Brigade Enterprises - Q4FY20 First Cut - ICICI Securities

CMP - Rs. 137.7; MCap: Rs. 2,814 crore

Brigade reported a mixed set of performance as it reported better than expected sales volume but financial reported numbers were marred by one- time impairment loss in investment and hospitality segment on account of Covid-19.

Q4FY20 Earnings Summary

- The company reported sales volume of 1.05 mn sq feet (I=direct estimate: 0.94 mn sq feet) vs. 0.96 mn sq feet in Q4FY19, reporting a healthy growth of 10% YoY. For FY20, sales volume was up 44% YoY at 4.3 mn sq feet. The pre=sales (sales value) for Q4FY20 was up 25.3% YoY at Rs. 651.2 crore, as realisations were up 13.8% YoY at Rs. 6176/sq feet

- Reported revenues de-grew by 13% YoY to Rs. 644.3 crore, largely in line with expectations of Rs. 636.5 crore, on account of weaker traction in hospitality and malls segment due to Covid -19 impact in second half of March, 2020

- Reported EBITDA margins was down 770 bps YoY to 22.3% and were lower than our expectation of 24.5%, mainly on account of lower revenues in the higher margins segment of hospitality and malls

- The company provided for one-time impairment loss in investment and hospitality segment on account of Covid-19, of Rs. 20.5 crore and consequently reported PAT declined 95% YoY to Rs. 2.7 crore (our estimate: Rs. 14.7 crore)

The near term challenges are visible for the company but it is well positioned to tide over the same with comfortable debt levels. We seek further clarity on the outlook of malls and the hospitality segment from the management. We will review our estimates and come out with a detailed report post the conference call.

Shares of BRIGADE ENTERPRISES LTD. was last trading in BSE at Rs.137.7 as compared to the previous close of Rs. 135.9. The total number of shares traded during the day was 31393 in over 1320 trades.

The stock hit an intraday high of Rs. 142.5 and intraday low of 133. The net turnover during the day was Rs. 4295781.

Source : Equity Bulls

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