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Kolte Patil's robust FY22 pipeline comforts investors even as Q1 earnings disappoint

Kolte Patil aims to do upwards of 2.5msf of pre sales in FY22 and targets a 20% year-on-year increase over next few years. (File Photo: Mint)Premium
Kolte Patil aims to do upwards of 2.5msf of pre sales in FY22 and targets a 20% year-on-year increase over next few years. (File Photo: Mint)

  • The company's has a robust pipeline of 7.2msf across Pune, Mumbai Metropolitan Region and Bengaluru, with a topline potential of Rs5,700 crore. The projects are expected to be launched in phased manner from 2HFY22 which will drive overall momentum for FY22

Covid-led disruptions weighed on June quarter performance of Mumbai-based Kolte Patil Developers Ltd. During the quarter, the company recorded sales booking of 0.40 million square feet (msf), down 53% sequentially. Sales value also halved to Rs249 crore, with collections falling 37% sequentially to Rs279 crore in Q1FY22.

Yet, the stock was up 3% on the National Stock Exchange in early deals on Friday. Analysts say, the company's sales momentum is likely to recover as mobility restrictions further ease in Maharashtra, with its strong launch pipeline giving it a push.

The company's has a robust pipeline of 7.2msf across Pune, Mumbai Metropolitan Region and Bengaluru. These projects are expected to be launched in phased manner from 2HFY22 which will drive overall momentum for FY22. According to the company's management, these projects have a topline potential of Rs5,700 crore. In addition, its 3.22msf of unsold ongoing-inventory is likely to drive the sustenance sales, analysts said.

Deriving confidence from upcoming launches, the management said that it aims to do upwards of 2.5msf of pre sales in FY22 and targets a 20% year-on-year increase over next few years.

Apart from that, the company's lean balance sheet and increased focus on the asset-light model is comforting, analysts said.

In 1QFY22, the company reduced its net debt by Rs29 crore.

"Kolte Patil has consistently maintained comfortable gearing with debt/equity in 1QFY22 at 0.30 times (FY21 debt/equity was 0.24 times). Given company's strong balance sheet position and robust project pipeline, overall outlook looks positive," analysts at Antique Stock Broking Ltd said in a report.

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