Brigade Enterprises Limited · NSE:BRIGADE
Brigade Enterprises — Q4 FY21 Earnings Presentation
59 slides from Brigade Enterprises's earnings presentation, May 18, 2021
Slide 1: Board Meeting Decisions letter
Ref: BEL/NSEBSE/BMD/18052021 18th May, 2021 Listing Department Department of Corporate Services – Listing National Stock Exchange of India Limited BSE Limited Exchange Plaza, P. J. Towers Bandra Kurla Complex, Dalal Street, Bandra (East), Mumbai – 400 001 Mumbai – 400 051 Re.: Scrip Symbol: BRIGADE/
Slide 2: Board Committee Reconstitution
a) Audit Committee: S. Name of the Member Designation in Category No. the Committee 1. Mr. Pradeep Kumar Panja Chairman Independent Director 2. Mr. Aroon Raman Member Independent Director 3. Mr. Bijou Kurien Member Independent Director 4. Dr. Venkatesh Panchapagesan Member Independent Director 5. Ms
Slide 3: Letter signature page
The above information is also hosted on the website of the Company at www.brigadegroup.com Kindly take the same on your records. Thanking you, OM Digitally signed by OM PRAKASH PALANIMUTHU Yours faithfully, DN: c=IN, o=Personal, PRAKASH postalCode=560075, st=Karnataka, For Brigade Enterprises Limite
Slide 4: Independent Auditor's Report on Consolidated Financial Results
12th Floor “UB City” Canberra Block No. 24, Vittal Mallya Road Chartered Accountants Bengaluru – 560 001, India Tel: +91 80 6648 9000 Independent Auditor’s Report on the Quarterly and Year to Date Consolidated Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obliga
Slide 5: Basis for Opinion
Chartered Accountants Basis for Opinion We conducted our audit in accordance with the Standards on Auditing (SAs), as specified under Section 143(10) of the Companies Act, 2013, as amended (“the Act”). Our responsibilities under those Standards are further described in the “Auditor’s Responsibilitie
Slide 6: Auditor's Responsibilities for the Audit
Chartered Accountants Auditor’s Responsibilities for the Audit of the Consolidated Financial Results Our objectives are to obtain reasonable assurance about whether the Statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that inclu
Slide 7: Other Matter
Chartered Accountants Other Matter The accompanying Statement includes the audited financial statements and other financial information, in respect of: 14 subsidiaries, whose financial statements include total assets of Rs 419,606 lakhs as at March 31, 2021, total revenues of Rs. 14,687 lakhs and
Slide 8: Consolidated Statement of Profit and Loss
BRIGADE ENTERPRISES LIMITED Corporate Identity Number (CIN): L85110KA1995PLC019126 Regd. Office: 26/1, 29th & 30th Floor, World Trade Center, Dr Rajkumar Road, Malleswaram-Rajajinagar, Bangalore 560 055 Phone: +91-80-41379200, 2221 7017-18 Fax:+91-80-2221 0784 Email: enquiry@brigadegroup.com Website
Slide 9: Consolidated Balance Sheet
Statement of Audited Consolidated Financial Results for the quarter and year ended March 31, 2021 B. Balance Sheet (Rs. in lakhs) As at 31.03.2021 As at 31.03.2020 Particulars [Audited] [Audited] A ASSETS 1 Non-Current Assets (a) Property, plant and equipment 99,381 101,188 (b) Capital work in progr
Slide 10: Consolidated Statement of Cash Flows
Statement of Audited Consolidated Financial Results for the quarter and year ended March 31, 2021 C. Statement of Cash flows (Rs. In lakhs) Particulars As at As at 31.03.2021 31.03.2020 [Audited] [Audited] Cash flows from operating activities (Loss)/Profit before tax (12,510) 16,135 Adjustment to re
Slide 11: Consolidated Results Notes
Statement of Audited Consolidated Financial Results for the quarter and year ended March 31, 2021 Notes: 1 The above consolidated financial results of Brigade Enterprises Limited (‘the Company’), its subsidiaries (the Holding Company and its subsidiaries together referred to as “the Group”) and its
