Brigade Enterprises capped off a successful FY24 with record residential pre-sales of INR 7,601.25 crore, a 6% year-on-year increase. The company also reached its highest-ever collections of INR 15,915.1 crore. In the coming year, Brigade plans to launch 12.6 million square feet of new residential projects in Bengaluru, Hyderabad, and Chennai, aiming for a potential gross development value of INR 7,130 crore. Additionally, Brigade's office spaces saw net absorption surpassing 1 million square feet and a 97.5% occupancy rate. The company expects a 15-16% growth in rental income for FY25.
Brigade Enterprises capped off a successful FY24, exceeding expectations across all its business segments. Residential pre-sales, a key indicator of future revenue, surged 6% year-on-year to a record INR 7,601.25 crore. Launching new projects and maintaining momentum in ongoing ones propelled Brigade to its highest ever collections of INR 15,915.1 crore in FY24. Looking ahead, Brigade plans to launch new residential projects totaling 12.6 million square feet in Bengaluru, Hyderabad, and Chennai, with a potential gross development value of INR 7,130 crore.
Brigade's office spaces also performed well, with net absorption exceeding 1 million square feet and a strong 97.5% occupancy rate across their entire portfolio in FY24. The company anticipates continued robust demand for office space in FY25, driven by medium and large-sized tenants in key sectors like automobile, technology, manufacturing, and engineering. This optimism is reflected in their projected 15-16% year-on-year growth in rental income, reaching INR 7,700 crore by the end of FY25, up from INR 6,600 crore in FY24.
While multiplexes nationwide faced challenges, Brigade's mall business witnessed a significant rebound. Consumption surpassed pre-COVID levels with footfall rising by 10% in FY24. The hospitality sector also showed positive signs with the average room rate (ARR) rising 8% to INR 16,500 in FY24, exceeding pre-COVID levels. Additionally, the average occupancy rate climbed to 72% in FY24, up from 62% pre-COVID. Brigade expects ARR to further increase by 10% in FY25 as occupancy rates improve.
Looking towards expansion, Brigade has ambitious plans to develop 3 million square feet of new office space across South India, along with an additional 0.5 million square feet for hotels. These projects will involve a capital expenditure of INR 7,200 crore over the next 3-4 years (FY 25-28).
While Brigade's performance has been impressive, some areas require monitoring. Their net debt, though reduced, remains high at INR 21,908 crore, and their cost of debt is significant at 8.8%. Additionally, a large portion of their projects are concentrated in Bengaluru. Managing debt, lowering their cost of capital, and diversifying their geographical footprint will be crucial for Brigade's sustained growth in the coming years.
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