Brigade Enterprises Limited — Q2 FY26

Brigade Enterprises Limited Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=k5q0mDOk1Oo Published: 6 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Brigade Enterprises Limited Q2 and FY26 financial result conference 0:09 9 seconds call. As a reminder, all participant line was in the listenon only mode and there will be an opportunity for you to ask question after the presentation 0:18 18 seconds concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. I now 0:27 27 seconds hand the conference over to Mr. Mr. J Shankar, executive chairman of Brigate Enterprises Limited. Thank you and over to you sir. 0:37 37 seconds Thank you. Good afternoon everyone and thank you for joining us for our Q2 FI26 earnings call. I have with me the 0:45 45 seconds management of Brigade Group, managing director Miss Pavitra Shanka, joint managing director Miss Nupa Shanka, 0:52 52 seconds executive directors Mr. Roshan Matthew, Mr. Amar Mahu and Mr. Rajimna Krishna Kumar who is also currently acting CFO and most of our senior management team. 1:05 1 minute, 5 seconds We are pleased to share that Q2 FI26 has been a period of strong performance and steady growth across all our business 1:14 1 minute, 14 seconds segments. Sustained momentum in our residential portfolio is driven by premium launches with a healthy pipeline 1:23 1 minute, 23 seconds of upcoming projects across all our across all focus markets. In line with our expansion strategy, we are actively acquiring high potential land parcels. 1:35 1 minute, 35 seconds The key transactions this year or this quarter to be specific are a strategic long-term lease of 7 acres for a 1:42 1 minute, 42 seconds mixeduse development in Chennai and two joint development agreements to develop premium residential projects in South 1:51 1 minute, 51 seconds Bangalore and East Bangalore. With a strong pipeline of about 15 million square ft of upcoming launches, we 1:59 1 minute, 59 seconds remain focused on delivering value and growth in the coming quarters. 2:05 2 minutes, 5 seconds Coming to real estate SBO specific in the real estate segment the company 2:12 2 minutes, 12 seconds achieved pre-sales of rupes 234 crores in Q2 FI26 a growth of 12% over Q2 FI25 2:21 2 minutes, 21 seconds with previous volume for [clears throat] with pre-sale volume for Q2 FI26 standing at 1.90 million square 2:30 2 minutes, 30 seconds ft a growth of 13% over Q2 FI25 average realization stood at Rs 12,236 2:40 2 minutes, 40 seconds per square ft during Q2 FI26 an increase of 13% over Q2 FI25 2:47 2 minutes, 47 seconds the portfolio saw zero residential debt across group the group for the last two years as a result of steady sales and 2:55 2 minutes, 55 seconds collections with continued momentum and demand we have approximately 11 million square ft in residential launches planned 3:04 3 minutes, 4 seconds for the next four quarters across Bengaluru, Chennai, Hyderabad and Mysuru. 3:10 3 minutes, 10 seconds Our flagship property expo Brigade Showcase made its debut in uh Chennai in 3:17 3 minutes, 17 seconds September by bringing the legacy of Brigade Showcase to Chennai for the very first time. We reiterated our long-term 3:25 3 minutes, 25 seconds commitment to this city with a strong pipeline of development and planned investment of rupees 8,000 crores over 3:33 3 minutes, 33 seconds the next five to six years. We see significant opportunity to contribute meaningfully to Chennai's evolving urban landscape. 3:44 3 minutes, 44 seconds As regards leasing, the portfolio occupancy stood at 92% with an overall leasing of 8.67 67 million square ft out of 9.38 million square ft. 3:57 3 minutes, 57 seconds 4 lakh 22,000 square ft of office space was transacted this quarter 50% of which 4:04 4 minutes, 4 seconds has been accounted for as part of the real estate sales. Brigade's office vertical continued to deliver stable 4:12 4 minutes, 12 seconds performance supported by sustained demand from healthcare and automo sector firms. 4:19 4 minutes, 19 seconds Brigade Twin Towers in Eshwanpur, Bangalore continues to demonstrate strong market traction with rising 4:27 4 minutes, 27 seconds interest from large forial investors. The uptick in both leasing 4:34 4 minutes, 34 seconds and sales activity reflects a positive shift in sentiment and growing confidence in the northwest Bangalore micro market. 4:43 4 minutes, 43 seconds Technology and engineering or manu and manufacturing sectors led the demand contributing to 60% of leading activity 4:52 4 minutes, 52 seconds followed by BFSI global capability centers popularly known as GCC's continued to be a major force accounting for 38% of total leasing. 5:05 5 minutes, 5 seconds On the retail front, we witnessed successful openings of South India's first Lego certified store, Uniqlo, Coyo 5:14 5 minutes, 14 seconds and Victoria Secret in our flagship mall, Orion at Brigade Gateway. 