Brigade Enterprises shares surge over 8% to new record high as net profit rises 3-fold in Q4

Shares of Brigade Enterprises, one of India’s leading property developers, jumped 8.66% to reach a historic peak of ₹1,331.45 apiece in early morning trading today, driven by the company's robust performance for Q4 and the full fiscal year (FY24).

On Tuesday, the company reported a 233% surge in its consolidated profit to ₹210 crore for the March quarter as compared to a net profit of ₹63 crore in the same period last year. Its revenue from operations soared to ₹1762 crore, an improvement of 100% compared to ₹872 crore in Q4 FY24. 

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The company achieved a pre-sales volume of approximately 2.72 million square feet in Q4 FY24, representing 61% growth over Q3 FY24. The sales value reached ₹2,243 crore in Q4 FY24, marking a 47% increase from Q3 FY24. Currently, there are ongoing projects covering 21 million square feet, with 1.82 million square feet launched during Q4 FY24.

Collections during the March quarter stood at ₹1,838 crore as compared to ₹1,463 crore in Q4 FY23.

During the 2023–24 fiscal year, Brigade Enterprises' net profit rose to ₹451.61 crore from ₹291.41 crore the previous year. Revenue from operations increased to ₹5,064.15 crore from ₹3,563.21 crore in the 2022–23 fiscal year. The average realization stood at ₹7,968 per square foot during FY24, a 23% increase over FY23.

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In FY24, the real estate business registered revenues of ₹3,662 crore, a 51% increase over FY23. The leasing vertical grew by 25% over FY23, with revenues of ₹938 crore and an overall occupancy rate of 97%. 

The hospitality portfolio grew by 18% over FY23, generating revenues of ₹464 crore, with an occupancy rate of 72% and an average room rate (ARR) of ₹6,483 during FY24. Total collections stood at ₹5,915 crore, reflecting a 9% growth over FY23. Net cash flow from operations was ₹1,575 crore.

Commenting on the group’s performance, Pavitra Shankar, Managing Director, Brigade Group, said, “All verticals of the company contributed significantly to our growth in FY24 on the back of robust demand. 

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Upcoming projects 

The company holds a total land bank of 519 acres, with 66% located in Bangalore. Other major cities with land holdings include Chennai, Hyderabad, Mysuru, Gujarat, and Kochi. The total value of this land amounts to ₹3,343 crore.

In the next four quarters, the company plans to launch approximately 12.61 million square feet of new projects. This includes 11 residential projects in Bangalore, 3 residential projects in Chennai, 1 residential project in Hyderabad, and 1 residential project in Mysore, as per the company's Q4 investors presentation.

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The Board of Directors has recommended a final dividend of ₹2 per equity share (20%) of ₹10 each for the financial year 2023–24.

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