Brigade Enterprises Limited · NSE:BRIGADE
Brigade Enterprises — Q1 FY21 Earnings Presentation
40 slides from Brigade Enterprises's earnings presentation, Aug 12, 2020
Slide 1: Board Meeting Decisions cover letter
Brigade Enterprises Limited Corporate Identity Number (CIN) : L85110KA1995PLC019126 Registered Office : 29th & 30th Floor, World Trade Center Brigade Gateway Campus, 26/1, Dr. Rajkumar Road pees - Gcidlinogsn Bengaluru - 560 055, India BRIGADE Te BERS S87 2200 Building Positive Experiences E : enqui
Slide 2: Board Meeting Decisions cover letter (continued)
BRIGADE of applicable laws, subject to such regulatory/statutory approvals as may be "egitiredtitve Experiences including approval of the Shareholders of the Company, for an aggregate consideration of up to Rs. 500 Crores (Rupees Five Hundred Crores Only). The same is subject to approval of the Shar
Slide 3: Investor Presentation Q1 FY21
` Artist’s Impression of Brigade Xanadu Artist’s Impression of Brigade Xanadu BRIGADE ENTERPRISES LIMITED Investor Presentation Q1 FY21 (CIN: L85110KA1995PLC019126) 1
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 Portfolio of Residential, Lease Rentals and Hospitality • Consistent EBITDA margin of ~26%-28% f
Slide 5: General Outlook & COVID Impact
General Outlook & COVID Impact • Rate reduction by RBI and consequent low rate of interest for housing loans is a big positive. • Adequate liquidity in the economy has helped to restrict the damage. • Recent announcement by RBI to allow banks to restructure loans in impacted sectors is a step Macro
Slide 6: COVID 19 relief efforts and initiatives
COVID 19 relief efforts and initiatives • St. Johns Health centre at Brigade Meadows was inaugurated on 24th June, 2020. • Donation for purchase of an ambulance by St. Johns. • Donation for purchase of prefabricated 5 bed ICU module to K C General Hospital. • Donation for purchase of ventilator to S
Slide 7: Our Business Segments
Our Business Segments Real Estate – On Sale Basis Lease Rentals Hospitality 57% 38% 5% • Sales volume for Q1 FY21 is 0.4 Mn • 95% of rental collection in office • All hotels are operational post lockdown sft and sales value at INR 2,499 Mn portfolio • 11% Average occupancy • Strong pipeline of ongoi
Slide 8: 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 Brigade Orchards * 1.82 0.91 0.91 29% Real Estate Brigade Cornerstone Utopia* 4.00 2.66 1.34 Lease Rentals Brigade Residences @ WTC Chennai* 0.57 0.2
Slide 9: Contents
Contents 1 Maintain momentum in residential launches 2 Positive outlook in the leasing business 3 Hospitality performance in the light of COVID – 19 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches 7
Slide 10: Highlights: Real Estate Q1 FY21
Highlights: Real Estate Q1 FY 21 • Achieved pre sales 0.4 mn sft in Q1 FY21 vs 1.13 mn sft in Q1 FY20 • Average Selling price at INR 5,956 per sft in Q1 FY 21 • Projects of 0.62 mn sft launched in Q1 FY 21 • Brigade El Dorado – Jasper Block • Strong pipeline of 2.06 mn sft with key projects like • B
Slide 11: Sales Performance – Real Estate
Sales Performance – Real Estate QoQ Sales Area ('000 sft) QoQ Sales Value (INR Mn) 1,132 6,512 1,082 1,054 997 5,933 6,035 958 5,198 5,288 804 776 4,597 4,458 427 421 2,499 2,185 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY 2019 FY 2020 FY 2021 FY 2019 FY 2020 FY 2021 9
Slide 12: Group Sales Snapshot Q1 FY21
