 "Brigade Q3 results: Profit up 31% on strong growth in residential segment")
Real estate developer Brigade Enterprises reported a 31 per cent rise in net profit to Rs 56 crore for the third quarter ended December. The total revenue stood at Rs 1,208 crore, up 41 per cent, on the back of strong momentum in the residential segment fuelled by both pricing and volume.
"We have witnessed healthy growth across our business verticals. The momentum in the residential business continues to exhibit healthy growth both in terms of pricing as well as volume and continues to look positive with a strong pipeline of launches for Q4 FY24. Our office segment recorded the best leasing quarter post-Covid and we are hopeful to finish the financial year stronger. Furthermore, our retail business has seen good leasing traction and Hospitality has seen improvements across the board,” said Pavitra Shankar, managing director, Brigade Enterprises.
In the real estate segment, Brigade achieved its strongest performance ever for Q3 of a financial year with sales of 1.7 million square feet with a sale value of Rs 1,524 crore with absorption in Bengaluru and Chennai. During the quarter, revenue stood at Rs 839 crore which has grown by 50 per cent compared to Q3 FY23 and EBITDA stood at Rs 73 crore for the quarter.
In Q3 FY24, the company leased 0.49 million square feet, achieving 95 per cent occupancy in the overall portfolio. During the quarter, revenue from the leasing segment stood at Rs 247 crore which has grown by 24 per cent compared to Q3 FY23 and EBITDA stood at Rs 179 crore.
The hospitality segment revenues surged 22 per cent to Rs 123 crore, ARR has shown a 7 per cent increase, and occupancy has experienced a 5 per cent rise compared to Q3 FY23. EBITDA stood at Rs 45 crore.
Brigade said that the residential segment will 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. Furthermore, about 5 million square feet of office and retail projects are planned to be launched in the next 4 quarters.
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The annualised exit rentals are 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 4 projects in the next year.
Brigade announced its third-quarter earnings after market hours on Tuesday. Ahead of the earnings, the company’s shares were up 2.1 per cent to close at Rs 1,058.85 on the BSE.