Brigade Enterprises (532929) Q4 09/10 earnings summary

Executive summary

• FY09-10 net sales and other income declined 8.05% YoY to Rs 36,259.08 lakh; improved realizations supported higher reported net profit after tax of Rs 4,595.21 lakh, up 11.45% YoY.

• Flagship Brigade Gateway and Brigade Metropolis were substantially complete, with customer handovers underway; new launches and an ~8 million sq. ft. pipeline positioned growth toward FY10-11.

Financial highlights

• Revenue from contract and other receipts was Rs 36,259.08 lakh in FY09-10 vs Rs 39,435.72 lakh in FY08-09; PBT was Rs 4,633.85 lakh vs Rs 5,856.37 lakh.

• Reported PAT was Rs 4,595.21 lakh vs Rs 4,122.92 lakh; profit available for appropriation was Rs 4,622.30 lakh vs Rs 8,305.30 lakh, with prior-year tax refunds affecting the comparison.

• Basic and diluted EPS was Rs 4.12 vs Rs 3.13; proposed dividend was Rs 1.20/share, or 12%, with total payout including dividend tax of Rs 1,575.95 lakh.

• Consolidated revenue was Rs 39,136.36 lakh vs Rs 40,864.96 lakh; consolidated PBT was Rs 4,699.93 lakh vs Rs 5,566.61 lakh and reported PAT was Rs 4,657.46 lakh vs Rs 3,822.29 lakh.

Outlook and guidance

• Plans included launching 8–10 million sq. ft. of projects, including affordable Brigade Value Homes, villa developments and a 120-acre mixed-use Devanahalli township.

• Residential demand and sales volumes recovered in FY09-10, while management anticipated improving Bangalore commercial demand in FY10-11; mall rents were expected to rise 5%–10%.

• Sheraton Bangalore was under construction and expected to begin operations by FY10-11 year-end; Kochi SEZ enabling works had started and Mangalore SEZ design was in progress.