Brigade Enterprises (532929) Q4 07/08 earnings summary

Executive summary

• FY08 turnover rose 18.66% YoY to Rs 4,941.53 million; net profit was Rs 1,029.59 million versus Rs 747.41 million in FY07.

• Expanded residential, commercial and hospitality activity, with two integrated lifestyle enclaves developed; plans target larger integrated projects and wider South Indian expansion.

• Transitioned to a public limited company and completed an IPO; shares began trading on NSE and BSE on 31 Dec 2007.

Financial highlights

• Revenue, including other income, was Rs 4,953.81 million, up from Rs 4,077.65 million; contract receipts were Rs 4,941.53 million versus Rs 4,019.59 million.

• Profit before tax was Rs 1,374.05 million versus Rs 1,068.44 million; net profit was Rs 1,029.59 million versus Rs 747.41 million.

• Interest and finance charges increased to Rs 35.71 million from Rs 16.02 million; depreciation was Rs 85.54 million versus Rs 87.24 million.

• Consolidated revenue was Rs 5,083.58 million and consolidated profit after tax was Rs 1,016.02 million; consolidated EPS was Rs 10.31.

Outlook and guidance

• Strategy targets larger integrated lifestyle developments, hospitality ventures, South Indian city expansion, quality standards and selective outsourcing to scale operations with lower capital investment.

• Outlook was optimistic, supported by land bank and project execution skills; serviced residences were viewed as a growth opportunity given multinational demand in Bangalore.

• Management described its land-bank approach as cautious but optimistic amid rising land prices and said it was monitoring market conditions.

• Upcoming projects include a 25-acre IT SEZ in Mangalore, proposed hotels and resorts, Orion Mall and office towers; project revenues were expected to bolster future financials.