Group Sales Snapshot Q1 FY 21 Q1 FY 21 on Q1 FY 21 on Particulars Q1 FY21 Q1 FY20 Q4 FY 20 Q1 FY 20 Q4 FY 20 Area Sales (‘000 sft) Residential 394 1,094 944 -64% -58% Commercial 27 38 110 -29% -75% Total 421 1,132 1,054 -63% -60% Sale Value (INR Mn) Residential 2,233 5,552 5,634 -60% -60% Commercial
Slide 13: 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 13.85 2.39 0.86 0.20 17.30 Less: LO Share 3.36 - - - 3.36 Co share of saleable area 10.49 2.39 0.86 0.20 13.9
Slide 14: Contents
Contents 1 Maintain momentum in residential launches 2 Positive outlook in the leasing business 3 Hospitality performance in the light of COVID – 19 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches 12
Slide 15: 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 2.40 1.07 Particulars Leasable Area Leased To be Leased Brigade Tech Gardens Phase 1 1.24 0.75 0.49* WTC @ Bangalore 0.62 0.62 - Brigade Opus 0.30 0.20 0.10 Brigade Bhuwalka Icon 0.19 0.19 - WT
Slide 16: 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 0.19 0.01 1.56 WTC Chennai 2.01 1.34 0.33 0.34 Total 3.77 1.53 0.34 1.90 Actual shot at Brigade Tech Garden 14
Slide 17: Capex Commitment: Commercial
Capex Commitment: Commercial (INR Mn) Projects Est. cost Incurred Balance^ B. Commercial Lease Brigade Southfield 1,144 759 385 Brigade Tech Gardens* 11,900 10,402 1,498 World Trade Centre, Chennai* 8,000 6,196 1,804 Brigade Twin Towers 5,999 423 5,576 Total Commercial Lease 27,403 17,780 9,263 Arti
Slide 18: Contents
Contents 1 Maintain momentum in residential launches 2 Positive outlook in the leasing business 3 Hospitality performance in the light of COVID - 19 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches 16
Slide 19: Hospitality performance during pandemic
Hospitality performance during pandemic • Huge negative impact on hotel business, both occupancy and ARRs because of COVID - 19 • All hotels, except for Four Points Kochi & Holiday Inn Chennai, remained shut for most of the lockdown and commenced operations on 8th June, 2020 • Occupancy continues to
Slide 20: 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 Q3 FY21 Bengaluru OMR* Ibis Style Mysore* 730 192 538 151 Q1 FY22 Total Hospitality 1380 482 898 285 Artist’s impression o
Slide 21: Contents
Contents 1 Maintain momentum in residential launches 2 Positive outlook in the leasing business 3 Hospitality performance in the light of COVID – 19 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches 19
Slide 22: Consolidated Financials: Snapshot
Consolidated Financials: Snapshot (INR Mn) Q1 FY 21 on Q1 FY 21 on Particulars Q1 FY 21 Q4 FY 20 Q1 FY 20 Q4 FY 20 Q1 FY 20 Revenue 2,138 6,443 7,170 (67%) (70%) EBITDA 579 1,435 1,906 (60%) (70%) Interest 891 805 797 11% 12% Profit after Interest (312) 630 1,109 (150%) (128%) Depreciation 556 563 3
Slide 23: Business Segment Performance: Q1 FY21
Business Segment Performance: Q1 FY 21 (INR Mn) Particulars Real Estate Hospitality Lease Rental Total % of Revenue Revenue 1,213 105 820 2,138 100% as % of Total 57% 5% 38% 100% Direct Expenses 846 15 16 877 38% Admin Expenses 65 84 134 281 13% Selling Cost 21 4 8 33 2% Employee cost 186 121 61 368
Slide 24: Consolidated Cash Flows
Consolidated Cash Flows (INR Mn) Particulars Q1 FY21 Q4 FY20 Q1 FY20 Operating Activities Total Collections 3,757 7,184 5,025 Direct Cost/Construction Cost (1,859) (3,037) (3,191) LO Payments (358) (495) (178) Employee and Admin Expenses (370) (653) (668) Sales & Marketing Expenses (107) (347) (172)
