Achieved 0.4 mn sq ft. of new sales in Q1 FY21 valued at Rs. 250 Crore vs 1 mn sq ft. valued at Rs. 593 Crore in the corresponding quarter of the previous year
Realization per sft has gone up by 14% compared to the same period in the previous year
Jasper Block at Brigade El Dorado of 0.62 mn sft launched during the quarter
Strong pipeline of 16.24 mn sq ft. and upcoming 2.06 mn sq ft. to be launched in FY21
Lease rental:
Leasing segment for offices remains stable with over 95% collections
Construction of the Brigade Twin Towers development has commenced
Hospitality:
All hotels are operational with Ministry of Home Affairs and State Government protocols in place
Average occupancy of 11% due to impact of COVID-19 & lockdown
All non-essential capital expenditure and renovation has been deferred to reduce cash outflows
Various cost saving measures taken including reduction of manpower costs of about 40% and reduction of about 70% in other overheads during the quarter
Financial Highlights:
Consolidated Performance Q1FY21 vs Q1FY20:
Total Revenues at Rs.214 crores vis-à-vis Rs. 717 crores
EBITDA at Rs. 58 crores vis-à-vis Rs. 191 crores
EBITDA margin at 27%
PAT/(Loss) after Minority Interest at Rs. (53 crores) vis-à-vis profit of Rs. 41 crores
Commenting on the results, Chairman & MD Mr. M.R Jaishankar said, “While this quarter was impacted by COVID-19, our continued focus on digital marketing, online booking of apartments and collections have yielded results even though most of the first quarter was under lockdown. Despite the pandemic, our total collections for the quarter was Rs. 376 crores. The rental collections from Office in the Leasing Segment is stable. Although the biggest impact has been in the hospitality and retail segment, all efforts are being taken to improve their performance and we are positive that these segments will normalize soon.”
COVID-19 Impact & Outlook
Company outlook:
Construction has resumed at 30% labour strength post unlock 1.0 & has now crossed 50%. We expect to reach 100% by end of Q3 FY21
Green shoots are visible in residential business with a pickup in enquiries and sales
Office business remains stable with 95% collections, retaining a positive outlook
Business in malls and hotels will pick up gradually along with the improvement in economy
Brigade has a strong balance sheet and is in a good position to manage operations while maintaining liquidity to meet business obligations
Industry outlook:
Rate reduction by RBI and consequent low rate of interest for housing loans is a big positive
Adequate liquidity in the economy has helped restrict the damage
Recent announcement by RBI to allow banks to restructure loans in impacted sectors is a step in the right direction
Economy is expected to rebound in the later part of the calendar year; however, GDP contraction is expected for the financial year
Operational Impact:
Construction activity was impacted because of intermittent lockdowns
Lower revenue recognition in real estate segment was due to government office shutdowns
Malls and Hotels underperformed because of the lockdown, travel restrictions and weak consumer sentiment
Collections were impacted because of the reasons mentioned above though partially mitigated by prudent capital expenditure and reduction in overheads
Relief & Efforts:
John’s Health Centre at Brigade Meadows was inaugurated on June 24, 2020
Donation for purchase of an ambulance by St. John’s
Donation for purchase of prefabricated 5 bed ICU module to K C General Hospital
Donation for purchase of ventilator to Sri Vasavi Hospital
Dry ration to more than 3000 families in Bangalore
Sustenance allowance provided to migrant workers and supported them with ‘dry rations
80,000 Meals provided during lock down period
Workers engagement programmes viz. exercises, aerobics, yoga, as well as workers’ counselling
Awards and Recognitions:
Brigade Enterprises Ltd. has been recognised as one of India’s Top 100 Best Companies to Work For 2020, in one of India’s largest workplace study conducted by the Great Place to Work®️ Institute and The Economic Times.
This year, Brigade Enterprises Ltd has been "Ranked 43", in the coveted Top 50 category, across companies. Brigade Enterprises Ltd also has the distinction of being among India’s Top 100 Best Companies to Work For, 10 years in a row.
Brigade Hospitality Services Ltd. has been ranked 3rd amongst India’s Great Mid -Size Workplaces in 2020 by the Great Place to Work Institute and The Economic Times.
