Brigade Enterprises Ltd's Q3FY19 consolidated net profit rises 0.06% yoy to Rs48.88cr : Misses Estimates

The company’s consolidated revenue stood at Rs687.73cr, up 62.23% yoy but down 16.73% qoq.

Feb 05, 2019 03:02 IST India Infoline Research Team

Brigade Enterprises Ltd Q3FY19

Consolidated Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 687.73 62.2
EBITDA 175.94 10.5
EBITDA Margin (%) 25.6 [1,199]
Net Profit (adjusted) 48.88 0.1
***EBITDA margin change is bps
Brigade Enterprises’ December quarter numbers were below street estimates. Consolidated sales surged 62.2% yoy to Rs687.7cr in Q3FY19 vs. Rs423.9cr in Q3FY18, meeting the consensus estimate. Operating profit for the current quarter grew 10.5% yoy to Rs175.9cr as compared to Rs159.3cr for the same quarter last year, 7.6% below the street estimates. Operating margin contracted from 37.6% in Q3FY18 to 25.6% in Q3FY19. Profit after taxes for the quarter was almost flat at Rs48.9cr in Q3FY19, missing the consensus estimates by a significant 22.7%.
  • Top-line performance for the quarter was mainly driven by Real Estate and Hospitality business.
  • Real estate business, which contributed 77.2% to the top-line for the current quarter, grew by 81.2% yoy to Rs535.8cr in Q3FY19. EBIT for the segment marginally grew by 1.7% yoy to Rs121.9cr on a yoy basis. EBIT margin dropped from 40.5% in Q3FY18 to 22.7% in Q3FY19.
  • Hospitality business’ revenues increased by 30.7% yoy to Rs79.3cr in Q3FY19. The segment’s EBIT for the quarter, stood at Rs5.7cr vs. EBIT loss of Rs6.2cr for the same period last year. EBIT margin came at 7.1% (vs. 10.2% in Q3FY18). Hospitality contributed 11.4% to the top-line.
  • Revenues from leasing activities increased by 6.4% yoy to Rs78.6cr in Q3FY19. EBIT rose 7.7% yoy to Rs38.3cr for the same quarter. EBIT margin was almost stable at 48.7% for the current quarter (vs. 48.1% in Q3FY18).
  • As on December 31, 2018, net debt on the company stood Rs2834cr. Average cost of borrowing was 9.45%.
  • New sales jumped 68% yoy to 0.77mn sq. ft. in Q3FY19 (as compared to 0.46mn sq. ft. in Q3FY18). Thus, new sale value surged 70% yoy to Rs445.9cr (vs. Rs262.1cr in Q3FY18).




Technical View:

Brigade Enterprises Ltd is currently trading at Rs. 204.80, down by 3.4 points or 1.63% from its previous closing of Rs. 208.20 on the BSE.
The scrip opened at Rs. 208.20 and has touched a high and low of Rs. 208.20 and Rs. 203.25 respectively. So far 29,903 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.


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