Kolte Patil Developers

Latest CNBC interview (link)

  • Confident of growing 25-30% in FY23, don’t expect much impact of stamp duty withdrawal on volumes
  • Deliveries will be 3mn+ in FY23
  • Have taken price hikes from 2-7%
  • Net debt has come down to 120 cr., this should go up as this kind of debt is too low and they will deploy capital in newer opportunities

Here are their historical numbers.

FY17 FY18 FY19 FY20 FY21 FY22
Sales volume (lakh sq.ft) 20.80 20.90 27.00 25.10 20.80 27.10
Sales value (cr.) 1’220.00 1’198.00 1’432.00 1’331.00 1’201.00 1’739.00
Collections (cr.) 965.00 1’109.00 1’247.00 1’368.00 1’128.40 1’574.00
Average realization (per sq.ft) 5’836.00 5’765.00 5’302.00 5’309.00 5’785.00 6’407.00

Disclosure: Invested (position size here, no transactions in last-30 days)

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Q4FY22 Concall Notes

  1. Numbers:

  1. Mumbai portfolio reported best ever performance.
    1. Will continue to increase Mumbai portfolio
  2. Collection is the highest in the 3 decades of Kolte Patil.
  3. Guidance: “We now look forward to expand on the platform of these achievements; our objective would be to deliver 25-30% sales value growth in FY23. We have a solid balance sheet position and remain well placed to aggressively pursue business development initiatives in FY23 and expect to conclude deals with a cumulative top line of Rs.7,000. Further, in FY23 we are looking to launch projects in the pipeline that currently include saleable area of 5.4 million square feet with aggregate top line potential of Rs.4,600 crore.”
    1. Confident of delivering 3 mm sq ft during FY23. Leading to Rs.1800+cr of revenue with EBITDA margins of 25%. (Today the market cap is around 1800crs)
    2. Mumbai target of crossing Rs.650cr. IRR target of more than 25% of redevelopment portfolio. Margin is 22-25%
  4. Debt to equity at 0.14 time
    1. We reduced Net Debt by Rs. 179 crore during FY22 and by Rs. 41 crore during Q4FY22. This was the third consecutive year of Net Debt reduction, with Rs. 386 crore being reduced in last three years. As on March 31, 2022 Net Debt/Equity stood at 0.14x.”
      1. Current debt level is at 20 days of collection of business.


  1. 14-15% price hike in Pune Life Republic. Further increased, 5-7% in other projects as well. (On average 5% price hike)
    1. Management believes there is possibility of settling down of the cost further.
    2. They were able to sell the Mumbai project within one month even after the price hike.
  2. Confident of launching projects worth 4,000cr in FY23. This year it was 1,000cr.
    1. 70% from Pune and 30% from Mumbai and Bangalore
    2. 7 non-binging sheet are present where commercial discussions has been closed but not 100% guarantee that it will god through as legal problems can still come in.
  3. Q: Any change in customer behavior due to increase in interest rate?
    1. There is good growth in the industries as well where the end customer would also be receiving high increase salary but it can be impacted if it increasing by 100 basis points.
      1. They are not investors they are end users.
    2. If required company is open to provide incentive to meet growth target but have not done yet rather increasing prices.
  4. Contribution from Life republic project contributed 40% last year to now 31% next year guidance of 24-25%.
    1. Reason being more projects being sold from other project and not slowing down Life Republic.
  5. Evaluating Plotting projects of townships in Pune, already one first such project this year.
    1. Less number of branded players in this segment.
  6. Management is not seeing any slowdown in the real sector.
  7. There has been multiple hiring in mid to high level management. New management team has joined this year like a position of COO. Plus, building a strategy team.
  8. Booking:
    1. Affordable: First 3 months and 50% is sold by that time then 100% by the time registration certificate is received
    2. Premium: First 6 months 30-40%. 20% at finishing.
  9. 63% of inventory of last year has been sold.
  10. In Mumbai customer are coming to them even at better terms for the developer showing brand recall.

