India`s Brigade Enterprises Q4 profit doubles on lower expenses, one-time gain
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India's Brigade Enterprises Ltd on Wednesday said fourth-quarter profit more than doubled, aided by lower expenses and a one-time gain in reversing impairment losses during the COVID-19 pandemic.
The real estate developer's consolidated net profit rose to 692.5 million rupees ($8.47 million) in the quarter ended March 31 from 324.7 million rupees a year earlier.
The company said it had earmarked 170 million rupees as losses related to maintaining property, plant and equipments during the pandemic. After a revised projection, it had recovered the full impairment amount.
Last year, the Bengaluru-based company had incurred a one-time cost of 199.6 million rupees.
The company's revenue from operations fell 10.5% to 8.43 billion rupees, hurt by a 23.4% slide in sales in the real estate segment. Still, Brigade's total expenses fell about 12% due to reduced inventories from its stock of flats and projects under progress.
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WHY IT MATTERS
Demand for housing in India rose by leaps and bounds despite a 250-basis point rise in lending rates for the full year.
Real estate consulting firm Anarock said sales in the country's top seven cities grew 14% year-on-year during the reported quarter due to a rising desire for home ownership. Yet factors like inflation, potential rise in interest rates and corporate layoffs could weigh on growth in the next two quarters, the firm added.
PEERS COMPARISON
Valuation (next 12 Estimates Analysts
months) (next 12 '
months) sentimen
t
RIC PE EV/EBI Price/ Revenue Profit Mean # of Stock to Div
TDA Sales growth growth rating* analyst price yield
s target** (%)
Brigade Enterprises 34.64 12.57 NULL 18.15 46.74 Strong 14 0.86 0.28
Ltd Buy
DLF Ltd 39.97 50.45 NULL 19.71 31.62 Buy 17 1.00 0.63
Godrej Properties 44.75 66.82 NULL 18.34 40.32 Hold 19 0.94 NULL
Ltd
Oberoi Realty Ltd 17.75 14.67 NULL 16.44 -7.86 Buy 23 0.94 0.32
** The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
JAN-MARCH STOCK PERFORMANCE
($1 = 81.7800 Indian rupees)
