Page 34 - Kolte Patil AR 2019-20

# 4 Strengthening financial sustainability
We protected the integrity of our Balance Sheet
In India’s real estate sector, most players reported weaker Balance Sheets in a challenging FY20. Kolte-Patil emerged as the contrarian; the Company strengthened its Balance Sheet through attractive profits and lower debt that protected its credit-rating (arguably one of the highest in the sector).
Overview
In a competitive real estate sector passing through a sluggish phase, the biggest insurance is derived from the quality of the Balance Sheet. During this challenging phase, the
Company strengthened its fundamentals through a growing surplus and lower debt.
Strengthening
fundamentals
The Company reduced net debt by C83 Crore in FY20.
Over the last four years
while the Company reported attractive growth in revenues, PAT, sales and collections, there was no increase in net debt (reduced in fact) even
as net worth increased C352 Crore. This combination helped right-size the Balance
32 | Kolte-Patil Developers Limited