Brigade Enterprises, the Bengaluru-based real estate developer, has reported a stellar performance in the third quarter of the fiscal year, with its net profit soaring by 31 percent to Rs 56 crore. The company’s total revenue stood at an impressive Rs 1,208 crore, marking a substantial 41 percent increase, largely propelled by the robust momentum in the residential segment.
Pavitra Shankar, Managing Director of Brigade Enterprises, expressed satisfaction with the healthy growth witnessed across various business verticals. He attributed the buoyant performance in the residential sector to a combination of strong pricing dynamics and robust sales volume. The company remains optimistic about the future, with a promising pipeline of launches slated for the fourth quarter of FY24.
In the real estate segment, Brigade achieved its strongest-ever performance for Q3, recording sales of 1.7 million square feet with a sale value of Rs 1,524 crore, primarily driven by absorption in Bengaluru and Chennai. The segment witnessed a remarkable revenue growth of 50 percent compared to Q3 FY23, reaching Rs 839 crore, while the EBITDA stood at Rs 73 crore for the quarter.
The company’s commercial segment also demonstrated resilience, with a leasing volume of 0.49 million square feet, achieving an impressive 95 percent occupancy rate across the overall portfolio. Revenue from the leasing segment surged by 24 percent to Rs 247 crore, accompanied by a robust EBITDA of Rs 179 crore.
In the hospitality sector, Brigade witnessed a notable uptick, with revenues surging by 22 percent to Rs 123 crore in Q3 FY24. The segment reported a 7 percent increase in ARR (Average Room Rate) and a 5 percent rise in occupancy compared to the same period last year. The EBITDA for the hospitality segment stood at Rs 45 crore.
Looking ahead, Brigade Group unveiled ambitious plans for the residential, office, retail, and hospitality segments. The company aims to launch approximately 10.8 million square feet of residential projects with an estimated gross development value of Rs 10,000 crore over the next four quarters. Additionally, around 5 million square feet of office and retail projects are slated for launch during the same period.
The company anticipates annualized exit rentals of approximately Rs 500 crore from these launches, signaling robust growth prospects in the commercial segment. Moreover, Brigade plans to commence construction of about 1,000 rooms across four hospitality projects in the coming year, further bolstering its presence in the hospitality sector.
Brigade Enterprises unveiled its third-quarter earnings post-market hours on Tuesday, following which its shares witnessed a positive trajectory, closing at Rs 1,058.85 on the BSE, marking a 2.1 percent increase.
With a solid financial performance and ambitious growth plans, Brigade Group is poised to maintain its position as a key player in the Indian real estate landscape, driving innovation and sustainable development in the sector.
