BRIGADE - Brigade Enterprises Limited Share Price

Management's outlook for Brigade Enterprises Limited is optimistic, highlighting the best year in terms of project launches, presales, and collections. As of March 31, 2025, the company has completed 100 million square feet of development since its inception. They have made significant land acquisitions, including 11 acres in Whitefield and 5.41 acres in Velachery, enhancing their land bank with a gross development value (GDV) of approximately INR 3,600 crores.

The real estate segment witnessed impressive presales of 7.05 million square feet in FY '25, averaging INR 11,138 per square foot, marking a 40% increase from the previous year. The total presales value reached INR 7,847 crores, a 31% year-on-year rise, with collections standing at INR 7,250 crores, reflecting a 23% growth. The company aims to maintain robust sales momentum, focusing on premium housing and strategic land acquisitions.

Brigade's leasing portfolio reported revenue of INR 1,165 crores, a 24% increase from the prior year, driven by solid demand for commercial space. Management anticipates a pipeline of 16 million square feet across residential, commercial, and hospitality sectors for FY '26, contributing to long-term sustainable growth.

Management has set ambitious targets, with expectations for continued double-digit growth in presales value and ongoing efforts to strengthen operations outside Bangalore, particularly in Chennai and Hyderabad. Furthermore, they reaffirmed their commitment to sustainable development initiatives, aiming for net-zero operations by 2045. They intend to maintain a healthy balance between new project launches and ongoing sales, projecting 50% to 60% of sales from new launches in the future.

Here are the major questions asked during the Q&A session of Brigade Enterprises Limited's Q4 FY 2024-25 earnings call, along with their detailed responses:

1. Question: "So my first question is that you said that INR11,700 crores was the launch value. So against this, how much was the contribution to this year's presale of INR1,700 crores from the new launches?" Answer: "Of the total sales, about 54% came from new launches. This shows strong market interest and validates our strategy to introduce premium products."

2. Question: "What has been the velocity in the two projects, Icon and Altius, when they were launched, and how does it compare to Bangalore?" Answer: "Both projects had successful launches. Altius sold 100 units in the first month. In Chennai, we focus on steady sales rather than immediate sell-outs, which allows us to sustain the market over time."

3. Question: "So this Altius project in Chennai, what was the launch value, and how much have we sold in terms of crores?" Answer: "The launch value was around INR2 crores per unit. We've secured about INR200 crores from 100 units sold, with a total of 662 units available."

4. Question: "What would be the embedded EBITDA margin in this presales for this year, FY '25?" Answer: "We aim for EBITDA margins similar to this year, targeting around 27% to 30%, depending on market conditions and project specifics."

5. Question: "So, as of 31st March, about INR1,100 crores is the free cash. How much will be available for acquisition and growth?" Answer: "Approximately, we have about INR1,500-1,600 crores available as free cash for growth initiatives after accounting for RERA escrow and other commitments."

6. Question: "How would you split the 12 million square feet launches between the markets?" Answer: "We aim for about 5.5 million square feet in both Chennai and Bangalore, with around 1 million from Hyderabad and 0.5 million in Mysore."

7. Question: "What are the expected average realizations going forward?" Answer: "For the next year, we expect average realizations to be around INR10,000 per square foot due to the product mix and market conditions."

8. Question: "What is the penetration of IT-ITES customers in our sales?" Answer: "Approximately 60-65% of our customers are from the IT-ITES sector. The profile has evolved significantly over the years, reflecting broader market trends in technology."

9. Question: "Will you be diversifying beyond South India, and what would be the timeline?" Answer: "We will evaluate expansion in FY '26, but for now, we see strong potential in our existing markets and will explore options as they arise."

10. Question: "What would be the absorption in new launches, and what is your comfort level with this?" Answer: "We aim for an absorption of about 50-60% within the first year of launch. This performance reflects our strategy of not rushing sales at launch, which we feel is sustainable."

These responses capture the key highlights and forward guidance shared by Brigade Enterprises' management during the earnings call.