KOLTEPATILNSEFebruary 12, 2025

Kolte - Patil Developers Limited

7,120words

100turns

15analyst exchanges

0executives

Key numbers — 40 extracted

Rs. 2,161 crore

hs of FY25 has reached new milestone in terms of bookings and collections. Sales bookings reached Rs. 2,161 crore. Collections stood at Rs. 1,729 crore, marking a 17% year-on-year growth. This performance high

Rs. 1,729 crore

terms of bookings and collections. Sales bookings reached Rs. 2,161 crore. Collections stood at Rs. 1,729 crore, marking a 17% year-on-year growth. This performance highlights our commitment to redefining livi

17%

lections. Sales bookings reached Rs. 2,161 crore. Collections stood at Rs. 1,729 crore, marking a 17% year-on-year growth. This performance highlights our commitment to redefining living, enhancing t

tomer’s price-value proposition, and strong execution capabilities. Average realizations improved 7% during 9M and we have successfully been able to take rational price hikes across projects. As men

31%

s geographies. During nine months of the financial year, new launches contributed approximately 31% to the total sales value. Our 24K premium luxury segment continues to gain momentum, reaffirming

1.5 million

ver strong performance. During 9MFY25, sales volumes at Life Republic (LR) reached approximately ~1.5 million sq ft, highlighting the township’s sustained demand and growing appeal among homebuyers. Life R

mong homebuyers. Life Republic continues to witness growth in realization which has improved by 6% over the same period last year. Over time, we have strategically widened our price bracket within

Rs. 680 crore

onfident in Life Republic’s long-term growth potential. In Q3 FY25, our pre-sales value reached Rs. 680 crore, supported by sales volumes of 0.81 million sq ft. A key highlight of the quarter was the impro

0.81 million

potential. In Q3 FY25, our pre-sales value reached Rs. 680 crore, supported by sales volumes of 0.81 million sq ft. A key highlight of the quarter was the improvement in average realizations, which stood at

Rs. 8,394

sq ft. A key highlight of the quarter was the improvement in average realizations, which stood at Rs. 8,394 per sq. ft., marking an 11% year-on-year increase. This uptick was primarily on account of stron

11%

r was the improvement in average realizations, which stood at Rs. 8,394 per sq. ft., marking an 11% year-on-year increase. This uptick was primarily on account of strong traction in our premium and

Rs. 4,000 crore

are, we recently signed a ~22 acres joint development project in Pune with the expected GDV of ~Rs. 4,000 crore and potential saleable area of ~5 million square feet. It’s a revenue share structure. Strategica

Guidance — 20 items

Atul Bohra

opening

“Our performance over the nine months of FY25 has reached new milestone in terms of bookings and collections.”

Atul Bohra

opening

“Here I would like to mention that the Life Republic township project continues to deliver strong performance.”

Atul Bohra

opening

“In Q3 FY25, our pre-sales value reached Rs.”

Atul Bohra

opening

“Higher realizations at ‘Canvas’ - project within Life Republic (LR), along with robust demand for our 24K projects in Baner and Pimple Nilakh, played a pivotal role in driving this growth.”

Atul Bohra

opening

“To further enhance our portfolio, we are actively building our business development pipeline that aligns with evolving market preferences in our target markets.”

Atul Bohra

opening

“As you are aware, we recently signed a ~22 acres joint development project in Pune with the expected GDV of ~Rs.”

Atul Bohra

opening

“This project exemplifies our vision of creating vibrant, community- centric neighbourhoods, while delivering high-quality living spaces.”

Atul Bohra

opening

“However, we have experience regulatory approval delays in the Mumbai projects on account of elections and expect the approvals to come through in the coming couple of quarters.”

Atul Bohra

opening

“Basis this, we expect the pre-sales number for the year to moderate marginally.”

Atul Bohra

opening

“Coming to the financials performance, as highlighted earlier we are on track to close the year with strong deliveries.”

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Risks & concerns — 2 flagged

In light of the challenge in approvals, I mean, the delay in approval, what kind of pre-sales are we now looking at?

— Rohit

So does it mean that a single-digit kind of a decline will be there?

