Brigade Enterprises Limited · NSE:BRIGADE
Brigade Enterprises — FY2019 Earnings Presentation
35 slides from Brigade Enterprises's earnings presentation, May 7, 2019
Slide 1: Director's Presentation–FY19 Investor Presentation
Director’s Presentation–FY19 Audit Committee & Board of Directors Meeting Investor Presentation–FY19 May 7, 2019 (CIN: L85110KA1995PLC019126) Artist’s Impression: Brigade 1 Cornerstone Utopia
Slide 2: Financial Highlights
FINANCIAL HIGHLIGHTS • Revenue for FY19 is Rs.30,273 Mn • EBITDA for FY19 is Rs. 8,442 Mn , EBITDA Margin at 28% • PBT for FY19 is Rs. 4,257 Mn , PBT Margin at 14% • PAT for FY19 is Rs. 2,819 Mn • PAT (after MI) for FY19 is Rs. 2,399 Mn • PAT Margin at 9% for FY19 • Revenue for Q4FY19 is Rs.7,779 Mn
Slide 3: Operational Highlights
OPERATIONAL HIGHLIGHTS Sales Highlights: • Achieved 2.97 Mn sq ft of sales in FY19 vs 1.57 Mn sq ft in FY18 (89% increase) • Sale value of Rs 16,440 Mn in FY19 vs 8,963 Mn in FY18. (83% increase) • Achieved 0.96 mn sq ft of new sales in Q4FY19 vs 0.43 mn sq ft IN Q4FY18 (125% increase) • Sale value
Slide 4: Consolidated (IND-AS) Financials - Snapshot
CONSOLIDATED (IND-AS) FINANCIALS - SNAPSHOT Amount in Rs. Mn FY 19 Q4 FY 19 Q3 FY 19 Q4 FY 19 on Particulars FY 18 * Q4 FY 18* (IND AS 115) (IND AS 115) (IND AS 115) Q3 FY 19 Revenue 30,273 7,779 6,980 11% 19,455 4,477 EBITDA 8,442 2,332 1,862 25% 5,912 1,374 Interest 2,785 763 697 9% 2,594 746 Prof
Slide 5: Consolidated (IND-AS) Segment Profit Analysis
CONSOLIDATED (IND-AS) SEGMENT PROFIT ANALYSIS Amount in Rs. Mn Particulars Real Estate Hospitality Lease Rental Total % of Revenue Revenue 23,979 3,089 3,205 30,273 100% as % of Total 79% 10% 11% 100% Direct Expenses 15,345 505 97 15,947 53% Admin Expenses 1,584 998 614 3,196 11% Selling Cost 608 87
Slide 6: Consolidated Segment Contribution
CONSOLIDATED SEGMENT CONTRIBUTION 79% 77% 80% 70% 65% 60% 50% Real Estate 40% Hospitality Lease Rentals 30% 25% 16% 20% 10% 11% 10% 7% 10% 0% Revenue EBITDA PBD 6
Slide 7: Consolidated Cash Flows – (1)
CONSOLIDATED CASH FLOWS – (1) Direct Method Cash Flows Amount in Rs. Mn Particulars Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 FY19 FY18 Operating Activities Total Collections 4,622 6,082 5,527 6,185 22,416 17,922 Direct Cost/Construction Cost (2,059) (3,021) (3,714) (2,726) (11,520) (10,004) LO Payments (147)
Slide 8: Consolidated Cash Flows (2)
CONSOLIDATED CASH FLOWS (2) Amount in Rs. Mn Particulars Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 FY19 FY18 Investment Activities Cash from Investment Activities(FD & MF) 2,026 798 997 1,195 5,017 4,081 Construction Cost-(CWIP/Capex Projects) (1,172) (1,677) (916) (1,562) (5,327) (6,017) Investment in Land/J
Slide 9: Deployment of Funds – Consolidated – FY19
DEPLOYMENT OF FUNDS – CONSOLIDATED – FY19 Capital Employed Profitability Ratios 40% 33% Real Estate 27% 33% 30% Real Estate Lease Rental 15% 20% 11% 11% Hospitality 53% 8% 10% Lease Rental Hospitality 14% 0% PBD/Equity % EBITDA/OCE % Figures as on Mar 2019; Amounts are in Rs. Mn Capital D/E Equity D
Slide 10: Consolidated Debt Profile
CONSOLIDATED DEBT PROFILE Amount in Rs. Mn Particulars Mar-19 Dec-18 Mar-18 1. Real Estate 6,849 6,636 7,918 2. Hospitality GOP Securitised 3,319 3,312 3,376 Capex 1,883 1,464 971 3. Leasing Securitised Lease Rental 12,535 12,649 12,332 Capex 8,809 7,745 4,933 Less : Cash & Cash Equivalents 3,844 3,
Slide 11: Borrowing Cost
BORROWING COST Amount in Rs. Mn Cost of Borrowing 9.8% 9.7% 9.6% 9.5% 9.3% 9.3% 9.2% 9.2% 8.5% 8.6% 8.4% 8.3% 8.2% 8.0% 8.0% 8.0% JUN-17 SEP-17 DEC-17 MAR-18 JUN-18 SEP-18 DEC-18 MAR-19 SBI 1 Y MCLR Rate Brigade Cost of Debt Average cost of borrowing has increased inline with the increase in MCLR of