5:21 5 minutes, 21 seconds Additionally, Prebeam International brands are expected to debut by year end, further strengthening our Brits to 5:29 5 minutes, 29 seconds luxury portfolio, resulting in a higher rental yield. Footfalls across our three bonds grew by 8% yearonear 5:39 5 minutes, 39 seconds in Q2 FI26 driven by strong performance in cinema f 5:46 5 minutes, 46 seconds and the onset of dasera in late September. This translated into a 9% year-on-year growth in overall mall 5:55 5 minutes, 55 seconds consumption supported by new store openings and festival netled demand. 6:01 6 minutes, 1 second Coming to hospitality, the port the hospitality portfolio demonstrated steady growth with 6:08 6 minutes, 8 seconds improvements in all key performance indicators. Portfolio AR stood at rupees 6:16 6 minutes, 16 seconds 7,16 during Q2 FI26, a growth of 14% over Q2 FI25. 6:25 6 minutes, 25 seconds Portfolio occupancy stood at 76% in Q2 FI26. 6:31 6 minutes, 31 seconds Corporate and mice travel continue to lead demand growth. India's hospitality industry is set for a festival festive 6:40 6 minutes, 40 seconds boost as GST on room tariffs up to rupees 7,500 has been reduced from 12% to 5%. 6:50 6 minutes, 50 seconds Hotel growth is expected to accelerate through the remainder of FI26 fueled by 6:56 6 minutes, 56 seconds events, festive travel and long leisure stays. 7:03 7 minutes, 3 seconds While international travel continues its steady recovery via JDS, that is global distribution systems. The 7:12 7 minutes, 12 seconds focus remains on attracting domestic travelers through valuedriven customized offerings. 7:21 7 minutes, 21 seconds Lastly, the outlook is we are optimistic about the rest of the financial year backed by 7:28 7 minutes, 28 seconds a robust pipeline of projects and cities. We remain focused on 7:35 7 minutes, 35 seconds consistent progress and on delivering meaningful long-term benefits to our stakeholders. 7:42 7 minutes, 42 seconds I will now hand over the mic to our executive director and interim CFO Mr. 7:49 7 minutes, 49 seconds Prajimna Krishna Kumar to present the detailed financials for the quarter now over to you. 7:58 7 minutes, 58 seconds Thank you. Thank you. 7:59 7 minutes, 59 seconds Yeah, thank you sir. Um good afternoon and a warm welcome again. I will now speak about the three financial highlights for F526. 8:08 8 minutes, 8 seconds The real estate segment saw sales of rupees 2,34 crores this quarter. A growth of 12% over Q2 FI25. When 8:16 8 minutes, 16 seconds compared to Q1 FI26, the growth is about 80 82%. 8:20 8 minutes, 20 seconds The total collections for the quarter stood at 2003 crores, an increase of 16% over Q1 FI26. 8:28 8 minutes, 28 seconds Collections from the real estate segment stood at rupes 1,528 crores. Leasing segment stood at 306 crores and hospitality segment stood at 169 crores. 8:39 8 minutes, 39 seconds Net cash flow from operating activity stood at 433 crores. 8:44 8 minutes, 44 seconds Following is the group's revenue update for Q2 FI26. 8:48 8 minutes, 48 seconds The consolidated revenue for the quarter stood at 1,430 crores, an increase of 26% over Q2 FI25 with an EITA of 375 8:57 8 minutes, 57 seconds crores. Debita margin stood at 26%. The real estate segment clocked a turnover of 951 crores, an increase of 31% over Q2 FI25 with an EITA of 110 crores. 9:10 9 minutes, 10 seconds Revenue from the leasing segment was 341 crores, an increase of 17% over Q2 FI25 9:17 9 minutes, 17 seconds with an EITA of 223 crores. The hospitality segment clocked a turnover of rupes 138 crores, an increase of 16% over Q2 FI25 with an EIT of 42 crores. 9:29 9 minutes, 29 seconds The consolidated PAT stood at 170 crores which is an increase of 48% over Q2 FI25. PAT after minority interest is 162 9:39 9 minutes, 39 seconds crores an increase of 37% over Q2 FI25. 9:44 9 minutes, 44 seconds As far as H1 FI26 goes, the consolidated revenue for H1 uh for the for the first 9:51 9 minutes, 51 seconds half of this year stood at 2763 crores, an increase of 23% over H1 FI25 9:58 9 minutes, 58 seconds with an EITA of 750 crores. The EITA margin stood at 27%. 10:04 10 minutes, 4 seconds The real estate segment clocked a turnover of rups 1,843 crores, an increase of 26% over H1 FI25 with an EIT of 213 crores. 10:15 10 minutes, 15 seconds Revenue from the leasing segment was rupees 641 crores, an increase of 16% over H1 FI25 with an EIT of 447 crores. 10:24 10 minutes, 24 seconds The hospitality segment clocked a turnover of rupes 279 crores, an increase of 17% over H1 FI25 with an EIT 10:32 10 minutes, 32 seconds of 90 crores. Consolidated PAT stood at 328 crores, an increase of 67% over H1 10:38 10 minutes, 38 seconds FI25. PAT after minority interest is 312 crores, an increase of 54% over H125. 