Y-o-Y, driven by robust sales and consistent and timely execution of projects. 

During Q2FY25, average realisations improved 16 per cent Y-o-Y, reaching Rs 7,472 per square foot, with premium projects at Life Republic (LR) and 24K projects in Baner, Pimple Nilakh and LR driving the increase, KPDL said in Q2 operational update.

Backed by a strong pipeline of launches planned in the second half of the year, the management is confident about meeting the company's pre-sales target of Rs 3,500 crore for FY25. With robust industry trends supporting housing demand, especially in premium categories, the company remains well-positioned to capitalise on the growing opportunity, the management said.

At 09:45 AM, KPDL was trading 10 per cent higher at Rs 433.40, as compared to 0.28 per cent decline in the BSE Sensex. The average trading volumes on the counter have jumped nearly 10-fold, with a combined 2.2 million shares changing hands on the NSE and BSE. The stock had hit a 52-week high of Rs 584 on January 9, 2024.

KPDL is a leading real estate company with dominant presence in the Pune residential market, and growing presence in Mumbai and Bengaluru. KPDL markets its projects under two brands: ’KoltePatil’ (addressing the mid-income segment) and ‘24K’ (addressing the premium luxury segment).

According to Crisil Rating, KPDL’s sales (in value terms) for fiscal 2025 are expected to reach around Rs 3300-3500 crore and witness an around 20 per cent increase from fiscal 2024 levels, while maintaining the low debt levels.

Additionally, revenue diversity is expected to strengthen this fiscal with an increase in launches outside Pune resulting in sales from non-Pune markets increasing to around 20-25 per cent in current fiscal, up from 5 per cent in fiscal 2024, subject to necessary approvals being in place. Collections, too, are expected to grow by 25-30 per cent in fiscal 2025 and 20-25 per cent in fiscal 2026, indicating strong cash generation from sold projects, the rating agency said in rationale.

CRISIL Ratings believes that the company will increase the scale of operation in the medium term duly supported by significant launch pipeline along with healthy salability in the ongoing projects, while maintaining a low leverage.