Brigade Enterprises Limited · NSE:BRIGADE

Brigade Enterprises — Q1 FY2019 Earnings Presentation

32 slides from Brigade Enterprises's earnings presentation, August 2018

  1. Slide 1: Investor Presentation – Q1 FY19

    Investor Presentation – Q1 FY19 August 2018 (CIN: L85110KA1995PLC019126) 1

  2. Slide 2: Ind AS 115

    Ind AS 115 • Ind AS 115 has been notified by MCA on March 28, 2018 and is applicable for accounting periods beginning on or after 1 April 2018. Ind AS 115 replaces all the existing revenue recognition requirements under Ind AS 18. • The new standard focusses on recognizing revenues when the obligati

  3. Slide 3: Financial Highlights Q1FY19

    FINANCIAL HIGHLIGHTS Q1FY19 Financial Highlights (Consolidated) Revenue for Q1FY19 is Rs.7,079 Mn EBDITA for Q1FY19 is Rs.1,883 Mn , EBITDA Margin at 27% PBT for Q1FY19 is Rs. 938 Mn PAT (after MI) for Q1FY19 is Rs. 631 Mn PAT Margin at 9% Net Debt as on 30th June 2018 is Rs 25,650 Mn. Net Debt to E

  4. Slide 4: Operational Highlights Q1FY19

    OPERATIONAL HIGHLIGHTS Q1FY19 Sales Highlights: Achieved 0.43 mn sq ft of new sales in Q1FY19 vs 0.31 mn sq ft in Q1FY18 (37% increase) Sale value of Rs 2185 Mn in Q1FY19 vs 1830 Mn in Q1FY18. (19% increase) New Launches: Launched one commercial project ‘Senate 2’ in Bangalore having total saleable

  5. Slide 5: Consolidated Financials Trend - Quarterly

    CONSOLIDATED FINANCIALS TREND ‐ QUARTERLY Turnover (Rs. Mn) EBITDA (Rs. Mn) 7,079 1,883 8,000 5,647 1,490 7,000 2,000 1,360 4,477 6,000 5,000 1,500 4,000 1,000 3,000 2,000 500 1,000 ‐ ‐ Q1 FY19 Q4 FY18 Q1 FY18 Q1 FY19 Q4 FY18 Q1 FY18 PBT (Rs. Mn) PAT after MI (Rs. Mn) 938 631 1,000 700 600 800 435 5

  6. Slide 6: Consolidated Financials - Snapshot

    CONSOLIDATED FINANCIALS ‐ SNAPSHOT Amount in Rs. Mn Q4 Q1 Q1 Particulars FY19 FY18 FY18 Turnover 7,079 4,477 5,647 EBITDA 1,883 1,490 1,360 Interest 628 746 608 PBT 1,255 743 752 Depreciation 317 372 317 PBET 938 371 435 Exceptional Items ‐ 115 ‐ PBT and after Exceptional Items 938 256 435 Tax 313 1

  7. Slide 7: Consolidated Segment Contribution

    CONSOLIDATED SEGMENT CONTRIBUTION Q1 FY2019 90% 80% 80% 80% 70% 66% 60% 60% Real Estate 50% Hospitality 40% Lease Rentals 27% 30% 23% 17% 18% 20% 9%11% 10% 7% 2% 0% Revenue Gross Profit EBITDA PBD 7

  8. Slide 8: Consolidated Segment Profit Analysis

    CONSOLIDATED SEGMENT PROFIT ANALYSIS (AS 115) Amount in Rs. Mn Particulars Real Estate Hospitality Lease Rental Total Revenue 5,666 646 768 7,079 as % of Total 80% 9% 11% 100% Expenses 3,709 101 7 3,817 Gross profit 1,957 545 760 3,262 Gross profit Margin % 35% 84% 99% 46% Admin Expenses 369 232 157

  9. Slide 9: Consolidated Cash Flows (1)

    CONSOLIDATED CASH FLOWS (1) Direct Method Cash Flows Amount in Rs. Mn Particulars Q1 FY19 Q4 FY18 Q1 FY18 Operating Activities Total Collections 4,622 4,714 5,305 Construction Cost (2,059) (2,532) (2,933) LO Payments (147) (81) (170) Employee and Admin Expenses (784) (695) (883) Sales & Marketing Ex

  10. Slide 10: Consolidated Cash Flows (2)

    CONSOLIDATED CASH FLOWS (2) Direct Method Cash Flows Amount in Rs. Mn Investment Activities Q1 FY19 Q4 FY18 Q1 FY18 Cash from Investment Activities 2,026 1,645 1,996 Construction Cost (CWIP) (1,172) (1,984) (1,330) Investment in Land/JD/JV/TDR (31) (415) (1,272) Other Investments (MF & FD) (1,058) (