Slide 25: Capital Allocation: Segment-wise
Capital Allocation: Segment-wise As of June, 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 15,586 6,915 22,501 0.44 11% 22,501 13% Hospitality 3,284 5,434 8,718 1.65 1% 8
Slide 26: Consolidated Debt Profile
Consolidated Debt Profile (INR Mn) Particulars As on Jun-20 As on Mar-20 As on Jun-19 Real Estate 6,915 6,919 6,807 Hospitality 5,434 5,391 5,369 GOP Securitised 4,206 4,172 4,370 Capex 1,228 1,219 999 Leasing 28,504 27,246 22,567 Securitised Lease Rental 15,213 12,677 12,414 Capex 13,381 14,569 10,
Slide 27: Standalone Financial Statements
Standalone Financial Statements (INR Mn) Q1 FY 21 on Q1 FY 21 on Particulars Q1 FY 21 Q4 FY 20 Q1 FY 20 Q4 FY 20 Q1 FY 20 Turnover 1,808 4,781 5,439 (62%) (67%) EBITDA 663 1,366 1,670 (51%) (60%) Interest 501 484 497 4% 1% Profit after Int 162 882 1,173 (82%) (86%) Depreciation 202 177 179 14% 13% P
Slide 28: Contents
Contents 1 Maintain momentum in residential launches 2 Positive outlook in the leasing business 3 Hospitality performance in the light of COVID - 19 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches 26
Slide 29: Brigade's Land Bank
Brigade’s Land Bank Land Area (in acre) 13 2 14 16 Bengaluru 18 Chennai Kochi Mysore 42 Thiruvananthapuram GIFT City Hyderabad 230 GIFT City H y derabad B engaluru Chennai Total Area of 335 acres as on 30th June 2020. Total cost of Land is Rs.8,248 Mn out of which Mysore K ochi Rs.5,491 Mn is paid a
Slide 30: Developable Area Details
Developable Area Details Product Proj Area in Mn Sft BEL Share in Mn Sft Project Area: Location Residential 25.9 18.7 5% 2% 1% Commercial-Sale 1.2 0.7 6% Commercial-Lease 7.1 6.4 Hotel 0.4 0.4 11% Total 34.6 26.2 Location Proj Area in Mn Sft BEL Share in Mn Sft Bangalore 25.8 20.0 Chennai 3.9 2.1 Th
Slide 31: Agenda
Agenda 1 Maintain momentum in residential launches 2 Positive outlook in the leasing business 3 Hospitality performance in the light of COVID – 19 4 Financial Performance 5 Land Bank 6 Projects Launched and Upcoming Launches 29
Slide 32: Projects Launched: Q1 FY21
Projects Launched: Q1 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 • Projects in SPV 30
Slide 33: Upcoming Launches
Upcoming Launches Total Area Brigade Economic Interest Segment (mn sft) (mn sft) Residential 2.06 1.53 Leasing 0.54 0.36 Total 2.60 1.89 Artist’s impression of Brigade Orchards - Goldspire Artist’s impression of Brigade El Dorado 31
Slide 34: Awards and Accolades
Awards and Accolades • Ranked 10 years in a row among India’s Top 100 Best Companies to Work for 2020, in one of India’s largest workplace studies conducted by the Great Place To Work Institute and The Economic Times • Ranked 43 in the coveted Top 50 category across Companies in 2020 • Brigade Hospi
Slide 35: Shareholding Pattern
Shareholding Pattern As on June 30, 2020 Others, 23% Promoter Group, 47% Mutual Funds, 18% FIIs and FPIs, 12% 33
Slide 36: 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 37: Ongoing Projects
Ongoing Projects Brigade Utopia Brigade Woods Artist’s impression Artist’s impression 35
Slide 38: Ongoing Projects
Ongoing Projects Brigade Seven Gardens WTC Residences Artist’s impression Artist’s impression 36
Slide 39: Projects Launched
Projects Launched Brigade Twin Towers Brigade El Dordo Artist’s impression Artist’s impression 37
Slide 40: 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