Kolte - Patil Developers Limited — Investor Meet, 19-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Kolte-Patil Developers reported robust financial results for the quarter, with revenues from operations soaring to ₹349.7 crore, compared to ₹75.8 crore in the same quarter last year. For the nine months ended December 2024, revenues reached ₹998.7 crore, up from ₹845.1 crore year-over-year. Notably, for Q3 FY25, EBITDA surged to ₹25.5 crore, a significant recovery from a loss of ₹36.7 crore in Q3 FY24. Net profit after tax stood at ₹25.3 crore for Q3 and ₹41.3 crore for the nine-month period, indicating a solid upward trajectory in profitability.

**Future Outlook and Growth Drivers:** Management has expressed optimism regarding sustained demand momentum, particularly due to supportive government policies, reduced Repo rates enhancing affordability, and a robust economic environment. The company aims to launch projects worth approximately ₹5,000 crore in FY25 in Pune while navigating temporary regulatory delays in Mumbai, with the expectation of launching several projects in Q4 FY25.

**Order Book and Operational Updates:** Sales bookings for the nine months reached ₹2,161 crore, with collections standing at ₹1,729 crore, reflecting a 17% year-on-year growth. The successful launches in the premium 24K segment and the continuing performance of the Life Republic township highlight strong customer demand and competitive pricing.

**Analyst Q&A Insights:** Analysts raised questions about demand projections in Pune and Mumbai, to which management noted a positive outlook despite some short-term approval delays. The company has targeted project-level EBITDA margins around 12% to 12.5%, although company-level margins are currently around 7% to 7.5%. Management reassured that adjusted EBITDA, accounting for other income, remains strong as they navigate operational challenges.

**Strategic Focus Areas:** The emphasis on high-quality, scalable projects and customer relationship management reflects an evolving corporate strategy aimed at enhancing profit margins while maintaining strong cash flows. Initiatives to boost CRM and project design quality have been prioritized to improve customer satisfaction and operational efficiency.

**Investor Insight:** Given Kolte-Patil's strong financial recovery, improving margins, and proactive approach to project development, the company's outlook appears favorable, aligning with a 'buy' stance amidst potential growth opportunities in the real estate sector. However, the focus on navigating approval challenges in Mumbai and managing inventory levels will be key to sustaining this momentum.