Brigade Enterprises’ September quarter numbers beat the consensus estimates by a large margin across the key performance measures. Consolidated sales surged 70.4% yoy to Rs825.9cr in Q2FY19 vs. Rs484.7cr in Q2FY18, beating the estimate by 40.6%. Operating profit for the current quarter jumped 63.1% yoy to Rs218.8cr as compared to Rs134.1cr for the same quarter last year, defying the street estimates by 36.9%. Operating margin contracted from 27.7% in Q2FY18 to 26.5% in Q2FY19. Profit after taxes for the quarter saw a strong growth of 67.1% yoy to Rs68.3cr vs. Rs40.9cr for the corresponding quarter last year, beating the estimates by 28.4%.
Real estate business, which contributed 81.7% to the top-line for the current quarter, grew by 89% yoy to Rs682.6cr in Q2FY19. EBIT for the segment more than doubled to Rs178.7cr on a yoy basis. EBIT margin increased from 24.3 in Q2FY18 to 26.2% in Q2FY19.
Hospitality business’ revenues increased by 33.3% yoy to Rs72.1cr in Q2FY19. The segment’s EBIT for the quarter, stood at Rs1.63cr vs. EBIT loss of Rs2.3cr for the same period last year. EBIT margin was very thin at 2.3% (vs. -4.3% in Q2FY18). Hospitality contributed 8.6% to the top-line.
Revenues from leasing activities increased by 11% yoy to Rs80.6cr in Q2FY19. However, EBIT declined by 4.3% yoy to Rs32.4cr for the same quarter. EBIT margin fell from 46.5% in Q2FY18 to 40.1% in Q2FY19.
Company’s new bookings during the September quarter was 0.8mn sq. ft. and sale value for the same was Rs459.7cr.
During the quarter, Brigade Enterprises launched commercial project (Senate 1) in Bengaluru with total saleable area of 0.17mn sq. ft. It also launched one more commercial project with a total saleable area of 0.24mn sq. ft.
The company launched a residential project as well with a total saleable area of 0.52mn sq. ft.
Brigade Enterprises commenced construction of its 9th hotel at Mysore with 154 keys.
The company during the first half of current financial year, signed 0.5mn sq. ft. of new leases, which are expected to generate Rs30cr per annum.
Net debt on the consolidated entity stood at Rs2,700.8cr at the end of September 2018, increased from Rs2,014.3cr for the same quarter last year.
Total land bank at the group level was 489 acres of which 74% of the land is in Bengaluru.
Brigade Enterprises Ltd is currently trading at Rs. 176.50, down by 3.15 points or 1.75% from its previous closing of Rs. 179.65 on the BSE.
The scrip opened at Rs. 177.50 and has touched a high and low of Rs. 178.20 and Rs. 175.90 respectively. So far 22,381 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.
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