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Brigade Enterprises Ltd.

BSE: 532929 | NSE: BRIGADE | Series: NA | ISIN: INE791I01019 | SECTOR: Construction & Contracting - Real Estate

BSE Live

Jul 13, 16:00
141.25 -0.15 (-0.11%)
Volume
AVERAGE VOLUME
5-Day
73,639
10-Day
49,967
30-Day
35,835
10,289
  • Prev. Close

    141.40

  • Open Price

    145.00

  • Bid Price (Qty.)

    140.00 (1)

  • Offer Price (Qty.)

    144.60 (100)

NSE Live

Jul 13, 15:59
140.95 -0.50 (-0.35%)
Volume
AVERAGE VOLUME
5-Day
805,522
10-Day
697,728
30-Day
547,479
142,159
  • Prev. Close

    141.45

  • Open Price

    142.00

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2018 2017 2016 2015 2014 2013 2012 2011 2010

Chairman's Speech

Dear Shareholders,

The world economy, during the year, has witnessed a strong revival with all major economies showing good signs of improvement. United States, the world’s largest economy has also witnessed improvement in economic activities, giving confidence to its Federal Reserve to reverse the process of quantitative easing undertaken, post the financial crisis of 2008. Other major economies in Europe too have gained momentum. This cyclical upsurge in economic activities has pushed up the global commodity prices where base metals and crude prices have steadily moved upward during the year. This has also improved the economic scenario of commodity exporter nations that have faced a severe economic crisis in the previous year.

India continues to dominate the economic growth globally, with its tag of the fastest-growing major economy amongst the emerging and developing economies. India’s growth momentum would have been much stronger during the year but for the lingering impacts of demonetisation. The central government continues to remain resolute in its efforts to strengthen the organised players amongst various sectors with its policy measures. After the bold move of demonetisation, the newly introduced Real Estate (Regulation & Development) Act (ReRa) and Goods & Services Tax (GST) were the next initiatives. These initiatives would not only significantly strengthen the domestic economy but also result in rationlisation of tax rates. Change is not always embraced by many and like earlier experiences, deferred their home buying decision preferring to opt for a wait and watch approach. We too have faced the effects of clients deferring their decisions to buy a new home or expand businesses in anticipation of more clarity. However, Brigade welcomes these reforms as it is well aligned with our philosophy of best quality service in the most transparent manner to ensure high quality of living for our customers. This has been one of our guiding light, which today has built a robust brand equity for Brigade, making us successful for more than three decades in building positive experiences and winning customer’s trust.

We have also won the trust of our institutional investors through their overwhelming response to our Qualified Institutional Placement (QIP) through which we have raised Rs.500 crore in April 2017. We have been using the proceeds from the QIP towards project development, adding to our product offering. Currently, we are working on developing various projects across all our key business segments, be it residential, commercial - office & retail and hospitality. With our hospitality business gaining a larger mass, we have decided to significantly enhance our focus in this business and hence have moved the hospitality business into three separate entities to tap the growing business activities in India.

The Financial Year 2018 has been a challenging year in the light of recent policy changes by the Government which has had a major impact on the Real Estate Industry, We are optimistic on the future given our existing pipeline of projects. The total revenue for the financial year 2017-18 was Rs.1,946 crore as against Rs.2,058 crore in the previous year. The Earnings before interest, tax, depreciation and amortisation (EBITDA) during the year came in at Rs.603 crore as against Rs.609 crore in the previous year. The net profit for the year stood at Rs.133 crore as against Rs.167 crore in the previous year.

The Group’s business is broadly divided into three segments, which are Real Estate, Lease Rental and Hospitality. The real estate business during the year achieved the sales volume of 1. 57 mn. sqft. and clocked a sales value of Rs.896 crores. The total real estate revenue recognised in the books of account stood at Rs.1,423 crore. This revenue constituted 73% of the Company’s total revenue. The EBITDA, during the year, for this business segment, stood at Rs.346 crore and the EBITDA margin was at 24%. Currently, a total of 12.33 mn. sqft. of projects are under development for this business segment. In the hospitality segment, we have achieved sales of Rs.237 crore that accounts for 12% of the total revenue. The occupancy level continues to remain healthy across our properties and the average room rate has gone up by 8% on our stabilised hotels during the year. The EBITDA, for the segment, stood at Rs.59 crore with an EBITDA margin of 25%. The lease rental segment clocked in a revenue of Rs.286 crore accruing from a total leaseable area of 2.41 mn. sqft. of which 95% has been leased out, accounting for 15% of the total revenue. The EBITDA for the segment stood at Rs.197 crore with an EBITDA margin of 69%.

Your Company continues to win many awards and accolades for its various projects as well as for its management excellence. The same have been detailed in the Board’s Report.

The economic environment in India is gaining strength from the various reformatary measures introduced by the government. Brigade is well-placed in leading the shift to newer avenues in the real estate business viz. senior living, managed residences, additional focus on value homes, continuously innovating through Brigade REAP for better efficiency, cost and time optimisation for real estate development. The vast bouquet of offerings which we have and would offer caters to the society at large. I would like to thank all our stakeholders for entrusting their trust on us for more than three decades and assure you that we will continue to move ahead by building positive experiences for all our stakeholders.

Best Regards,

M. R. Jaishankar

Chairman & Managing Director