India's Brigade Enterprises posts Q2 profit drop on bleak launches in key market

Brigade Enterprises

13/11/2024 14:11

Nov 13 (Reuters) - India's Brigade Enterprises  BRIG.NS  reported an 11% slide in second-quarter profit on
Wednesday, hurt by muted property launches in key Bengaluru market.
    The company's consolidated net profit dropped to 1.19 billion rupees ($14 million) in the quarter ended Sept. 30
from 1.34 billion rupees a year ago.
    Revenue from operations fell 21.5% to 10.72 billion rupees, hit by a nearly 36% revenue slump in its mainstay real
estate segment. 
    For further earnings highlights, (click here)
    
    KEY CONTEXT
    
        Bengaluru Real Estate Regulatory Authority (RERA) delayed approving property launches, a trend continuing from
the elections-hit first quarter, which weighed on the company and its peers in the city, analysts flagged.
  
    Prestige Estates  PREG.NS , Brigade's rival in the Bengaluru market, reported a 77% profit slump in the reported
quarter. 
    Property launches in Bengaluru rose 7% year-over-year in the reported quarter, real estate consultancy firm Anarock
data showed. But the growth pace slowed from the previous quarter, where launches had jumped 40%, and was stagnant from
the last year. 
    Bengaluru gives the company about three-fourths of its total revenues, according to estimates from Ambit Capital
analyst Karan Khanna. 
         
PEER COMPARISON 
    
                                  Valuation (next 12     Estimates (next 12          Analysts' sentiment           
                                        months)               months)                                          
                         RIC         PE     EV/EBITDA   Revenue      Profit     Mean     # of      Stock to      Div
                                                       growth (%)  growth (%)  rating*  analyst     price       yield
                                                                                           s       target**      (%)
 Brigade Enterprises   BRIG.NS     35.92      17.81       4.52       30.48       Buy       9         0.77        0.18
  Prestige Estates     PREG.NS     49.68      19.02      26.87       13.68       Buy      16         0.78        0.11
      Projects                                                                                                 
        Sobha          SOBH.NS     35.33      23.23      24.67       131.56      Buy      13         0.77        0.19
 
    
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above
the PT
    
JULY-SEPTEMBER STOCK PERFORMANCE 
    
    
-- All data from LSEG
-- $1 = 84.3610 Indian rupees

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Brigade Q2 vs peers    https://tmsnrt.rs/3UQj1r3
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 (Reporting by Hritam Mukherjee and Manvi Pant in Bengaluru; Editing by Tasim Zahid)
 ((Hritam.Mukherjee@thomsonreuters.com; Twitter: @MukherjeeHritam;))