Brigade Enterprises (532929) Q4 13/14 earnings summary

Executive summary

• FY14 consolidated revenue rose 15% to ₹962.68 crore; EBITDA increased 32% to ₹291.47 crore, with reported net profit of ₹88.95 crore versus ₹60.02 crore.

• Residential sales volumes grew 40.6%; rental occupancy and hotel performance improved, supporting a larger contribution from recurring income.

• Strategy centers on South India diversification, growing lease rentals and hospitality, and developing a 373-acre land bank with multi-year project visibility.

Financial highlights

• Consolidated revenue ₹962.68 crore, up 15% YoY; EBITDA ₹291.47 crore, up 32%; EBITDA margin 30.3% versus 26.5% in FY13.

• Consolidated PBT ₹123.46 crore versus ₹53.58 crore; profit for the year ₹89.94 crore versus ₹61.33 crore, including minority interest and associate profit.

• Standalone revenue ₹915.77 crore, up 16%; EBITDA ₹266.54 crore, up 24%; net profit available for appropriation ₹89.80 crore, up 40%.

• Consolidated operating cash flow was ₹465.50 crore versus ₹28.81 crore; cash and cash equivalents ended FY14 at ₹50.68 crore.

Outlook and guidance

• FY15 launch plan includes 10 residential projects with 5.8 million sft developable area and 7 commercial/retail projects with 2.55 million sft; additional SPV residential launches total 1.16 million sft.

• A 373-acre land bank supports more than five years of construction visibility; estimated developable area is 24.93 million sft.

• Expected stronger consumer confidence and business investment were seen as potential supports for residential demand, office absorption and rental values; hospitality and rental income were targeted for significant growth.

• Medium-term priorities: geographic diversification across South India, higher lease-rental contribution and expansion of hospitality assets.