Slide 12: Group Sales Snapshot
GROUP SALES SNAPSHOT Q4 FY19 on Q3 Q4 FY19 on Q4 FY19 on FY18 Q4 Q3 Q4 FY19 FY18 Particulars FY19 FY18 (% Inc) FY19 FY19 FY18 (% Inc) (% Inc) Area Sales ('000 sft) Residential 2,673 1,391 92% 863 744 353 16% 144% Commercial 292 175 67% 95 32 73 197% 30% Total 2,965 1,566 89% 958 776 426 23% 125% Sal
Slide 13: Sales Trend
SALES TREND Sales Value (Rs. Mn) Y-o-Y Sales Value (Rs. Mn) Q-o-Q Sales Value (Rs. Mn) 18000 16,440 6,000 5,198 16000 4,597 4,458 12,490 5,000 14000 12000 9,555 4,000 8,964 10000 3,000 2,347 2,185 8000 6000 2,000 4000 1,000 2000 0 - FY16 FY17 FY18 FY19 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Sales A
Slide 14: Ongoing Projects - Summary
ONGOING PROJECTS - SUMMARY Area in ‘000 sft Total Project Area LO/JV Hospitality 2% Projects Project Area share Co Share Real Estate projects 8,994 1,808 7,186 Lease Rental 29% Brigade Orchards * 1,567 783 784 Brigade Cornerstone Utopia* 2,363 792 1,571 Real Estate Total Real Estate (A) 12,924 3,383
Slide 15: Consolidated Synopsis of Real Estate Projects
CONSOLIDTAED SYNOPSIS OF REAL ESTATE PROJECTS Ongoing Ongoing SPV Stock Particulars Total BEL Projects Projects Sales In Mn. Sft Total super built-up area of projects on sale basis 8.99 3.93 1.05 13.97 Less: LO Share 1.81 0.79 - 2.60 Co share of saleable area 7.18 3.14 1.05 11.37 Sold till date 2.97
Slide 16: Lease Position – Mar 2019
LEASE POSITION – MAR 2019 Office 1,559 723 Retail 980 31 - 300 600 900 1,200 1,500 1,800 2,100 2,400 Leased out To be Leased ▪ Total operational leasable area is 3.29 Mn sft out of which 2.54 Mn sft is leased as on 31st March 2019 ▪ In addition, we have leased appx 0.6 Mn sft in Brigade Tech Garden
Slide 17: Hospitality Business FY19 Performance - 1
HOSPITALITY BUSINESS FY19 PERFORMANCE- 1 GRAND MERCURE (BLR) SHERATON GRAND Details FY19 FY18 FY19 FY18 No of Keys 126 126 230 230 Occupancy 69% 71% 80% 77% ARR (Rs.) 7,039 6,898 8,237 8,434 GOP 38% 41% 42% 40% GOP (Rs. In Mn) 135 138 509 444 17 GM (BLR) Sheraton
Slide 18: Hospitality Business FY19 Performance - 2
HOSPITALITY BUSINESS FY19 PERFORMANCE- 2 HOLIDAY INN CHENNAI HOLIDAY INN EXPRESS (BLR) Details FY19 FY18 FY19 Oct to Mar-18 No of Keys 202 202 272 272 Occupancy 72% 36% 45% 32% ARR (Rs.) 4,384 4,228 4,281 4,975 GOP 31% 6% 30% 7% GOP (Rs. In Mn) 121 13 66 3 18 Holiday Inn Chennai HIEX (BLR)
Slide 19: Hospitality Business FY19 Performance - 3
HOSPITALITY BUSINESS FY19 PERFORMANCE- 3 GRAND MERCURE (MYSORE) Details FY19 FY18 No of Keys 146 146 Occupancy 56% 45% ARR (Rs.) 3,584 3,734 GOP 21% 9% GOP (Rs. In Mn) 40 14 Four Points by Sheraton, Kochi opened in Jan-19 with 218 keys is the only 5 Star hotel situated within Kochi Infopark which is
Slide 20: Hospitality Business FY19 Performance
HOSPITALITY BUSINESS FY19 PERFORMANCE- 4 Sheraton Grand- Bangalore Grand Mercure - Bangalore 8,500 8,434 90% 7,100 7,039 80% 8,237 81% Occupancy Rate 73% Occupancy Rate 7,000 6,898 77% 80% ARR in INR 6,900 71% 8,000 80% ARR in INR 69% 70% 6,800 7,638 70% 6,666 6,700 7,500 60% 60% 6,600 6,500 7,000 5
Slide 21: Land Bank - Group
LAND BANK - GROUP Land Area Total Cost* (INR in Location Paid (INR in Mn) Payable (INR in Mn) (in acres) Mn) Bangalore 284 10,333 8,211 2,122 Chennai 54 2,452 2,232 220 Hyderabad 13 180 120 60 Kochi 18 140 140 0- Mangalore 29 54 46 8 Gujarat 2 267 130 137 Mysore 17 20 12 8 Thiruvananthapuram 14 368
Slide 22: Land Bank – Developable Area
LAND BANK – DEVELOPABLE AREA Project Area - Product Project Area - Location Thiruvananthapuram Mangalore 5% Hotel 6% Mysore 1% Kochi GIFT 1% Commercial-Lease Hyderabad 0% 1% 24% 4% Chennai 11% Commercial-Sale 4% Residential Bangalore 71% 72% BEL Proj Area BEL Share Proj Area Location Product Share S
