Kolte Patil Q2 PAT rises to Rs 14.17 cr; stk rallies

MUMBAI: Shares of Kolte Patil Developers continued to move higher a day after announcing quarterly results. The company reported a net profit of Rs 14.17 crore for the quarter ended September 2012 against a net profit of Rs 6.30 crore in the same quarter a year ago.

Total income increased to Rs 39.73 crore from Rs 26.41 crore in the corresponding quarter last fiscal.

Vasant Gaikwad, CFO, Kolte Patil in an interview to ET Now said the company will be launching two new projects in H2FY13. Average realisation during the September quarter has been at Rs 4000 per square feet. The company has sold 1.5 million square feet of space in Q2FY13.

Karvy Stock Broking expects Kolte Patil Developers to get re-rated as the projects under execution are likely to cross the revenue recognition threshold over the rest of 9MFY13E.

According to the brokerage, despite the sharp run-up over the past one month, the stock has good upside potential to hit target of Rs 106 per share.

The company is developing Jhambe residential project along with ICICI Venture which is entering into revenue recognition mode.

“We expect a material pick up in the revenue recognition going into FY14E. The initial development is being planned on 150 acres. With talks of FSI being increased from 0.5x to 1x for the township projects there could be further upside to the NAV contribution from this project. We expect KPDL to get re-rated as projects under execution cross the revenue recognition threshold over the rest of 9MFY13E,” the report said.

At 11:40 a.m.; the stock was at Rs 69.15, up 8.39 per cent on the BSE. It touched a high of Rs 71.80 and a low of Rs 64.15 in trade today.