Page 23 - Kolte Patil AR 2019-20

our Company and sized slightly bigger than Our Company was placed
competition. their then needs. most competently in
its business when the
The principal message that The time has come when pandemic broke.
I wish to send out to our people who wish to buy
stakeholders is that even apartments will be more The Company reported
as the COVID-19 impact is demanding than ever. There a record sales year in
sweeping and significant, will be a greater focus on FY20 when one compares
Kolte-Patil possesses the apartment configuration; across years when no fresh
resilience and agility to there will be a larger focus launches were made. The
emerge quicker and stronger. on the quality of lifestyle Company reported its
supports; there will be a highest collections in any
Relevant asset class bigger stress on apartment single year. The Company
One of the most telling spaciousness. By the virtue reported the highest profit
realities to have emerged of having built apartments after tax in its existence. The
from the pandemic is the with precisely this focus, we Company moderated its net
importance of a home. will be attractively placed debt by C83 Crore in FY20.
As people have had to be to capitalise on the sectorial The Company protected its
confined inside their homes transition. credit rating at CRISIL A+/
for weeks on end, the Apartment prices have Stable possibly one of the
experience has highlighted not increased for nearly highest accorded to any
the importance of buying half a decade, possibly Company in India’s real
into a home constructed by the longest period of price estate sector.
the right brand. This new stability seen in decades. By the virtue of this
normal has brought home On the other hand, personal outperformance and cost
the learning that a home incomes and prosperity austerity, we possess one of
have increased year-on- the lowest break-even points
As the importance of this year; the rate of housing among large real estate
asset class has deepened finance loan has declined developers in India. Even
if we achieve 60%-65% of
from around 11% to around
what we are seeing is an 8.5% even as incomes have last year’s collections, we
can sustain our operations
grown. The transparency
inflection point towards bigger and compliances related to comfortably. Further, we
and better homes product sale have increased. possess C260 Crore of ready-
Real estate is now a credible
to-move-in inventory.
investable asset class. Going ahead, our objective
Besides, apartments in India
needs to be not just a shell in generate a steady 2.5-3.5% will be to consolidate our
which one seeks to live some yield on rent, making this an presence for the first nine
leisure hours but a holistic attractive asset for NRIs. months of the current
lifestyle experience instead. financial year, cap costs,
Besides, as people work I am optimistic that India moderate debt, enhance
increasingly from home, will be one of the earlier efficiencies, protect liquidity,
there is an expressed need economies to recover from sustain construction pace
for a ‘home office’. the pandemic. By the and wait for an upturn to
virtue of a large captive make new launches.
As the importance of this consumption appetite,
asset class has deepened India’s economic de-growth Outlook
what we are seeing is an could be less pronounced At Kolte-Patil, we will
inflection point towards than in other countries. continue to do what we
bigger and better homes Besides, as the country have always done: deepen
– not just a place where begins to co-exist with our governance, select our
one may live, unwind, the virus, some personal battles, remain responsibly
rest and recoup but also economic decisions will be cautious and wait for the
a place where one may taken quicker, one of them tide to turn.
work. Following extensive being the decision to move We have done so
engagements with those into a new, larger and better successfully in the past,
who brought into our home. returning to vigorous growth
apartments in the last few each time.
years, a recurring response Competitive
was a sense of relief about positioning We are optimistic that this
the way we had designed ‘So how will Kolte-Patil time will be no different.
and configured apartments; capitalise on this new
our buyers considered reality?’ is what I have been Rajesh Patil, Chairman
themselves fortunate to have asked frequently during the
brought into apartments last few months.

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