Kalpataru , a leading real estate developer in the Mumbai Metropolitan Region (MMR), has announced robust financial results for the first quarter, demonstrating strong operational performance and improved balance sheet metrics.

Strong Pre-Sales and Collections Growth

The company reported a significant 83% year-on-year increase in pre-sales, reaching INR 1,249.00 crore in Q1, compared to INR 682.00 crore in the same quarter last year. Collections also showed impressive growth, rising 37% year-on-year to INR 1,147.00 crore from INR 838.00 crore in the previous year's Q1.

Area Sold and Average Realization

While the total area sold decreased slightly by 9% to 0.56 million square feet (msf) from 0.61 msf in the previous year's Q1, the average realization per square foot saw a substantial increase. The company achieved an average realization of INR 22,476.00 per square foot, up 101% from INR 11,199.00 per square foot in the corresponding quarter of the previous year.

Financial Performance

Kalpataru's consolidated revenue from operations for Q1 stood at INR 443.00 crore. The company reported an adjusted EBITDA of INR 104.00 crore with an adjusted EBITDA margin of 23.4%. However, the company recorded a net loss of INR 52.00 crore for the quarter.

It's important to note that the company follows a Project Completion Method (PCM) of recognizing revenues for projects started after April 2022. This means revenue from such projects is recognized only upon obtaining an Occupation Certificate (OC), while expenses like marketing and corporate overheads are expensed in the quarter they are incurred.

Strengthened Balance Sheet and IPO Proceeds Utilization

Following its recent Initial Public Offering (IPO), Kalpataru has significantly improved its balance sheet. The company raised INR 1,590.00 crore through the IPO and has utilized INR 1,192.50 crore towards debt repayment. As a result, the net debt as of June 30 stood at INR 7,939.00 crore, with the net debt to equity ratio improving to 2.0x from 3.8x as of March 31.

Kalpataru confirmed no deviation in the utilization of its IPO proceeds for the quarter ended June 30. The company's equity shares were listed on BSE and NSE from July 1. During the quarter, INR 500.00 crore was utilized - INR 300.00 crore for repayment of the company's outstanding borrowings and INR 200.00 crore for repayment of subsidiary borrowings. The remaining INR 1,090.00 crore remains unutilized, with the balance proceeds remitted between July 1-3, in line with the stated objectives.

The original allocation included INR 1,192.50 crore for debt repayment, INR 311.36 crore for general corporate purposes, and INR 86.14 crore for issue expenses. CARE Ratings Limited serves as the monitoring agency and confirmed the utilization aligns with the prospectus objectives.

Future Outlook

Kalpataru has outlined an ambitious guidance, targeting pre-sales of approximately INR 7,000.00 crore, which would represent a 55% growth over the previous year. The company also aims to achieve collections of around INR 5,700.00 crore and further reduce its net debt to approximately INR 7,300.00 crore by the end of the fiscal year.

Management Commentary

Parag Munot, Managing Director of Kalpataru, expressed satisfaction with the company's performance, stating, "We are pleased to share the performance highlights of Kalpataru for the quarter ended June — a period marked by strong operational performance and balance sheet strengthening."

Munot added, "We have a strong launch pipeline with a saleable area of 3.16 msf spread across Mumbai and Thane. Looking ahead, we remain committed to deepening our presence in key micro-markets across MMR and Pune, anchored by the trust we've built."

The company's focus will continue to be on timely project execution to drive collections and strengthen cash flows, as well as driving strong pre-sales across its projects.

With its clear strategy, solid fundamentals, and customer-centric approach, Kalpataru appears well-positioned to maintain its growth momentum and deliver long-term value in the competitive real estate market of Mumbai and surrounding regions.

Kalpataru Limited , a prominent real estate developer, has announced a series of significant corporate actions requiring shareholder approval through a postal ballot. The company is seeking ratification of its Employee Stock Option Scheme (ESOS) 2024 and approval for several material related party transactions.

Employee Stock Option Scheme 2024

Kalpataru Limited is seeking post-listing ratification of its 'Kalpataru Limited Employee Stock Option Scheme 2024' (ESOS 2024), which was initially approved before the company's IPO. The scheme allows for granting up to 54.00 lakh stock options to eligible employees of the company, its subsidiaries, and group companies. Key features of the ESOS 2024 include:

• A vesting period between 1 to 4 years from the date of grant
• An exercise period of up to 3 years from the vesting date
• A maximum of 1.00 lakh options per eligible employee

The ratification is necessary to comply with SEBI regulations and enable the company to continue granting options under the scheme.

Material Related Party Transactions

The company is also seeking approval for three significant related party transactions:

1. Personal Guarantee by Managing Director: Approval for a Rs 400.00 crore personal guarantee to be provided by Mr. Parag M. Munot, Promoter and Managing Director, for a loan facility availed by Alder Residency Private Limited, a wholly-owned subsidiary, from ICICI Bank.

2. Corporate Guarantee for Company's Facilities: Approval for Agile Real Estate Private Limited (AREPL), a subsidiary, to provide a corporate guarantee of Rs 1,734.00 crore in favor of HDFC Bank for facilities availed by Kalpataru Limited.

3. Corporate Guarantee between Subsidiaries: Approval for AREPL to provide a corporate guarantee of Rs 615.00 crore to secure loan facilities availed by Kalpataru Properties Private Limited (KPPL) from HDFC Bank.

These guarantees are part of a Master Restructuring Agreement signed with HDFC Bank in June 2023, aimed at optimizing the group's debt structure.

Voting Process

The e-voting period for these resolutions will run from August 1 to August 30, 2025. Shareholders can cast their votes electronically through the National Securities Depository Limited (NSDL) e-voting platform.

Kalpataru Limited's move to seek these approvals demonstrates its commitment to corporate governance and transparency. The outcome of this postal ballot will be crucial for the company's employee retention strategies and its ongoing financial arrangements.