10:46 10 minutes, 46 seconds I shall now touch upon the group's debt and liquidity position. We continue to have adequate liquidity and undrawn credit lines from banks and financial 10:54 10 minutes, 54 seconds institutions to support our growth plans. Our average cost of debt has reduced by 20 bits to 8.05% as of September 25. In June 25, it was 8.25%. 11:07 11 minutes, 7 seconds Gross debt of the group stood at 4,291 crores. Cash and cash equivalence was rupes 2575 uh5 crores as on 30th 11:16 11 minutes, 16 seconds September 25. Thus the company's net debt outstanding is rups 1,717 crores 11:23 11 minutes, 23 seconds out of which B share is 1,100 crores. We continue to have zero residential debt as mentioned by chairman due to robust 11:32 11 minutes, 32 seconds sales and collections. Almost 93% of the debt pertains to the commercial SBU and is backed by rental income. The debt 11:40 11 minutes, 40 seconds equity ratio stood at 22. I will now hand it back to the moderator for questions. Thank you. 11:50 11 minutes, 50 seconds Thank you sir. Ladies and gentlemen, we'll go ahead with a question and answer session. Anyone who wishes to ask a question may press star N1 on their touchstone telephone. 12:00 12 minutes As a reminder, all if you wish to remove yourself from the question key, you may press star and 12:08 12 minutes, 8 seconds two. Participants are requested to use headset while asking a question. Our first question comes from the line of 12:14 12 minutes, 14 seconds Ashokumar Daga from an 12:29 12 minutes, 29 seconds Hello to be a little clearer please. We can't hear you. 12:37 12 minutes, 37 seconds Hello Hello. Yes, please. Yes. Yes, we can hear you. 12:45 12 minutes, 45 seconds Yes. Yes. Thank you for your result and giving the opportunity to ask a question. So, my basic question is that 12:53 12 minutes, 53 seconds uh you have told you you are debt free in the residential portion and uh for your lease rentals you are going with 13:02 13 minutes, 2 seconds the uh borrowed money. So if that borrowed money can be replaced with the right issue from the shareholders. 13:13 13 minutes, 13 seconds No no we have uh quite recently come out with a QIP. So there is no real intention to uh give a right issues at the at the moment. 13:26 13 minutes, 26 seconds And what is the future program for the more expenses or uh reduction of the debt? 13:35 13 minutes, 35 seconds See the debt is fully 93% is backed by uh you know lease rental income. It is 13:42 13 minutes, 42 seconds generally called as those loans are called as LRDS lease rent discounting. 13:48 13 minutes, 48 seconds So there is it is not really matter of concern and of course the always exists. So we can uh we will take 13:57 13 minutes, 57 seconds a look at an appropriate time not not in the uh not certainly in this uh financial year maybe in the AGM next 14:06 14 minutes, 6 seconds year we will uh keep it for as suggestions received. 14:14 14 minutes, 14 seconds Okay. Thank you. 14:19 14 minutes, 19 seconds Thank you sir. Next question come from the line of Deeplab Dearma from Antic Stock Broking. Please go ahead sir. 14:27 14 minutes, 27 seconds Uh uh good afternoon everyone. Uh hope you all had a great Diwari. Uh my first 14:34 14 minutes, 34 seconds question is on the pipeline for the next two quarters. 14:40 14 minutes, 40 seconds uh what would be the ballpark pipeline in terms of GDP uh for the next two quarters I mean in the second half uh 14:48 14 minutes, 48 seconds that's my first question hi good afternoon uh yeah so in the 14:56 14 minutes, 56 seconds first in the first half of the year we launched 3 mill in the residential portfolio we launched 3 million square 15:02 15 minutes, 2 seconds ft with uh around 3,200 crores in GTV in the residential portfolio for the second half of the year we have We currently 15:10 15 minutes, 10 seconds have visibility of around 7 million square ft. The GDV for that is around 8,000 to 8,300 crores. 15:19 15 minutes, 19 seconds Okay, that's great. Thank you. And uh um ma'am uh are you offering any ranch discount 15:28 15 minutes, 28 seconds or special incentives uh beyond uh uh the usual schemes uh to uh help drive the sales? 15:40 15 minutes, 40 seconds So uh I some of your question was not clear but I think you're asking if you're doing any specific kind of offers 15:47 15 minutes, 47 seconds uh other than the usual discount uh which is sort of you know given uh just as a negotiation tool um we don't really 15:56 15 minutes, 56 seconds have anything else going on right now potentially in some cases we might do interiors things like that but brigade doesn't do these 1090 subvention schemes 16:05 16 minutes, 5 seconds or any kind of builderled subvention so to your answer. No, we don't have that going on and uh we will not be doing that. 16:13 16 minutes, 13 seconds Okay. So there is no we don't yeah we don't feel the need to do these uh schemes to drive any demand per se. 16:22 16 minutes, 22 seconds We feel demand is still very good on ground. 