Slide 12: Consolidated Results Notes (continued)
Statement of Audited Consolidated Financial Results for the quarter and year ended March 31, 2021 Notes: 7 The Group had investment of Rs 4,000 lakhs in Tier II bonds of Lakshmi Vilas Bank ('LVB'). The Reserve Bank of India ('RBI'), in its communication in November 2020 advised the administrator of
Slide 13: Independent Auditor's Report on Standalone Financial Results
12th Floor “UB City” Canberra Block No. 24, Vittal Mallya Road Chartered Accountants Bengaluru – 560 001, India Tel: +91 80 6648 9000 Independent Auditor’s Report on the Quarterly and Year to Date Audited Standalone Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing
Slide 14: Management's Responsibilities for Standalone Results
Chartered Accountants Management’s Responsibilities for the Standalone Financial Results The Statement has been prepared on the basis of the standalone annual financial statements. The Board of Directors of the Company are responsible for the preparation and presentation of the Statement that gives
Slide 15: Other Matter
Chartered Accountants We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charge
Slide 16: Standalone Statement of Profit and Loss
BRIGADE ENTERPRISES LIMITED Corporate Identity Number (CIN): L85110KA1995PLC019126 Regd. Office: 29th & 30th Floor, World Trade Center, Brigade Gateway Campus, 26/1, Dr Rajkumar Road, Malleswaram-Rajajinagar, Bangalore 560 055 Phone: +91-80-41379200, 2221 7017-18 Fax:+91-80-2221 0784 Email: enquiry@
Slide 17: Standalone Balance Sheet
Statement of Audited Standalone Financial Results for the quarter and year ended March 31, 2021 B. Balance Sheet (Rs. in lakhs) As at 31.03.2021 As at 31.03.2020 Particulars [Audited] [Audited] A ASSETS 1 Non-Current Assets (a) Property, plant and equipment 2,362 2,580 (b) Capital work in progress 3
Slide 18: Standalone Statement of Cash Flows
Statement of Audited Standalone Financial Results for the quarter and year ended March 31, 2021 C. Statement of Cash flows (Rs. in lakhs) As at 31.03.2021 As at 31.03.2020 [Audited] [Audited] Cash flows from operating activities Profit before tax 17,769 34,437 Adjustment to reconcile profit before t
Slide 19: Standalone Results Notes and Segment Data
Statement of Audited Standalone Financial Results for the quarter and year ended March 31, 2021 Notes: 1 The above standalone financial results of Brigade Enterprises Limited (‘the Company’) has been reviewed by the Audit Committee on May 17, 2021 and approved by the Board of Directors of the Compan
Slide 20: Standalone Results Notes (continued)
Statement of Audited Standalone Financial Results for the quarter and year ended March 31, 2021 Notes: 6 The outbreak of Covid-19 pandemic globally and in India has caused significant disturbance and slowdown of economic activities. Due to the lockdown announced by the Government, the Company's oper
Slide 21: Brigade Enterprises Limited - FY 21
Brigade Tech Gardens, Bangalore Brigade El Dorado, Bangalore BRIGADE ENTERPRISES LIMITED Investor Presentation - FY 21 (CIN: L85110KA1995PLC019126) 1
Slide 22: Brigade – A brand that puts values first
Brigade – A brand that puts values first About us Presence • Leading property developer in South Indian real estate market with over three decades of experience • Reputation of developing Grade A properties • Business Portfolio of Residential, Lease Rentals and Hospitality projects • Consistent EBIT
Slide 23: Segments highlights and share of business by revenue
