Brigade Enterprises, a leading Bengaluru-based property developer, has reported a strong financial performance for the first quarter of fiscal year 2025. The company's consolidated revenue, including other income, increased by 62% to INR 1,113 crore, driven by a significant contribution from its real estate segment. The company's profit after tax also saw a significant jump, reaching INR 80.53 crore, up from INR 21.89 crore in the corresponding quarter of the previous fiscal year. The company's diverse portfolio, spanning real estate, leasing, and hospitality, has helped it capitalize on emerging opportunities, and its recent land bank acquisitions position it well for future growth.
Brigade Enterprises, a Bengaluru-based property developer, reported a 62% increase in consolidated revenue, including other income, for the first quarter of fiscal year 2025 (Q1 FY25). The company's revenue totaled INR 1,113 crore, compared to INR 685.43 crore in the same quarter of the previous fiscal year (Q1 FY24).
Profit after tax for the quarter stood at INR 80.53 crore, up from INR 21.89 crore in the corresponding quarter of the previous year. The group reported a consolidated EBITDA of INR 328 crore, with revenue from operations reaching INR 1,077.72 crore.
The real estate segment remained the largest contributor, generating INR 707 crore, followed by leasing revenue at INR 259 crore and Hospitality revenue at INR 118 crore. Pavitra Shankar, the Managing Director of Brigade Enterprises, stated that the real estate segment continued to be the primary driver of growth, while other segments also made healthy contributions. The company believes its diverse portfolio will help it capitalize on emerging opportunities.
In the real estate sector, pre-sales bookings reached 1.15 million sq ft, amounting to a sale value of INR 1,086 crore. The average realisation was INR 9,483 per sq ft. Brigade Enterprises possesses a land bank of 517 acres across various cities, including 345 acres in Bengaluru, 125 acres in Chennai, 10 acres in Hyderabad, 15 acres in Mysuru, and 20 acres in Kochi, with an additional 2 acres in Gujarat.
The company's portfolio occupancies were at 75%, and the portfolio average rental rates (ARRs) stood at INR 6,233. Major events, including IPL matches and the MICE (Meetings, Incentives, Conferences, and Exhibitions) segment, contributed to the occupancy and ARR. However, the nationwide General Election led to sluggish revenue growth, and the fewer auspicious days during the quarter further impacted the growth rate.
During the quarter ended June 30, 2024, the paid-up equity share capital of the company increased from INR 23,110 lakhs to INR 23,114 lakhs due to the allotment of 37,160 equity shares upon the exercise of stock options by employees.
Furthermore, Brigade Tetrarch, a wholly owned subsidiary of Brigade Enterprises, entered into a Limited Liability Partnership (LLP) agreement to develop a 1.4 million sq ft leasable office space on Airport Road, NH 44, Bengaluru. The proposed commercial development is expected to generate an annual lease income of close to INR 100 crore per year, with an investment of close to INR 750 crore.
The impressive financial results and strategic developments at Brigade Enterprises underscore the company's ability to adapt and thrive in a dynamic market environment. With a strong land bank, a diversified portfolio, and strategic investments in new projects, Brigade Enterprises is well-positioned to continue its growth trajectory and capitalize on the opportunities in the real estate sector. The company's commitment to delivering quality projects and enhancing shareholder value reinforces its position as a leading player in the Indian real estate market.
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