  11. Slide 11: Consolidated Debt Profile

    CONSOLIDATED DEBT PROFILE Amount in Rs. Mn Particulars Jun 2018 Mar 2018 Jun 2017 Real Estate 5,970 7,918 9,064 Hospitality 4,700 4,347 3,425 Lease Rental 18,360 17,265 10,400 Gross Debt 29,030 29,530 22,890 Cost of Debt 9.18% 9.21% 9.84% Credit Rating CRISIL “A” CRISIL “A” CRISIL “A” ICRA “A” ICRA

  12. Slide 12: Group Sales Snapshot

    GROUP SALES SNAPSHOT Q1 FY19 Q1 FY19 Particulars Q1 FY19 Q4 FY18 Q1 FY18 on Q4 on Q1 FY18 FY18 Area Sales ('000 sft) Residential 401 353 276 13% 45% Commercial 26 73 36 ‐64% ‐27% Total 427 426 312 ‐ 37% Sale Value (Rs. Mn) Residential 1,990 1,763 1,554 13% 28% Commercial 195 584 276 ‐67% ‐29% Total

  13. Slide 13: Ongoing Projects - Summary

    ONGOING PROJECTS ‐ SUMMARY Area in ‘000 sft Total Project Area Project LO/JV Hospitality Projects Co Share Area share 2% Real Estate projects – BEL 8,597 1,671 6,927 Brigade Orchards * ‐ BCV 1,942 970 971 Lease Rental Brigade Cosmopolis * ‐ BPPL 722 354 368 37% Real Estate Total Real Estate 11,261 2

  14. Slide 14: Synopsis of Real Estate Projects

    SYNOPSIS OF REAL ESTATE PROJECTS Ongoing BEL Ongoing SPV Stock Particulars Total Projects Projects Sales In Mn. Sft Total super built‐up area of projects on sale basis 8.60 2.66 1.18 12.44 Less: LO Share 1.67 1.67 Co share of saleable area 6.93 2.66 1.18 10.77 Sold till date 2.98 1.31 4.29 To be sol

  15. Slide 15: Lease Position – June 2018

    LEASE POSITION – JUNE 2018 Office 1,328 54 Retail 964 61 ‐ 200 400 600 800 1,000 1,200 1,400 Leased out To be Leased Area in ‘000 SFt Project Leasable Area Leased out To be Leased WTC Bangalore 637 637 ‐ Orion Mall at Brigade Gateway 820 810 10 Orion East Mall 148 128 21 WTC, Kochi ‐ Phase 1 384 334

  16. Slide 16: Hospitality Business – 1

    HOSPITALITY BUSINESS – 1 GRAND MERCURE (BLR) SHERATON GRAND Details Q1 FY19 Q1 FY18 FY18 Q1FY19 Q1 FY18 FY18 No of Keys 126 126 126 230 230 230 Occupancy 72% 69% 71% 77% 75% 77% ARR (Rs.) 6,833 6,895 6,898 8,623 8,025 8,434 GOP 38% 40% 41% 35% 38% 40% GOP (Rs in Mn) 30 32 138 92 99 444 AGOP % 36% 38

  17. Slide 17: Hospitality Business – 2

    HOSPITALITY BUSINESS – 2 HOLIDAY INN EXPRESS GRAND MERCURE (MYSORE) HOLIDAY INN CHENNAI (BLR) Details Q1 FY19 Q1 FY18 FY18 Q1 FY19 FY18 Q1FY19 FY18 No of Keys 146 146 146 202 202 274 274 Occupancy 47% 44% 45% 62% 36% 28% 32% ARR (Rs.) 3,665 3,250 3,734 4,584 4228 4,618 4,975 GOP 12% 2% 9% 24% 6% 14%

  18. Slide 18: 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 390 10,982 8,141 2,840 Chennai 49 2,377 2,181 197 Hyderabad 13 180 120 60 Kochi 18 140 140 ‐ Mangalore 29 54 52 2 GIFT, Gujarat 4 260 74 186 Mysore 19 97 85 12 Total 522 14,090 10,7

  19. Slide 19: Land Bank – Segment Wise

    LAND BANK – SEGMENT WISE Land Area Total Cost* (INR in Segment Paid (INR in Mn) Payable (INR in Mn) (in acres) Mn) Residential 382 9,233 6,758 2,474 Commercial Sale 30 625 572 53 Commercial lease 77 3,177 2,991 186 Retail 10 789 256 533 Hotel 22 267 217 50 Total 522 14,090 10,794 3,296 * Includes Re

  20. Slide 20: Land Bank – Developable Area

    LAND BANK – DEVELOPABLE AREA Project Area ‐ Product Project Area ‐ Location Retail Mangalore 2% Hotel Cochin6% Mysore 2% 0% GIFT 2% Commercial‐Lease Hyderabad 1% 16% 4% Chennai 8% Commercial‐Sale 6% Residential 74% Bangalore 79% BEL Proj Area BEL Share Proj Area Location Product Share SFT in Mn SFT

