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Brigade Enterprises Ltd.

BSE: 532929 Sector: Infrastructure
NSE: BRIGADE ISIN Code: INE791I01019
BSE 00:00 | 31 Mar 132.00 10.15
(8.33%)
OPEN

125.55

HIGH

132.00

LOW

123.00

NSE 00:00 | 31 Mar 130.15 9.10
(7.52%)
OPEN

131.00

HIGH

132.50

LOW

122.85

OPEN 125.55
PREVIOUS CLOSE 121.85
VOLUME 328
52-Week high 255.00
52-Week low 107.80
P/E 9.45
Mkt Cap.(Rs cr) 2,698
Buy Price 132.00
Buy Qty 20.00
Sell Price 132.00
Sell Qty 30.00
OPEN 125.55
CLOSE 121.85
VOLUME 328
52-Week high 255.00
52-Week low 107.80
P/E 9.45
Mkt Cap.(Rs cr) 2,698
Buy Price 132.00
Buy Qty 20.00
Sell Price 132.00
Sell Qty 30.00

Brigade Enterprises Ltd. (BRIGADE) - Chairman Speech

Company chairman speech

Dear Shareholders

The world economy during the year has witnessed a strong revival with all majoreconomies showing good signs of improvement. United States the world's largest economyhas also witnessed improvement in economic activities giving confidence to its FederalReserve to reverse the process of quantitative easing undertaken post the financialcrisis of 2008. Other major economies in Europe too have gained momentum. This cyclicalupsurge in economic activities has pushed up the global commodity prices where base metalsand crude prices have steadily moved upward during the year. This has also improved theeconomic scenario of commodity exporter nations that have faced a severe economic crisisin the previous year.

India continues to dominate the economic growth globally with its tag of thefastest-growing major economy amongst the emerging and developing economies. India'sgrowth momentum would have been much stronger during the year but for the lingeringimpacts of demonetisation. The central government continues to remain resolute in itsefforts to strengthen the organised players amongst various sectors with its policymeasures. After the bold move of demonetisation the newly introduced Real Estate(Regulation & Development) Act (RERA) and Goods & Services Tax (GST) were the nextinitiatives. These initiatives would not only significantly strengthen the domesticeconomy but also result in rationlisation of tax rates. Change is not always embraced bymany and like earlier experiences deferred their home buying decision preferring to optfor a wait and watch approach. We too have faced the effects of clients deferring theirdecisions to buy a new home or expand businesses in anticipation of more clarity. HoweverBrigade welcomes these reforms as it is well aligned with our philosophy of best qualityservice in the most transparent manner to ensure high quality of living for our customers.This has been one of our guiding light which today has built a robust brand equity forBrigade making us successful for more than three decades in building positive experiencesand winning customer's trust.

We have also won the trust of our institutional investors through their overwhelmingresponse to our Qualified Institutional Placement (QIP) through which we have raised Rs.500 crore in April 2017. We have been using the proceeds from the QIP towards projectdevelopment adding to our product offering. Currently we are working on developingvarious projects across all our key business segments be it residential commercial– office & retail and hospitality. With our hospitality business gaining a largermass we have decided to significantly enhance our focus in this business and hence havemoved the hospitality business into three separate entities to tap the growing businessactivities in India.

The Financial Year 2018 has been a challenging year in the light of recent policychanges by the Government which has had a major impact on the Real Estate Industry We areoptimistic on the future given our existing pipeline of projects. The total revenue forthe financial year 2017-18 was Rs. 1946 crore as against Rs. 2058 crore in the previousyear. The Earnings before interest tax depreciation and amortisation (EBITDA) during theyear came in at Rs. 603 crore as against Rs. 609 crore in the previous year. The netprofit for the year stood at Rs. 133 crore as against Rs. 167 crore in the previous year.

The Group's business is broadly divided into three segments which are Real EstateLease Rental and Hospitality. The real estate business during the year achieved the salesvolume of 1. 57 mn. sqft. and clocked a sales value of Rs. 896 crores. The total realestate revenue recognised in the books of account stood at Rs. 1423 crore. This revenueconstituted 73% of the Company's total revenue. The EBITDA during the year for thisbusiness segment stood at Rs. 346 crore and the EBITDA margin was at 24%. Currently atotal of 12.33 mn. sqft. of projects are under development for this business segment. Inthe hospitality segment we have achieved sales of Rs. 237 crore that accounts for 12% ofthe total revenue. The occupancy level continues to remain healthy across our propertiesand the average room rate has gone up by 8% on our stabilised hotels during the year. TheEBITDA for the segment stood at Rs. 59 crore with an EBITDA margin of 25%. The leaserental segment clocked in a revenue of Rs. 286 crore accruing from a total leaseable areaof 2.41 mn. sqft. of which 95% has been leased out accounting for 15% of the totalrevenue. The EBITDA for the segment stood at Rs. 197 crore with an EBITDA margin of 69%.

Your Company continues to win many awards and accolades for its various projects aswell as for its management excellence. The same have been detailed in the Board's Report.

The economic environment in India is gaining strength from the various reformatarymeasures introduced by the government. Brigade is well-placed in leading the shift tonewer avenues in the real estate business viz. senior living managed residencesadditional focus on value homes continuously innovating through Brigade REAP for betterefficiency cost and time optimisation for real estate development. The vast bouquet ofofferings which we have and would offer caters to the society at large. I would like tothank all our stakeholders for entrusting their trust on us for more than three decadesand assure you that we will continue to move ahead by building positive experiences forall our stakeholders.

Best Regards

M. r. Jaishankar

Chairman & Managing Director