Brigade reports mixed bag performance

News: Brigade Enterprises reported sales volume of 1.1 mn sq feet, reporting decline of ~29% YoY. The presales was down ~26% YoY at Rs.684 crore, with realisations up ~4% YoY at Rs,6,281/sq ft. On financial front, reported revenues grew ~42.9% YoY to Rs.921 crore on account of higher revenue recognition from real estate at Rs.703 crore, up 30.6% YoY. The revenues from hospitality (up 105% YoY) at Rs.62.6 crore and rental revenues at Rs.167.4 crore, up 22.6% YoY. EBITDA margins were up 493 bps YoY to 28%. PAT stood at Rs.78.4 crore.

Views: We believe volume trajectory should recover sharply as new projects are launched ahead and given the strong underlying demand in its key market. We  seek further clarity on office leasing traction, going ahead. 

Impact: Neutral