Page 25 - Kolte Patil AR 2019-20

daily monitoring enhanced Q: How did the Company the need to buy from a account for the majority
collection efficiency respond to the COVID-19 credible brand. of our portfolio. At Kolte-
pandemic? Patil, we are attractively
Q: How did the Company A: The Company responded Q: How does the Company placed to capitalise: we
strengthen its business for with speed to the unfolding expect to perform in the possess a strong brand,
prospective growth? pandemic. It was one of few coming months? demonstrated execution
A: At the close of FY20, Indian real estate companies A: On the residential front, capabilities and a robust
the Company entered into to share a detailed document Pune and Bengaluru appear Balance Sheet. Besides, we
an agreement with Planet on the pandemic impact that to be stable markets where are in the right markets: we
Smart City, a UK-based was shared with the stock for apartments priced up possess a strong pipeline
real estate developer, for exchanges. It built a strong to C1 Crore, there is robust of new launches in Pune,
strategic land monetisation digital platform that ensured demand; in Mumbai, for Mumbai and Bengaluru with
of 5.52 acres of Sector R10 in virtual collaboration, apartments priced up to aggregate potential sales
Life Republic for C91 Crore. communications and C3-3.5 Crore, there could area of ~4.5 msf and topline
This land parcel comprises secured data transmission be decent offtake. The potential of ~C4,150 Crore
a residential development with customers. It stepped Company is attractively drawn from ten launches in
potential of 7.6 Lakh sq. up, so that its customers placed, its upcoming Pune, three in Mumbai and
ft. in saleable area. This would not need to step out. Mumbai projects (Sagar one in Bengaluru. . Besides,
land will be developed by The rapid digitisation of Vaibhav, Om Shri Gokul the Company is attractively
Kolte-Patil and Planet Smart the sales channel, novel and Hari Ratan) offering placed to capitalise on
City; the arrangement will offerings and Kolte-Patil apartments priced less a number of emerging
enhance the Company’s brand visibility translated than C3 Crore; even if there opportunities.
liquidity to pursue growth. into creditable bookings is a planning delay of 3-6
The transaction highlights - sales equivalent to ~ months, it will be possible Over the longer term, once
the intrinsic multi-year 60-65% of the normal to market the inventory with the external environment
value-creation prospects of quarterly average. Some decent margins. stabilises, the Company will
Life Republic. Besides, three 180 homes were sold during go ahead with its plans to
DM projects were signed the lockdown in March & Q: What is the basis of the make sure that it emerges
during the year under review April 2020; the momentum Company’s optimism? amongst the top five real
that promises enhanced accelerated thereafter. This A: We believe that traction estate players in India in
revenues. emphasised the growing will first return to the three-four years, crossing the
importance of homes and affordable and mid-income coveted 5 msf sales mark.
residential segments, which

HOW WE PROTECTED OUR BUSINESS FROM THE EFFECTS OF THE COVID-19 PANDEMIC
Preparedness The Company strengthened Construction is expected invoices are likely to
The Company adopted a digital sales capabilities, to reach optimum levels enhance liquidity.
comprehensive Business which helped ramp sales within 3-6 months of the
Continuity & Risk to 60% of the FY20 monthly lockdown being lifted People
Management blueprint in average; 180 homes were following increased The Company remunerated
early March, 2020. sold in March and April mechanisation. employees on time and
2020 during the lockdown. in full; the promoters took
The objective of this The Company is optimistic a voluntarily 50% salary
blueprint was to NRI sales doubled when of sustaining construction cut. The Company built
minimise the impact on compared with the pre- even at considerably lower a strong digital platform
our stakeholders while COVID-19 period. collections. that facilitated virtual
protecting our customer The digital platform collaboration across sites
commitments, cash flows emerged as a preferred Liquidity and locations.
and operational readiness. The Company repaid C83
purchase platform. Crore of net debt in FY20. The Company addressed
Sales the food and shelter
Fresh apartment bookings Operations The Company availed of a requirements of thousands
were affected from the Construction and sales three-month moratorium; of its labourers and their
second half of March, 2020 partially resumed in Pune no debt servicing issues are families across construction
when the lockdown was and Bengaluru from 12 perceived; the Company sites.
imposed, leading to sales May and 5 May, 2020 enjoys undrawn lines of
deferment. respectively. bank debt of C110 Crore The Company contributed
The Company resumed coupled with cash/ cash C25 Lakh to Maharashtra
The Company achieved construction activities in equivalents of ~C98 Crore. CM’s COVID-19 Relief Fund
sales of 2.5 msf in FY20 Pune and Bengaluru with Besides, the liquidation through CREDAI.
in line with the guidance 40% of the workforce. of inventory, proposed
provided. launches and raised

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