Realty firm Brigade sees 12% net profit fall in Q4

BENGALURU: Real estate company Brigade Enterprises reported a drop in net profit and sales for the fourth quarter of FY 2015 due to extra depreciation and lower revenue recognition. The company's net profit was down by 12% from the year-ago quarter to Rs 43 crore. Net sales also dropped by 13% to Rs 354 crore.

“Last year, more projects came into revenue recognition as compared to this year. Also we have to take extra depreciation due to change in the Companies Act,“ said MR Jaishankar, chairman and managing director, Brigade Enterprises.

However, for the full year, the company's net profit increased by 29% to Rs 115 crore for the financial year ended March 2015.

The company's revenues for the fiscal FY15 has gone up by 38% to Rs 1,331 crore. “The company has set up a strong foundation with a stabilised revenue stream from our lease rental and hospitality portfolio along with mainstream revenues from our residential business,“ Jaishankar said.

The group sold 2.80 million sq ft of real estate space aggregating to Rs 1,422 crore with an average realisation rate Rs 5,076 per sq ft for the financial year of 2014-15. He added, “We are at the cusp of our next level of growth with the company consolidating its presence in cities of operation and entering new markets such as GIFT City and residential space in Chennai.“

Brigade Group plans to launch 7.70 million sq ft of new projects in FY 201516. Of this, residen tial launches would be about 6.10 million sq ft.