Brigade Enterprises Limited · NSE:BRIGADE
Brigade Enterprises — H1 FY19 Earnings Presentation
33 slides from Brigade Enterprises's earnings presentation, Nov 12, 2018
Slide 1: Brigade Enterprises Limited
Brigade Enterprises Limited ——_ Corporate Identity Number (CIN): L85110KA1995PLC019126 —, Registered Office : 29th & 30th Floors, World Trade Center —/, Brigade Gateway Campus, 26/1, Dr. Rajkumar Road —7 Malleswaram-Rajajinagar, Bangalore - 560 055, India T: +91 80 4137 9200 F: +91 80 2221 0784 BRIG
Slide 2: Investor Presentation – H1 FY19
Investor Presentation – H1 FY19 November 12, 2018 (CIN: L85110KA1995PLC019126) 1
Slide 3: Financial Highlights – H1 FY19
FINANCIAL HIGHLIGHTS – H1 FY19 Financial Highlights (Consolidated) • Revenue for H1 FY19 is Rs.15,515 Mn • EBDITA for H1 FY19 is Rs. 4,248 Mn , EBITDA Margin at 28% • PBT for H1 FY19 is Rs. 2,267 Mn • PAT (after MI) for H1 FY19 is Rs. 1,314 Mn • PAT Margin at 10% for H1 FY19 • Net Debt as on 30th Se
Slide 4: Financial Highlights – Q2
FINANCIAL HIGHLIGHTS – Q2 Financial Highlights (Consolidated) • Revenue for Q2FY19 is Rs.8,436 Mn 19% Increase over Q1FY19 Rs. 7,079 Mn • EBDITA for Q2FY19 is Rs.2,365 Mn , EBITDA Margin at 28% 26% Increase over Q1FY19 Rs.1,883 Mn • PBT for Q2FY19 is Rs. 1,329 Mn 42% Increase over Q1FY19 is Rs
Slide 5: Operational Highlights Q2FY19
OPERATIONAL HIGHLIGHTS Q2FY19 Sales Highlights: Achieved 1.23 Mn sq ft of new sales in H1FY19 vs 0.67 Mn sq ft in H1FY18 (82% increase) Sale value of Rs 6,782 Mn in H1FY19 vs 3,995 Mn in H1FY18. (70% increase) Achieved 0.8 mn sq ft of new sales in Q2FY19 vs 0.43 mn sq ft in Q1FY19 (88% increase) Sal
Slide 6: Consolidated Financials Trend
CONSOLIDATED FINANCIALS TREND Turnover (Rs. Mn) EBITDA (Rs. Mn) 8,436 2,365 9,000 7,079 1,883 2,500 8,000 7,000 2,000 6,000 1,500 5,000 4,000 1,000 3,000 2,000 500 1,000 ‐ ‐ Q2 FY19 Q1 FY19 Q2 FY19 Q1 FY19 PBT (Rs. Mn) PAT (Rs. Mn) 865 1,329 1,400 938 1,000 625 1,200 800 1,000 600 800 400 600 400 20
Slide 7: Consolidated (Ind-AS) Financials - Snapshot
CONSOLIDATED (IND‐AS) FINANCIALS ‐ SNAPSHOT Amount in Rs. Mn H1 FY 19 Q2 FY 19 Q1 FY 19 Q2 FY 19 on Particulars H1 FY 18 * Q2 FY 18* (IND AS 115) (IND AS 115) (IND AS 115) Q1 FY 18 Turnover 15,515 8,436 7,079 19% 10,642 4,995 EBITDA 4,247 2,364 1,883 26% 2,848 1,489 Interest 1,325 697 628 11% 1,212
Slide 8: Consolidated Segment Contribution
CONSOLIDATED SEGMENT CONTRIBUTION 90% 81% Real Estate 80% Hospitality 67% 70% Lease Rentals 60% 50% 40% 31% 30% 23% 24% 18% 18% 20% 12% 9% 11% 9% 10% 0% Revenue EBITDA PBD PBT ‐10% ‐13% ‐20% 7
Slide 9: Consolidated Segment Profit Analysis
CONSOLIDATED SEGMENT PROFIT ANALYSIS Half Year ending Sep 2018 Amount in Rs. Mn Particulars Real Estate Hospitality Lease Rental Total Revenue 12,497 1,382 1,635 15,515 as % of Total 81% 9% 10% 100% Direct Expenses 8,143 230 68 8,441 Admin Expenses 796 445 288 1,529 Selling Cost 232 48 52 332 Employ
Slide 10: Consolidated Cash Flows (1)
CONSOLIDATED CASH FLOWS (1) Direct Method Cash Flows Amount in Rs. Mn Particulars Q1 FY19 Q2FY19 H1 FY19 H1 FY18 Operating Activities Total Collections 4,622 6,082 10,704 8,978 Construction Cost ‐2,059 ‐3,021 ‐5,080 ‐5,256 LO Payments ‐147 ‐120 ‐267 ‐292 Employee and Admin Expenses ‐784 ‐675 ‐1,459
Slide 11: Consolidated Cash Flows (2) Contd.
