Brigade Enterprises Limited · NSE:BRIGADE
Brigade Enterprises — H1 FY21 Earnings Presentation
37 slides from Brigade Enterprises's earnings presentation, Nov 11, 2020
Slide 1: Investor Presentation H1 FY21
Artist’s impression of Club House at Brigade Citadel, Artist’s impression of Brigade Citadel, Hyderabad Hyderabad BRIGADE ENTERPRISES LIMITED Investor Presentation H1 FY21 (CIN: L85110KA1995PLC019126) 1
Slide 2: The World of Brigade
The World of Brigade Who we are Our 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 • Consistent EBITDA margin of ~26%-28% f
Slide 3: General Outlook & COVID Impact
General Outlook & COVID Impact • Fast paced recovery in the Economy, major sectors have witnessed a rebound from covid lows. • Adequate liquidity is available in the financial markets, which has kept the sentiment upbeat. • Government and regulatory interventions like RBI loan restructuring initiati
Slide 4: Our Business Segments – share of business by revenue
Our Business Segments – share of business by revenue Real Estate – On Sale Basis Lease Rentals Hospitality 64% 31% 5% • Sales volume for Q2 FY21 is ~ 1 Mn sft • 99% of rental collection in office portfolio • Increase in average occupancy to 15% and sales value at INR 5,760 Mn • Improved traction in
Slide 5: Summary: Ongoing Projects
Summary: Ongoing Projects Area in Mn sft Total Project Area Projects Project Area Co Share LO/JV share 1% Real Estate projects for sale 7.84 5.82 2.02 Brigade Orchards * 1.82 0.91 0.91 30% Real Estate Brigade Cornerstone Utopia* 4.00 2.66 1.34 Lease Rentals Brigade Residences at WTC Chennai* 0.57 0.
Slide 6: Contents
Contents 1 Residential sales back to pre-covid level 2 Healthy leasing pipeline 3 Hospitality performance remains subdued 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches 6
Slide 7: Highlights: Real Estate Q2 FY21
Highlights: Real Estate Q2 FY 21 • Achieved pre-sales of ~1 Mn sft in Q2 FY21 despite pandemic, back to pre-covid level • Real estate sales have increased by 135% as compared to Q1 FY21 • Average selling price at INR 5,833 per sft in Q2 FY 21 • Strong pipeline of 3.12 Mn sft with key projects like :
Slide 8: Sales Performance – Real Estate
Sales Performance – Real Estate QoQ Sales Area ('000 sft) QoQ Sales Value (INR Mn) 1,132 6,512 1,082 1,054 6,035 997 988 5,933 5,760 5,288 421 2,499 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 FY 2020 FY 2021 FY 2020 FY 2021 Sales are back to pre-covid run rate of ~ 1 Mn sft per quarter 8
Slide 9: Group Sales Snapshot
Group Sales Snapshot Quarterly Six Months Q2 FY21 on Q1 Q2 FY21 on Q2 H1 FY21 on H1 Particulars Q2 FY21 Q1 FY21 Q2 FY20 H1 FY21 H1 FY20 FY 21 FY 20 FY20 Area Sales (‘000 sft) Residential 970 394 959 146% 1% 1,364 2,053 (34%) Commercial 18 27 38 (33%) (53%) 45 76 (41%) Total 988 421 997 135% (1%) 1,4
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 13.54 2.39 0.90 0.21 17.04 Less: Landowner share 3.36 - - - 3.36 Company share of saleable area 10.18 2.39 0.9
Slide 11: Contents
Contents 1 Residential sales back to pre-covid level 2 Healthy leasing pipeline 3 Hospitality performance remains subdued 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches 11
Slide 12: Our Leasing Portfolio: Operating Assets
