Brigade Enterprises - Q4FY21 First Cut - ICICI Direct

(CMP - Rs. 249; MCap: Rs. 5258 crore)

Brigade Enterprises (BEL) reported strong operating performance with robust sales volumes growth of ~58% YoY.

Q4FY21 Earnings Summary

- The company reported sales volume of 1.66 mn sq feet (I-direct estimate: 1.41 mn sq feet), reporting a strong growth of ~58% YoY (our expectations - 34% YoY growth). The presales (sales value) was up ~56% YoY at Rs. 1018 crore, with realisations were down ~1% YoY at Rs. 6128/sq. feet (largely a function of project mix). We note that despite a washout Q1FY21, FY21 sales volume/value at 4.6 million sq. feet/Rs. 2767 crore was up 8%/16% YoY, driven by strong residential volumes uptake in H2FY21

- On financial reported numbers, Reported revenues grew by 24.4% YoY to Rs. 791.2 crore, much above expectations of Rs. 672 crore, on account of higher than expected revenues recognition in residential segment (up 39% YoY at Rs. 645 crore), while traction in hospitality (down 29%) remained weak. Rental revenues at Rs. 121 crore was up 16.3% YoY, possibly due to some catch up revenues recognition

- Reported EBITDA margins were up 260 bps YoY to 23.9%, but were tad lower than our expectation of 24.5%, mainly on account of higher other expenses

- The company reported PAT of Rs. 39.6 crore (our estimate: PAT of Rs. 27.6 crore), also aided by higher other income PAT would have been higher but for one-off charge for stamp duty payable of Rs. 17.8 crore and impairment loss of Rs. 18.5 crore in the leasing segment

With real estate recovery sharply, Brigade volumes have seen a stupendous growth. The sales collection has also aided in reduction in net debt by ~240 crore QoQ to Rs. 3574 crore as on Q4FY21 end. However, second wave of Covid is likely to postpone the recovery of office/retail and hospitality assets. We seek a further clarity outlook ahead from the management on sales volumes traction, going ahead. 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.249.3 as compared to the previous close of Rs. 246.35. The total number of shares traded during the day was 6941 in over 254 trades.

The stock hit an intraday high of Rs. 252.75 and intraday low of 246.25. The net turnover during the day was Rs. 1740623.

Source : Equity Bulls

Keywords