P.S: Please notify if there are any errors in the notes as audio was not clear during the call.


Thanks for adding your notes, its very comprehensive. I will add a few data points in terms of long term sales cyclicality and the kind of Mcap Kolte got in previous cycles.

Reported sales
2008 peak sales ~ 421 cr.
2010 low sales ~ 148 cr. (-65% from peak)
2014 peak sales ~ 764 cr. (416% from low, 81% from peak)
2015 low sales ~ 697 cr. (-9% from peak, 371% from low)
2018 peak sales ~ 1403 cr. (101% from low, 84% from peak)
2021 low sales ~ 692 cr. (-51% from peak, 0% from low)

Share prices:
2008 peak: 272
2009 low: 18.7 (-93% from peak)
2015 peak: 238.75 (1177% from low, -12% from peak), market cap: 1’812 cr.
2016 low: 78.4 (-67% from peak, 319% from low), market cap: 595 cr.
2018 peak: 404.7 (416% from low, 70% from peak) , market cap: 3’072 cr.
2020 low: 103 (-75% from peak, 31% from low) , market cap: 782 cr.

Market cap / sales
2015 peak: 2.37 (peak market cap 2015 / peak sales 2014)
2018 peak: 2.19 (peak market cap 2018 / peak sales 2018)
2016 low: 0.85 (low market cap 2016 / low sales 2015)
2020 low: 1.13 (low market cap 2020 / low sales 2021)

In terms of Mcap/sales Kolte got 2.2x in 2015 and 2018 cycles. If we just look at projected FY23 deliveries, it should be around 1800 cr. (3 mn sq.ft * 6000/sq.ft). With 25% EBITDA margins, current EV/EBITDA ~ 4.5x. On a EV/pre-sales number, Kolte is currently trading at <1x. This is in stark contrast to previous upcycles where they traded at >2x sales.

Summary: Business is in an upcycle and valuations are towards the 2016 and 2020 lows. I think its an interesting opportunity if management executes. In the past, they have overguided and underachieved.

Disclosure: Invested (position size here, bought shares in last-30 days)


FY22 result is reflection IT boom and salary hikes. Is this going to repeat in FY23? I doubt.
Pune real-estate is driven by IT. Looking at current and near future bearish scenario in IT, layoffs fear, interest rate hike, prices hike in real-estate, etc. will definitely impact real-estate growth in city/region where IT drives growth.
Hence, management’s commentary should be taken with pinch of salt !!


24.06.2022 (Zee interview)

  • Have been able to take price hike of 5-10% in last year, in last 3-months, 2-4% price hike across portfolio. In Q2 planned launches, prices will be at 5% premium to initial planed prices (when project was being finalized)
  • Kolte’s growth in their micro markets has mainly been due to increased ITES demand
  • Pre-sales target for FY23 ~ 2’300 cr.
  • Will have 10mn sq.ft of business development and 5’000 cr. launches in FY23

Disclosure: Invested (position size here, bought shares in last-30 days)


Very nice management interaction, they are confident of meeting FY23 guidance

Disclosure: same as before


AR22 notes:

