Brigade Enterprises Limited · NSE:BRIGADE
Brigade Enterprises — Investor Presentation (June 2020)
39 slides from Brigade Enterprises's investor presentation, Jun 18, 2020
Slide 1: Brigade Enterprises Limited Investor Presentation FY20
` Brigade Parkside East Artist’s Impression Artist’s Impression BRIGADE ENTERPRISES LIMITED Investor Presentation FY20 (CIN: L85110KA1995PLC019126) 1
Slide 2: COVID-19 Impact and Outlook
COVID – 19 IMPACT AND OUTLOOK • Negative impact on consumer sentiments, stakeholder sentiments and spending appetite due to nation-wide lockdown in the short term due to economic uncertainties. • Lockdown period had impact on Hospitality business and Retail Malls in terms of IMPACT & RESPONSE revenu
Slide 3: COVID 19 relief efforts and initiatives
COVID 19 relief efforts and initiatives • Around 9,500-10,000 migrant workers supported with ‘ Dry Ration’ and money was remitted to their Jan Dhan Bank Accounts/given in hand. • Provided 3,65,000 meals during the lockdown period to migrant workers and economically weaker section of the society. • W
Slide 4: 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 Portfolios of Residential, Hospitality and Lease Rentals • Consistent EBITDA margin of ~26%-28%
Slide 5: Our Business Segments
Our Business Segments Real Estate – On Sale Basis Lease Rentals Hospitality 74% 14% 12% • Average Occupancy rate increased to 67% • Sales volume for FY20 is 4.3 Mn sft • Leased 2.45 Mn sft of new office and in FY20 from 64% in FY19 and GOP (44% increase as compared to FY19) retail area in FY20 which
Slide 6: 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 8.15 6.13 2.02 26% Brigade Orchards * 1.82 0.91 0.91 Real Estate Brigade Cornerstone Utopia* 4.00 2.66 1.34 Lease Rentals Brigade Residences @ WTC Chennai* 0.57 0.2
Slide 7: Contents
Contents 1 Strong momentum in residential launches 2 Strong Leasing Pipeline 3 Well positioned in the Hospitality Segment to capitalize opportunities 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches 7
Slide 8: Highlights: Real Estate
Highlights: Real Estate • Achieved pre sales 4.3 msft in FY20 vs 2.97 msft in FY19 (44% increase) • Also achieved pre sales ~1.1 msft in Q4 FY20 vs ~0.96 msft in Q4 FY19 (10% increase) • Average Selling price at INR 6,176 per sft in Q4 FY 20 • Projects of 5.28 mn sft launched in FY 20 • Brigade Corn
Slide 9: Sales Performance – Real Estate
Sales Performance – Real Estate QoQ Sales Area ('000 sft) QoQ Sales Value (INR Mn) 1,132 1,082 6,512 1,054 6,035 997 5,933 958 5,198 5,288 804 776 4,597 4,458 427 2,185 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 9
Slide 10: Group Sales Snapshot
Group Sales Snapshot Twelve Months Quarterly Q4 FY 20 on Q4 FY 20 on Particulars FY 20 FY19 FY 20 on FY 19 Q4 FY 20 Q3 FY 20 Q4 FY 19 Q3 FY 20 Q4 FY 19 Area Sales (‘000 sft) Residential 3,976 2,673 49% 944 979 863 (4%) 9% Commercial 289 292 (1%) 110 103 95 7% 16% Total 4,265 2,965 44% 1,054 1,082 95
Slide 11: 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 JV JD Total super built-up area of projects on sale basis 13.23 2.39 0.21 0.94 16.77 Less: LO Share 3.36 - - - 3.36 Co share of saleable area 9.87 2.39 0.21 0.94 13.41 Sol
Slide 12: Contents
Contents 1 Strong momentum in residential launches 2 Strong Leasing Pipeline 3 Well positioned in the Hospitality Segment to capitalize opportunities 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches 12
Slide 13: Our Leasing Portfolio: Operating Assets
Our Leasing Portfolio: Operating Assets Area in Mn sft Retail 1.22 0.09 Leased Out To Be Leased Out Office 2.41 1.06 Particulars Leasable Area Leased To be Leased Brigade Tech Gardens Phase 1 1.24 0.79 0.45* WTC @ Kochi 0.77 0.55 0.22 WTC @ Bangalore 0.62 0.62 - Brigade Opus 0.30 0.20 0.10 Brigade F