Segments highlights and share of business by revenue Real Estate – On Sale Basis • Achieved sales value is INR 27,667 Mn during FY21, an 16% increase from INR 23,768 Mn in FY 20 Revenue Share % • Corresponding sales volume stood at ~4.60 Mn sft in FY21, an 8% increase from 4.26 Mn sft in FY 20 6% •
Slide 24: Summary: Ongoing Projects
Summary: Ongoing Projects Area in Mn sft Projects Project Area Co Share LO/JV share Total Project Area 1% Real Estate projects for sale 8.45 5.81 2.64 8% Brigade Orchards * 1.82 0.91 0.91 Real Estate Brigade Cornerstone Utopia* 4.89 3.25 1.64 Lease Rentals Brigade Residences at WTC Chennai* 0.57 0.2
Slide 25: Contents
Contents 1 Real estate sales and collections at all time high 2 Stable rental portfolio 3 Hospitality – Improvement in Q4 but impacted by 2nd wave 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches 5
Slide 26: Highlights: Real Estate - Q4 FY21
Highlights: Real Estate - Q4 FY21 • Achieved all time high pre-sales of ~1.66 Mn sft in Q4 FY21 and 4.60 Mn sft in FY21. CAGR for last 3 years stands at 43% • Real estate sale increased by 58% from Q4 FY20 by sale value • Average selling price at INR 6,128 per sft in Q4 FY21 • Sales realization incr
Slide 27: Sales Performance – Real Estate (Annual)
Sales Performance – Real Estate (Annual) Sales Area ('000 Sq Ft) Sales Value (INR Mn) 27,667 23,768 4,602 4,265 16,440 2,965 8,964 1,566 FY 18 FY 19 FY 20 FY 21 FY 18 FY 19 FY 20 FY 21 Achieved all time high pre-sales of ~4.6 Mn sft in FY 21 despite business being significantly affected by COVID-19
Slide 28: Group Sales Snapshot
Group Sales Snapshot Twelve Months Quarterly FY 21 on Q4 FY21 on Q4 FY21 on Particulars FY 21 FY 20 Q4 FY21 Q3 FY21 Q4 FY20 FY 20 Q3 FY21 Q4 FY20 Area Sales (‘000 sft) Residential 4,470 3,976 12% 1,628 1,478 944 10% 72% Commercial 133 289 (54%) 33 55 110 (41%) (70%) Total 4,602 4,265 8% 1,660 1,533
Slide 29: Consolidated synopsis of Real Estate Projects
Consolidated synopsis of Real Estate Projects Ongoing BEL Ongoing SPV Particulars Stock Sales Total Projects Projects * In Mn sft BEL SPV Total super built-up area of projects on sale basis 15.62 2.39 0.95 0.18 19.13 Less: Landowner share 4.28 - - - 4.28 Company share of saleable area 11.34 2.39 0.9
Slide 30: Contents
Contents 1 Real estate sales and collections at all time high 2 Stable rental portfolio 3 Hospitality – Improvement in Q4 but impacted by 2nd wave 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches 10
Slide 31: Our Leasing Portfolio: Operating Assets
Our Leasing Portfolio: Operating Assets Area in Mn sft Retail 1.11 0.20 Leased Out Hard Option Office 4.03 0.61 2.60 To Be Transacted Particulars Leasable Area Leased Hard Option To be transacted Brigade Tech Gardens 3.00 1.05 0.30 1.65 WTC Chennai 2.01 1.39 0.31 0.31 WTC Bangalore 0.62 0.61 - 0.01
Slide 32: Our Pre-Leasing Portfolio
Our Pre - Leasing Portfolio: Area in Mn sft Particulars Leasable Area Leased To be Leased Brigade Southfield 0.35 0.35 - Total 0.35 0.35 - Artist’s impression of Brigade Southfield 12
Slide 33: Capex Commitment
Capex Commitment Commercial Lease (INR Mn) Estimated cost Incurred Balance^ Brigade Southfield 1,144 824 320 Brigade Twin Towers 5,999 1,092 4,907 Total Commercial Lease 7,143 1,916 5,227 Hospitality Projects Estimated cost Incurred Balance^ Planned No. of Keys Ibis Style Mysore* 730 206 524 151 Tot
Slide 34: Contents
Contents 1 Real estate sales and collections at all time high 2 Stable rental portfolio 3 Hospitality – Improvement in Q4 but impacted by 2nd wave 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches 14
Slide 35: Hospitality – Improvement in Q4 but impacted by 2nd wave