CONSOLIDATED CASH FLOWS (2) Contd. Direct Method Cash Flows Amount in Rs. Mn Particulars Q1 FY19 Q2FY19 H1 FY19 H1 FY18 Investment Activities Cash from Investment Activities 2,026 798 2,824 2,284 Construction Cost (CWIP) ‐1,172 ‐1,677 ‐2,849 ‐2,495 Investment in Land/JD/JV/TDR ‐31 ‐52 ‐83 ‐1,505 Oth
Slide 12: Consolidated Debt Profile
CONSOLIDATED DEBT PROFILE Amount in Rs. Mn Particulars Sep‐18 Jun‐18 Sep‐17 1. Real Estate 7,087 5,970 9,238 2. Hospitality GOP Securitised 3,278 3,335 2,233 Capex 1,375 1,366 1,540 3. Leasing Securitised Lease Rental 12,758 12,856 8,165 Capex 6,834 5,504 3,699 Less : Liquid Investments 4,324 3,380
Slide 13: Group Sales Snapshot
GROUP SALES SNAPSHOT H1 Q2 Q2 FY19 FY19 FY19 H1 H1 Vs H1 Q2 Q1 Q2 on Q1 on Q2 Particulars FY19 FY18 FY18 FY19 FY19 FY18 FY19 FY18 Area Sold ('000 sft) Real Estate 1,231 678 82% 804 427 366 88% 120% Sale Value (Rs. Mn) Real Estate 6,782 3,995 70% 4,597 2,185 2,165 110% 112% Realization (Rs. per sq ft
Slide 14: Ongoing Projects - Summary
ONGOING PROJECTS ‐ SUMMARY Area in ‘000 sft Total Project Area LO/JV Hospitality 3% Projects Project Area share Co Share Real Estate projects 9,298 2,005 7,293 Brigade Orchards * 2,264 1,132 1,132 Lease Rental 34% Total Real Estate (A) 11,562 3,137 8,425 Real Estate 63% WTC, Kochi Phase 2 387 ‐ 387
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 9.30 2.26 0.96 12.52 Less: LO Share 2.01 0.00 0.00 2.01 Co share of saleable area 7.29 2.26 0.96 10.51 Sold till date 3
Slide 16: Lease Position – Sep 2018
LEASE POSITION – SEP 2018 79% 21% Office 1,253 328 96% 4% Retail 962 41 ‐ 300 600 900 1,200 1,500 1,800 Leased out To be Leased Area in ‘000 SFt Project Leasable Area Leased To be Leased WTC, Bangalore 637 637 ‐ Orion Mall @ Brigade Gateway 821 807 14 Orion East Mall 148 121 27 WTC Tower 1 @ Kochi 3
Slide 17: Hospitality Business HY19 Performance - 1
HOSPITALITY BUSINESS HY 19 PERFORMANCE‐ 1 GRAND MERCURE (BLR) SHERATON GRAND Details H1 FY19 H1 FY18 FY18 H1 FY19 H1 FY18 FY18 No of Keys 126 126 126 230 230 230 Occupancy 66% 75% 71% 78% 82% 77% ARR (Rs.) 6,942 6,450 6,898 7,773 7,585 8,434 GOP 37% 40% 41% 40% 40% 40% GOP (Rs in Mn) 61 67 138 218 2
Slide 18: Hospitality Business HY19 Performance - 2
HOSPITALITY BUSINESS HY 19 PERFORMANCE‐ 2 HOLIDAY INN GRAND MERCURE (MYSORE) HOLIDAY INN CHENNAI EXPRESS (BLR) Details H1 FY19 H1 FY18 FY18 H1 FY19 H1 FY18 FY18 H1 FY19 FY18* No of Keys 146 146 146 202 202 202 272 272 50% 42% 45% 68% 30% 36% 33% 32% Occupancy ARR (Rs.) 3,513 3446 3,734 4,351 4,278 4
Slide 19: 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 360 9,803 7,852 1,950 Chennai 49 2,377 2,227 150 Hyderabad 13 180 120 60 Kochi 18 140 140 ‐ Mangalore 29 54 46 7 Gujarat 2 267 130 137 Mysore 17 20 12 8 Grand Total 489 12,841 10,52
Slide 20: 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 376 9,224 7,098 2,126 Commercial‐Sale 17 237 237 ‐ Commercial‐Lease 75 3,184 3,047 137 Retail 0 6 6 ‐ Hotel 21 190 140 50 Total 489 12,841 10,527 2,314 Land Area (Acres) * I
Slide 21: Land Bank – Developable Area
LAND BANK – DEVELOPABLE AREA Project Area ‐ Product Project Area ‐ Location Retail Mangalore 0% Hotel 6% Mysore Kochi Commercial‐Lease 1% 0% 2% GIFT 18% Hyderabad 1% 4% Chennai Commercial‐Sale 9% 4% Residential 77% Bangalore 78% BEL Proj Area BEL Share Proj Area Location Product Share SFT in Mn SFT
