Brigade Enterprises Ltd has no immediate plans to announce a price cut in its residential projects despite low transaction volumes due to slowdown in property demand, Chief Financial Officer Anil Kumar told NewsWire18 here today.
However, the Bangalore-based realty firm is open to negotiations with prospective home buyers on pricing of residential units. "We have no plans to announce a price cut. Prices are determined by market forces. We are looking at a flexible pricing model and are open to negotiations. In fact, we have always been open to negotiations," Kumar said.
Kumar did not detail average price of the company's residential projects. Analysts have maintained that property demand across India took a beating over the past six months as home buyers continued to defer their purchase decisions on expectations of fall in real estate prices.
In Oct-Dec, Brigade Enterprises reported net profit of 21.99 mln rupees on revenue of 1.05 bln rupees. Revenue and net profit were down 11.87 per cent and 94.03 per cent on year, respectively.
Kumar, however, allayed fears on the company's ongoing residential projects were being delayed because of a liquidity crunch. "All our ongoing projects are on schedule. We have line of credit for all these projects," he said adding, the company has no plans to launch new projects in Jan-Mar.
Brigade Enterprises has 450 acres as on Dec 31. The company is also looking at raising funds through a combination of debt and equity to meet business requirements, Kumar said without detailing further.
"We are evaluating all possible options. It is very difficult to quantify how much we will raise or when we will raise the fund," he said.
Outstanding debt of Brigade Enterprises as on Dec 31 was at 3.52 billion rupees. The company has no immediate plans to restructure its debt.
At 3:27PM, shares of Brigade Enterprises were traded at 35.30 rupees on National Stock Exchange, down 5.61% from Friday's close.
