Page 33 - Kolte Patil AR 2019-20
P. 33

Overview                      audits. The result was the ability to
            In India’s real estate development   achieve a high constructed integrity
            sector, passing through a liquidity   in line with the architect’s design,
            challenge, there is a premium   coupled with minimal rework.
            on sustaining construction pace.
            Companies that are able to sustain   Culture
            are better equipped to protect their   At Kolte-Patil, this discipline
            deadline-committed reputation.   was built around an invigorating
            There is a greater willingness   culture. The Company’s
            to buy ready-to-move-in homes,   construction effectiveness was
            making timely construction critical.   derived from its ability to question   Big numbers
            Besides, timely construction and   established practices, reinvent
            handover have positive collection   paradigms, introduce perspectives   1576
            implications, strengthening   and deliver bigger, better and faster.
            financials, competitiveness and   The result was a greater design   Apartments handed over,
            sustainability.               standardisation (design / size /
                                          rooms).  Besides, the Company         FY17
            Performance                   automated the routine, simplified
            During the year under review,   the complex, templatised the        1601
            the Company handed over       simple and scaled the templatised.
            1601 completed apartments to   The result was scalable and          Apartments handed over,
            buyers. The completed handover   predicable growth in the shortest   FY20
            amounted to 1.86 msf. This    time with the least deviations.
            protected the Company’s respect
            as a professional systems-driven   Standardisation                  2.13
            organisation, possessing the   The Company created standardised
            ability to protect its commitment   products across every segment   Msf, delivered, FY17
            to customers, irrespective of the   of presence (affordable, MIG,
            prevailing sectorial weakness.   24K and township residences).      1.86
                                          This enhanced clarity on product
            Discipline                    configurations, resources and         Msf, delivered, FY20
            The timely handover of apartments   deliverables.  This simplified project
            was not the result of initiatives   fundamentals, accelerating project
            undertaken during the last year;   approvals. Besides, this dictated the   Perspective
            it was the result of a discipline   selection of relevant technologies,   “We believe in a model
            strengthened by the Company   creation of organisational              wherein we buy, construct
            over the last number of years. The   benchmarks and best practices.   and sell at a faster pace with
            Company invested in equipment   The result is that Kolte-Patil is     a manufacturing mindset. As
            mechanisation, processes, team   widely respected as a disciplined    a result, our ROCE, ROE and
            training cum delegation, standard   builder driven by efficient       EBITDA margin are well placed
            operating protocols, enhanced   construction practices.               compare to our peers while we
            safety, IT-driven monitoring, cross-                                  report around 18% to 20% CAGR
            site best practices and periodic
                                                                                  growth in pre-sales, collections
            The coming together of culture and discipline                         and top line. We have been
                                                                                  consistently generating free
                                                                                  cash flows, positioning us well
                                                                                  for the next level of business
                                                                                  development.” - Gopal Sarda,
               Design           Equipment       Team            Standard
               standardisation   mechanisation   training and   operating         Group CEO
                                                competence      protocols

               Enhanced         IT-driven       Sharing of      Periodic
               safety focus     monitoring      cross-site      audits
                                                best practices

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