  21. Slide 21: Projects to be Launched – Residential - 1

    PROJECTS TO BE LAUNCHED – RESIDENTIAL ‐ 1 Brigade Project City Total Area Economic Interest Mn sft Mn sft 1.Brigade Enterprises Limited Brigade Northridge II Bangalore 0.16 0.1 Brigade Bricklane Bangalore 0.71 0.46 Brigade Woods Bangalore 0.54 0.32 Brigade Parkside East Bangalore 0.29 0.2 Brigade Pa

  22. Slide 22: Projects to be Launched – Residential - 2

    PROJECTS TO BE LAUNCHED – RESIDENTIAL ‐ 2 Brigade Project City Total Area Economic Interest Mn sft Mn sft 2. Brigade Tetrarch Private Limited Brigade El Dorado Phase I Bangalore 1.00 1.00 3.Perungudi Real Estates Private Limited Brigade Zenith Chennai 0.54 0.27 4.BCV Developers Private Limited Briga

  23. Slide 23: Projects to be Launched - Commercial

    PROJECTS TO BE LAUNCHED ‐ COMMERCIAL Project City Project Area BEL Share Mn sft Mn sft 1. Brigade Enterprises Limited – Sale Brigade Southfields Bangalore 0.38 0.23 Brigade Deccan Bangalore 0.43 0.23 Brigade Senate I Bangalore 0.22 0.11 Brigade Triumph Bangalore 0.21 0.13 Total 1.24 0.70 2. BCV Deve

  24. Slide 24: Projects to be Launched Hospitality

    PROJECTS TO BE LAUNCHED HOSPITALITY Project City No of Keys 1. Brigade Hotel Ventures Limited Ibis Styles, Metagalli Mysore 154 Keys Ibis Styles , Near Airport Bangalore 150 Keys Total 304 keys 24

  25. Slide 25: Awards & Recognition

    AWARDS & RECOGNITION  Brigade has been recognized for being amongst the Best in the Construction and Real Estate industry, at the Great Place To Work For 2018 Awards.  Ms. Nirupa Shankar received the Construction Woman Award of the Year 2018 from Construc on Times.  Brigade won the' Real Estate L

  26. Slide 26: Annexure - Standalone Financials and Capex Commitment

    Annexure ‐ Standalone Financials and Capex Commitment 26

  27. Slide 27: Standalone (Ind-AS) Financials - Snapshot

    STANDALONE (IND ‐ AS) FINANCIALS ‐ SNAPSHOT (AS 115) Amount in Rs. Mn Q1 Q4 Q1 Particulars FY19 FY18 FY18 Turnover 5,521 3,192 3,894 EBITDA 1,586 1,281 1,045 Interest 419 531 428 Profit after Int 1,167 750 617 Depreciation 157 185 162 PBT 1,010 565 455 Tax 340 132 101 PAT 670 433 355 EBITDA/Revenue

  28. Slide 28: Standalone Segment Profit Analysis

    STANDALONE SEGMENT PROFIT ANALYSIS Amount in Rs. Mn Particulars Real Estate Lease Rental Total Revenue 4,853 668 5,521 as % of Total 88% 12% 100% Expenses 3,212 5 3,217 Gross profit 1,641 663 2,304 Gross profit Margin % 34% 99% 42% Admin Expenses 140 375 235 Selling Cost 11 69 58 Employee cost 58 27

  29. Slide 29: Capex Commitment – Commercial (1)

    CAPEX COMMITMENT – COMMERCIAL (1) As on June 2018 Amount in Rs. Mn Projects Est. cost Incurred Balance 1. Brigade Enterprises Limited A. Office Space Brigade Opus 1,850 1,798 52 WTC, Kochi ‐ Phase 2 1,030 850 180 Total Office Space 2,880 2,648 232 B.Retail Space Brigade Orion OMR 900 491 409 Brigade

  30. Slide 30: Capex Commitment – Commercial (2)

    CAPEX COMMITMENT – COMMERCIAL (2) As on June 2018 Amount in Rs. Mn Projects Est. cost Incurred Balance 2.Brigade (Gujarat) Properties Private Limited SEZ Office Space GIFT City Tower 1 * 770 581 189 3.Brookefields Real Estates And Projects Private Limited SEZ Office Space Brigade Tech Gardens # 11,3

  31. Slide 31: Capex Commitment - Hospitality

    CAPEX COMMITMENT ‐ HOSPITALITY As on June 2018 Amount in Rs. Mn Planned No. of Commencemen Projects Est. cost Incurred Balance Keys t of Operations 1. Brigade Hotel Ventures Limited Holiday Inn Express at Golden Triangle 790 37 753 132 Q1 FY20 Four Points by Sheraton, Kochi 1,280 922 358 218 Q3 FY19

  32. Slide 32: Thank you

    Thank you Atul Goyal Chief Financial Officer Brigade Enterprises Ltd Email: atulgoyal@brigadegroup.com 29th & 30th Floor, WTC, Om Prakash P Brigade Gateway Campus, Company Secretary 26/1, Dr. Rajkumar Road, Email: omprakash@brigadegroup.com Malleswaram‐Rajajinagar, Bangalore ‐560 055. Rajiv Sinha Ph

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