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Kalpataru Ltd reported a substantial consolidated net loss this week INR 49.42 crore markedly higher than the minor INR 0.69 crore loss in the same period last year. Total income dropped notably to INR 456.78 crore, although pre-sales rose sharply by 83 per cent to INR 1,249 crore and collections climbed 37 per cent. A significant factor behind the figures is the project-completion method now used for revenue recognition, leading to mismatched expenses and income. Despite strong demand and pricing, the timing of revenue booking overshadowed operational prospects.
Kalpataru Ltd recently reported a loss of INR 49.42 crore for the first quarter of the current financial year. That represents a sharp rise compared to the modest INR 0.69 crore loss recorded in the same period last year. Advertisement
Meanwhile, total income over the April-June span slipped to INR 456.78 crore, down from INR 544.67 crore in the corresponding period of the preceding financial year. Another report showed a decline in revenue from operations to INR 443.2 crore, alongside total expenses of INR 512.23 crore.
Notably, the firm's pre-sales performance stood in stark contrast to these results. Pre-sales jumped by 83 per cent year-on-year to INR 1,249 crore, while collections rose by 37 per cent to INR 1,147 crore. However, average sales realisation surged more than twofold, nearly doubling to INR 22,476 per square foot.
This imbalance partly stems from the firm's adoption of the project-completion method for revenue recognition on projects launched after April 2022. Under this approach, revenue from such projects is recognised only upon receipt of the occupation certificate, even though costs like marketing and corporate overheads are booked immediately when incurred. In the current quarter, Kalpataru applied this method to 13 out of its 24 ongoing projects, fully charging associated costs though not all revenue was matched.
Adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at INR 104 crore for the quarter, resulting in an adjusted margin of 23.4 per cent.
Kalpataru continues to stand among the country's major real estate developers and recently began trading on stock exchanges, underlining the contrast between its promising pre-sales and the current financial shortfall
Source PTI
5th Jun, 2025
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