Our Leasing Portfolio: Operating Assets Area in Mn sft Retail 1.07 0.24 Leased Out To Be Leased Out Office 2.45 1.02 Particulars Leasable Area Leased To be Leased Brigade Tech Gardens Phase 1 1.24 0.80 0.44* WTC Bangalore 0.62 0.62 - Brigade Opus 0.30 0.20 0.10 Brigade Bhuwalka Icon 0.19 0.19 - WTC
Slide 13: Our Pre-Leasing Portfolio
Our Pre- Leasing Portfolio: Area in Mn sft Particulars Leasable Area Leased Hard option To be transacted Brigade Tech Gardens Phase 2 1.76 0.18 0.01 1.57 WTC Chennai 2.01 1.37 0.31 0.33 Total 3.77 1.55 0.32 1.90 Actual shot at Brigade Tech Gardens Actual shot Actual at Brigade shot at Brigade Tech G
Slide 14: Capex Commitment: Commercial
Capex Commitment: Commercial (INR Mn) Projects Estimated cost Incurred Balance^ Commercial Lease Brigade Southfield 1,144 788 356 Brigade Tech Gardens* 11,900 10,706 1,194 WTC Chennai* 8,000 6,925 1,075 Brigade Twin Towers 5,999 594 5,405 Total Commercial Lease 27,043 19,013 8,030 Actual shot at Bri
Slide 15: Contents
Contents 1 Residential sales back to pre-covid level 2 Healthy leasing pipeline 3 Hospitality performance remains subdued 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches 15
Slide 16: Hospitality performance remains subdued
Hospitality performance remains subdued • All hotels are operational and are approaching break-even in operations • Occupancy continues to be low in most of the hotels, averaging at 15% vis-a-vis 11% last quarter • Parent company continues to extend cash flow support to manage operations and debt co
Slide 17: Capex Commitment: Hospitality
Capex Commitment: Hospitality (INR Mn) Planned Number Expected date of Projects Estimated cost Incurred Balance of Keys Commencement Holiday Inn Express & Suites, 650 640 10 134 Q3 FY21 Bengaluru OMR* Ibis Style Mysore* 730 196 534 151 Q1 FY22 Total Hospitality 1,380 836 544 285 Artist’s impression
Slide 18: Contents
Contents 1 Residential sales back to pre-covid level 2 Healthy leasing pipeline 3 Hospitality performance remains subdued 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches 18
Slide 19: Consolidated Financials: Snapshot
Consolidated Financials: Snapshot (INR Mn) Q2 FY 21 on Q2 FY 21 on H1 FY21 on Particulars Q2 FY 21 Q1 FY 21 Q2 FY 20 H1 FY21 H1 FY20 Q1 FY 21 Q2 FY 20 H1 FY20 Revenue 3,221 2,138 7,516 51% (57%) 5,359 14,686 (64%) EBITDA 986 579 2,065 70% (52%) 1,565 3,971 (61%) Finance costs 821 891 939 (8%) (13%)
Slide 20: Business Segment Performance: H1 FY21
Business Segment Performance: H1 FY 21 (INR Mn) Particulars Real Estate Hospitality Lease Rental Total % of Revenue Revenue 3,423 283 1,653 5,359 100% as % of Total 64% 5% 31% 100% Direct Expenses 2,372 39 31 2,442 46% Admin Expenses 124 207 270 601 11% Selling Cost 83 11 20 114 2% Employee cost 296
Slide 21: Consolidated Cash Flows
Consolidated Cash Flows (INR Mn) Particulars Q2 FY21 Q1 FY21 H1 FY21 H1 FY20 Operating Activities Total Collections 5,359 3,757 9,116 10,839 Direct Cost/Construction Cost (2,145) (1,859) (4,004) (6,049) Landowner Payments (353) (358) (711) (452) Employee and Admin Expenses (524) (370) (894) (1,672)
Slide 22: Capital Allocation: Segment-wise
Capital Allocation: Segment-wise As of Sept, 2020 (INR Mn) Operating Capital D/E PBD*/ Capital EBITDA/ Segment Equity (A) Debt (B) Employed Ratio Equity % Employed OCE % Capital Employed (A+B) (A/B) (OCE) 12% Real Estate 17,211 7,495 24,706 0.44 6% 24,706 8% Hospitality 3,092 5,575 8,667 1.80 -7% 8,
Slide 23: Consolidated Debt Profile
