Company Update : Brigade Enterprises Ltd By Motilal Oswal Financial Services Ltd
Strong performance even after approval delays
12msf launch pipeline provides growth visibility in the near term
Operating performance
* BRGD put up a strong show even after approval delays. Its pre-sales grew 63% YoY to INR24.9b (in line with MOFSLe of INR24b), aided by volumes of 2.2msf, which rose 29% YoY (vs. MOFSLe of 2.3msf) for 3QFY25.
* BRGD’s consolidated collections rose 27% YoY to INR17.8b (vs. MOFSLe of INR21b).
* For 9MFY25, BRGD achieved pre-sales of INR54b, up 43% YoY. Collections improved 31% YoY to INR53b.
* BRGD launched 1.89msf projects in 3Q and plans to launch ~12msf in the next four quarters across Bangalore, Chennai, Hyderabad, and Mysuru.
* BRGD's gross debt was INR45.3b, while net debt was INR11.3b. Its net debt to equity stood at 0.18x by end-3QFY25; the cost of debt was 8.76%.
* BRGD has signed a JDA for developing a residential project of ~1msf located at West Chennai with a GDV of ~INR8b. The project will be developed as part of a 1.5msf mixed-use development.
* BRGD has signed a definitive agreement for a prime land parcel located on Whitefield-Hoskote Road, Bengaluru, for developing a residential project spanning about 20 acres. The project will have a total saleable area of ~2.5msf with a GDV of about INR27b and a total land cost of about INR6.3b through its subsidiary Ananthay Properties.
Commercial:
* Leasing revenue grew 14% YoY to INR2.8b, and the hotel business reported a revenue of INR1.3b, which rose 16% YoY.
* BRGD has a balance capex commitment of INR7.1b out of a total ongoing capex of INR12.5b for commercial assets.
Financial performance
* Revenue grew 25% YoY to INR14.6b (9% above our estimate). For 9MFY25, BRGD achieved revenue of INR36.1b, up 13.1% YoY; the revenue was 73% of our full-year estimate.
* EBITDA stood at INR4.1b, up 58% YoY (in line with our estimate). EBITDA margin came in at 28.3%, up 594bp YoY, while it was lower by 374bp vs. our estimate. For 9MFY25, the company reported an EBITDA of INR10b, up 31% YoY. Its EBITDA margin stood at 27.3%.
* For 3QFY25, BRGD’s adj. PAT jumped 221% YoY to INR2.4b, clocking a margin of 16%. During 9MFY25, it reported an adj. PAT of INR4.4b, up 79% YoY.
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