Brigade Enterprises Shares Hit Life High On Q3 Revenue Jump, Fundraise Plans
The company's board has approved raising Rs 1,500 crore through bonds and equity.
Shares of Brigade Enterprises Ltd. rose to hit record high on Wednesday after its third-quarter revenue jumped, beating analysts' estimates. The management is happy with the results and expects to launch new projects in the south market.
The real estate developer's revenue rose 43.1% year-on-year to Rs 1,173.8 crore during the quarter ended December, compared to Rs 820.3 crore in the same period last year.
Its profit also rose 30.7% year-on-year to Rs 55.7 crore, but missed the Bloomberg estimate of Rs 118.0 crore.
The company's board has approved raising Rs 1,500 crore through bonds and equity.
Brigade Enterprises Q3 Results Highlights (Consolidated, YoY)
Revenue up 43.1% to Rs 1,173.8 crore. (Bloomberg estimate: Rs 1,053.2 crore).
Ebitda rose 26% to Rs 262 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. (Bloomberg estimate: Rs 118.0 crore).
"We're really happy with the results this quarter and also with the outlook. All businesses have done extremely well," Pavitra Shankar, the managing director of Brigade Group told NDTV Profit.
Shankar also said that the residential has continued on its momentum of great customer demand with good sales. The company expects the residential segment to witness launches of about 10.8 million square feet, with an estimated gross development value of around Rs 10,000 crore in the next four quarters.
Looking at the growing hospitality business she said that the segment is doing "exceedingly well" with over 20% year-over-year increase post the Covid slump. The company currently has a portfolio of under 1,500 keys and is looking to add another 1,000 keys in the same market of Bangalore, Chennai and Hyderabad.
"We're very excited about these projects, we firmly believe in the growth story for the hotel portfolio. We are looking at funding this growth internally but are also open to options right now in terms of looking for a like-minded partner or any other options that are on the table in terms of funding this growth," Shankar said.
Shares of Brigade Enterprises rose as much as 4.31%, before paring gains to trade 2.52% higher at 10:46 a.m., compared to a 0.20% advance in the NSE Nifty 50.
The stock has risen 121.77% in the last 12 months. Total traded volume so far in the day stood at 0.6 times its 30-day average. The relative strength index was at 73, indicating it was overbought.
Of the 15 analysts tracking the company, 13 maintain a 'buy' rating and two suggest a 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 122%.