  • Has 9.1 mn sq.ft under execution (sold and unsold) vs ~9.13 mn sq.ft in FY21, 40 cr. of RTM inventory (vs 170 cr. in FY21)
  • Realizations increased by 11% to 6’407 due to increased contribution from Mumbai and higher realizations from Pune and Bangalore
  • Mumbai + Bangalore sales contribution ~32% of FY22 sales (vs 25% in FY21)
  • Pre-sales target of 8’000 - 9’000 cr. for next 3-years with 40-45% contribution from Bangalore and Mumbai by FY25. Intend to launch 10 projects with revenue potential of 4’600 cr.
  • FY23 project delivery will be 3mn sq.ft
  • New business development of 10 msf (8 in Pune + rest in Mumbai and Bengaluru), projected topline is 6’000-7’000 cr.
  • Came up with propositions like home financing and customization to drive sales
  • Mumbai:
    o Mumbai portfolio reported sales value of 450 cr. (vs 180cr. in FY21)
    o Evara, Verve and Vaayu projects were virtually liquidated
    o 10 redevelopment projects signed (2 delivered + 3 ongoing + 2 under approval to be launched in Q1FY23)
    o Planned launches of Golden Pebbles and Sukh Niwas. Total 3 launches planned in FY23
    o Intends to unlock redevelopment deals that can contribute ~0.84 Mn sq. ft with an estimated revenue of 1,500 cr.
    o Will execute outright/structured and joint venture or joint development deals with project revenue sizes of 300-800 cr., with apartment value of 1.5-3.5 cr. and an average saleable realization of 15-17,000 per square feet
    o Will focus on large redevelopment properties that present possibility of generating at least 50 cr. in profit before tax.
  • Net debt declined to 131 cr. (vs 310 cr. in FY21)
  • Created 5 strategic business units (2 in Mumbai, 2 in Pune and 1 in Bengaluru)
  • Introduced net promoter score metric to understand brand strength in customer eyes
  • Partnerships:
    o Onboarded Planet Smart City as a private equity partner in Three Jewels project
  • Brands:
    o Kolte-Patil (addressing the mid-priced and affordable residential segment)
    o 24K (addressing the premium luxury segment).
  • Number of shareholder: 49’593 (vs 37’665 in FY21)
  • Share price: low (206.2), high (360)
  • Number of employees: 567 (vs 558 in FY21), median remuneration: 5.88 lakhs vs 5.29 lakhs in FY21
  • CSR: Spent 38 lakhs (74 lakhs unspent)
  • Auditor remuneration: 1.33 cr. (vs 1.27 cr. in FY21)
  • Contingent liability: 317.92 cr. (vs 294.92 cr. in FY21). 245 cr. is corporate guarantee and rest are court or tax cases

Disclosure: Same as above


Management in concall said around 3.5 mn sq ft to be delivered this year and same run rate to be maintained in next 2 years also. 1600-1900 cr. sales guidance for this year with 24-25% ebidta and 12-14% PAT margin guidance. For Fy24 2000 cr+ sales guided.

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Kolte has been delayed in execution of their business development plan. They are maintaining pre-sales guidance of 2200+ cr. and deliveries of 1600-1800 cr. in FY23. It seems most of the nos will come in Q4. Notes from concall below.

FY23Q2 concall

  • Out of 13 priority projects, 11 have got environmental approval and are stuck in some stage of local approvals
  • Guiding for 4000 cr. launches in H2FY23. Expect 1200 cr. of pre-sales from new projects + 300 cr. from sustenance inventory in H2FY23
  • Q4 will be higher in terms of pre-sales than Q3
  • For mid housing inventory, they sell 40-60% in 6-months after launch. For premium or luxury housing, they sell 30-40% in 6-months after launch
  • Life Republic: prices have increased by 7-10%
  • Thane project: Underwritten at 7500 and will launch at 8500, but actual cost impact is only 100-150. So margins should improve
  • The idea of selling investments and land bank through planet city is to improve project IRRs as Kolte gets cashflows earlier in the cycle
  • Guidance of deliveries of 1300-1500 cr. in H2FY23. Some deliveries will be in later part of Q3 and large part of recognition will be in Q4

Disclosure: Invested (position size here, no transactions in last-30 days)


Kolte management is guiding for a bumper Q4 quarter, with 800-900 cr. reported revenue, 30-40% gross margin, and 20-25% EBITDA margin. Lets see what they end up delivering. Concall notes below

