Brigade Enterprises Limited · NSE:BRIGADE
Brigade Enterprises — Q1 FY24 Earnings Presentation
36 slides from Brigade Enterprises's earnings presentation, Aug 8, 2023
Slide 1: Cover letter to stock exchanges
Ref: BEL/NSEBSE/IP/08082023 8th August, 2023 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: Investor Presentation – Q1 FY24
Artist’s impression of Brigade Orchards BRIGADE ENTERPRISES LIMITED Investor Presentation – Q1 FY24 (CIN: L85110KA1995PLC019126) 1
Slide 3: Brigade – A brand that puts values first
Brigade – A brand that puts values first About us Rated [ICRA]AA- Our Core Values (Stable) & Leading property developer of India with CRISIL AA- Quality over 36 years of experience /Stable* + Customer Fair Business Portfolio of Residential, centricity + Commercial, Retail and Hospitality projects In
Slide 4: Segments Highlights – Q1 FY24
Segments Highlights – Q1 FY24 Real Estate – On Sale Basis • Pre-sales volume was ~1.46 Mn sft in Q1 FY24 (including landowner’s space share of 0.18 Mn sft) Revenue Share % • Sale value of INR 9,960 Mn in Q1 FY24 (including landowner’s space share of INR 1,439 Mn) • Average realization for residentia
Slide 5: ESG Initiatives & Targets
ESG Initiatives & Targets Building on our sustainability efforts over the last decade, we at Brigade Group committed to a new purpose: Scaling new heights for a sustainable future. We have taken a significant leap towards enhancing our sustainability footprint thereby moving towards excellence in ES
Slide 6: Summary: Ongoing Projects
Summary: Ongoing Projects Area in Mn sft Total Project Area Projects Project Area Co Share LO/JV share 1% 7% Real Estate projects for sale in BEL 9.40 6.06 3.34 Brigade Orchards * 0.96 0.48 0.48 Real Estate Lease Rentals Brigade Cornerstone Utopia* 5.04 3.36 1.68 21.62 Mn sft Hospitality Brigade Res
Slide 7: Contents
Contents 1 Real estate segment remains resilient 2 Cautious tone continues for SEZ spaces 3 Growth story in Hospitality Segment continues 4 Financial Performance 5 Land bank 6 Projects launched and upcoming launches 6
Slide 8: Highlights: Real Estate - Q1 FY24
Highlights: Real Estate - Q1 FY24 • Achieved pre-sales of ~1.46 Mn sft with a sale value of INR 9,960 Mn (including landowner’s space share of 0.18 Mn sft and sale value of INR 1,439 Mn) ; • Collection of INR 8,788 Mn during Q1 FY24 • Real estate debt reduced to INR 10 Mn as on Q1 FY24 from INR 465
Slide 9: Group Sales Snapshot
Group Sales Snapshot Particulars Q1 FY24* Q4 FY23 Q1 FY23 Net Area Sales (‘000 sft) Residential 1,450 2,333 1,130 Commercial 7 35 105 Total 1,457 2,368 1,235 Net Sale Value (‘INR Mn) Residential 9,917 14,631 7,428 Commercial 43 254 711 Total 9,960 14,885 8,139 Realization (INR/sft) 6,835 6,284 6,590
Slide 10: 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 18.43 1.59 0.15 0.29 20.46 Less: Landowner share 5.03 - - - 5.03 Company share of saleable area 13.40 1.59 0.1
Slide 11: Contents
Contents 1 Real estate segment remains resilient 2 Cautious tone continues for SEZ spaces 3 Growth story in Hospitality Segment continues 4 Financial Performance 5 Land bank 6 Projects launched and upcoming launches 10
Slide 12: Our Leasing Portfolio: Operating Assets
Our Leasing Portfolio: Operating Assets Area in Mn sft Retail 1.23 0.08 Leased Out Office 6.22 1.15 To Be Transacted Particulars Leasable Area Leased To be transacted Brigade Tech Gardens* 3.00 2.27 0.73 WTC Chennai* 2.01 1.66 0.35 WTC Bengaluru 0.62 0.62 - Brigade Opus 0.30 0.30 - Brigade Bhuwalka
