Expect better rental income and bookings ahead: Brigade

Suresh K, CFO, Brigade Enterprise, says that the company expects better income from rental and booking going ahead. He also says that the company has entered Mangalore market as part of the expansion plan and sales in Bangalore is also picking up. 

Also read: See Re at 54-56/$; expect 25bps rate cut in Jan: StanChart Below is the edited transcript of his interview to CNBC-TV18. Q: Last time you indicated that Q3 would be a bit more difficult, Q4 would be better, could you just walk us through what kind of releases you have worked out now for the second half of this financial year?
A: We have launched some project which I had mentioned during the Q2 and Q3. As part of our expansion plan we have entered Mangalore market. Sales in Bangalore have also picked up. Some revenues need to be booked in coming quarters, so we need to see how Q3 and Q4 will pan out.  Q: Your revenue growth has been solid but margins have been lower in the last couple of quarters because of lower revenues from commercial properties. How will the margin profile look and how will that be a function of the commercial sales and whether it will increase?
A: We have three companies first is in hospitality, second is lease rental and third is a residential sale which also includes commercial sales. So far our overall EBITDA margin is around 30 percent. In the Q1 the income from rentals was less but going forward we expect constant income to come through from the rental space.  Q: Could you update us on the residential project that you entered in partnership with GIC and whether it is on track for FY14?
A: The GIC joint venture will be on track from financial year 2014. Q: Where exactly are you seeing a recovery in terms of what is happening in the Bangalore market right now, is it in terms of the fact that bookings have gone up or are you also seeing an improvement in terms of pure rates themselves on some of the categories either residential or corporate?
A: Residential has picked up in volume and rates in Bangalore and demand for residential especially into the mid-segment of Rs 40- 75 lakh has good demand in Bangalore. Q: What target do you think you can outline by the end of FY13?
A: We expect bookings to be good in FY13 compared to last year because we have launched different housing like value homes, homes in mid segment and higher income group.