Brigade Enterprises (532929) Q4 06/07 earnings summary

Executive summary

• FY07 turnover rose 106% to Rs. 4,077.65 million; profit before tax increased 128% to Rs. 1,068.44 million, led by residential development at Brigade Gateway and Brigade Metropolis.

• Net profit after tax reached Rs. 730.17 million; EPS was Rs. 27.77 versus Rs. 37.85 in FY06.

Financial highlights

• Net sales and other income were Rs. 4,077.65 million versus Rs. 1,982.41 million; PBT was Rs. 1,068.44 million versus Rs. 468.65 million.

• Profit before interest, depreciation and tax was Rs. 1,320.25 million; finance charges were Rs. 164.57 million and depreciation Rs. 87.24 million.

• Net profit after tax was Rs. 730.17 million versus Rs. 421.31 million; current tax provision was Rs. 347.40 million.

• Operating cash flow was negative Rs. 611.82 million, versus positive Rs. 523.23 million in FY06, reflecting higher inventories and advances.

Outlook and guidance

• Expansion planned across Indian cities and centres, supported by perceived broad-based demand and growth in real estate activity.

• Recent housing-rate increases were viewed as affordable and not expected to alter the industry’s long-term prospects.

• North Star and Summit were in development in Bangalore, with planned office space of 1 million and 800,000 sq. ft., respectively.