Indian Brigade Enterprises (BRIGADE) logs a profit in Q2
08:41, 12 November 2021
Indian real estate firm Brigade Enterprises (BRIGADE) said it returned to profitability in the quarter ending 30 September.
The builder of homes and offices reported a consolidated net profit of INR120m ($1.6m) for the said quarter, against losses of INR400m in the preceding three-month period and INR170m a year-ago.
Revenue for the September quarter surged 141% on-year to INR7.76bn, said an 11 November stock market statement and presentation to shareholders by the company.
Net debt to equity stood at 0.83, while the average cost of debt was 7.92%. A bulk of the builder’s land bank, or 233 out of 312 acres, lies in Bengaluru.
The company said its net area sales hit 1.3 million square feet during the second quarter of the ongoing Indian financial year that ends in March.
Residential sales in southern India, particularly in the Bengaluru, Chennai and Hyderabad cities, drove performance.
On the other hand, it leased 170,000 square feet of office space during the quarter. Hospitality portfolio occupancies improved to 45% in the quarter under review.
Signs of revival
“…We have a strong pipeline of residential projects that will help continue the momentum,” said Brigade Enterprises chairman M R Jaishankar.
“There are promising signs of revival in our office business, supported by increased enquiries, physical site inspections and closures. At present, our high probability pipeline constituting large, medium, and small tenant enquiries are in Brigade Tech Gardens, Bengaluru; World Trade Center, Chennai; and at Brigade International Finance Centre, GIFT City, Gujarat,” he added.
Brigade Enterprises, founded in 1986, has constructed over 250 buildings in the country, amounting to over 71 million square feet of diverse developed space.
The realty firm has a market capitalisation of around INR112.6bn on the National Stock Exchange (NSE), where its shares have advanced some 96% to INR490 so far this year. The founders held 44% of the company’s stock as of 30 September.
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