16:25 16 minutes, 25 seconds Okay. Okay. And my third question is on BBMP issue. Hearing that restructuring of BBMP has caused some delay in approvables. 16:36 16 minutes, 36 seconds So have you faced any uh and do you anticipate uh going 16:43 16 minutes, 43 seconds forward any any challenges in getting approval from DBMP? 16:50 16 minutes, 50 seconds So because there was uh there was some uh I wouldn't say delays but in terms of the new structure coming in uh what is 16:58 16 minutes, 58 seconds now called as uh GBA visa v the earlier BB&T uh I think the restructuring took about a month's time uh and now we are 17:06 17 minutes, 6 seconds in the process of getting our approvals through uh I don't see us having any major delays there. Oh okay that's that's good. Thank you. 17:14 17 minutes, 14 seconds Thank you. I'll come back in the queue. Thank you. 17:19 17 minutes, 19 seconds Thank you sir. Our next question come from the line of Morta Arala from Kotek security. Please go ahead. 17:26 17 minutes, 26 seconds Hi. Uh thank you for having me to ask the question. Uh two questions from my side. One is um you know in terms of 17:34 17 minutes, 34 seconds sales we we had a weak uh sort of first quarter or second quarter is much improved. Uh but still uh on a run rate 17:42 17 minutes, 42 seconds basis you would be lagging in terms of you know the full year guidance where we want to clock double digit growth. uh 17:50 17 minutes, 50 seconds would we want to revisit that or we're confident that we've got enough of a launch pipeline in the second half to be 17:57 17 minutes, 57 seconds able to make good uh you know the the the softer first quarter and any big projects that you would want to highlight which would uh help you make 18:06 18 minutes, 6 seconds that uh sales come through and the second question is really on the residential IDA margin we see a number 18:12 18 minutes, 12 seconds of about 12% which is not the run rate per se uh anything you want to call out on that for uh you know when we would 18:20 18 minutes, 20 seconds see the margin sort of go back to maybe closer to a 20% mark. 18:28 18 minutes, 28 seconds Hi so I will answer the first question and will take the second one. So in terms of the launch uh pipeline as as 18:36 18 minutes, 36 seconds the previous person had asked uh we have the visibility of H2 uh of around 7 million square ft. Ideally that number 18:44 18 minutes, 44 seconds would have been a little bit more and that's also the reason why um our sales numbers while we're targeting the uh 18:52 18 minutes, 52 seconds initial uh number of around 9,000 crores substantial amount of our H2 sales would be coming from launches and therefore uh 19:01 19 minutes, 1 second we may we may not necessarily meet that number but we'll be trying to do that as much as possible. Um the sales 19:09 19 minutes, 9 seconds achievement in the first half of the year was around uh 3,000 crores. Um I would say typically every year for the 19:16 19 minutes, 16 seconds last few years we've been seeing this that the H2 generally uh you know is not exactly 50% of what you're going to achieve in the year. H2 generally is 19:25 19 minutes, 25 seconds substantially more than the H1 sales achievement. And we expect the same to happen this year mainly because of the contribution of launches. This first 19:34 19 minutes, 34 seconds half also about 60% of our overall sales was contributed by ongoing projects and 40% uh from new launches. In the second 19:43 19 minutes, 43 seconds half of the year we'll expect a larger number to come from new launches. 19:49 19 minutes, 49 seconds So so as far as your second question Mustaza margins are lower uh this quarter it's 19:56 19 minutes, 56 seconds due to a mix of reasons. One is the type of projects that are being currently recognized. a couple of initiatives especially on take out options that we 20:04 20 minutes, 4 seconds have that we've taken forward uh some additional sales and marketing costs that we have incurred due to as Mr. Jan 20:12 20 minutes, 12 seconds has also mentioned some of our biggest showcases going to another city some of the additional uh initiatives that we've 20:20 20 minutes, 20 seconds taken on the sales and marketing front and we've also uh we've also taken a conservative approach on a groundbre uh 20:28 20 minutes, 28 seconds issue in Bangalore as such so which has contributed to a lower margin uh we expect in the next financial year margin 20:35 20 minutes, 35 seconds to go back to what normally is sir thank you any large projects So any 20:42 20 minutes, 42 seconds you know that 7 million square feet launch any big ticket project that uh maybe at one trip. 20:51 20 minutes, 51 seconds Yeah. So I'm happy to say that about 1 million of the seven is from is the second phase of our brigade gateway 20:57 20 minutes, 57 seconds Hyderabad uh in the Neopoulos um area of Hyderabad that launch has already happened and you know the sales are 21:05 21 minutes, 5 seconds underway. uh we do have a couple of uh we do have one large mixeduse development also that is currently in the design and approvals stage in north 21:14 21 minutes, 14 seconds Bangalore. So uh that is potentially a Q4 launch and we have a couple of other uh larger multi-phase kind of projects 21:22 21 minutes, 22 seconds coming up in East Bangalore that uh will also be ideally coming through. 