Kolte Patil Developers (4QFY18): Delivered strong revenue growth

Kolte Patil Developers Ltd. (KPDL) delivered strong 4QFY18 revenue growth of 43.3% YoY.  FY18 revenue was Rs12.2bn (+26.5%) driven by first time recognition in R1 sector of Life Republic; Western Avenue, Ivy Estate and Mumbai projects. Sales momentum was maintained in FY18 (2.1mn sqft, flat YoY), despite no substantial launches, residual demon impact and structural changes – GST and RERA. Strong growth in collections (+15.0% YoY) to Rs 11.1bn (FY18) is expected to continue over FY19-20E. KPDL has launches of 4 mnsqft planned (expected in 2HFY19E). This, along with a continued push in the Bangalore and Mumbai micro markets is expected to result in KPDL showing strong pre-sales from FY19E (2.5-3.0mn sqft). The price has corrected recently. It is believed that the expected recovery is already priced in.