Brigade Enterprise Q3 net down 16 per cent : stock plunges 7 per cent

Real Estate Firm Brigade Enterprises announced its third quarter results on Monday, after the market closing hours. Brigade Group posted a dull set of numbers as profits declined 16 per cent to Rs 37.36 crore in the quarter ending December 2015.

Company's consolidated revenue from operation stood at Rs 507.76 crore in Q3FY16 compared to Rs 360.17 crore attained in the same period in the previous fiscal, representing an increase of 41 per cent, with real estate segment contributing majorly to the revenue, holding a 77 per cent share in the total revenue from operations. Operationally, EBITDA (Earnings Before Interest, Depreciation and Amortization) came in at Rs 134.22 crore for the quarter in review, up from Rs 116.96 crore achieved in the last year during the same period, demonstrating a growth of 15 per cent. Employee cost as a percentage of total revenue for the quarter increased by 200 basis points to 8 per cent on a yearly basis. Margins for the quarter contracted by 600 basis points to 26.4 per cent in Q3FY16 on a Y-O-Y (year on year) basis. Company reported a 16 per cent decline in its consolidated net profit at Rs 31.25 crore for the quarter ended December 2015 on higher finance costs and tax expenses.

Brigade Groups revenue from operations for 9MFY16 was at Rs 1214.5 crore up from Rs 937 crore recorded during the corresponding period in the previous year. EBITDA margins improved to 31.4 per cent vis-à-vis 30.3 per cent. Profits stood at Rs 106.1 crore as against Rs 80.9 crores, witnessing an increase of 31 per cent.

Real estate space aggregating to 0.44 million sq. ft with a total value of Rs 241 crores was sold during the third quarter. Leasing and hospitality segments contributed Rs 51 crore and Rs 47 crore respectively to the consolidated revenues for the third quarter ended December 2015.

Debt equity ratio of the company for the quarter in review stood at 0.88:1 reflecting comfortable solvency position, which was reflective of the fact that rating agency CRISIL assigned ‘A’ grade to the firm’s credit.

Reacting to the muted set of results the stock dipped almost 7 per cent in early morning trade to hit an intra-day low of Rs 145.35 on NSE.