— Bharat Sheth

Q&A — 15 exchanges

I have two questions. My first question was that how are you seeing the demand outlook in Pune and Mumbai markets? Are we on track to achieve our presales guidance that we've given of about Rs. 3,500 crores this year and I think the three-year target of Rs. 13,500 crores. So are we on track to achieve this presales?

Atul Bohra

Thank you, Gautam. In Pune and Mumbai market, we have seen a good traction of demand. So far, Q3 as well as Q4. Q4 eventually has to be one of the most performing quarter always, and we see this momentum will continue. In terms of our sales guidance, we have, as already mentioned in the commentary that in a few of the projects in Mumbai, we see a couple of delays in approval, which may moderately impact our sales guidance. And what about the three-year target? Are we on track to achieve that? Three years target, I think we are in line with our long-term horizon because see, these are the tempo

So Atul Sir, in terms of Mumbai launches, how confident are we in launching it in '26? Because if you see the slide, we've actually moved into strategic rather than under approval?

Atul Bohra

Yes, Shreyans. I think for Mumbai launches, there are few projects we have already secured sanctions like for Laxmi Ratan. But in redevelopment, the process is a little longer. It is not just securing the sanction, but there are vacation process and post that also, there are a few sanctions required. So we see that couple of projects since there is quite a few EC delay, there is a committee which was formed. But then again, there are a few delays on account of elections. So I think with all these things, we have factored out that maybe there is slight delay in a few of the Mumbai launches. But

Sir, just two questions. In light of the challenge in approvals, I mean, the delay in approval, what kind of pre-sales are we now looking at? We did about Rs. 2,800 crores last year. And we had earlier said that we'll do about Rs. 3,500 crores. So what was the number that you're confident for the last quarter and if you can share that? And secondly, sir, I mean, last call, you said that in terms of reported numbers, you are confident of doing Rs. 1,800 crore for the year. We have done about Rs. 1,000 crore in the first nine months and 13% is the margin that -- I mean, you said about early teen

Atul Bohra

Thank you, Rohit. So I think on the Mumbai launches, I already explained that we are estimating quite a few approvals delays. And I hope that maybe beginning of next year, it will get launched. However, in terms of the presale guidance, there will be marginal corrections based on those launches that are not coming. So that kind of marginal changes will be there in terms of overall presale guidance. As far as on the revenue guidance, I think we have already touched approximately Rs. 1,000 crores in first nine months, and we are quite hopeful like around Rs. 600 crores, Rs. 700 crores in Q4, and

Can I just have one clarification on this adjusted EBITDA, please. So you said adjusted EBITDA is EBITDA plus other income and the share that we have from our partners?

Atul Bohra

Yes. Okay. Thank you.

Atul, coming back to the plan launch, which was, say, now we have revised it to Rs. 5,000 crores, and we have done Rs. 2,000 crores. So how confident are we to do, I mean, launches of Rs. 3,000 crores kind of a thing in Q4?

Atul Bohra

Thank you, sir. I think on most of the Pune portfolio, like Little Earth we have secured the sanction and it is in the RERA approval process. Similarly, for 24K Manor, we have secured all the sanction. Altura, we have secured all the sanctions. And NIBM, we have secured the sanction and still we have applied for the RERA. We are just awaiting. I think in most of this even in Life Republic, we have secured sanction on 3 more sectors, R14 and 34 and as well as R17A. And we are still in the process of obtaining the final RERA consent. So we are quite hopeful that these launches as planned, will h

I think a few of my questions have already been answered. But in terms of margins, what sort of revenue guidance is the company looking at for the next year? Because this year, I think we had guided for something like Rs. 1,800 crores and we have done something like Rs. 1,000 crore even though the margins were quite well. So have we had an internal calculation as to where our margins and revenue recognition would be for next year? That's my first question

Atul Bohra

Can you please repeat? I'm talking about the revenue recognition or the expected revenue recognition for the next financial year as well as the margins, which we are expecting? So I think for next financial year, we can provide you a guidance separately, but so far for this financial year, the guidance of revenue recognitions as well as on the EBITDA side, we have already explained, that's roughly around Rs. 1,600 crores to Rs. 1,800 crores is what we are targeting. And we have secured most of the OCs, few in pipeline. So considering that, we are quite hopeful that this year guidance on revenu

Sir, you said, we have 3.75 msf kind of unsold inventory. So in value terms, is it possible to quantify? That is first question?

