Realty firm Brigade Enterprises Ltd on Tuesday reported a 56.1 percent year-on-year (YoY) drop in net profit at Rs 38.5 crore for the first quarter that ended June 30, 2023.

In the corresponding quarter last year, Brigade Enterprises posted a net profit of Rs 87.7 crore, the company said in a regulatory filing.

The total revenue stood at Rs 654 crore during the period under review, falling 27.5 percent against Rs 902.5 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA declined 24.9 percent to Rs 174.8 crore in the first quarter of this fiscal over Rs 232.7 crore in the corresponding period in the previous fiscal.

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EBITDA margin stood at 26.7 percent in the reporting quarter as compared to 25.8 percent in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

The new bookings in the real estate segment in Q1 of FY24 are 1.46 million square feet valued at Rs 996 crore. This was complemented by collections of Rs 879 crore.

The company also reduced its real estate debt by Rs 45 crore, of which residential debt is fully repaid as of June 2023. The average cost of debt at the group level is 8.7 percent. During the quarter, revenue stood at Rs 371 crore with an EBITDA of Rs 9 crore.

In the quarter under review, Brigade leased 61,000 square feet with existing tenants taking up additional space. Leasing was muted as only SEZ office space was available.

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The company leased 84 percent of its available inventory, with 100 percent leasing under the non-SEZ category. During the quarter, revenue stood at Rs 213 crore with an EBITDA of Rs 160 crore.

The company's focus on increasing Average Room Rates (ARRs) paid off with a growth of 16 percent across the portfolio and a revenue increase of 13 percent when compared with Q1 of FY23.

The hospitality business is expected to continue to perform well in the coming quarters. During the quarter, revenue stood at Rs 102 crore with an EBITDA of Rs 38 crore.

The results came after the close of the market hours. Shares of Brigade Enterprises Ltd ended at Rs 585.70, down by Rs 3.45, or 0.59 percent on the BSE.

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Bengaluru-based Brigade Enterprises has developed many residential, commercial (office and retail) and hotel projects across South India in the cities of Bengaluru, Mysuru, Hyderabad, Chennai and Kochi.

First Published:Aug 8, 2023 7:32 PM IST