Page 25 - Kolte Patil AR 2019-20
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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

              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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