Brigade Enterprises shares jump 5% on 3x surge in net profit

Brigade Enterprises, a real estate developer, saw its share price climb by 5% in early trading on May 29. This surge followed the company's announcement of a 300% increase in net profit for the quarter ending March. At 9:18 am IST, the company's shares were trading at ₹1,285 on the NSE, representing a 4.8% gain over the previous day's closing price.

Brigade Enterprises Ltd., a real estate firm, announced a significant increase in its net profit for the fourth quarter ending March 31, 2024, with a 234.3% year-over-year surge to ₹210.9 crore, as reported on Tuesday, May 28.

Brigade Enterprises reported a net profit of ₹63.1 crore in the comparable quarter of FY23, as per a regulatory filing. The company's revenue from operations surged by 102.04%, climbing from ₹842.6 crore in the previous year to ₹1,702.4 crore.

The company's operating EBITDA surged by 114.7% to ₹432.8 crore in Q4 FY23 from ₹202 crore in Q4 FY22.The EBITDA margin expanded from 24% in Q4 FY22 to 25.4% in Q4 FY23. EBITDA refers to earnings before interest, taxes, depreciation, and amortization.

The company's total collections surged to ₹5,915 crore in FY24, a 9% increase from the previous year. This strong performance resulted in a net cash flow from operations of ₹1,575 crore. The real estate business also saw significant growth, with revenues reaching ₹3,662 crore, representing a 51% increase from FY23.

The leasing vertical continued its strong performance in FY24, expanding its revenue by 25% to reach ₹938 crore and maintaining a high occupancy rate of 97%. Meanwhile, the hospitality portfolio saw a healthy growth of 18% in FY24, generating ₹464 crore in revenue with an occupancy rate of 72% and an average revenue per room (ARR) of ₹6,483.

Pavitra Shankar, Managing Director, Brigade Group, said, "All verticals of the company contributed significantly to our growth in FY24 on the back of robust demand. With a strong pipeline of 22 million square feet of ongoing projects and around 16 million square feet of upcoming projects, we are confident of sustained performance in the coming quarters as well."

The board has proposed a final dividend of ₹2 per equity share, representing a 20% payout on the ₹10 face value of each share. This dividend, subject to shareholder approval at the upcoming 29th annual general meeting, will be distributed within 30 days following the meeting's approval.

Motilal Oswal, a domestic brokerage firm, maintained its 'Buy' rating on Brigade Enterprises. This decision was based on the company's impressive performance across all areas of its business. The firm also highlighted a robust launch pipeline, indicating promising growth potential in the near future.

Over the past year, shares of the realty player have jumped 125%, as compared to the 25% rise in the frontline index Nifty 50.

Brigade Enterprises Ltd is a property development company. The company's operating segments include Real Estate, Hospitality, and Leasing. The Real Estate segment specializes in the development of residential and commercial projects on a sale basis.

It generates maximum revenue from the Real Estate segment. The company's portfolio includes villas, villaments, penthouses, premium residences, luxury apartments, value homes, urban studios, independent living for seniors and mixed-use lifestyle enclaves and townships.