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

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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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