Brigade Enterprises Shares Fall Over 6% After Q1 Profit, Revenue Miss Estimates
The company's first-quarter net profit fell 56.1% YoY to Rs 38.53 crore, missing the Bloomberg estimate of Rs 70.3 crore.
Shares of Brigade Enterprises Ltd. fell on Wednesday after its first quarter profit and revenue missed analysts' estimates.
The real estate and property development company's net profit declined 56.1% year-on-year to Rs 38.5 crore in the quarter ended June, according to an exchange filing. That compares with a Bloomberg estimate of Rs 70.3 crore.
Brigade Enterprises Q1 FY24 (Consolidated, YoY)
Revenue down 27.5% at Rs 653.9 crore (Bloomberg estimate: Rs 954.6 crore).
Ebitda down 13.3% at Rs 174.8 crore (Bloomberg estimate: Rs 247.7 crore).
Ebitda margin at 26.73% versus 22.34% (Bloomberg estimate: 25.96%).
Net profit down 56.1% at Rs 38.5 crore (Bloomberg estimate: Rs 70.3 crore).
"The numbers which we are seeing is the mismatch between the sales numbers, which typically needs to be converted into registration at the end of the project cycles," Pavitra Shankar, managing director of Brigade Enterprises, said in an interview with BQ Prime.
"Past quarter, we had some issue with the new registration systems in Karnataka, because of this some registration that were going to happen in Q1 were shifted to Q2. We will see a good pace in Q2," Shankar said.
Motilal Oswal has a 'buy' call on the stock as sales performance was driven by sustenance demand for ongoing projects amid a lack of any new projects in the first quarter.
The company has witnessed sustained traction across the operational parameters in its hospitality segment as revenue increased 16% year-on-year to Rs 100 crore, the brokerage said.
Shares of Brigade Enterprises fell 6.08% before paring losses to trade 3.14% lower at 10:59 a.m., as compared with a 0.42% decline in the Nifty 50.
The stock has risen nearly 22.58% year-to-date. The total traded volume so far in the day stood at 13.1 times its 30-day average. The relative strength index was at 46.16.
Of the 15 analysts tracking the company, 14 maintain a 'buy' and one suggests a 'sell', according to Bloomberg data. The average of 12-month price target given by analysts implies an upside of 13.2%.
