Brigade Enterprises (532929) Q4 14/15 earnings summary

Executive summary

• FY15 consolidated revenue rose 38% YoY to ₹1,330.84 Cr; PAT increased 29% to ₹116.4 Cr, with real estate, leasing and hospitality contributing to growth.

• Expanded into GIFT City and Chennai residential markets; launched 6.28 mn sq ft of projects and ended FY15 with 19 mn sq ft of ongoing projects.

• Strategy centers on geographic and business diversification, technology-led execution, township development and a larger project pipeline.

Financial highlights

• Consolidated revenue ₹1,330.84 Cr, up 38%; EBITDA ₹403.05 Cr, up 27%; EBIT ₹303.8 Cr, up 28%; PAT ₹116.4 Cr, up 29%.

• Consolidated finance costs rose to ₹131.4 Cr from ₹113.1 Cr; EPS was ₹8.47 vs ₹8.19 in FY14.

• Standalone total revenue rose 10% to ₹1,008.01 Cr and EBITDA increased 4% to ₹315.25 Cr; PAT declined 22% to ₹70 Cr.

• Consolidated operating cash flow was negative ₹51.34 Cr, while investing outflow was ₹387.56 Cr and financing inflow ₹373.38 Cr.

Outlook and guidance

• FY16 planned launches total 7.7 mn sq ft: 6.1 mn sq ft real estate, 1.3 mn sq ft commercial and 0.3 mn sq ft hospitality.

• Ongoing projects of 19 mn sq ft and a 401-acre land bank provide launch visibility for the coming years; land bank supports 5–6 years of visibility.

• Hotel capacity targeted to increase from 356 to 672 keys over the next couple of years, with hotel revenue expected to double in the same period.

• GIFT City development plans include ₹500 Cr investment over the next few years; a GIC framework targets up to ₹1,500 Cr of joint investments within three years.