- 03 Aug 2022
- ICICIdirect Research
Brigade reports healthy performance across segmentsBRIGADE - 463 Change: -1.95 (-0.42 %)
News: Brigade Enterprises’ (BEL) operating performance was strong with core residential sales value witnessing robust growth YoY on a benign base, while other segment such as leasing and hospitality recovered strongly. The sales value at Rs 814 crore was up 70% YoY. The realisations were up ~5% YoY at Rs 6589/sq ft. The company reported sales volume of 12.4 lakh sq feet, up 61% YoY. Modest launch of ~0.5 million sq feet vs. 1.9 mn sq feet in Q4 led to QoQ volume dip by 20%. On financial reported numbers, reported revenues grew ~135.8% YoY to Rs 902 crore, with revenue recognition from real estate at Rs 655 crore, up 155% YoY. The revenues from hospitality (up by 3x YoY) was at Rs 89.9 crore as blended portfolio occupancy at~ 71% were higher than pre Covid levels of ~59% with ARR now back to pre-Covid levels. The rental revenues at Rs 175.4 crore, up 57% YoY, saw robust recovery with new leasing of 0.4 mn sq feet. The company reported PAT of Rs 78 crore vs. loss in base quarter.
Views: We believe volume trajectory should remain robust ahead with new projects launches (~9 mn sq feet in 9MFY23) and given the strong underlying demand in its key market. We also seek further clarity on cost inflation, pricing and office leasing traction, going ahead.