Brigade Enterprises Q3 Results: Profit Rises 31%, Misses Estimates

Brigade Enterprises Ltd.'s third quarter profit rose 30.7%, but missed analysts' estimates.

The Bengaluru-based realty firm's net profit increased to Rs 55.8 crore from Rs 42.7 crore year-on-year. That compares with the Rs 118.1-crore consensus estimate of analysts tracked by Bloomberg.

Its revenue from operations jumped 43.1% to Rs 1,173.8 crore from Rs 820.3 crore during the same quarter last year. Analysts polled at Bloomberg expected it to be Rs 1,053.2 crore for the quarter.

• Revenue up 43.1% to Rs 1,173.8 crore vs Rs 820.3 crore (Bloomberg estimate: Rs 1,053.2 crore).

• Ebitda rose 26% to Rs 262 crore vs Rs 207.9 crore (Bloomberg estimate: Rs 296.0 crore).

• Margin narrowed to 22.3% vs 25.3% (Bloomberg estimate: 28.1%).

• Net profit up 30.7% at Rs 55.7 crore vs Rs 42.7 crore (Bloomberg estimate: Rs 118.0 crore).

In the real estate segment, the business sale value stood at Rs 1,524.4 crore in Q3 FY24 (including landowner’s space share of Rs 1,249 million), an increase of 22% from Q2 FY24 sales of Rs 1,249.1 crore.

In the lease rentals, the company achieved an incremental leasing of 0.49 million sq ft (including hard option) during Q3 FY24, driven by Brigade Tech Gardens.

In the hospitality business, it recorded 8% sequential growth with revenue of Rs 122.7 crore. Meanwhile, the ARR stood at Rs 6,503 and occupancy at 73% for the quarter ended December.

The company also announced that the residential segment will witness launches of about 10.8 million sq ft, with an estimated gross development value of around Rs 10,000 crore in the next four quarters.

About 5 million sq ft of office and retail projects are planned to be launched in the next four quarters. The annualised exit rentals is estimated to be in the range of Rs 500 crore from these launches.

Similarly, the hospitality segment plans to commence construction of about 1,000 rooms across four projects in the next one year.

Shares of Brigade Enterprises were up 2.11% at Rs 1,058.85 apiece on the BSE on Tuesday, as compared with a 0.63% advance in the benchmark Sensex. The realty stock has risen about 114% in a year.