Real estate company Brigade Group’s net profits shrank 56 per cent to ₹38.5 crore in the June quarter, compared with ₹87.6 crore in the same quarter last year.
The company’s revenue from operations dropped 27.5 per cent to ₹653.9 crore(₹902.49 crore). Brigade’s EBITDA was down 17.65 per cent to ₹206.2 crore (₹250.4 crore).
“Revenue was affected in Q1 because of postponed registration due to slow approvals and new system implementation at sub registrar offices, which impeded registrations. Also, the company follows the Ind AS 15 accounting standard,” said Atul Goyal, CFO, Brigade Enterprises.
New bookings in the real estate segment in Q1 FY24 were 1.46 million sq ft valued at ₹996 crore. Furthermore, the company reduced its real estate debt by ₹45 crore, of which the residential debt is fully repaid as of June. The average cost of debt at the group level is 8.7 per cent.
“During the quarter under review, we maintained steady growth across all segments: residential, office, retail, and hospitality. Our pipeline across business verticals remains strong, and we are optimistic about sustained future growth,” said Pavitra Shankar, Managing Director, Brigade Enterprises.
Segment performance
The real estate segment’s revenue stood at ₹371 crore with an EBITDA of ₹9 crore. In the quarter under review, Brigade’s leasing segment revenues stood at ₹213 crore with an EBITDA of ₹160 crore. It leased 61,000 sq ft, with existing tenants taking up additional space. Leasing was muted as only SEZ office space was available.
The hospitality business of the company reported revenues of ₹102 crore with an EBITDA of ₹38 crore.
“We expect to launch 9.70 million sq ft in the next four quarters, out of which 7.87 million sq ft are in the residential segment,” the company said.