Real estate developer Brigade Enterprises said it expects to grow at a rapid rate in all its three segments – real estate, leasing, and hospitality – in the next few quarters. Out of the three, real estate is the company’s biggest portfolio, contributing to 70 per cent of the total revenue.
Under real estate, Brigade caters to both residential and commercial spaces. Brigade provides the largest commercial space in Bengaluru at 3.5 million square feet. It currently has upcoming projects totalling 11.12 million square feet in the pipeline.
tul Goyal, Chief Financial Officer at Brigade Enterprises, said that the company is expected to grow at a compound annual growth rate (CAGR) of 15 per cent in its real estate segment, up to 8 per cent in rental leasing in the next one-and-a-half years, and up to 10 per cent in hospitality.
The company has a launch pipeline comprising 1.83 million square feet in leasing space. At present, the company’s total leasable area is 8.68 million square feet, with a current leased-out area of 7.75 million square feet, including Special Economic Zone (SEZ) projects.
‘All the verticals have been doing well, and we know that profit will come. In this cycle, a lot of projects are coming to finishing, and revenue recognition is there. It has brought a lot of profit, in addition to leasing and hospitality,’ Goyal told Business Standard.
Brigade posted a 117 per cent increase in net profit to Rs 112.50 crore for the second quarter ended September, on the back of strong new bookings of 1.67 million square feet valued at Rs 1,249 crores, up 23 per cent from the previous year.
The Bengaluru-based real estate company’s total income for the September quarter grew 54.35 per cent to Rs 1,407.92 crore, from Rs 912.19 crore in the same period last year, driven by the residential segment that continued to show robust growth.
The company saw a 7 per cent growth in retail sales consumption in Q2 FY24 as compared to Q1 FY24. Pre-sales is expected to grow in the upcoming two quarters.
The company results also stated that despite global headwinds, the commercial market has shown resilience. Achieved incremental leasing of 0.30 million square feet during Q2 FY24. As of now, 90 per cent of all its properties are leased out, with the remaining 8 lakh square feet by FY24.