Slide 14: Exit Rentals by FY 21: Project-wise
Exit Rentals by FY 21: Project-wise Rent per annum (INR BEL Economic Interest (INR Particulars Segment Leasable Area (In Mn sft) Mn) Mn) A. Operational Projects WTC @ Kochi Commercial 0.77 370 370 WTC @ Bangalore Commercial 0.62 800 800 Brigade Opus Commercial 0.30 290 290 Brigade Financial Centre @
Slide 15: Capex Commitment: Commercial
Capex Commitment: Commercial (INR Mn) Projects Est. cost Incurred Balance^ B. Commercial Lease Brigade Southfield 1,144 658 486 Brigade Tech Gardens* 11,900 9,694 2,206 World Trade Centre, Chennai* 8,000 5,872 2,128 Total Commercial Lease 21,044 16,224 4,820 * Through 51% SPV ^ As of Mar’20 Actual S
Slide 16: Contents
Contents 1 Strong momentum in residential launches 2 Strong Leasing Pipeline 3 Well positioned in the Hospitality Segment to capitalize opportunities 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches 16
Slide 17: Strong growth aided by favourable market dynamics
Strong growth aided by favourable market dynamics • Strong portfolio of assets in South India • Portfolio with 1,345 keys across seven hotels • EBITDA for Hospitality segment increased to 27% in FY20 vs 26% in FY19. • Grand Mercure - GIFT City started operations in Q4 FY20 with 151 keys and Holiday
Slide 18: Hospitality Business Performance: FY20
Hospitality Business Performance: FY 20 Grand Four Points by Grand Sheraton Holiday Inn Holiday Inn Grand Mercure Particulars Mercure Sheraton Total Mercure (BLR) Grand Chennai # RCR (BLR) (GIFT City)** (Mysore) (Kochi)* No of Keys FY 19 126 230 202 272 146 218 - 1,194 FY 20 126 230 202 272 146 218
Slide 19: Capex Commitment: Hospitality
Capex Commitment: Hospitality (INR Mn) Planned Number Expected date of Projects Estimate cost Incurred Balance of Keys Commencement Holiday Inn Express & Suites, 650 290 360 134 Q2 FY21 Bengaluru OMR* Ibis Style Mysore* 730 192 538 151 Q1 FY22 Total Hospitality 1380 482 898 285 Artist’s impression o
Slide 20: Contents
Contents 1 Strong momentum in residential launches 2 Strong Leasing Pipeline 3 Well positioned in the Hospitality Segment to capitalize opportunities 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches 20
Slide 21: Consolidated Financials: Snapshot
Consolidated Financials: Snapshot (INR Mn) Q4 FY 20 on Q4 FY 20 on Particulars FY 20 FY 19 FY 20 on FY 19 Q4 FY 20 Q3 FY 20 Q4 FY 19 Q3 FY 20 Q4 FY 19 Revenue 26,816 30,273 (11%) 6,443 5,686 7,779 13% (17%) EBITDA 7,126 8,442 (16%) 1,435 1,719 2,332 (17%) (38%) Interest 3,403 2,785 22% 805 863 763 (
Slide 22: Business Segment Performance: FY20
Business Segment Performance: FY 20 (INR Mn) Particulars Real Estate Hospitality Lease Rental Total % of Revenue Revenue 19,741 3,341 3,734 26,816 100% as % of Total 74% 12% 14% 100% Direct Expenses 13,221 534 87 13,842 52% Admin Expenses 962 982 858 2802 10% Selling Cost 637 118 130 885 3% Employee
Slide 23: Consolidated Cash Flows
Consolidated Cash Flows (INR Mn) Particulars Q4 FY20 Q3 FY20 Q2 FY20 Q1 FY20 FY 20 FY19 Operating Activities Total Collections 7,184 7,362 5,814 5,025 25,385 22,416 Direct Cost/Construction Cost (3,037) (3,698) (2,858) (3,191) (12,784) (11,520) LO Payments (495) (341) (274) (178) (1,288) (608) Emplo
Slide 24: Capital Allocation: Segment-wise
Capital Allocation: Segment-wise As of March, 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) 13% Real Estate 14,697 6,919 21,616 0.47 19% 21,617 18% Hospitality 3,537 5,391 8,928 1.52 10%
Slide 25: Consolidated Debt Profile
