Bengaluru-based property developer Brigade Enterprises has reported a 23.69% decline in its consolidated net profit for the fourth quarter ended March 31, 2023, primarily due to higher expenses and delayed project completions. The company's net profit stood at Rs 93.67 crore for the quarter, compared to Rs 122.73 crore in the same period last year.
Revenue and Expenses
The company's total income from operations rose marginally by 1.72% to Rs 1,032.78 crore in Q4 FY23, from Rs 1,015.35 crore in the corresponding quarter of the previous fiscal. However, total expenses increased by 5.6% to Rs 914.74 crore, driven by higher construction costs and raw material prices.
Segment Performance
Brigade's real estate segment revenue grew 6.8% year-on-year to Rs 747.25 crore, while the hospitality segment saw a decline of 3.5% to Rs 133.15 crore. The leasing and other services segment reported revenue of Rs 152.38 crore, up 2.1% from the previous year.
Full-Year Performance
For the full fiscal year 2022-23, Brigade Enterprises posted a net profit of Rs 314.45 crore, down 18.5% from Rs 385.87 crore in FY22. Total income for the year increased 12.4% to Rs 3,718.52 crore, but expenses rose faster at 14.2% to Rs 3,254.91 crore.
Management Commentary
Mr. M R Jaishankar, Chairman of Brigade Enterprises, attributed the quarterly profit decline to macroeconomic headwinds and project delays. He expressed optimism about the coming quarters, citing strong demand in the residential segment and the company's focus on completing ongoing projects.
Outlook
Brigade Enterprises plans to launch new projects in Bengaluru, Chennai, and Hyderabad in the current fiscal year, aiming to boost sales and improve profitability. The company also expects its hospitality business to recover further as travel demand picks up.
