Companies

Brigade Enterprises posts 26% lower Q1 profit;to issue bonus shares of 1:2

Our Bureau Bengaluru | Updated on August 15, 2019 Published on August 14, 2019

MR Jaishankar, Chairman and Managing Director, Brigade Enterprises Ltd

Brigade Enterprises Ltd has posted lower profits on consolidated basis by 26.39 per cent at ₹46.46 crore for the first quarter of FY 2019-20 as against ₹63.12 crore recorded in the same period last year.

The company’s income is higher by 1.28 per cent to ₹716.99 crore as against ₹707.88 crore in the same period last year. EPS for the quarter stood at ₹3.03 compared with ₹4.63 last year.

Real estate space aggregating to 1.13 million square feet was sold during Q1 FY20 which is 165 per cent higher as compared to Q1 FY19. The total value of space sold was ₹593 crore during Q1 FY20 which is 172 per cent higher when compared to Q1 FY19.

MR Jaishankar, Chairman and Managing Director, Brigade Enterprises Ltd, commenting on the company’s performance said: “The decrease in net profit margin is mainly due to increase in depreciation and interest on capitalised assets. However, the financial and operational performance is good despite tough market conditions and macro economic environment.”

“Company’s pre-sales volume of 1.13 million square feet achieved this quarter is the highest in the history of the group. The robust pipeline of projects to be launched in the next few quarters will scale up the performance further in the coming quarters. The repo rate cut announced by RBI recently and measures announced in the Union Budget for the real estate sector is the step in the right direction,” he added.

Bonus issue

The company at its 24th Annual General Meeting approved the bonus issue of 1:2 i.e. one equity share for every two equity shares held as on the record date. With this, the paid-up equity share capital will go up to ₹204 crore.

Preferential issue of ₹115 crore convertible warrants to promoter group at an issue price of ₹ 269 per warrant. These warrants can be converted into equity shares of the company within 18 months from the date of allotment.

Published on August 14, 2019
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