HDFC Securities: Kolte Patil Developers Posts Weak Q1; Valuation Affordable
High rise buildings stand under construction. (Photographer: Sanjit Das/Bloomberg)

HDFC Securities: Kolte Patil Developers Posts Weak Q1; Valuation Affordable

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HDFC Securities Report

Kolte Patil Developers Ltd. reported operationally weak Q1 FY21 with pre-sales of 0.31 million square feet (0.67/0.51msf QoQ/YoY), for a presales value of Rs 1.64 billion.

Life Republic project in Pune continued to garner strong response (45% of pre-sales). Loss of Rs 312 million was driven by fixed cost absorption on lower revenue and low margin projects in mix.

Covid-19 shutdown for the most part of April and May-2020 also impacted revenue recognition.

Q1 FY21 collections dipped as expected, and stood at Rs 1.05 billion (versus Rs 3.8 billion/3.6 billion QoQ/YoY).

Proceeds of Rs 450 million (of Rs 910 million total) from strategic land monetisation has kept liquidity from deteriorating.

Delay in demand recovery due to Covid-19 is a key risk to our estimates. No change in FY21/22 estimates.

Click on the attachment to read the full report:

HDFC Securities Kolte Patil Developers Q1FY21 Results Update.pdf


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