Slide 13: Capex Commitment
Capex Commitment (INR Mn) Project Segment Estimated cost Incurred Balance* Brigade Twin Towers Commercial 5,999 3,468 2,531 Brigade Square, Trivandrum Commercial 756 74 682 IBIS Styles, Mysore Hospitality 900 279 621 Grand Total 7,655 3,821 3,834 *As of Jun 30, 2023 Artist’s impression of Brigade Tw
Slide 14: Contents
Contents 1 Real estate segment remains resilient 2 Cautious tone continues for SEZ spaces 3 Growth story in Hospitality Segment continues 4 Financial Performance 5 Land bank 6 Projects launched and upcoming launches 13
Slide 15: Resurgence in Hospitality Segment
Resurgence in Hospitality Segment • Encouraging growth in our primary demand segments mainly in F&B and banquet events; Domestic passenger travel grew by 19% in Q1 FY24 over Q1 FY23* • Q1 FY24 ARR stood at INR 6,214 a growth of 16% over Q1 FY23 Grand Mercure, Bangalore High Ultra Lounge, Bangalore •
Slide 16: Contents
Contents 1 Real estate segment remains resilient 2 Cautious tone continues for SEZ spaces 3 Growth story in Hospitality Segment continues 4 Financial Performance 5 Land bank 6 Projects launched and upcoming launches 15
Slide 17: Consolidated Financials: Snapshot
Consolidated Financials: Snapshot (INR Mn) Q1 FY24 on Q4 Q1 FY24 on Q1 Particulars Q1 FY24 Q4 FY23 Q1 FY23 FY23 FY23 Revenue 6,854 8,721 9,203 (21%) (26%) EBITDA 2,062 2,315 2,504 (11%) (18%) Finance costs 1,081 1,000 1,061 8% 2% Profit before depreciation 981 1,315 1,443 (25%) (32%) Depreciation 68
Slide 18: Business Segment Performance: Q1 FY24
Business Segment Performance: Q1 FY24 (INR Mn) Particulars Real Estate Lease Rental Hospitality Total Revenue 3,708 2,130 1,016 6,854 as % of Total 54% 31% 15% 100% Direct Expenses 2,790 10 114 2,914 Admin Expenses 285 345 271 901 Selling Cost 144 62 47 253 Employee cost 404 116 204 724 EBITDA 85 1,
Slide 19: Consolidated Cash Flows
Consolidated Cash Flows (INR Mn) Particulars Q1 FY24 Q4 FY23 Q1 FY23 Operating Activities Total Collections 12,439 14,632 12,103 Direct Cost/Construction Cost (5,675) (6,188) (4,860) Landowner Payments (1,494) (1,314) (1,097) Employee and Admin Expenses (1,103) (1,164) (938) Sales & Marketing Expens
Slide 20: Capital Allocation: Segment-wise as of 30th June 2023
Capital Allocation: Segment-wise as of 30th June 2023 (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) 11% (OCE) 30% Real Estate 22,789 10 22,799 0.00 9% 22,799 11% Hospitality 3147 5,112 8,259 1.62 2
Slide 21: Consolidated Debt Profile
Consolidated Debt Profile (INR Mn) Particulars Jun-23 Mar-23 Jun-22 Real Estate 10 465 2,133 Hospitality 5,112 5,468 6,124 GOP Securitised 4,770 4,985 5,150 Capex 342 483 974 Leasing 32,706 32,363 32,698 Securitised Lease Rental 28,878 28,839 23,832 Capex 3,828 3,524 8,866 Gross Debt 37,828 38,296 4
Slide 22: Debt Profile & Cost of Borrowing
Debt Profile & Cost of Borrowing Segment Wise - Gross Debt Split Movement of Brigade’s RoI Vs Repo since May-22 Repo Brigade RoI 8.67% 8.72% 13% 8.46% 8.09% 1% 7.75% 7.65% 2.22% 10% INR 37,828 Mn 6.50% 6.50% 3.65% 6.25% 5.40% 76% 4.90% 4.00% Commercial-LRD Commercial-Capex Hospitality-Capex Hospital
Slide 23: Standalone Financial: Snapshot
Standalone Financial: Snapshot (INR Mn) Q1 FY24 on Q1 FY24 on Particulars Q1 FY24 Q4 FY23 Q1 FY23 Q4 FY23 Q1 FY23 Revenue 3,588 5,744 6,613 (38%) (46%) EBITDA 1,020 1,798 1,746 (43%) (42%) Finance costs 319 341 322 (6%) (1%) Profit before depreciation 701 1,457 1,424 (52%) (51%) Depreciation 175 214
