Kolte-Patil Developers Surges 12% Post Q2 Business Update
Kolte-Patil Developers (KPDL), a prominent real estate company with a strong presence in the Pune residential market and growing presence in Mumbai and Bengaluru, saw its shares rally 12% on heavy volumes after announcing its Q2FY25 business update. The c
Koltepatil DevelopersReal EstatePuneBengaluruShare PriceReal Estate PuneOct 17, 2024
The company also reported collections of Rs 550 crore for the quarter, a 10% decrease Q-o-Q but a 16% increase Y-o-Y. This was driven by robust sales and consistent, timely execution of projects. During Q2FY25, average realisations improved by 16% Y-o-Y, reaching Rs 7,472 per square foot. Premium projects such as Life Republic (LR) and 24K projects in Baner, Pimple Nilakh, and LR played a crucial role in driving this increase, as per the Q2 operational update.
Backed by a strong pipeline of launches planned for the second half of the year, the management is confident about meeting the company’s pre-sales target of Rs 3,500 crore for FY25. The robust industry trends supporting housing demand, particularly in premium categories, further position KPDL to capitalize on the growing market opportunities.
At 09 45 AM, KPDL was trading 10% higher at Rs 433.40, compared to a 0.28% decline in the BSE Sensex. The average trading volumes on the counter have increased nearly 10-fold, with a combined 2.2 million shares changing hands on the NSE and BSE. The stock had earlier hit a 52-week high of Rs 584 on January 9, 2024.
KPDL is a leading real estate company with a dominant presence in the Pune residential market and a growing presence in Mumbai and Bengaluru. The company markets its projects under two brands 'KoltePatil' (targeting the mid-income segment) and '24K' (targeting the premium luxury segment). According to Crisil Rating, KPDL’s sales (in value terms) for fiscal 2025 are expected to reach around Rs 3,300-3,500 crore, marking an approximate 20% increase from fiscal 2024 levels, while maintaining low debt levels.
Additionally, revenue diversity is expected to strengthen this fiscal year with an increase in launches outside Pune, leading to sales from non-Pune markets increasing to around 20-25% in the current fiscal year, up from 5% in fiscal 2024, subject to necessary approvals. Collections are also expected to grow by 25-30% in fiscal 2025 and 20-25% in fiscal 2026, indicating strong cash generation from sold projects. CRISIL Ratings believes that the company will increase its scale of operations in the medium term, supported by a significant launch pipeline and healthy salability in ongoing projects, while maintaining low leverage.
Frequently Asked Questions
What was the highest-ever quarterly sales value reported by Kolte-Patil Developers in Q2FY25?
Kolte-Patil Developers reported its highest-ever quarterly sales value of Rs 770 crore for the September quarter (Q2FY25).
How much did the average trading volumes on KPDL increase during the trading session?
The average trading volumes on the KPDL counter increased nearly 10-fold, with a combined 2.2 million shares changing hands on the NSE and BSE.
What are the two brands under which KPDL markets its projects?
KPDL markets its projects under two brands: 'KoltePatil' (targeting the mid-income segment) and '24K' (targeting the premium luxury segment).
What is KPDL's pre-sales target for FY25?
KPDL's pre-sales target for FY25 is Rs 3,500 crore.
How much is KPDL's expected sales growth for fiscal 2025 according to Crisil Rating?
According to Crisil Rating, KPDL’s sales (in value terms) for fiscal 2025 are expected to reach around Rs 3,300-3,500 crore, marking an approximate 20% increase from fiscal 2024 levels.
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