In the latest period, consolidated sales, however, grew by 13.45% to Rs221.74cr in Q4 March 2020 over Rs195.44cr in the corresponding period of the previous year.
Gopal Sarda, Group CEO, Kolte-Patil Developers Limited said, “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."
In the period, the company has also managed to reduce debt by Rs83cr to Rs434cr.
Sarda added, "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."
In the midst of uncertain markets, Sarda said, "we effected a unique deal with a global real estate developer like Planet Smart City for Sector R10 in our township project Life Republic in Pune. This deal earns us land monetization benefits as well as profit sharing cash flows from the incremental planned development, resulting in strong returns. Further, it highlights the brand equity of Kolte-Patil as well as the value creation prospects of Life Republic as a project."
At around 11.42 am, the company's stock is trading at Rs166.95 per piece down by 0.45%.
The company's board has unanimously decided to defer dividend recommendation for a later date and will revisit this decision in H2FY21.
Going forward, Sarda said, "Our growing brand equity, execution capabilities and balance sheet strength will be the differentiators in the Indian real estate sector allowing us to capture growth opportunities and create value over the longer term.”