Consolidated Debt Profile (INR Mn) Particulars As on Sept-20 As on Jun-20 As on Sept-19 Real Estate 7,495 6,915 7,140 Hospitality 5,575 5,434 5,382 GOP Securitised 4,302 4,206 4,296 Capex 1,273 1,228 1,086 Leasing 30,341 28,504 24,393 Securitised Lease Rental 17,011 15,213 12,565 Capex 13,330 13,381
Slide 24: Standalone Financial Statements
Standalone Financial Statements (INR Mn) Q2 FY 21 on Q2 FY 21 on Q2 H1 FY21 on Particulars Q2 FY 21 Q1 FY 21 Q2 FY 20 H1 FY21 H1 FY20 Q1 FY 21 FY 20 H1 FY20 Turnover 2,598 1,808 5,885 44% (56%) 4,406 11,324 (61%) EBITDA 1,020 663 1,881 54% (46%) 1,683 3,551 (53%) Finance costs 515 501 515 3% - 1,016
Slide 25: Contents
Contents 1 Residential sales back to pre-covid level 2 Healthy leasing pipeline 3 Hospitality performance remains subdued 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches 25
Slide 26: Brigade's Land Bank
Brigade’s Land Bank Land Area (in acre) 14 13 2 16 Bengaluru 18 Chennai Kochi GIFT City 42 Mysore Thiruvananthapuram Hyderabad Hyderabad GIFT City 262 Bengaluru Chennai Mysore Kochi Thiruvananthapuram Total Area of 367 acres as on 30th Sept 2020. Total cost of Land is Rs.8,991 Mn out of which Rs.7,1
Slide 27: Developable Area Details
Developable Area Details Product Proj Area in Mn Sft BEL Share in Mn Sft Project Area: Location Residential 30.5 21.9 1% 4% 2% Commercial-Sale 1.2 0.7 6% Commercial-Lease 7.2 6.5 Hotel 0.4 0.4 10% Total 39.3 29.5 Location Proj Area in Mn Sft BEL Share in Mn Sft Bangalore 30.5 23.2 Chennai 3.9 2.2 Th
Slide 28: Agenda
Agenda 1 Residential sales back to pre-covid level 2 Healthy leasing pipeline 3 Hospitality performance remains subdued 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches 28
Slide 29: Projects Launched: H1 FY21
Projects Launched: H1 FY 21 Project Area Project Product City (Mn sft) Quarter Launched Brigade El Dorado – Jasper Block * Residential Bengaluru 0.62 Q1 Brigade Twin Towers * Commercial Bengaluru 1.30 Q1 Total 1.92 Artist’s impression of Brigade El Dorado Artist’s impression of Brigade Twin Towers •
Slide 30: Upcoming Launches
Upcoming Launches Total Area Brigade Economic Interest Segment (Mn sft) (Mn sft) Residential 3.12 2.25 Leasing 0.76 0.50 Total 3.88 2.75 Artist’s impression Artist’s Artist’s impression of of impression Brigade of Brigade Brigade El Citadel, Citadel, Dorado Hyderabad Hyderabad 30
Slide 31: Awards and Accolades
Awards and Accolades • Awarded India’s Top Builders 2020 at the Construction World Architects and Builders Awards 31
Slide 32: Shareholding Pattern
Shareholding Pattern As on Sept 30, 2020 Others, 22% Promoter Group, 47% Mutual Funds, 19% FIIs and FPIs, 12% 32
Slide 33: Board of Directors
Board of Directors Lakshmi Dr. Venkatesh M. R. Jaishankar Aroon Raman Pavitra Shankar Venkatchalam Panchapagesan Chairman and Independent Director Independent Director Independent Director Executive Director Managing Director • MBA from Wharton • MBA from Boston • CA, CWA, IIM K Alumni • MBA, Real E
Slide 34: Ongoing Residential Projects
Ongoing Residential Projects Artist’s impression Brigade Orchards Actual shot at Brigade Panorama 34
Slide 35: Ongoing Commercial Projects
Ongoing Commercial Projects Artist’s impression of Brigade Triumph Artist’s impression of Brigade Deccan Heights 35
Slide 36: Ongoing Projects
Ongoing Projects Artist’s impression of Brigade Residences & WTC Chennai 36
Slide 37: 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