Hospitality – Improvement in Q4 but impacted by 2nd wave • Occupancy improved to 43% in Q4FY21 vs 27% last quarter however ARRs continued to be under pressure having reached 60% of pre-Covid levels • GOP of INR 73 Mn recorded in this quarter. GOP Margin stood at 22% vis-à-vis 16% last quarter • F&B
Slide 36: Hospitality Business Performance: Quarterly trends
Hospitality Business Performance : Quarterly trends Portfolio Occupancy rate % Portfolio GOP (INR Mn) & GOP Margin % 43% 27% 73 15% 11% 41 16% 22% Q1 FY 21 Q2 FY 21 Q3 FY 21 Q4 FY 21 Portfolio ARR (INR) (45%) 3,097 3,085 2,921 2,874 (139%) (55) (84) Q1 FY 21 Q2 FY 21 Q3 FY 21 Q4 FY 21 Q1 FY 21 Q2 FY
Slide 37: Contents
Contents 1 Real estate sales and collections at all time high 2 Stable rental portfolio 3 Hospitality – Improvement in Q4 but impacted by 2nd wave 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches 17
Slide 38: Consolidated Financials: Snapshot
Consolidated Financials: Snapshot (INR Mn) Q4 FY21 on Q4 FY21 on FY 21 on Particulars Q4 FY21 Q3 FY21 Q4 FY20 FY 21 FY 20 Q3 FY21 Q4 FY20 FY 20 Revenue 8,209 6,537 6,443 26% 27% 20,104 26,816 (25%) EBITDA 2,183 1,575 1,435 39% 52% 5,323 7,126 (25%) Finance costs 900 856 805 5% 12% 3,468 3,403 2% Pro
Slide 39: Business Segment Performance: FY 21
Business Segment Performance: FY 21 (INR Mn) Particulars Real Estate Hospitality Lease Rental Total % of Revenue Revenue 15,255 1,137 3,712 20,104 100% as % of Total 76% 6% 18% 100% Direct Expenses 10,736 140 69 10,945 54% Admin Expenses 684 510 682 1,876 9% Selling Cost 310 34 108 452 2% Employee c
Slide 40: Consolidated Cash Flows
Consolidated Cash Flows (INR Mn) Q4 FY 21 Q3 FY 21 Q2 FY 21 Q1 FY 21 FY 21 FY 20 Operating Activities Total Collections 11,184 6,819 5,359 3,757 27,119 25,385 Direct Cost/Construction Cost (4,452) (2,676) (2,145) (1,859) (11,132) (12,784) Landowner Payments (618) (524) (353) (358) (1,853) (1,288) Em
Slide 41: Capital Allocation: Segment-wise as of 31st March 2021
Capital Allocation: Segment-wise as of 31st March 2021 (INR Mn) Capital Employed % Operating Capital D/E Ratio PBD*/ Capital EBITDA/ Segment Equity (A) Debt (B) Employed (A/B) Equity % Employed OCE % (A+B) 13% (OCE) 32% Real Estate 18,794 4,973 23,767 0.26 8% 23,767 11% Hospitality 3,459 5,858 9,317
Slide 42: Consolidated Debt Profile
Consolidated Debt Profile (INR Mn) Particulars March-21 As on Dec-20 As on March-20 Real Estate 4,973 6,084 6,919 Hospitality 5,858 5,738 5,391 GOP Securitised 4,587 4,257 4,172 Capex 1,271 1,481 1,219 Leasing 32,165 31,169 27,246 Securitised Lease Rental 21,052 17,193 12,677 Capex 11,113 13,976 14,
Slide 43: Debt Profile & Cost of Borrowing
Debt Profile & Cost of Borrowing Segment wise debt Reduction in Average Cost of Borrowing 3% 2% 10% 9.57% 9.56% 9.23% 9.00% 12% 8.40% 40% 7.75% Net Debt – 7.00% 7.00% 7.00% 7.00% 35,736 Mn 33% Commercial - LRD Commercial - CAPEX Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Residential - CF Hospitality - LRD H
Slide 44: Standalone Financial Statements
Standalone Financial Statements (INR Mn) Q4 FY21 on Q4 FY21 on FY 21 on Particulars Q4 FY21 Q3 FY21 Q4 FY20 FY 21 FY 20 Q3 FY21 Q4 FY20 FY 20 Turnover 6,448 5,515 4,781 17% 35% 16,369 19,935 (18%) EBITDA 1,957 1,514 1,366 29% 43% 5,154 6,349 (19%) Finance costs 454 506 484 (10%) (6%) 1,976 2,005 (1%
Slide 45: Contents
Contents 1 Real estate sales and collections at all time high 2 Stable rental portfolio 3 Hospitality – Improvement in Q4 but impacted by 2nd wave 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches 25
Slide 46: Brigade's Land Bank
