Kolte-Patil Developers - Operations on Track; Result Update Q3FY15 :: Edelweiss

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Kolte-Patil Developers’ (KPDL) Q3FY15 revenue and EBITDA at INR2,205mn and INR661mn, respectively, surpassed our estimates led by higher-than-estimated revenue recognised on Downtown phase I. While cash collections were robust at INR2,600mn, debt jumped by INR260mn during the quarter riding TDR and FSI payments of INR700mn. Debt equity ratio remains comfortable at 0.2x. Sales bookings were healthy at 0.64msf for INR3.9bn and we expect the company to maintain its sales momentum and post sales of INR14.1bn in FY15E and INR17.2bn in FY16E versus INR11.4bn in FY14. We raise our NAV/TP to INR216/share (INR201/share earlier) led by new project additions in Mumbai and rollover to FY16 NAV.

Downtown facilitates revenue beat

KPDL reported revenue of INR2,205mn against our INR1,890mn estimate led by higher-than-estimated revenue recognised on Downtown phase I. Accordingly, EBITDA too at INR661mn surpassed our estimate (INR515mn). However, PAT at INR198mn largely matched our estimate led by higher-than-estimated minority interest. The company’s debt jumped during the quarter by INR260mn despite strong cash collection of INR2,600mn (INR2,007mn in Q2FY15) led by TDR and FSI payments of INR700mn during the quarter. Debt equity ratio remains comfortable at 0.2x.

Operations remain strong

Sales bookings were healthy at 0.64msf for INR3.9bn against 0.6msf for INR3.4bn in Q2FY15 and 0.44msf for INR2.5bn in Q3FY14. We expect the sales momentum to be maintained going forward. We estimate KPDL to post sales of 2.5msf for INR14.1bn in FY15 and 2.9msf for INR17.2bn in FY16 versus 2.1msf for INR11.4bn in FY14. Further, the company continues to add projects in the society redevelopment model in Mumbai-adding 3 projects in Q3FY15.

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https://www.edelweiss.in/research/Kolte-Patil-Developers--Operations-on-Track;-Result-Update-Q3FY15/28112.html