Atul Bohra

Roughly around Rs. 2,500 crores. Rs. 2,500 crore. And how do we see momentum whatever has been there, I mean, different projects? And is that fair understanding that Life Republic is the largest. So momentum is still, I mean, good from those unsold? Yes. We have seen quite a good momentum, specifically in Life Republic in last nine months itself, we have secured 1.5 million square feet of presale number. And since there are a few more launches in Life Republic in Q4, so we see this momentum is still building well. And my one suggestion before I go to that we should give project-wise unsold inv

Two questions on business development side. So first is that the project acquisition, which you have announced of Rs. 4,000 crores, maybe you could give some more details on the dynamics like when is it likely to be launched? What are the project economics? What kind of realizations would you be looking at? And secondly, when you look at the pipeline for business development, so you said this year you're still confident of achieving Rs. 8,000 crores. How does it look for next year and is the pipeline still more in Pune versus, say, Mumbai and Bangalore?

Atul Bohra

So we recently announced a joint development project, which is at Wadgaon which is near to Nanded City township project, which is towards the Pune West- South market. It's one of the prominent market wherein a lot of social infrastructure is well developed. Upcoming IT parks are there, the mall. And I think it is quite accessible from the Pune CBD, Kothrud and Warje and these kind of locations and very near to the Mumbai, Pune, Bangalore highway. This is in a revenue share arrangement with the land owner. And obviously, with certain amount of refundable deposit. So we are now in phase of secur

I just wanted to understand regarding a project level like on a blended basis on a project level, what would be our EBITDA margins and where do we see that going? I understood adjusted EBITDA, but like on a project level, how do we see that project level margins and where do we see it?

Atul Bohra

Thank you, Gautam. I think this is fourth time I'm repeating. But as I already mentioned that this project level margin, it depends on the category of the land, either redevelopment, joint venture, outright. I think basis on that, different projects have different margin levels. But simply like for more details you can interact with Dipti-- but as a guidance, as I already mentioned that on outright, we expect somewhere around 25%. On JDs and redevelopment, we expect somewhere around 15%. And it is not just margin. We have to look at the IRR as well. Thank you, Sir.

Sir, just interest cost. So I have just two, three questions. So one was on this interest cost, if you can just maybe explain it like we had earlier said that on a yearly basis, the finance cost would be about Rs. 100 crores. I understand that some of it goes to WIP, but I'm saying based on our previous calls, etc., it was said that the finance cost would be around Rs. 80 crores to Rs. 100 crores. So I understand that it depends on the project. So can you just tell that for this year, given nine months is already done, I think you have booked around Rs. 40 crores, if I'm not wrong. So what is

Atul Bohra

Thank you, Rohit. I think let me answer one by one because you have asked too many questions at one go. In terms of interest costs, as you rightly said that, okay, based on the utilization, few cost is capitalized and few cost is charged to P&L. And we foresee by the FY '25 year-end, it is as of now already Rs. 36 crores, but somewhere around Rs. 48 crores to Rs. 50 crores should be charged to P&L. and the rest will charge to WIP as and when the project gets recognized, it will recognize. Coming back to your second question, LR versus non-LR, like out of 3.75 msf of inventory, roughly around 1

Yes, I'm done.

Management

Thank you, Himanshu. I think let me go through one by one. And as you rightly mentioned in terms of our strategy on overall business development and the growth plan. So the few changes what we made is we are not chasing small projects. So our first strategy is scale, which is scalable projects, that is the first strategy. Number 2 is on the location. So we always foresee that there has to be a performing and upcoming locations only while selecting our project. And the third one is in terms of our financial closure strategies, like a few deals what we are targeting on the outright as well as in

Atul Bohra

I think we are maintaining that, we will maintain it even in future. So I think the feedback is well taken. We will try to publish before first/second week itself. Himanshu Upadhyay: Second week you mean? Second week makes sense. Himanshu Upadhyay: Okay. Thank you.

Hi Atul, apart from LR, we have a lot of land parcel in the Pune itself and in Ghotawade and all other areas where we were working, I mean, in the planning stage, whether to launch for residential or mixed use or commercial only or going for a rental model. So can you give some color to what stage are we and our strategy is finalized or not?

