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Sujay Kalele, Group CEO, Kolte Patil Developers Ltd holds a post graduate degree in Management with specialization in Analytical Finance and Strategy from The Indian School of Business, Hyderabad and Bachelor of Engineering from Government College of Engineering, Pune. Before joining Kolte Patil, Sujay worked with Jones Lang LaSalle India as vice president capital markets where he was primarily responsible for servicing fund raising needs of real estate developers in the Western Indian markets of Mumbai, Pune and other Tier II markets.
Kolte-Patil Developers Ltd is a leading Pune-based real estate company incorporated in 1991. Kolte-Patil is a well-reputed, trusted name with a reputation for high quality standards, design uniqueness, transparency and the delivery of projects in a timely manner. The company has developed and constructed 48 projects including 35 residential complexes, 9 commercial complexes, and 4 information technology parks covering a saleable area (KPDL share) of over 10 million square feet across Pune and Bengaluru. Consolidating its leadership position in the Pune real estate market, the Company is expanding in the high demand Bengaluru market, leveraging 19 years of presence in this market. The company has also recently forayed into the Mumbai market where the market entry focus is on low risk society re-development projects.
Replying to Yash Ved of IIFL, Sujay Kalele says, “The post election results are an indication that there is a lot of positivity in the sector. Everyone was waiting for a positive mandate.”
Brief us about your Financials?
Our net revenues for FY14 stood at Rs. 764 crore, up 5% YoY as compared to Rs. 727.5 crore in FY13. EBITDA was higher by 15% YoY at Rs. 220 crore with margins improving 250 bps YoY. PAT for FY14 stood at Rs. 92 crore. EPS for FY14 stood at Rs. 12.14 as compared to Rs. 14.18 recorded in FY13.
The Board of Director’s have recommended a final dividend of Rs. 1.6 per share taking the total dividend for FY14 to Rs. 3.1 per share, amounting to a payout of 25% at the upper end of the Company’s stated policy.
For the three months ended 31st March 2014, net revenues stood at Rs. 171 crore, EBITDA was at Rs. 40 crore while PAT stood at Rs. 13 crore. EPS for Q4 FY14 stood at Rs. 1.72.
How was the quarter as a whole?
This has been a landmark year for the Company as we successfully completed the delivery of 10 msf. of construction. We have also had an encouraging Mumbai foray winning three projects at prime locations.
Further, we made investments in replenishing city limit land parcels in Pune and closed two land deals at attractive terms, while maintaining the strength of our balance sheet.
On the operational front, we have registered new sales volumes of over 2.1 msf. in FY14, despite approval delays. With the improvement in the regulatory environment, we saw traction in sales bookings in Q4, recording 0.79 msf. of new area sales.
What is your outlook for the coming quarters?
With a healthy mix of township and non-township projects in our launch pipeline, in high growth markets, we are entering into our next phase of growth.
What are your expectations from the new government?
The initial trend (post election results) is an indication that there is a lot of positivity in the sector. Everyone was waiting for a positive mandate. Hopefully, it should translate into faster approvals and hence better visibility going forward. In fact, customer inquiries across our projects in the first weekend which went by was very strong.
What is your total area under development?
Our total land bank is over 51 million square feet.
What is your outlook on the real estate prices?
We should see an improvement in demand going forward and should translate into higher volumes. Coupled with launches across the pricing spectrum, our average price realization should stay strong.
Brief us about the Operational Highlights for the quarter?
The Company recorded new sales bookings of 0.79 msf. in Q4 FY14 as compared to 0.44 msf. in Q3 FY14 and 0.48 msf. in Q4 FY13
The value of area sold stood at Rs. 423 crore in Q4 FY14 as compared to Rs. 253 crore in Q3 FY14 and Rs. 280 crore in Q4 FY13
The average sales price realization stood at Rs. 5,374 per sq. ft. in Q4 FY14 as compared to Rs. 5,730 per sq. ft. in Q3 FY14 and Rs. 5,833 per sq. ft. in Q4 FY13.
What is your current debt?
Our current debt stands at Rs136 crores.