We are evaluating new acquisitions and partnerships to further our growth momentum

01 Aug 2018 CW Team

Incorporated in 1991, Kolte-Patil has emerged as an undisputed leader in the Pune market.

The company has developed and constructed over 50 projects, including residential complexes, commercial complexes and IT parks, covering a saleable area of ~15 million sq ft. The company is also expanding its presence in Bengaluru and Mumbai.
Gopal Sarda, Group CEO, Kolte Patil Developers, shares more...

Highlight one major challenge faced in FY2017-18.
We have seen the implementation of GST and RERA in 2017-18. We welcome these regulations, which bring in accountability, boost customer confidence and create a level playing field. We hosted a Live RERA Registration Drive in July 2017 with the objective of empowering channel partners with the required knowledge to hand-hold them through the regulatory process, driving participation from over 200 key channel partners in a single day, who are now RERA-compliant.

Particulars	Net sales	Adjusted PBDIT	Reported PAT
FY2018 (Rs billion)	14.02	3.03	1.53
Growth over FY 2017 (in%)	45.27	27.1	80.93

What decision do you consider the biggest contributor to the company's growth in FY17-18?
We have reported a robust performance in FY18, recording the highest ever annual revenue and net profit in the history of the company, maintaining our thrust on execution and timely delivery, despite sluggish macros.
Our 360° business approach and successful diversification in Mumbai and Bengaluru further propelled our performance.

Please share a decision you avoided, which could have otherwise impacted the company's topline and bottomline.
We have successfully navigated business cycles by operating with one of the lowest debt levels in the industry, focusing on sales velocity and collections. Our strategic partnerships with marquee names like KKR, JP Morgan and ICICI Ventures have enabled us to gain key insights, greater internal discipline, and improve processes and corporate governance practices, allowing us to be asset-light.

What are your plans for the company's growth in FY18-19?
We are on track to deliver record sales, revenue, profits, and further improve operational efficiency and high standards of customer service. We expect launches to the tune of ~4.4 million sq ft in FY19. Mumbai and Bengaluru have already started contributing and will be additional growth engines, in line with our vision of achieving ~25 per cent sales, profit and collections contribution from these markets by 2020. We continue to evaluate strategic and financial partnerships that enable us to scale our operations while limiting capital commitment. Currently, we are evaluating new acquisitions and partnerships to further our growth momentum. Affordable housing opportunities will also drive growth for us.