FY23Q3 concall

  • Out of priority launch pipeline of 7’700 cr. (13 projects), have launched 2’000 cr. Remainder landbank has development potential of 15’000 cr. (11’000 is from Life Republic)
  • Planning to launch 4000 cr. of priority launch pipeline in Q4. There maybe some spillover to Q1FY24. Require 8-12% of upfront investment in terms of sales potential. Cashflows from Marubeni will be utilized for this investment
  • Baner project: Have acquired an adjacent land parcel which has improved economic outcome. Planning to launch at 9000 realizations in March 2023 vs 7500-7800 earlier
  • Life Republic: Average realizations have increased from 5200-5400 to 5900
  • Q3 losses were because of delivery of 2 projects in Pune (which were lower gross margin and contributed 31 cr. gross profits and were insufficient to cover overheads; Western Avenue and Green Olive). All costs related to these 2 projects have been booked this quarter
  • Launched premium Row houses in Life Republic and received overwhelming response. Price bracket has widened from 30-80 lacs to 30-250 lacs
  • Q4 revenue recognition will be 800-900 cr. bringing reported revenue in FY23 to 1600-1700 cr. Gross margin: 30-40%, EBITDA margin: 20-25%
  • Deliveries in FY23 + FY24 will be 3000 cr. (so 1300-1400 cr. of revenues in FY24)
  • OCs: Have received for 2.7mn sq. ft in 9M FY23, 60% of these were received in December 2022 and will be recognized in March 2023 quarter. After OC receival, revenues are recognized in 30-45 days depending on agreement with customers
  • Expect higher EBITDA margins in FY23 vs FY22
  • Expect 25-30% pre-sales growth in FY24
  • Referral sales have improved from 3-5% earlier to 7-9% in FY22 and further to 15% in 9MFY23

Disclosure: Invested (position size here, no transactions in last-30 days)

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FY23 ended as a very good year with presales growing by 28%. One place where they lacked was in new launches, which was much lower than earlier guided and reported margins (again much lower than previously guided). However, since FY20 company has scaled up very well, with presales growing at 19% and company consistently generating very high cashflows (500 cr.+ in last 2 years). Realizations have also grown at 9% CAGR over this period.

FY23Q4 concall notes

  • Pre-sales increased by 28% to 2232 cr. (50% came from new launches), volumes increased by 21% to 3.27 mn sq.ft and collections increased by 21% to 1902 cr.
  • Delivered 3.3 mn sq.ft (exceeding guidance of 3mn sq.ft) but EBITDA margins were sharply lower at 13% (vs guidance of 25%). Lower margins are because revenues that are getting recognized are on a 5300-5400 realization (older projects) whereas marketing costs that are reflected in P&L statement are getting incurred on current projects which are being sold at 6800-7000 cr./sq.ft
  • Launched 3.05mn sq.ft of projects (2120 cr.) which was much lower than guidance of 4000 cr. in FY23
  • FY24 guidance: Pre-sales of 2,800 cr. + deliveries of 3mn+ sq.ft (1500-1700 cr.) + launch 7.39 mn sq.ft (5,265 cr.) + acquire projects with topline potential of 8,000 cr. (5000 in Pune + 2000 in Mumbai + 1000 in Bangalore)
  • In May 2023, acquired two projects each in Pune and Mumbai with top-line potential of 2500 cr.
  • Sustenance Inventory: 1700-1800 cr.; 30-40% of FY23 sales will come from sustenance inventory (~1000 cr.) and 60-65% from new launches
  • Received 206.5 cr. from Marubeni Corporation towards investment in the Pimple Nilakh project in April 2023
  • Business development: Net debt is 110 cr., need 500-550 cr. for current business development which they want to fund via internal accruals
  • Life Republic contribution in pre-sales was 1.76 mn. sq. ft (1070 cr. sales). Currently RERA launch inventory is ~1000 cr. in township. Price realization has improved to 5700-5800/sq.ft
  • Strategy in Life Republic during FY23 was to do high volumes, now with that strategy being successful pivoting to selling at higher realizations in Life Republic
  • Have seen 5-10% higher realization across projects
  • Margins & IRR: Outright projects (30-40% gross margins, 20-25% EBITDA margins), JV & Redevelopment (focus on IRR of 30%+)
  • Have been seeing higher demand in higher value housing rather than low and affordable housing
  • Customer profile: IT segment for entry level, beyond 1cr. inventory its spread across industries

