Brigade Enterprises Limited — Investor Meet, 19-11-2024: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Brigade Enterprises reported consolidated revenue of ₹1,138 crore for Q2 FY 2024-25, down from ₹1,408 crore year-on-year. EBITDA was ₹358 crore, leading to a margin of 31%, slightly lower than ₹366 crore in the previous year's quarter. Consolidated PAT increased modestly to ₹115 crore from ₹113 crore, while PAT after minority interest was ₹119 crore, compared to ₹134 crore last year. The Real Estate division revenue was ₹727 crore, with an EBITDA margin of 15%, while the Leasing segment produced ₹292 crore in revenue with a notable EBITDA margin of 72%. Total collections during the quarter reached ₹1,937 crore, a 35% increase year-on-year.

**Future Outlook and Growth Drivers:** Management expressed optimism for continued momentum, driven by strong demand for their Residential and Leasing offerings. Future strategies include a robust pipeline of 16 million square feet in new developments, emphasizing residential projects and expansion into luxury markets.

**Order Book and Operational Updates:** The order book remains strong with a significant portion of presales attributed to new launches, including Brigade Insignia. Operational updates indicated a healthy occupancy rate of 98% in their leasing portfolio, with consistent performance in retail sectors.

**Analyst Q&A Insights:** Analysts addressed issues concerning project approvals in Karnataka, noting delays affecting launch plans. Management confirmed ongoing efforts to expedite approvals, anticipating resolution in upcoming months. Analysts also inquired about potential declines in presales due to delayed launches; management assured that demand remains stable, with ongoing projects expected to support sales through H2 FY 2024-25.

**Market or Regulatory Updates:** There is an expected positive shift in the approvals landscape post-elections, which has previously contributed to delays in project timelines.

**Strategic Focus Areas:** Key strategic themes include premiumization of products and expansion into mid-to-high-end segments. The company is well-positioned to adapt its offerings according to market demands.

**Investor Insight:** Brigade Enterprises appears solid from a financial health perspective, supported by a strong order book and strategic focus on expanding its luxury portfolio. Given the management's clear commitment to growth and strong market demand, the sentiment leans towards a 'buy' position, contingent on the timely resolution of project approvals.