Key takes aways of the call

Post demonetization impact in Q3FY17 there was quick recovery in sales. Sales volume of the company rebounded to 0.55 million square feet in Q4FY17. Sales volume for FY17 was at 2.1 million sft, a growth of 3%yoy. Life Republic, Corolla, Western Avenue and Three Jewels were the main contributors to sales volumes for Q4 as well as FY17

Strong topline growth of 63% (to Rs 333.4 crore) in Q4FY17 was led by recognition at Life Republic, Corolla and First time recognition at Mirabillis in Bengaluru. However EBITDA margins crashed to 20.5% (from 27.7% from Q4FY16) and it is impacted on account of contribution from lower margin projects including Mirabillis (Under JDA) and Wakad.

Revenue recognistion from Wakad was Rs 50 crore and that from Mirabilis was Rs 45 crore.

Focus on execution and thrust on collections to be maintained. The company have delivered 1576 units during FY17 and it have further obtained OC for 650 units to be handed over in Q1 FY18. Collections were higher by 3% in FY17 to Rs. 965 crore. Collections have gradually increased through every quarter of the year

Greater contribution from Life Republic Township led to fall in average price realization in Q4 FY17. The FY17 price realization were lower by 6% as FY16 sales included shops at Giga and Link Palace

Pending construction spend on area sold is about Rs 852-900 crore.

The company will be going for RERA registration by June 2017 end.

Dahisar West project: The company has obtained all approvals but the company is holding back the launch of the project due to High Court order on dumping ground. The issue is only originally consumed FSI will be issued in current circumstances and not the eligible FSI will be issued. So the company is waiting for the issue to be solved and hope it will be solved in 2 quarters. Against eligible FSI of 2.5 what is permitted now is just 0.85 and that won't make economic sense for the projects.

FY18 - the company is hopeful of maintaining same level of financials in FY18.

The net debt reduced by Rs 39 crore to Rs 455 crore as end of March 31, 2017 from about Rs 499 crore as end of March 2016. The gross debt was Rs 757 crore as end of March 31, 2017.

Expects some uptick on presales numbers from H2FY18 onwards.

Bengaluru to be an additional growth engine going forward with the launch of two projects at prime locations in Bengaluru, at Kormangala and Hosur Road respectively, expected in FY18. While the company consolidated its dominant presence in Pune market leveraging its strong brand name, the strong pipeline of projects in Mumbai over 1 msf, will facilitate PAT and ROCE expansion, and reduce working capital cycle for the company, while providing synergies to the existing Pune operations

Initiatives like demonetization, RERA and GST will lead to a level playing field and bring about consolidation in the sector and will benefit organized developers like KPDL.

Evaluating potential expansion in Affordable Housing within existing portfolio. March 2017 have seen strong rise in demand for mid housing projects.

Commercial 85% is residential and balance is commercial. Commercial sales booking of about 10000-12000 sft is happending in the limited inventory of the company.