21:35 21 minutes, 35 seconds Thank you sir. 21:37 21 minutes, 37 seconds Ladies and gentlemen, anyone who wishes to ask a question may press star and one on their touchstone telephone. Our next question come from the line of prehettit from access capital. Please go ahead. 21:49 21 minutes, 49 seconds Uh yeah thanks for the opportunity and uh season's greetings to everyone. Um uh first question is on uh you know this 21:57 21 minutes, 57 seconds upcoming Hyderabad launch where sales are on already underway. Uh just wanted to understand what would be our strategy 22:06 22 minutes, 6 seconds uh in terms of sales there because first uh phase was completely sold out at 22:12 22 minutes, 12 seconds launch. uh u you know uh looking at the demand u uh you know how do you think 22:20 22 minutes, 20 seconds this project would pan out and whether you would want to if at all demand persist uh you would want to sell out this phase 22:27 22 minutes, 27 seconds as well or so just wanted to understand your strategy there yeah um yes so as you all know the first 22:37 22 minutes, 37 seconds phase did extremely well uh we managed to sell that very quickly despite having a very aggressive aggressive price in 22:44 22 minutes, 44 seconds the market. In the second phase, given the positioning of the product and how it is so unique, we were still able to take up the price with Stanley. So, we 22:53 22 minutes, 53 seconds still want to maintain the kind of positioning for the product. But that said, we also are looking to uh um see 23:00 23 minutes how quickly we can move that. There is so far there's been very good appetite for this uh product even in the second phase and at the higher price. So, we're just uh evaluating that and we'll see. 23:10 23 minutes, 10 seconds We still have another you know in terms of the project it it really doesn't make a difference but if you're looking at the next 6 months we uh can see how quickly this inventory will also move. 23:22 23 minutes, 22 seconds Sure. Got it. Got it. And uh second uh uh you know I think last quarter you 23:29 23 minutes, 29 seconds mentioned that that North Bangalore project uh kind of looks like uh would be next year uh but you currently said 23:37 23 minutes, 37 seconds that it might happen in Q4. Uh so that's probably one addition uh to our overall launch pipeline uh in this year. Uh 23:47 23 minutes, 47 seconds that's incrementally to what we were accepting. 23:51 23 minutes, 51 seconds Yeah. I mean see we're trying to pull it up into Q4. Ideally that's what we would like because we are uh you know getting ready on ground for all of that but uh 24:00 24 minutes given uh that it's a brand new project it's a complex mixeduse project uh it could take time uh and we we're 24:07 24 minutes, 7 seconds naturally getting approvals for a sub like a very large phase of it so that's why we it could potentially move into Q1 24:15 24 minutes, 15 seconds but we're pushing very hard to get it into Q4 it's a mixed use so residential is only one part of that. 24:22 24 minutes, 22 seconds Sure. Sure. Got it. And one last on the commercial part uh uh I think we are already clocking a rental run rate of 24:31 24 minutes, 31 seconds close to 1,400 crores uh with 92% of occupancy. uh what should we think about the steady state uh rental potential 24:40 24 minutes, 40 seconds assuming less than 95 96% is what we operate we would operate at and what would be the steady state EITA potential 24:48 24 minutes, 48 seconds uh for that um so we've been showing some healthy growth rate as uh while most of our 24:57 24 minutes, 57 seconds portfolios already lease a small percentage is still remaining which we hope to conclude in this uh fiscal year 25:04 25 minutes, 4 seconds or at least the next 6 to 9 months. Uh we have um significant number of launches underway as well. We've already 25:12 25 minutes, 12 seconds launched about uh 2 and a half million square ft of office space. We have uh this year in FI26 we have launched about 25:20 25 minutes, 20 seconds 1.2 million square ft of office space and even upcoming we have a significant number of um uh office buildings to be 25:27 25 minutes, 27 seconds launched. We've mentioned about four 4.2 2 million but with the recent purchase of one large office building it should go up to 6 million square ft of what we 25:36 25 minutes, 36 seconds plan to uh launch in the near future. So with that I think uh the we