Shares of one of South India’s leading property developers gained 5.6 percent to ₹1,051 per share on Thursday after the company achieved the highest-ever presales of ₹6,013 crores in FY24. 

On Thursday, At 11:50 a.m., Brigade Enterprises Ltd. shares were trading at ₹1,053 a share, up 5.86 percent from the previous close price on the National Stock Exchange and the company has a market capitalization of ₹24,138 crores. 

Brigade Enterprises Limited has reported strong performance and growth across all its business segments for the fiscal year ending on March 31, 2024, as per the company’s filing. 

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The company achieved presales of ₹6,013 crores for FY24 and ₹2,243 crores for Q4 FY24. Additionally, the company’s real estate sales volumes were 7.55 million square feet (Mn. Sft.) for FY24 and 2.72 Mn. Sft. for Q4 FY24, with the average realization for FY24 increasing by 23% compared to FY23. 

Collections for the group in FY24 amounted to ₹5,915 crores, up from ₹5,424 crores in FY23. In the operational leasing portfolio, leasing grew by 14% year-on-year (YoY), adding 1 million square feet (Mn. Sft.) of leased area over FY23 and achieving a 97% occupancy rate across the portfolio. An additional 0.20 Mn. Sft. was leased in Q4 FY24. 

In the Hospitality sector, the average occupancy rate increased by 3 percentage points to 72%, and the Average Room Rate (ARR) was around ₹6,480, marking an 8% growth in FY24. The company launched 5.26 Mn. Sft. in the Residential vertical and 0.94 Mn. Sft. in the Commercial vertical during FY24. 

Looking ahead, Brigade Group has an impressive pipeline of new launches, including approximately 12.61 Mn Sft in Residential, 6.33 Mn Sft in Commercial, and 1.06 Mn Sft in Hospitality. 

During the first half of fiscal year 2024, Brigade Enterprises saw a diverse revenue stream, with 69% of its income coming from real estate ventures, 21% from lease rents, and 10% from hospitality initiatives. Further, the company launched four projects in Bangalore in the third quarter of FY24, adding a saleable area of 2.69 million square feet. 

The company’s financial performance was notably strong, with revenues jumping by 43% year-on-year, increasing from ₹820 crore in Q3FY23 to ₹1,174 crore in Q3FY24. Concurrently, net profit grew by 30%, rising from ₹43 crore to ₹56 crore during the same period. 

The market response to Brigade Enterprises has been remarkable, with its shares witnessing a 68 percent surge in the last six months and a notable 110 percent increase over the past year. 

Brigade Enterprises Limited has recently entered into a Joint Development Agreement (JDA) with Agni Estates & Foundations Pvt Ltd. to develop Brigade Tech Boulevard. This premium ‘Grade A’ office space will be situated on Pallavaram-Thoraipakkam Radial Road in Chennai. The project, requiring an investment of around ₹400 crores, will span across two towers and offer a leasable area of 8.36 lakh square feet. 

Additionally, Brigade Group boasts a robust project pipeline for the upcoming year, totaling around 13 million square feet. This includes developments in Bengaluru, Hyderabad, and Chennai, with residential projects accounting for 11 million square feet of the total. 

Notably, Brigade Group recently signed a Joint Development Agreement (JDA) with landowners for a luxury residential project sprawling over 4 acres in Kurubarahalli, Mysore. Envisioned to encompass a developable area of approximately 0.40 million square feet, the project holds a Gross Development Value (GDV) estimated at ₹300 crores. 

Written by Omkar Chitnis 


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