Consolidated Debt Profile Particulars As on Mar-20 As on Dec-19 As on Mar-19 Real Estate 6,919 6,975 6,849 Hospitality 5,391 5,387 5,202 GOP Securitised 4,172 4,173 3,319 Capex 1,219 1,214 1,883 Leasing 27,246 25,800 21,344 Securitised Lease Rental 12,677 12,417 12,535 Capex 14,569 13,383 8,809 Less
Slide 26: Standalone Financial Statements
Standalone Financial Statements (INR Mn) FY 20 on FY Q4 FY 20 on Q4 FY 20 on Particulars FY 20 FY 19 Q4 FY 20 Q3 FY 20 Q4 FY 19 19 Q3 FY 20 Q4 FY 19 Turnover 19,935 19,286 3% 4,781 3,830 4,951 25% -3% EBITDA 6,349 6,046 5% 1,366 1,431 1,732 -5% -21% Interest 2,005 1,778 13% 484 509 490 -5% -1% Profi
Slide 27: Contents
Contents 1 Strong momentum in residential launches 2 Strong Leasing Pipeline 3 Well positioned in the Hospitality Segment to capitalize opportunities 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches 27
Slide 28: Brigade's Land Bank
Brigade’s Land Bank Land Area (in acre) 14 13 2 16 Bengaluru 18 Chennai Kochi 42 Mysore Thiruvananthapuram GIFT City Hyderabad 245 GIFT City H y derabad B engaluru Chennai Total Area of 350 acres as on 31st March 2020. Total cost of Land is Rs.10,640 Mn out of which Mysore K ochi Rs.7,883 Mn is paid
Slide 29: Developable Area Details
Developable Area Details Product Proj Area SFT in Mn BEL Share SFT in Mn Project Area: Location Residential 26.3 19.1 1% 4% 2% Commercial-Sale 1.2 0.7 6% Commercial-Lease 8.7 8.0 Hotel 0.4 0.4 11% Total 36.6 28.2 Location Proj Area SFT in Mn BEL Share SFT in Mn Bangalore 27.8 22.0 Chennai 3.9 2.1 Th
Slide 30: Agenda
Agenda 1 Strong momentum in residential launches 2 Strong Leasing Pipeline 3 Well positioned in the Hospitality Segment to capitalize opportunities 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches 30
Slide 31: Projects Launched: FY20
Projects Launched: FY 20 Project Product City Project Area (msft) Quarter Launched Brigade Topaz Residential Mysore 0.12 Q1 Brigade El Dorado – Gallium Block* Residential Bengaluru 0.52 Q1 Brigade Triumph Commercial-Sale Bengaluru 0.22 Q1 Brigade Deccan Heights Commercial-Sale Bengaluru 0.43 Q1 Brig
Slide 32: Upcoming Launches
Upcoming Launches Total Area Segment Brigade Economic Interest (msft) (mn sq ft) Residential 2.65 2.12 Leasing 1.84 1.66 Total 4.49 3.78 IMAGE TO BE UPDATED Orion Uptown Mall 32
Slide 33: Awards and Accolades
Awards and Accolades • Ranked one among India’s 75 Best Places to Work for Women • Brigade International Financial Centre, Gujarat-our flagship project in GIFT City, Ahmedabad received the ‘Commercial Project of the Year Award’ at the Realty Plus Awards 2019 • Brigade Mountain View won the award for
Slide 34: Shareholding Pattern
Shareholding Pattern As on March 31, 2020 Others, 24% Promoter Group, 47% Mutual Funds, 17% FIIs and FPIs, 12% 34
Slide 35: Board of Directors
Board of Directors Lakshmi Dr. Venkatesh M. R. Jaishankar Aroon Raman Pavitra Shankar Venkatchalam Panchaganesan Chairman and Independent Director Independent Director Executive Director Executive Director Managing Director • MBA from Wharton • MBA from Boston • CA, CWA, IIM K Alumni • MBA, Real Est
Slide 36: Ongoing Projects
Ongoing Projects Brigade Senate Phase 1 & Phase 2 Brigade Cornerstone Utopia - Serene Artist’s impression Artist’s impression 36
Slide 37: Ongoing Projects
Ongoing Projects Brigade Seven Gardens Brigade Plumeria Lifestyle Artist’s impression 37
Slide 38: Projects Launched
Projects Launched Brigade Cornerstone Utopia - Tranquil Brigade Residences @ WTC Chennai Artist’s impression Artist’s impression 38
Slide 39: 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
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