we plan to grow the portfolio uh very sizably and 25:45 25 minutes, 45 seconds um as and when the launches come and um as and when the projects come post OC and we're able to rent it, it'll grow uh 25:52 25 minutes, 52 seconds quite substantially. We plan to grow this portfolio. So right now um like you rightly said if it's trending this year 25:59 25 minutes, 59 seconds I think about 800 850 crores of rental revenue is what we've projected but uh in the coming years it'll substantially 26:07 26 minutes, 7 seconds increase uh based on the projects we we launch. Uh okay that's all good. Thank you. 26:15 26 minutes, 15 seconds That's it from my side. All the best. Thank you. 26:20 26 minutes, 20 seconds Thank you. Our next question come from the line of Gish Shodri from Avidia Spark. Please go ahead. 26:26 26 minutes, 26 seconds Yeah. Hi, good afternoon. Thanks for the opportunity. Uh firstly, you spoke about the pipeline uh uh I mean one is 26:34 26 minutes, 34 seconds Hyderabad and and and Bangalore. What about u your Chennai projects if you can give us update on the Karumur and and the Cherry uh projects. 26:47 26 minutes, 47 seconds So hi Adish. So as far as uh Chennai goes, we we should have the Vacheri property come through hopefully by Q4. 26:55 26 minutes, 55 seconds Uh that should come uh uh into the launch u uh phase of it. Uh the Paramour one might still take a couple of quarters. 27:05 27 minutes, 5 seconds Okay. Okay. Um in in terms of approvals, uh you're confident about Cherry coming in by Q4. 27:14 27 minutes, 14 seconds Yeah. Yeah. we've uh we are in uh you know advanced stages of receiving the approval. Uh it's in the final leg. So so hence the confidence that we should be able to launch it in Q4. 27:25 27 minutes, 25 seconds Sure. Sure. And uh secondly there was also a recent news about a certain NGO in Chennai alleging some illegal project 27:33 27 minutes, 33 seconds approval for your brigade modern Heights project. How would you respond to that? 27:39 27 minutes, 39 seconds and then also what's happening to the current sales uh uh in that project and also the proposed uh launch for phase two. 27:48 27 minutes, 48 seconds Yeah. So as far as uh that goes I think you know uh there's also been the government clarification that has come through uh day before yesterday. Uh but 27:57 27 minutes, 57 seconds to be very very clear uh you know everything has gone by the book as usual. There is absolutely no deviation at all from our end. We've got all 28:06 28 minutes, 6 seconds project related approvals uh in the usual course following due process. So we have the environment clearance, we have the pollution control board 28:12 28 minutes, 12 seconds clearance, we have approvals from uh the PWD, the airport authority from CMDA. So the GO is there. So you know someone has 28:22 28 minutes, 22 seconds brought this up and it's very very clear just to make it again it's it's it's been owned by the current land owner for more than 40 years now. There are 28:31 28 minutes, 31 seconds previous owners to it. It is privately classified land. patas are there. It is classified as a dry land and even as per 28:38 28 minutes, 38 seconds the uh CMDA uh master plan for the city, it is a residentially classified land. 28:44 28 minutes, 44 seconds So there's absolutely no question about uh any any real issue from an approval point of so I want to make that clear 28:52 28 minutes, 52 seconds Gish. Now just to add there is a one and a half page clarification given by the government of Tamil Nadu that all 28:59 28 minutes, 59 seconds approvals all uh things are as per order. 29:04 29 minutes, 4 seconds Now it is not just our property. It is um maybe a host of some 100 or 200 properties they had wrongly 29:13 29 minutes, 13 seconds you know classified but by some uh consultant that has been cleared by the government that it is uh a wrong uh report. 29:25 29 minutes, 25 seconds So use and also if you can talk about Sorry. Yeah. Go ahead. Go ahead. 29:33 29 minutes, 33 seconds Yeah. Yeah. Um so I was just asking if you can talk about the current uh sales progress in that project. Uh because last time around we were mentioning 29:41 29 minutes, 41 seconds about uh u the marketing office uh uh which which is expected to come up right and you'll see uh better sales traction. 29:49 29 minutes, 49 seconds So how's how's the overall progress in the project? 29:56 29 minutes, 56 seconds Yeah. Uh yes, definitely after the marketing office opened, we saw a substantial spike not just in walk-ins but also conversion. Uh so we were we were happy with the uh progress so far. 30:09 30 minutes, 9 seconds Uh we we do expect that to continue uh you know uh for the rest of the year and going forward. Naturally the current 30:18 30 minutes, 18 seconds issue and the press etc has uh caused some questions among our existing customers. We've been communicating to them because you know there is a lot of 30:27 30 minutes, 27 seconds clarity from our side but naturally we do have to communicate to them and they're mostly fine with uh the the answers that we've been able to provide 30:36 30 minutes, 36 seconds and we are pretty confident we'll be able to continue in this manner. 