 "Brigade Group")
Shares of Brigade Enterprises hit a record high of Rs 744.40 as they rallied 7 per cent on the BSE in Thursday's intraday trade after the company reported a strong set of operating performance in the September quarter (Q2FY24).
With a robust pipeline of launches in Bengaluru, Chennai, and Hyderabad, the management is confident that the company will sustain the momentum going forward.
The stock of the realty firm surpassed its previous high of Rs 585 touched on November 6, 2023. In the past two weeks, it has surged 24 per cent.
The management said all the business verticals contributed significantly to the growth of the company in Q2FY24. The residential segment continues to outperform with strong absorption across the company's key markets, heightened end-user interest, stable registration processes, steady home loan rates, and excellent response to new launches.
Brigade Enterprises posted a 117 per cent increase in net profit at Rs 112.50 crore for Q2FY24 on the back of strong new bookings of 1.67 million square feet valued at Rs 1,249 crore, 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.
Moreover, it 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 quarter-on-quarer increase in leasing revenue, to Rs 231 crore in Q2FY24 from Rs 213 crores in Q1FY24.
"Brigade has a strong launch pipeline of ~ 11 msf over the next four quarters which should drive sales volumes ahead. With lean balance sheet, well placed hospitality portfolio, and likely ramp up in leasing ahead, Brigade is one of the well placed realty developers poised for growth ahead," ICICI Securities said in a note.
