 "Q2")
Brigade Enterprises posted a 117 per cent increase in net profit to Rs 112.50 crore for the second quarter ended September, on the back of strong new bookings of 1.67 million square feet valued at Rs 1,249 crores, up 23 per cent from the previous year.
The Bengaluru-based real estate company’s total income for the September quarter grew 54.35 per cent to Rs 1,407.92 crore, from Rs 912.19 crore in the same period last year, driven by the residential segment that continued to show robust growth.
“All business verticals contributed significantly to the growth of the company in Q2 of FY24. The residential segment continues to outperform with strong absorption across our key markets, heightened end-user interest, stable registration processes, steady home loan rates, and excellent response to new launches. With a robust pipeline of launches in Bengaluru, Chennai, and Hyderabad, we are confident that we will sustain the momentum going forward,” said Pavitra Shankar, managing director, Brigade Enterprises.
In Q2 FY24, Brigade reported an incremental leasing of 3 lakh square feet, recording a five-time increase quarter-on-quarter. Total leasing stands at 89 per cent of the available inventory and recorded an 8 per cent q-o-q increase in leasing revenue, to Rs 231 crore in Q2 FY24 from Rs 213 crores in Q1 FY24.
In its latest report ‘India Real Estate Q3 2023’, the real estate consultancy, Knight Frank India cited that the leading eight residential markets in India continued to show strong growth momentum. During Q3 2023 (July – September 2023), these markets saw a surge in demand with sales of 82,612 residential units, recording a growth of 12 per cent y-o-y. In volume terms, Q3 2023 recorded a six-year high in quarterly sales volumes.
In addition, during the festive season in India, residential real estate is getting a push. An Anarock Group study stated that during H1 2019, 9 per cent of the buyers opted for luxury homes priced at over Rs 1.5 crore while in the current edition of H1 2023, there has been a significant growth of 16 per cent. The rise in sales has been consistent post-pandemic. Reports suggest that during 2022-23, residential real estate property was up 30 per cent over pre-Covid levels in India.
In the recent report ‘India Market Monitor Q3 2023’ by CBRE South Asia, a realty consulting firm, said the festive housing sales are set to break a 3-year record, to exceed 150,000 units. The luxury housing segment in India, comprising units priced at above Rs 4 crore, maintained strong sales momentum, showing a 97 per cent y-o-y growth in January to September in 2023. Among the leading cities, Delhi-NCR, Mumbai, and Hyderabad emerged as the top 3 markets dominating residential sales, cumulatively accounting for about 90 per cent of the total luxury sales across the top seven cities.
In August, Brigade Enterprises acquired 6.54 acres of land located at Rajiv Gandhi Salai (Old Mahabalipuram Road), Chennai, from Pfizer Healthcare India for Rs 138 crore.
Brigade Enterprises operates across South India in the cities of Bengaluru, Mysuru, Hyderabad, Chennai, and Kochi with developments, starting from residential, office, retail, and hotels.
Brigade declared its earnings after market hours on Wednesday. Ahead of the results, the shares were up 3.78 per cent to close at Rs 693.95 on the BSE.