Disclosure: Invested (position size here, no transactions in last-30 days)


18.07.2023 CNBC interview

  • 700 cr. quarterly sales maintained in last 3-quarters
  • Expect 25-30% growth in pre-sales in next couple of years
  • Out of 5000 cr. of proposed launches, have launched 1100 cr. in Q1FY24. Very strong launch pipeline for Q2 and Q3
  • 8 out 10 projects have seen significant increase in realizations (5-15%) including in Mumbai
  • Mumbai: In one project, realizations have increased from 16’500-17’000 to 19’500/sq.ft
  • Life Republic: >10% price increase across products

Disclosure: Invested (position size here, no transactions in last-30 days)


“Kolte-Patil acquires two society redevelopment
projects in Mumbai Metropolitan Region with estimated saleable area of 4.8 lakh sq. ft. and topline
potential of Rs. 950 crore. These projects located in Goregaon will further strengthen the
Company’s presence in MMR.”

In April-May 2023, the Company announced acquisition of four projects, two in Pune and two in
Mumbai, with the total development potential of ~2.6 million sq. ft. and topline potential of Rs.
2,500 crore. With the two new additions in MMR, the new business development deals now aggregate
a topline potential of ~Rs 3,450 crore. The company is continuously assessing multiple business
development and expansion prospects in its targeted markets through innovative, capital-efficient

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Some Observations :
1.Net D/E is down - 0.11
2.Pre-Sales almost doubled in last two years
3.Realizatoins are improving
4.New and Sizeble projects acquistions in Pune and MMR
5.Guidance of 25-30% presales for next 2 years…
6.Life Republic is at inflexion point interms of pricing…

Disc: Invested

Another very quarter from Kolte, with pre-sales exceeding 700 cr. and their new business development plans going well. Concall notes below


  • Quarterly pre-sales have been maintained at 700 cr.+ levels
  • Maintain guidance of 2800 cr. pre-sales in FY24 and 3500 cr. in FY25. Expect deliveries of 1700 cr.+ in FY24
  • Business development: acquired projects worth 3450 cr. (out of planned 8000 cr.)
  • New project launches accounted for 43% of pre-sales in Q1FY24
  • New project launches was ~2000 cr. (guidance: 5200 cr. in FY24)
  • 24k Baner project was launched in June (800 cr. potential). Within the launch week, sold 50% of inventory which was available on sale (sold 242 cr. in Q1FY24). There is strong demand in premium and luxury housing
  • Have delivered 5 24k projects so far, will launch 5 more in FY24. EBITDA margins are 4-5% higher vs MIG housing
  • Life Republic will cross 1.5mn+ sq.ft pre-sales in FY24 (vs 1.7 mn sq.ft in FY23) at higher realizations
  • Sold 200 units in R22 on a weekend (launched in July 2023). Demand is very strong in Life Republic
  • Currently evaluating 10 redevelopment projects in Mumbai, a couple of them are in advanced stage
  • Doing 20%+ EBITDA margins on a project level, corporate level will be lower due to investments in new projects
  • Equa / Wagholi project: waiting for some further approvals, sales velocity is not a problem
  • Business development costs will be higher than previously guided 500-550 cr. because they acquired JV stake in Baner project. Confident of funding most of this expansion from internal accruals
  • Life Republic surrounding areas is a no development zone, their FSI gives them advantage to develop a township
  • Ready unsold inventory is very low (20-30 cr.)

Disclosure: Invested (position size here, no transactions in last-30 days)



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Kolte-Patil enters into second agreement with Marubeni Corporation (Japan) for Rs. 110.9 crore.

As a part of this agreement, Marubeni Corporation will invest Rs. 110.90 crore in the Alora project, entitling them to a total saleable area of 59,949 square feet in the project. The Alora project was launched in February 2023 and has a total development potential of ~1.3 lakh sq. ft.