Pune-based real estate developer Kolte Patil Developers reported a 55% growth in its net profit for the December quarter after strong sales lifted margins compared to last year.

However, on a sequential basis, net profit fell to Rs 28 cr from Rs 30 cr due to lower non-sales income.

New area bookings in Q3 were higher by 87% YoY at 0.59 million square feet, but flat on a sequential basis.

Thanks to higher volumes, net sales rose 69% on year to Rs 328 cr from Rs 195 cr seen last year. However, on a sequential basis, they were down 2%.

With this, the company’s total sales for the financial year has hit 1.6 million square feet, or Rs 920 crore.

Revenue, which includes non-sales income, was also down at Rs 288 cr on a sequential basis compared to Rs 389 cr in the second quarter, but was up 27% on year. Revenue numbers were influenced by the disposal of a unit. Net of this, revenue growth — on a year on year basis — was only 18%.

Adjusted for the divestment, the company’s operating profit (EBITDA) margins expanded by 1.4 percentage points to 25.9%, it said.

“We are pleased with our performance this quarter,” said Group CEO Gopal Sarda.

“Despite the sluggish macro environment, our collections have been strong at Rs. 732 crore in 9M FY18, with Rs. 280 crore collected in Q3 FY18, the highest recorded in the last 18 quarters, up 13% YoY and 41% QoQ,” he said.

The company said it is seeing a “gradual pick-up in consumer confidence” as RERA provisions become clearer and more familiar. “Implementation of RERA and GST has consolidated demand to organized, execution-focused developers like KPDL.

“We expect to end the year on a strong note with acceleration in sales and collections going into Q4 as we focus on efficient execution that we see translating into improved demand from customers and strong project dynamics for all other stakeholders,” said Sarda.

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