30:42 30 minutes, 42 seconds Sure. Sure. Thank you. Uh this was useful. Thank you. 30:49 30 minutes, 49 seconds Thank you sir. Next question come from the line of Rajesh Kumar from SDFC security. Please go ahead. 30:57 30 minutes, 57 seconds Sorry Kar. Uh so my first question is um in this quarter pavitra so what was the GDP of the launches and what was the contribution from new launches? 31:12 31 minutes, 12 seconds Uh yeah in this quarter we launched uh 2 million square ft. Uh the GDP for that is around 2,200 crores. It's a 31:20 31 minutes, 20 seconds combination of uh high-end and ultra luxury inventory in Whitefield Bangalore. A plotted project in East Bangalore. Actually this quarter all of 31:28 31 minutes, 28 seconds it was from East Bangalore and a mid-segment project in the in a similar location as well. So it's well distributed across uh all of the 31:37 31 minutes, 37 seconds product. Sorry I missed the second part of the question. 31:40 31 minutes, 40 seconds Uh so so what was the contribution to the sales from these new launches out of the 2,000 cr of sales which we did and how much was contributed from the new launches? 31:50 31 minutes, 50 seconds Yeah. 31:54 31 minutes, 54 seconds So in Q2 around 50% of uh what we did this quarter was from new launches. 32:00 32 minutes That's quite a healthy number. So almost 50%. So 1100 crores from the new boxes. 32:06 32 minutes, 6 seconds Uh the second question is on Chennai. So somehow I mean when we dissect Chinang and Bangalore so I mean given the sequence of events which have happened 32:15 32 minutes, 15 seconds so we have not seen the kind of velocity which I mean like from the first launch now the launches so just wanted to understand that the business development 32:24 32 minutes, 24 seconds capital allocation to Chennai and the velocity in Chennai or growth in Chennai seems to be as of now the data we have lagging what we've been doing in 32:31 32 minutes, 31 seconds Bangalore. So from growth standpoint u kind of this will decelerate the growth. 32:36 32 minutes, 36 seconds So how do we look incremental capital allocation between the two cities given that we are not going outside south right now? So one how does one look at 32:44 32 minutes, 44 seconds it and how does one look at it at the growth at I mean more broader level over the next few years then 32:51 32 minutes, 51 seconds yeah so definitely Chennai is a different market than Bangalore the same way Hyderabad is a different market from Bangalore so our launch strategies in 32:59 32 minutes, 59 seconds all three are very different and it's also based on the velocity that you're seeing is also based on the reality of what it is like to launch and sell there 33:07 33 minutes, 7 seconds so for Chennai we don't expect to to sell and launch everything within the first year or the even two years. In Chennai, our plan is to launch and sell 33:16 33 minutes, 16 seconds during the life cycle of the construction of the project. We've seen this happen in the past and that's kind of how that market is geared. Um, in 33:24 33 minutes, 24 seconds Bangalore over the last few years, we've seen that we we were able to pull up the uh sales uh velocity while still 33:32 33 minutes, 32 seconds achieving the the life cycle pricing that we wanted to. So, we would still see uh sellouts within one year, two years from the launch itself. Maybe 33:40 33 minutes, 40 seconds others were doing it faster but we didn't believe in that approach. In Hyderabad for example, we were able to sell out say in a month or a quarter. 33:48 33 minutes, 48 seconds Now that is not our intention to you know purposely do it in that manner but I think we've adjusted our go to market based on each market and how it is 33:57 33 minutes, 57 seconds different and we're able to tailor our strategy accordingly. So in Chennai yes the inventory movement will be a little 34:04 34 minutes, 4 seconds slower than um uh Bangalore and Hyderabad but that doesn't mean we have to revisit any capital allocation. It is 34:12 34 minutes, 12 seconds still a very good market but Bangalore and Hyderabad are still markets of focus for us in business development. 34:19 34 minutes, 19 seconds So so out of the 8,000 to 8,300 crores of 7 million square ft of new launches planned for H2. So how much of this will be from Chennai? 