Brigade Enterprises Q3 net profit surges 61% YoY
Realty developer Brigade Enterprises has reported Q3 consolidated net profit at Rs. 49 crore, a rise of 61% on-year. The company had reported consolidated net profit of Rs. 30 crores for the corresponding period in the previous year. However, the revenue for the period declined 24% to Rs 434 crore, the company said in a release.
Real Estate space aggregating to 0.46 million sq. ft. with a total value of 262 crores was sold during the third quarter under review. The average price realisation was Rs. 5,667 per sq. ft. Leasing and Hospitality segments contributed Rs. 75 crores and Rs. 59 crores respectively to the consolidated revenues for the third quarter ended December.
In December 2017, Brigade Infrastructure and Power Private Limited, a Wholly Owned Subsidiary, acquired a prime property admeasuring 12.95 acres from M/s. SABMiller India Limited at Yeshwantpur, North Bangalore for a consideration of Rs. 218 crores. The property is strategically located for developing an Information Technology park.
The company has entered into a Joint Development Agreement (JDA) for a property spread over 12.30 acres at Sanathnagar, Hyderabad with a development potential of about 1.50 million sq. ft.
Commenting on the company’s performance, Mr. M.R. Jaishankar, Chairman and Managing Director Brigade Enterprises Limited said: “The third quarter witnessed encouraging sales on the strength of our focused marketing campaigns. The slew of reforms impacting the real estate business are slowly settling down. The turnover for the 9 months was muted, as a result of fewer launches over the last three quarters. The sustained growth in profitability has been due to project closures in the year and its consequential positive impact on margins.”
He further added “The combination of our ongoing projects along with the pipeline of new projects to be launched will scale up the business in the near future and contribute to growth in the next fiscal.