Brigade Enterprises Shares Gain Over 8% On Strong Operating Performance In Q1Fy23

Shares of Brigade Enterprises in early trade on August 3, 2022 gained over 8% to day's high price of Rs. 521.4 per share. This is as against the previous close of Rs. 482.05 apiece on the NSE.

The sharp gains in the stock price of the realty firm are on the back on strong operating performance with core residential sales value witnessing robust growth YoY on a benign base, while other segment such as leasing and hospitality recovered strongly. The sales value for the quarter ended June is placed at Rs. 814 crore and is up 70% YoY. The realisations were up around 5% YoY at Rs. 6589/sq ft. The company reported sales volume of 12.4 lakh sq feet, up 61% YoY. Modest launch of around 0.5 million sq feet vs. 1.9 mn sq feet in Q4 led to QoQ volume dip by 20%. On financial reported numbers,reported revenues grew around 135.8% YoY to Rs. 902 crore, with revenue recognition from real estate at Rs. 655 crore, up 155% YoY.

The revenues from hospitality (up by 3x YoY) was at Rs. 89.9 crore as blended portfolio occupancy at around 71% were higher than pre Covid levels of about 59% with ARR now back to pre-Covid levels. The rental revenues at Rs. 175.4 crore, up 57% YoY, saw robust
recovery with new leasing of 0.4 mn sq feet. The company reported PAT of Rs. 78 crore vs. loss in base quarter.

Brokerage firm ICICI Direct believes volume trajectory should remain robust ahead with new projects launches (around 9 mn sq feet in 9MFY23) and given the strong underlying demand in its key market. "We also seek further clarity on cost inflation, pricing and office leasing traction, going ahead", adds the brokerage.

Last the scrip at around 9:40 am traded higher by over 5% at Rs. 508.1 per share at around 9:40 am. The scrip at day's high of 521.4 is over 6% away from its 52-week high price of Rs. 554.7 apiece on the NSE.