Slide 22: Projects Launched in FY19
PROJECTS LAUNCHED IN FY19 Project Project Product City BEL Share Launched Area Mn sft Mn sft Qtr 1.Brigade Enterprises Limited Brigade Buena vista Residential Bangalore 0.50 0.50 Q1 Brigade Senate 2 Commercial ‐sale Bangalore 0.20 0.10 Q1 Brigade Senate I Commercial‐Sale Bangalore 0.17 0.09 Q2 Briga
Slide 23: Projects Launched in FY19
PROJECTS LAUNCHED IN FY19 Project City No of Keys 3. Brigade Hotel Ventures Limited Ibis Styles, Mysore Mysore 154 Keys Total 154 keys 22
Slide 24: Projects to be Launched – Residential - 1
PROJECTS TO BE LAUNCHED – RESIDENTIAL ‐ 1 Project Total Area Brigade Economic Interest Mn sft Mn sft 1. Residential Bangalore Brigade Northridge II 0.16 0.10 Brigade Brick Lane 0.71 0.46 Brigade Parkside East 0.29 0.20 Brigade Parkside West 0.38 0.38 Brigade Parkside North 0.46 0.29 Brigade Parkside
Slide 25: Projects to be Launched – Commercial & Hospitality
PROJECTS TO BE LAUNCHED – COMMERCIAL & HOSPITALITY 2. Commercial Sale Project Total Area Brigade Economic Interest Bangalore Brigade Southfields 0.38 0.23 Brigade Deccan 0.43 0.23 Brigade Triumph 0.21 0.13 Total Commercial Sale 1.02 0.59 3. Commercial Lease Project Total Area Brigade Economic Intere
Slide 26: Projects to be Launched
PROJECTS TO BE LAUNCHED Summary Segment Brigade Economic Total Area Interest (mn sq ft) (mn sq ft) Residential 9.31 6.44 Commercial Sale 1.02 0.59 Leasing 1.70 1.70 Hospitality 0.11 0.11 Total 12.14 8.84 25
Slide 27: Awards & Recognition
AWARDS & RECOGNITION Brigade was recognized as one of India’s Top Builders at the Construction World Architects & Builders Award 2018. 26
Slide 28: Annexure - Standalone Financials and Capex Commitment
Annexure ‐ Standalone Financials and Capex Commitment 27
Slide 29: Standalone (Ind-AS) Financials - Snapshot
STANDALONE (IND‐AS) FINANCIALS ‐ SNAPSHOT Amount in Rs. Mn Q2 FY 19 on Particulars H1 FY 19 Q2 FY 19 Q1 FY 19 H1 FY 18* Q2 FY 18* Q1 FY 18 (IND AS 115) (IND AS 115) (IND AS 115) Turnover 9,684 4,163 5,521 ‐25% 7,336 3,442 EBITDA 2,977 1,391 1,586 ‐12% 2,246 1,201 Interest 840 421 419 1% 848 419 Prof
Slide 30: Capex Commitment – Commercial (1)
CAPEX COMMITMENT – COMMERCIAL (1) As on Sep 2018 Amount in Rs. Mn Projects Est. cost Incurred Balance 1. Brigade Enterprises Limited A. Office Space Brigade Opus 2,000 1,927 73 WTC, Kochi ‐ Phase 2 1,030 904 126 Total Office Space 3,030 2,831 199 B.Retail Space Brigade Orion OMR/Holiday Inn Express*
Slide 31: Capex Commitment – Commercial (2)
CAPEX COMMITMENT – COMMERCIAL (2) As on Sep 2018 Amount in Rs. Mn Projects Est. cost Incurred Balance 2.Brookefields Real Estates And Projects Private Limited SEZ Office Space Brigade Tech Gardens # 11,300 3,733 7,567 3.Perungudi Real Estates Private Limited – Lease World Trade Centre, Chennai # 8,0
Slide 32: Capex Commitment - Hospitality
CAPEX COMMITMENT ‐ HOSPITALITY As on Sep 2018 Amount in Rs. Mn Planned No. of Expected date of Projects Est. cost Incurred Balance Keys Commencement 1. Brigade Hotel Ventures Limited Four Points by Sheraton, Kochi* 1,330 1,286 44 218 Q4 FY19 Ibis Styles, Gift City* 1,140 592 548 159 Q3 FY20 Ibis Sty
Slide 33: 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