The Hindu Business Line : Brigade Enterprises’ net sales decline 72%

Bangalore, May 26 Though difficult market conditions have caused a dent in real estate company Brigade Enterprises’ net sales for the January-March quarter of the financial year 2008-09, the company has managed to contain its losses by pruning its finances and through optimum utilisation of resources.

The company has recorded a 72 per cent dip in net sales for the period at Rs 35.09 crore compared to Rs 128.11 crore during the corresponding quarter of financial year 2007-08. Its net profit has come down 27 per cent to Rs 15.6 crore (Rs 21.4 crore) for the period. Mr M.R. Jaishankar, Chairman and Managing Director, Brigade Enterprises, said, “Tougher times have called for stringent measures including review of the processes, better cash management, better procurement terms, lower inventory levels etc. Project completion is being attributed the highest priority.”

These measures have enabled the company to reduce its employee costs by about 72 per cent, and other expenditures by almost 64 per cent in the quarter.

The company’s Board of Directors has recommended a 12 per cent dividend – Rs 1.20 per equity share of Rs 10 each.For the financial year ended March 31, 2009, the company has recorded a 24 per cent dip in net sales (standalone results) at Rs 349.8 crore compared with Rs 460.7 crore during the previous financial year.

Its net profit for the year has come down 19 per cent at Rs 83.05 crore (Rs 102.96 crore). Its consolidated revenue stands at Rs 408.65 crore (down 19 per cent), and net profit at Rs 86.78 crore (down 15 per cent).

The company’s debt equity ratio stands at 0.43 and its outstanding debt at Rs 428.6 crore. According to Mr Jaishankar, the company plans to raise private equity at SPV level for its hospitality projects.

“The amount to be raised has not been arrived at; it could be for 2-3 projects out of the 7-8 projects on hand,” he said. The fund could also be raised at the entity level for its 100 per cent hospitality arm, Brigade Hospitality Services, he added.

Significant hospitality projects include a luxury resort in Kerala, for which the company has signed a memorandum of understanding with Minor Group, Thailand; and Sheraton Hotel at Brigade Gateway, Bangalore, under construction and expected to commence operations in 2010.

The company has two large integrated developments – Brigade Gateway and Brigade Metropolis – at Bangalore in the advanced stages of construction. It also plans to enter the affordable housing segment in 2010 at Bangalore and Mysore, with residential units to be offered in the Rs 20-lakh range. The company has plans to launch projects with developable area of 8-10 million sq ft.

More Stories on : Real Estate & Construction | Karnataka

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Tata Comm net surges in Q4

Gayatri Bioorganics posts loss in Q4

REC full-year net up 48% at Rs 1,273 cr

HDIL: Signs of revival in volume

Brigade Enterprises’ net sales decline 72%

Subex annual net loss at Rs 188 cr

NIIT Tech Q4 net profit dips 15% on hedging losses