Release Date: May 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Kolte-Patil Developers Ltd (BOM:532924, Financial) achieved its highest-ever collection of INR 2,432 crore in FY25, marking an 18% year-on-year growth.
- The company reported its highest-ever annual total income of INR 1,764 crore, a 27% increase year-on-year.
- Operating cash flow for FY25 stood at INR 880 crore, indicating strong financial health.
- The Life Republic Township project performed well, contributing 1.9 million square feet to the volume, reflecting sustained homebuyer confidence.
- Kolte-Patil Developers Ltd (BOM:532924) launched projects with a total GDP of approximately INR 4,000 crore, with new launches contributing 42% of overall sales.
Negative Points
- Sales were impacted due to deferment in planned project launches owing to regulatory and procedural delays.
- The company is facing challenges with project approvals, which have been delayed due to regulatory changes and elections.
- Despite improved realizations, operating margins have remained below 20% for the fifth consecutive year.
- There is uncertainty regarding the timeline for future project launches and pre-sales guidance due to ongoing strategic reviews.
- The company is still awaiting regulatory approvals for a transaction involving Blackstone, which could impact strategic direction and operations.
Q & A Highlights
Q: Can you provide guidance for pre-sales and launches for the next year?
A: We are on track with our long-term guidance, but due to current circumstances, we will revisit our strategy and may take a quarter or two to provide guidance for the year. However, our long-term trajectory remains on track. - Group CEO
Q: What is the status of the delayed projects and new launches?
A: We launched projects with a GDP potential of 4,000 crore this year. Some projects were deferred due to delays in the approval cycle. We will update on these once we have more clarity. - Group CEO
Q: Can you explain the reasons behind the lower operating margins despite increased realizations?
A: Compared to FY24, our EBITDA margin improved significantly, and we expect further margin improvements as realizations have increased. We are working on cost rationalization internally. - Group CEO
Q: How do you view the current market demand and approval challenges?
A: Demand remains strong, especially in Pune and Mumbai, supported by interest rate reductions and budget announcements. Approval processes have seen improvements, but they remain a factor that can cause quarter-to-quarter slippages. - Group CEO
Q: What is the long-term guidance for the company, and how do you see the role of Blackstone and promoters in strategic direction?
A: Our long-term guidance remains on track. The transaction with Blackstone is under regulatory approval, and we will provide more details once it progresses. - Group CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
