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Brigade Enterprises held a conference call on May 17, 2016. In the conference call the company was represented by Jainshankar, CMD and Suresh Kris, CFO.
Key takeaways of conference call
Sale volume for FY 2015]16 was 2.249 msf, a fall of 20%. Sale value for FY 2015]16 was at Rs 1249 crore, a fall of 12%.
Ongoing projects have a gross area of 20.39 msf and of which companyfs share is 14.47 msf. Of the total area about 18.58 msf is residential real estate project and balance are commercial & hospitality projects. Of the ongoing residential projects including 0.09 msf of stock sale, the company sold till date is 8.01 msf (worth Rs 4089.9 crore) and inventory to be sold is 7.68 msf (worth Rs 4072.9 crore). Collections till date in case of sold units are about Rs 2698.1 crore.
Unrecognized Revenue on ongoing real estate projects (including unsold) is Rs 5936.3 crore.
Land bank is 539 acres with developable space potential of over 50 msf with the companyfs share being about 37 msf. Outstanding payment towards land bank is Rs 500 crore.
Investment in land in FY16 was about Rs 663 crore and of which Rs 550 crore is towards Chennai land parcel.
Expect to launch of about 2.8-3 msft with a sale value of Rs 1800-2000 crore in current fiscal. Large project in Chennai is lined up for this year. Except this project all are in Bangalore.
Balance capex to be incurred in Holiday Inn, Chennai hotel project is Rs 13 crore and the hotel is expected to commence operation in Q2FY17.
The project on Kansai Nerolac Land at Chennai will comprise an IT park, Commercial space and residential space. Of the total land of 15.68 acre , the IT Park will come up at about 10.5 acre. The IT park will have both SEZ area and non SEZ area. In another 0.75 acre WTC Chennai with 1.75 msf will be developed. And in balance 5 plus acres there will be high quality residential space of 600000 sft.
Cochin Hotel project is a 200 key project located within Info Park, Cochin. Work on this project is to commence from Q1FY17.
Momentum for residential demand in Bangalore and Chennai in localities the company has pipeline projects are good.
PAT for FY16 had an impact of about Rs 35 crore with about Rs 17 crore towards extra depreciation provided and Rs 18.5 crore towards interest estimation. But for this the PAT would have growth by 48% instead of growth in 28% reported for FY16.
Balance capex 400 crore and 200-250 crore capex is expected this fiscal.
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