Brigade Enterprises has planned for 7 million square feet residential launches in FY15. Till date about 3 million sq ft has already been launched.
Brigade Enterprises is seeing substantial improvement in earnings said CFO, Suresh Kris. New projects worth Rs 111 Cr came into revenue recognition in the second quarter ended September 2014, he said.
According to him the sales volumes for the company would rise by another 30-40 percent on back of strong new bookings said, Kris.
The company has planned for 7 million square feet residential launches in FY15. Till date about 3 million sq ft has already been launched.
Currently, the average realisations stand at Rs 5100 per square feet.
Below is the transcript of Suresh Kris’ interview with Latha Venkatesh and Sonia Shenoy on CNBC-TV18.
Latha: Take us through more details, how did your realisations do and more importantly how will they do in the current quarter, you have already seen half of this?
A: We had tremendous and spectacular results for Q2. We saw increase in sales as well as in profit after tax (PAT) and also in profit before tax (PBT) compared to the last quarter and even six months compared to the last year. So, it was a substantial improvement in the numbers.
This is also because some big and new projects came into revenue recognition during this quarter about Rs 111. Going forward, we think that substantial revenue will also contribute by sales during Q2 and maybe during Q3 also.
In Q2, we had the new bookings of about 8 lakh sq ft, which is more than last year’s e and last quarter’s performance. Going forward the collection has to improve rather than the sales because whatever new booking has happened during Q2, substantial collection has to come during Q3-Q4 like to improve cash flow. I think it will happen in the subsequent quarters. So the sales in numbers are also a good jump and again revenue recognition as per our criteria is also a good jump.
Sonia: What are the projects that you have which are upcoming and what could the revenue growth for the company look like by the end of the year?
A: Presently, we are about 50 percent of last year’s performance and going forward, it could be up by about 30-40 percent in sales volumes. We have plan for about 7 million sq ft of residential space to be launched during this year. So far we have launched about 3 million sq ft of this and we are planning to do the balance during rest of this year.
Sonia: What could the realisations be of what you have launched already and what future launches could hold?
A: The average realisation about Rs 5,100 per square feet, which is in line with last year, even though we have launched about sub Rs 4,000/sq ft during Q2 because the average realisation of the same projects have been about Rs 6,000 per sq ft during this year.
So during this quarter whatever projects we have launched were around Rs 3,900-4,100. Even with this, the average realisation is Rs 5,100 per sq ft upto September and then going forward, again about 5-10 percent increase assuming the same product mix continues.