What Caused Kalpataru Ltd’s Revenue to Plummet Nearly 47% in FY24?
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Synopsis
In a striking revelation, Kalpataru Ltd witnesses a sharp decline in revenue and net loss for FY24 amidst its IPO launch. With a staggering drop of 46.89% in revenue, what does this mean for the real estate giant? Stay tuned as we unpack the numbers behind Kalpataru's financial performance and the implications for investors.
Key Takeaways
- Kalpataru Ltd faces a significant revenue decline of 46.89% in FY24.
- Total income decreased from Rs 3,716.6 crore to Rs 2,029.9 crore.
- The company narrowed its net loss to Rs 113.8 crore.
- Kalpataru's IPO is entirely a fresh issue seeking to raise Rs 1,590 crore.
- Strong backing from anchor investors includes names like GIC and Bain Capital.
Mumbai, June 24 (NationPress) Real estate developer Kalpataru Limited, which commenced the bidding for its initial public offering (IPO) on Tuesday, has reported a significant decline in its revenue from operations, dropping by about 46.89% year-on-year (YoY). This decrease saw revenue plummet from Rs 3,633.1 crore in the financial year ending March 31, 2023, to Rs 1,929.9 crore in FY24, according to its Draft Red Herring Prospectus (DRHP) filing.
The company also witnessed a reduction in total income, which fell to Rs 2,029.9 crore in FY24 from Rs 3,716.6 crore in FY23, marking a decline of approximately 45.38%.
Despite the revenue and income drop, Kalpataru succeeded in narrowing its net loss during the year, reducing it to Rs 113.8 crore in FY24 from Rs 226.7 crore in FY23.
Interestingly, the company reported a net profit of Rs 5.51 crore for the nine-month period ending December 31, 2024, with revenues amounting to Rs 1,624.7 crore.
Total expenses also saw a significant decrease, dropping to Rs 2,125.2 crore from Rs 3,874.5 crore in the previous financial year.
Kalpataru’s IPO opened for bidding on Tuesday and will remain available for subscription until Thursday (June 27).
The Mumbai-based real estate firm has priced its shares between Rs 387 and Rs 414 per share, with a minimum lot size of 36 equity shares.
This IPO consists entirely of a fresh issue of 3,84,05,797 equity shares, aiming to raise Rs 1,590 crore.
Kalpataru has already garnered Rs 708 crore from anchor investors by allocating over 1.71 crore shares at Rs 414 each.
The anchor book features esteemed names like GIC, Bain Capital, SBI Mutual Fund, ICICI Prudential MF, 360 ONE Group, Aditya Birla Sun Life, and Ayushmat.
Founded in 1988, Kalpataru Limited is recognized for its real estate development in residential and commercial projects, retail spaces, and integrated townships across cities such as Mumbai, Thane, Pune, Hyderabad, Bengaluru, Indore, Panvel, and Jodhpur.
As of March 31, 2024, the company has successfully completed 70 projects and has 40 ongoing ones.
Kalpataru is part of the larger Kalpataru Group, which includes Kalpataru Projects International, Property Solutions (India), and Shree Shubham Logistics, among others.
The company has allocated Rs 15.9 crore worth of shares for its eligible employees, who will also benefit from a Rs 38 discount per share.
Of the total issue, 75% is reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for retail investors.
Point of View
It is crucial to remain objective and present the facts surrounding Kalpataru Ltd's financial downturn. The sharp decline in revenue and net loss reflects broader challenges in the real estate sector, and while the company has taken steps to mitigate its losses, stakeholders should remain vigilant as the situation develops.
NationPress
24/06/2025
Frequently Asked Questions
What was Kalpataru Ltd's revenue for FY24?
Kalpataru Ltd's revenue for FY24 was Rs 1,929.9 crore, reflecting a decline of 46.89% from the previous year.
How much did Kalpataru Ltd lose in FY24?
The company reported a net loss of Rs 113.8 crore in FY24, down from Rs 226.7 crore in FY23.
What is the price range for Kalpataru's IPO?
Kalpataru's IPO is priced between Rs 387 and Rs 414 per share.
What percentage of the IPO is reserved for QIBs?
75% of the IPO is reserved for Qualified Institutional Buyers (QIBs).
When does the Kalpataru IPO close for subscription?
The Kalpataru IPO will remain open for subscription until Thursday, June 27.