Slide 23: Projects Launched in FY19
PROJECTS LAUNCHED IN FY19 Project Project Product City Launched Area Mn sft Qtr 1. Brigade Enterprises Limited Brigade Buena vista Ph II Residential Bangalore 0.50 Q1 Brigade Senate 1 Commercial-Sale Bangalore 0.17 Q2 Brigade Senate 2 Commercial -sale Bangalore 0.20 Q1 Brigade Woods Residential Bang
Slide 24: Projects Launched in FY19 / Projects to be Launched
PROJECTS LAUNCHED IN FY19 Project (Hospitality) City No of Keys 3. Brigade Hotel Ventures Limited Ibis Styles, Mysore Mysore 151 Keys PROJECTS TO BE LAUNCHED Segment Brigade Economic Total Area Interest (mn sq ft) (mn sq ft) Residential 5.47 3.78 Commercial Sale 1.02 0.59 Leasing 2.00 2.00 Hospitali
Slide 25: Annexure - Standalone Financials, Capex Commitment, Awards
Brigade Performance–FY19 Audit Committee & Board of Directors Meeting Annexure - Standalone Financials, CAPEX Commitment, Awards. May 7, 2019 (CIN: L85110KA1995PLC019126) Artist’s Impression: 25 Brigade Tech Garden
Slide 26: Capex Commitment – Commercial
CAPEX COMMITMENT – COMMERCIAL As on Mar 2019 Amount in Rs. Mn Projects Est. cost Incurred Balance 1. Brigade Enterprises Limited A.Retail Space & Hotel Brigade Orion OMR & Holiday Inn Express* 1,935 749 1,186 Total Retail Space 1,935 749 1,186 Projects Est. cost Incurred Balance 2.Brookefields Real
Slide 27: Capex Commitment - Hospitality
CAPEX COMMITMENT - HOSPITALITY As on Mar 2019 Amount in Rs. Mn Planned No. of Expected date of Projects Est. cost Incurred Balance Keys Commencement 1. Brigade Hotel Ventures Limited Ibis Styles, Gift City* 1,140 710 430 159 Q3 FY20 Ibis Styles Mysore* 730 155 575 151 Q1 FY21 Total Hospitality 1,870
Slide 28: Standalone (IND-AS) Financials - Snapshot
STANDALONE (IND-AS) FINANCIALS - SNAPSHOT Amount in Rs. Mn Q4 FY 19 on Particulars FY 19 Q4 FY 19 Q3 FY 19 FY 18* Q4 FY 18* Q3 FY 19 (IND AS 115) (IND AS 115) (IND AS 115) Turnover 19,286 4,951 4,652 6% 13,683 3,192 EBITDA 6,046 1,732 1,337 29% 5,042 1,281 Interest 1,778 490 448 9% 1,833 531 Profit
Slide 29: Awards & Recognition
AWARDS & RECOGNITION Brigade was recognized as one of India’s Top Builders at the Construction World Architects & Builders Award 2018.
Slide 30: Awards & Recognition
AWARDS & RECOGNITION RETAIL ❖ Best Thematic Decoration - ET Now Global Awards for Retail Excellence ❖ Most Admired Shopping Centre of the year - ET Now Global Awards for Retail Excellence ❖ Shopping Mall of the Year -10th Annual Estate Awards ❖ Best Shopping Mall of the Year - UnBox Retail ❖ Food Co
Slide 31: Completed Projects
COMPLETED PROJECTS Brigade Exotica Brigade Opus Brigade Signature Towers 31
Slide 32: Completed Projects
COMPLETED PROJECTS Brigade Lakefront 32
Slide 33: Ongoing Projects
ONGOING PROJECTS Brigade Tech Garden World Trade Center, Chennai Structures - All 3 Basements floor slabs are completed. GF slab to 11th floor slab are completed. 12th floor slab works are in Artist’s impression 33 Artist’s impression progress.
Slide 34: Upcoming Projects
UPCOMING PROJECTS Brigade Residences @ WTC Chennai Brigade El Dorado Structures - All 3 Basements floor slabs are completed. GF slab to 11th floor slab are completed. 12th floor slab works are in Artist’s impression Artist’s impression 34 progress.
Slide 35: Thank You
THANK YOU ATUL GOYAL OM PRAKASH P RAJIV SINHA Chief Financial Officer Company Secretary Asst. General Manager - Finance Email: atulgoyal@brigadegroup.com Email: omprakash@brigadegroup.com Email: rajivsinha@brigadegroup.com Brigade Enterprises Ltd 29th & 30th Floor, WTC, Brigade Gateway Campus, 26/1,