Brigade Enterprises (532929) Q4 08/09 earnings summary

Executive summary

• FY09 faced a severe real-estate downturn; standalone turnover and net profit declined YoY, while flagship developments advanced and new project launches were planned.

• The board recommended a ₹1.20 dividend per share, a 12% payout rate, totaling ₹1,575.95 lakh including dividend tax.

Financial highlights

• Standalone revenue from contract and other receipts was ₹39,435.71 lakh vs ₹49,415.36 lakh YoY; total income was ₹39,508.42 lakh vs ₹49,538.21 lakh.

• Standalone PBT was ₹5,856.37 lakh vs ₹13,740.49 lakh; PAT was ₹4,122.92 lakh vs ₹10,308.38 lakh.

• Profit available for appropriation was ₹8,305.31 lakh vs ₹10,295.92 lakh, including prior-period income of ₹2,920.74 lakh and excess tax provision of ₹1,869.05 lakh, less ₹607.40 lakh investment diminution.

• Consolidated revenue was ₹40,864.96 lakh vs ₹50,713.03 lakh; consolidated PBT was ₹5,566.61 lakh and PAT ₹3,822.29 lakh, vs ₹13,597.73 lakh and ₹10,160.23 lakh, respectively.

Outlook and guidance

• Planned launches in Bangalore, Chennai, Chikmagalur, Hyderabad, Mangalore and Mysore were expected to total 8–10 million sq. ft., including affordable housing.

• Management planned ~10,000 affordable and “nano” housing units in Bangalore and Mysore during FY09; projects were to target customers seeking value for money.

• Brigade Gateway and Brigade Metropolis were in advanced completion stages; the Sheraton Bangalore Hotel was under construction, with operations expected in 2010.