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.
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