Kolte-Patil logs consolidated loss of Rs27cr in Q1; expects remaining 9MFY21 to be better

In the period, the company posted a new area sales volume of 0.31M sq.ft. amounting to Rs164.2cr against 0.51M sq.ft. totalling to Rs283.7cr of June 2019.

Aug 21, 2020 04:08 IST India Infoline News Service

Kolte-Patil Developers on Friday registered a consolidated net loss of Rs26.98cr during June 2020 (Q1FY21) period. A year ago the same period, the company recorded a profit of Rs115.9cr.

Consolidated revenue from operations was at Rs140.8cr in the latest period, declining by 74.9% as against Rs585.7cr recorded a year ago similar quarter. 

In the period, the company posted a new area sales volume of 0.31M sq.ft. amounting to Rs164.2cr against 0.51M sq.ft. totalling to Rs283.7cr of June 2019.

Gopal Sarda, Group CEO, Kolte-Patil Developers Limited said, “In the first quarter, various phases of lockdown led to the curtailment of human as well as business activity weighing down on almost every sector of the Indian economy, particularly real estate. Our entire organization has continued to work efficiently within our business continuity and risk management framework ensuring minimum impact on all stakeholders. While prioritizing the health and safety of all whose lives we touch, we have progressed on our customer commitments, conserved financial resources and maintained resource readiness to resume full operations at the earliest upon the return to normalized conditions."

Sarda added, "As could be expected, sales momentum in Q1 has been weaker with volume at 0.31 msf and sales value at Rs164cr during the quarter. However, we are highly encouraged by the number of deal closures achieved across projects and products in the backdrop of widespread and protracted weakness in all discretionary spending activity. Our customer visibility was supported by digitized interactions while physical visits and site experiences remained constrained. We promptly revamped our overall ecosystem scaling up digital sales platform to ensure secure, dedicated virtual collaboration & communication with customers. Advanced digital tools and user-friendly virtual assistance heightened customer confidence."

Going forward, Sarda tells, "We see the current situation as one of demand deferment. Our value offerings in the affordable, MIG and even 24K segments continue to find a strong interest that should translate into sales velocity in future. While current sales activity is driven by sustenance sales in existing projects across cities, we have a strong pipeline of new launches in Pune, Mumbai and Bengaluru with an aggregate sales area of ~4.5 msf and topline potential of ~Rs4,150cr. Contributions from these projects should expand our growth visibility and once again accelerate the virtuous cycle of sales, execution and cash flows.

"Our overall performance during the remaining nine months of FY21 is expected to be better," Sarda added.

On Sensex, Kolte-Patil stock finished at Rs172.90 per piece down 2.21%.

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