Page 29 - Kolte Patil AR 2019-20

Overview The Company arranged for a
In the business of real estate high proportion of apartment
development, a critical success purchases to be backed
factor is the ability to keeps by mortgage financing,
cash flows moving. This ability strengthening the assuredness of
is not just derived from the its cash flows
ability to generate higher The Company actively
sales; it is complemented by communicated the phase-wise
the competence in collecting construction of purchased
receivables on schedule. The apartments, enhancing the
latter aspect is proving critical customer’s clarity of the quantum Big numbers
at a time when the economy is and schedule of the next payment
sluggish, consumer sentiment 965
weak and there is a premium The Company focused on making
on collecting receivables on quality sales, selling only as much C Crore, Collections, FY17
schedule. During the year under as the market could bear without
review, the Company reported a compromising payments (or
record C1368 Crore in collections, realisations) 1368
9.7% higher than the previous The Company focused on
year. liquidating sustenance apartment C Crore, Collections, FY20
inventory, which usually
Drivers of success comprised completed apartments,
The Company reported a generating sizable inflows Perspective
contrarian performance in the “At Kolte-Patil, we protected our
area of collections for some good The Company generated competitiveness through clarity of focus: on
reasons. incremental cash flows from 2.5 cash flows in hand more than cash profits
msf of sales made in the previous
The Company serviced the needs year coupled with the handover of on paper. The result is that we did not just
of serious buyers as opposed 1601 apartments in FY20 focus on selling more apartments; we focused
to investors, translating into a on timely construction and collections that
greater responsibility in servicing The Company aggregated Pune, lubricated our cash flow and reduced working
their instalment obligations on Mumbai and Bengaluru collection capital, keeping the virtuous cycle in motion.”
schedule. teams into one unit; the daily – Gopal Sarda, Group CEO
monitoring enhanced collection
efficiency

How we strengthened our collections efficiency

This generated The Company
The Company sizable inflows worked with
focused on of largely home financing
selling existing completed partners,
inventory apartments accelerating its
receivables

The Company The Company The Company
enhanced sales, centralised its segregated
increasing collections team collections
inflows for enhanced from the sales
specialisation function,
increasing focus

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