Atul Bohra

I think on a couple of deals like Boat Club Road we are evaluating since it's a very prime location. So still evaluating internally. But since the location is in a way where it is ideally utilized for residential as well as commercial. But very soon, once we are ready with our plans and strategies on those projects, we will certainly announce. I believe we are talking since almost around 1year. So when do we expect those strategies really to fructify and as investors we get some color on that? I think gradually, we are getting it as like this quarter, we are having Kharadi as our priority as w

So I said it is already noted. Even our recent announcement, you must have recognized that gradually we have to scale up on a bigger acquisitions, which will contribute to higher margins. So I think we are already in line with that strategy of expanding the margin and as well as scaling up the volume. Himanshu Upadhyay: Okay. So let's say, this Rs. 4,000 crores deal what you did, how different would it have been than your earlier deals, not just in terms of revenue potential, but in terms of your own share and expected profit contribution, what you could get or what you might get now versus hi

Atul Bohra

I think I have already covered it. It's a revenue share deal with payment on a refundable deposit with the landowner. And estimated EBITDA so far what we have planned in a JV deal is roughly around 15% and as you rightly mentioned there are quite a few factors which attract towards this deal. One is the scale, one is the location and third one is the micro market, upcoming micro market, where a lot of traction and the social infrastructure, upcoming developments are planned. So I think it fits with the strategy. Himanshu Upadhyay: Okay. Thank you.

Thank you once again for your interest and support. We will continue to stay engaged. And if you have any further questions, please feel free to reach out to Dipti Rajput at KPDL. Look forward to interacting with you next quarter.

Management

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Speaking time

Atul Bohra

Moderator

Bharat Sheth

Rohit

Gautam

Nitin R

Vikas Sharda

Shreyans Mehta

Smit Shah

Dipti Rajput

Opening remarks

Smit Shah

Thank you, Manav. Good afternoon, everyone, and thank you for joining us on the Q3 and 9M FY '25 Results Conference Call of Kolte-Patil Developers Limited. We have with us Mr. Atul Bohra, Group CEO; and Ms. Dipti Rajput, Vice President, Investor Relations. Before we begin, I would like to remind you that certain statements made in today's discussion may be forward-looking in nature and may involve certain risks and uncertainties. A detailed statement in this regard is available in the Q3 and 9M FY '25 results presentation that has been shared with you earlier. I now hand over the call to Mr. Atul Bohra, Group CEO, to begin the proceedings of this call. Thank you, and over to you, sir.

Atul Bohra

Thank you, Smit. Good afternoon and a very warm welcome to everyone present on this call. Thank you for joining us today to discuss operating and financial performance of the Company for the third quarter and nine months ended December 31, 2024. Let me begin by sharing with you my views on the real estate environment, followed by an overview of key developments during the quarter. Dipti will then take you through the key financial highlights. Following this, we will open the forum for Q&A. The residential real estate sector in India reached new milestones in 2024, recording its highest annual sales in over a decade. This growth underscores the sector’s resilience and the strong appetite of home buyers. Demand remained robust across major cities. The recently announced Union Budget 2025 emphasized inclusive development, economic expansion, and fostering private sector participation while maintaining macroeconomic stability. Among the notable highlights, income tax relief for the middle

Dipti Rajput

Thank you, Atul. Good afternoon, everyone. I’d now like to take you through our financial performance for the quarter and nine months ended 31st December 2024. Under CCM-based accounting, our Q3 FY25 revenues from operations increased to Rs. 349.7 crore from Rs. 75.8 crore in Q3 FY24, driven by higher deliveries. For the nine months ended December 2024, we recorded milestone revenues at Rs. 998.7 crore, compared to Rs. 845.1 crore in 9M FY24. Our reported profits have also been improving. EBITDA for Q3 FY25 reported at Rs. 25.5 crore, a significant improvement from a loss of Rs. 36.7 crore in Q3 FY24, while 9M FY25 EBITDA reached Rs. 69.5 crore as compared to Rs. 58 crore for 9MFY24. Our net profit after tax (post-minority interest) stood at Rs. 25.3 crore for Q3 FY25 and Rs. 41.3 crore for the nine-month period. As you are aware, revenue and profit recognition are determined by project completion as per statutory accounting norms. With continuous progress in construction, we have achi

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