Slide 24: Contents
Contents 1 Real estate segment remains resilient 2 Cautious tone continues for SEZ spaces 3 Growth story in Hospitality Segment continues 4 Financial Performance 5 Land bank 6 Projects launched and upcoming launches 23
Slide 25: Brigade’s Land Bank
Brigade’s Land Bank Land Area (in acres) as on 30th Jun 23 10 2 18 Bangalore 85 Chennai Total Land-455 acres Kochi GIFT City Hyderabad Gujarat Hyderabad 340 Bengaluru Chennai Total Land Area Cost of Land Amount Paid Balance Payable Kochi (Acres) (INR Mn) (INR Mn) (INR Mn) 455 20,001 12,837 7,164 24
Slide 26: Developable Area Details
Developable Area Details Product Land Area Project Area (Mn Sft) BEL Share (Mn Sft) Project Area: Product Mix Residential 281 36.6 27.2 3% 1% 2% Plotted development 40 0.8 0.3 Commercial-Lease 59 7.3 6.6 15% Mixed Development 44 1.1 1.1 Commercial-Sale 10 1.4 0.8 2% Hotel 21 0.4 0.4 Project Area - 4
Slide 27: Contents
Contents 1 Real estate segment remains resilient 2 Cautious tone continues for SEZ spaces 3 Growth story in Hospitality Segment continues 4 Financial Performance 5 Land bank 6 Projects launched and upcoming launches 26
Slide 28: Projects Launched: Q1 FY24
Projects Launched: Q1 FY24 Project Area BEL Interest Quarter Project City Segment (Mn Sft) (Mn Sft) Launched Brigade Padmini Tech Valley-Tower C Bengaluru Commercial 0.26 0.13 Q1 Total 0.26 0.13 Artist’s impression of Brigade Padmini Tech Valley 27
Slide 29: Upcoming Launches
Upcoming Launches Segment Total Area (Mn sft) Brigade Economic Interest (Mn sft) Residential 7.87 6.71 Leasing 1.83 1.04 Total 9.70 7.75 Artist’s impression of cricket ground @ Brigade El Dorado Artist’s impression of Brigade Valencia 28
Slide 30: Awards and Accolades – Q1 FY24
Awards and Accolades – Q1 FY24 WTC Chennai awarded as Best Commercial Project of the Year at the FICCI-REISA Awards 2023 Brigade Enterprises Ltd and Brigade Hospitality Services Ltd have been recognised among India’s top 100 best mid-size companies to work for, marks 13th year of Brigade Enterprises
Slide 31: Shareholding Pattern – 30th June 2023
Shareholding Pattern – 30th June 2023 17% Promoter Group 44% FIIs and FPIs 25% DIIs Others 14% 30
Slide 32: Board of Directors
Board of Directors M. R. Jaishankar Aroon Raman Pavitra Shankar Nirupa Shankar Amar Mysore Roshin Mathew Executive Chairman Vice Chairman (Non- Managing Director Jt. Managing Director Executive Director Executive Director • Masters in Business Executive Independent • MBA, Real Estate & Finance, • Ma
Slide 33: Ongoing Residential Projects
Ongoing Residential Projects Artist’s impression of Brigade Calista Actual Shot from Brigade Cornerstone Utopia 32
Slide 34: Completed Residential Projects
Completed Residential Projects Actual shot at Juniper block at Brigade Orchards, Bangalore Actual shot at Brigade 7 Gardens, Bangalore 33
Slide 35: Completed Commercial Projects
Completed Commercial Projects Actual shot at WTC, Chennai Actual shot at Brigade Tech Gardens 34
Slide 36: Thank you
Email:investors@brigadegroup.com Brigade Enterprises Limited 29th & 30th Floor, World Trade Center Brigade Gateway Campus, Dr Rajkumar Road, Malleswaram-Rajajinagar, Bengaluru 560055 Thank you Disclaimer: The information in this presentation contains certain forward-looking statements. These include