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Brigade Enterprises’ cash flow has increased by 43 percent in the second quarter of FY21 compared with previous quarter with collection in the residential segment also picking.
“We saw a good collection in the residential segment. It improved by 44 percent totaling up to ₹400 crore in the second quarter,” Atul Goyal, CFO, Brigade Enterprises told BusinessLine .
On the company’s debt position, he said “Consolidated net debt of the company as on September 30, stood at ₹3,827 crore. Out of this, Brigade’s share is ₹2,991 crore.
With prudent financial handling, the company’s cost of borrowing is at 9.23 per cent. It has reduced by 50 bps on y-o-y basis. “We continue to have adequate liquidity and credit lines from banks, our average cost of debt has been coming down over the last few quarters and was 9.23 percent as of September 2020 versus 9.73 percent as of September 2019, a 50 bps reduction.”
Despite Covid-19 pandemic, the company has not altered or changed its plans, Goyal said “Current plan is to sustain million square feet sales quarter-on-quarter (Q-o-Q) in residential, lease around three million square feet in next 3-4 quarters and bring all hotels under operational breakeven.”
For Brigade, a large part of the residential real estate portfolio is the mid segment. “We see that this will continue in the next couple of years. We have a sizable presence in the affordable segment. It consists of a large project in north Bengaluru and a few others. However the frequently changing norms of affordable housing have made it difficult to plan for this segment with a few years in mind,” Goyal explained.
Goyal said “The Covid pandemic brought to focus the need to have a complete online model. We were thankfully preparing, a little ahead. A complete online booking process was implemented. The entire site experience was digitised, which played a key role in this process. Digital medium has been a large source of enquiries in the last couple of years and Covid has only accelerated this trend.”
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