- 06 Aug 2024
- ICICI Securities
Brigade: Pre-sales momentum witnesses some moderation
BRIGADE - 1318 Change: 5.85 (0.45 %)News: Brigade Enterprises reported decent operating performance, albeit the pre-sales momentum saw some moderation. The sales volume of 1.15 msf (down 21% YoY) was worth ₹ 1086 crore, up 9% YoY. We highlight that this is the lowest growth in the last 7 quarters. On the financial front, topline at ₹ 1078 crore was up 65% YoY, driven by strong residential segment revenue recognition of ₹ 707 crore, up 90% YoY alongwith healthy double-digit growth in hospitality and leasing. Margin at 27.1% was up 42 bps YoY, given the operating leverage, while bottom line at ₹ 83.7 crore was 117% YoY.
Views: Brigade has a strong launch pipeline of ~ 12.6 msf over FY25 which should drive sales volumes ahead. With lean balance sheet, healthy business development, well placed hospitality portfolio and likely ramp up in leasing ahead, Brigade is one of the well-placed realty developers poised for growth ahead. Nonetheless, we await management commentary on sales momentum ahead.
Impact: Neutral