Real estate developer Brigade Enterprise Ltd has made an impressive comeback from the disruption caused by the second wave of the coronavirus pandemic. In the September quarter, its residential segment witnessed strong bookings with sales volume of 1.31 million square feet (MSF), up 33% year-on-year (YoY).
Sales price improved 44% year over year 830 crores. During the quarter, the company launched 0.48msf, while 2.18msf is in the pipeline.
Shares of the company rose 2.5% in early trade on NSE on Friday.
Its rental portfolio is also growing steadily and revenues are growing at 64% annually 136 crores. According to the company’s management, there are strong signs of revival as tenants partially resume offices. The revival is supported by increased inquiries, physical site inspections and market closures. While there is demand for larger spaces, medium-sized units are more active in the market, the management said. Its retail vertical’s total sales consumption reached 90% of FY20’s pre-Covid levels.
Within the hospitality segment, occupancy grew by 45% in Q2 FY22 as compared to 23% in Q1 FY22 and average room rate increased by 12% in Q2 FY22 as compared to Q1 FY22.
Another comforting factor for investors in this stock is the company’s collection which was strong at 937 crores, up to 75% annually. operating cash flow 213 crore, an increase of 17% annually. As a result, sequentially, its total gross debt was reduced by 93 crore and real estate debt reduced 122 crores. There has been a decline of about Rs 87 crore in net debt as compared to the previous quarter. Debt reduction has led to an improvement in the key net debt/equity ratio, from 1.27 times in Q2 of FY11 to 0.83x in Q2 of FY12. Further, similar to peers, the company is also witnessing a steady decline in cost of debt from 9.23% in 2QFY21 to 7.94% in 2QFY22.
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