Brigade’s Land Bank Land Area (in acres) as on 31st March 21 14 2 1 15 19 Bangalore Chennai 41 Kochi Mysore GIFT City Thiruvananthapuram Gujarat 243 Hyderabad Hyderabad Bengaluru Mysore Chennai Total Land Area Cost of Land Amount Paid Balance Payable Kochi (Acres) (INR Mn) (INR Mn) (INR Mn) Thiruvan
Slide 47: Developable Area Details
Developable Area Details Product Land Area Project Area (Mn Sft) BEL Share (Mn Sft) Project Area: Location Residential 249 27.8 20.1 3% 6% Commercial-Sale 12 1.2 0.7 Commercial-Lease 53 6.9 6.3 11% Hotel 21 0.4 0.4 Total 335 36.3 27.5 Location Land Area Project Area (Mn Sft) BEL Share (Mn Sft) Banga
Slide 48: Contents
Contents 1 Real estate sales and collections at all time high 2 Stable rental portfolio 3 Hospitality – Improvement in Q4 but impacted by 2nd wave 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches 28
Slide 49: Projects Launched: FY 21
Projects Launched: FY 21 Project Product City Project Area (Mn sft) Quarter Launched Brigade El Dorado – Jasper Block* Residential Bengaluru 0.62 Q1 Brigade Twin Towers* Commercial Bengaluru 1.30 Q1 Brigade Xanadu Cluster 2 – E, F & L Blocks Residential Chennai 0.40 Q3 Brigade Citadel – A1 & A2 Bloc
Slide 50: Upcoming Launches
Upcoming Launches Segment Total Area (Mn sft) Brigade Economic Interest (Mn sft) Residential 1.43 0.91 Leasing 1.84 1.01 Total 3.27 1.92 Artist’sArtist’s impression of Brigade impression Gem Gem of Brigade Artist’s impression of ofBrigade Artist’s impression El Dorado Brigade Cornerstone Utopia 30
Slide 51: Awards and Accolades
Awards and Accolades CNN News 18 - Real Estate & Business Excellence Awards 2021 • M R Jaishankar (CMD) – Lifetime Achievement of the Year in Real Estate 12th Realty Conclave & Excellence Awards • Brigade Group – Developer of the Year (Residential) • Brigade Tech Gardens – Commercial Project of the
Slide 52: Shareholding Pattern – March 31st 2021
Shareholding Pattern – March 31st 2021 20% 48% 19% 13% Promoter Group FIIs and FPIs Mutual Funds Others 32
Slide 53: Board of Directors
Board of Directors Dr. Venkatesh M. R. Jaishankar Aroon Raman Lakshmi Venkatchalam Pavitra Shankar Panchapagesan Chairman and Managing Director Independent Director Independent Director Independent Director Executive Director • Masters in Business Administration • MBA from Wharton School, • MBA from
Slide 54: Ongoing Residential Projects
Ongoing Residential Projects Artist’s impression of Brigade WTC Residences, Chennai Artist’s impression of Brigade Xanadu 34
Slide 55: Ongoing Commercial Projects
Ongoing Commercial Projects Artist’s impression of Brigade Triumph Artist’s impression of Brigade Deccan Heights 35
Slide 56: Completed Projects
Completed Projects Brigade Signature Towers Brigade Brigade Tech Gardens, Opus Bangalore 36
Slide 57: Thank you
Atul Goyal Chief Financial Officer atulgoyal@brigadegroup.com Om Prakash P Company Secretary omprakash@brigadegroup.com Rajiv Sinha Dy. General Manager - Finance rajivsinha@brigadegroup.com Brigade Enterprises Limited 29th & 30th Floor, World Trade Center Brigade Gateway Campus, Dr Rajkumar Road, Ma
Slide 58: Press Release: Brigade Records Highest Ever Yearly Sales
PRESS RELEASE BRIGADE RECORDS HIGHEST EVER YEARLY SALES OF 4.6 Mn Sqft; SALES INCREASE 16% TO Rs. 2767 Cr IN FY21 Highest Quarterly Sales of 1.66 Mn Sqft with a total value of Rs. 1,018 Cr in Q4 FY21 Bengaluru May 18, 2021: Brigade Enterprises Ltd., reported an all-time high, yearly sales at 4.60 Mn
Slide 59: Press Release: Lease Rental, Hospitality, Dividend
Lease Rental The leasing segment of the commercial business of Brigade remains stable and positive with around 99% collections. There has been an increased momentum in office leasing enquiries with an active pipeline of ~ 1 Mn Sqft. On the retail side, malls witnessed an increased occupancy and foot