Brigade Group‘s Q3 PAT increases by 61%; New Sales increases by 54%

Bangalore, February 8, 2018: Brigade Enterprises Limited’s Consolidated PAT after Minority Interest (MI) for 3 months ended 31st December, 2017 was at Rs. 49 crores as against Rs. 30 crores for the corresponding period in the previous year, an increase of 61%. The Consolidated Revenues for the 3 months ended 31st December, 2017 was at Rs. 434 crores as against Rs. 572 crores recorded during corresponding 3 months in the previous year.

The Consolidated PAT after MI for 9 months ended 31stDecember, 2017 was Rs.121 crores as against  Rs.79 crores in the corresponding period in the previous year, anincrease of 53%.  Consolidated revenuesfor 9 months ended 31st December, 2017 and the corresponding period in theprevious year stood constant at Rs. 1498 crores.

Newsales increased by 54% to 0.46 million sq. ft. during the third quarter ending31st December 2017 as compared to the corresponding 3 months in the previousyear.                                    

Commenting on the company’s performance, Mr. M.R.Jaishankar, Chairman and Managing Director Brigade Enterprises Limitedsaid:  “The third quarter witnessedencouraging sales on the strength of our focused marketing campaigns. The slewof reforms impacting the real estate business are slowly settling down. Theturnover for the 9 months was muted, as a result of fewer launches over thelast three quarters.  The sustainedgrowth in profitability has been due to project closures in the year and itsconsequential positive impact on margins.”

He further added “The combination of our ongoing projects along with the pipeline of newprojects to be launched will scale up the business in the near future andcontribute to growth in the next fiscal. India is one of the fastest growingeconomies and housing will be a crucial component for achieving the overall GDPgrowth.  Inspite of the sector not havingany specific announcements or measures in this budget, the overall theme of thegovernment’s policies will help in all round growth of the Indian economy, withparticular reference to the rural economy, education, health care, infra andother sectors.  Consequently this isexpected to have benefits for our sector too.” 

FINANCIAL HIGHLIGHTS

Consolidated Q3FY18 Vs Q3 FY17 Performance

•             TotalRevenues stood at Rs. 434 crores vis-a-vis Rs. 572crores, a decrease by   24%

•             EBITDAstood at Rs. 169 crores vis-a-vis Rs. 141 crores, an increase of 20%.

•             EBITDAmargin was at 39%. Vis-à-vis 25%

•             PBT stoodat Rs. 69 crores vis-a-vis Rs.46 crores, an increase of 49 %.

•             PAT afterMI stood at Rs. 49 crores vis-a-vis Rs. 30 crores, an increase of 61%.

Consolidated  9months  Performance (9 months FY18 Vs 9months  FY17):

•             TotalRevenues stood at Rs. 1,498 crores Vs Rs. 1,498 crores.

•             EBITDAstood at Rs.454 crores vis-a-vis Rs. 404 crores, an increase of 12%.

•             EBITDAmargin stood at 30% vis-à-vis 27%.

•             PBT stoodat Rs.169 crores vis-a-vis Rs. 127 crores, an increase by 33%.

•             PAT afterMI stood at Rs. 121 crores vis-a-vis Rs. 79 crores, an increase by 53%.

Consolidated Operational Performance

•             RealEstate space aggregating to 0.46 million sq. ft. with a total value of 262crores was sold during the third quarter ended 31st December, 2017. The averageprice realisation was Rs. 5,667 per sq. ft.            

•             Leasingand Hospitality segments contributed Rs. 75 crores and Rs. 59 croresrespectively to the consolidated revenues for the third quarter ended 31stDecember, 2017.

•             The NetDebt to Equity ratio of the Company as on 31st December, 2017 is 81: 1. Creditrating of "A" has been assigned by both CRISIL and ICRA.

Acquisition of Property from SABMiller India Limited

In December 2017, Brigade Infrastructure and Power PrivateLimited, a Wholly Owned Subsidiary, acquired a prime property admeasuring 12.95acres from M/s. SABMiller India Limited at Yeshwantpur, North Bangalore for aconsideration of Rs. 218 crores. The property is strategically located fordeveloping an Information Technology park.

Joint Development

The Company has entered into a Joint Development Agreementfor a property admeasuring about 12.30 acres at Sanathnagar, Hyderabad with adevelopment potential of about 1.50 million sq. ft. The location is consideredstrategic for a value home project given the proximity to the metro station atHyderabad.

OUTLOOK

The Group is currently developing about 21.6million Sq. ftacross Residential, Office, Retail and Hotel segments. Further, launches to theextent of about 11 million Sq. ft. are planned for the next few quarters acrossthe 4 segments including about 5 million sq. ft in the affordable housingsegment.

AWARDS & RECOGNITION

•             M RJaishankar, Chairman and Managing Director of the Company, is ranked no.27thamongst the Top 100 CEO’s of India and 2nd in the Real Estate and ConstructionSector by Business Today & PwC.

•             WTC Kochiwon the 'Commercial project of the Year' award at the 9thRealty Plus ExcellenceAwards (SOUTH) 2017

•             Mr M RJaishankar was awarded the 'Scroll of Honour' for his contributions to thereal-estate sector at the 9thRealty Plus Excellence Awards (SOUTH) 2017.

•             M RJaishankar was felicitated by Images Retail for being one of the top 10visionaries from South India, who have built great consumer Brands, RetailConcepts and Shopping & Leisure Spaces

•             NirupaShankar, Director, Brigade Hospitality Services Limited, won the 'Woman CXO ofthe year' award at the 9thRealty Plus Excellence Awards (SOUTH) 2017.


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