34:30 34 minutes, 30 seconds So just about a million square ft which is the vendor project that the previous person asked about that would be upwards 34:37 34 minutes, 37 seconds of like 2,000 crores and the rates will be like the 10,000 plus so 2500 crores around 2,000. Yeah 2,000 to 2,50. Yeah. 34:51 34 minutes, 51 seconds So for rest of the launches we could expect much better velocity about 6,000 cr in velocity and here it could be something like over the life of the 35:00 35 minutes project. Understood. Absolutely. There is a highend project in Chennai. So we don't expect it to sell that fast. 35:08 35 minutes, 8 seconds Okay. Uh now coming to the business development. So now for the H1 and as a year as a whole. So so how much do you 35:15 35 minutes, 15 seconds think you can add on the GB and out of that how much will be allocation towards Chennai? 35:22 35 minutes, 22 seconds Yeah. So, uh as far as uh H1 goes, we have acquired about 13 million square ft around 14,000 crores is the is the GDV 35:31 35 minutes, 31 seconds and uh of which significantly it is uh in uh Bangalore I think and and also in Hyderabad I would I would say about 35:40 35 minutes, 40 seconds close to uh 8,000 crores is from Bangalore, 2,000 crores from Chennai and 2,000 crores from Hyderabad. I think you 35:46 35 minutes, 46 seconds will see us add more uh to Bangalore and Hyderabad in the in the second half of this year. 35:53 35 minutes, 53 seconds We will now kind of like consolidate Chennai and maybe majority of effort will go towards Bangalore and then maybe second is Hyderabad and then maybe Chennai. 36:02 36 minutes, 2 seconds Yeah. Right. Yeah. 36:05 36 minutes, 5 seconds Okay. Just lastly uh any plans now I mean given that this year we will touch 9,000 and then going from that base from 36:12 36 minutes, 12 seconds south may become slightly difficult. So any thought initial thoughts as we started exploring markets outside uh 36:18 36 minutes, 18 seconds south now in MMR or in Pune or in anything else any thoughts there? 36:26 36 minutes, 26 seconds So we we continue to sort of keep our eyes on this uh we haven't taken any calls naturally uh but we continue to keep an eye and at the appropriate time we will take that call. 36:37 36 minutes, 37 seconds Sure. Thank you for questions John. Thank you. 36:45 36 minutes, 45 seconds Thank you so much ladies and gentlemen. 36:48 36 minutes, 48 seconds In order to ensure that the management will be able to address question from all the participant and the concepts, kindly limit the question to two per 36:56 36 minutes, 56 seconds participant. Should you have a follow-up question, please rejoin the queue. 37:03 37 minutes, 3 seconds Our next question comes from the line of Diploma. Please go ahead. 37:09 37 minutes, 9 seconds Uh so my first question uh rather a clarification I want is ma'am uh did you 37:16 37 minutes, 16 seconds say you may fall short of your pre-sale guidance of 9,000 cr in May in FI26 37:26 37 minutes, 26 seconds so uh our pre-sales guidance uh or our achievement our sales achievement is 37:33 37 minutes, 33 seconds extremely dependent on launches coming through so in the second half of the We are expecting another 7 million square 37:41 37 minutes, 41 seconds ft of launches. So depending on that we'll be able to hit those numbers but it is heavily dependent on the launches and approvals. 37:48 37 minutes, 48 seconds If the launches happen uh are you would you be more optimistic all the 7 million square ft uh launches happen in the 37:57 37 minutes, 57 seconds second half that you will surpass 9,000 cr of pool sales in 26. 38:04 38 minutes, 4 seconds I'm definitely more optimistic that we'll be able to get close to that number. 38:09 38 minutes, 9 seconds Okay. Okay. And my second question is uh in this first half um how do you see the 38:16 38 minutes, 16 seconds residential segment performance? I mean have you observed any new trends emerging in demand by profiles or any 38:23 38 minutes, 23 seconds behavioral patterns um in this first step compared to say what you have seen in FI25 uh or so? 38:34 38 minutes, 34 seconds Yeah. Uh I think the market is still strong. Um in Bangalore specifically I think uh there is a lot more demand in 38:43 38 minutes, 43 seconds the mid-segment category. So we are also looking at that uh in terms of new projects when we're looking at design or 38:50 38 minutes, 50 seconds land acquisition in terms of location of properties. Uh but that's a Bangalore specific thing in Hyderabad. Uh we are 38:58 38 minutes, 58 seconds still doing very well in the five cr plus category but that said there is still good demand in mid-segment as well. In Chennai um despite uh you know 39:08 39 minutes, 8 seconds all the common cycle velocity and things like that it is still a very well balanced market. were able to sell in 39:15 39 minutes, 15 seconds mid-segment, premium as well as high-end. So we don't really see anything major changing in that sense. 39:21 39 minutes, 21 seconds Uh but but I think there is a lot of unmet demand in the mid-segment in Bangalore. 39:27 39 minutes, 27 seconds So just what do you mean the mid segment? How would you define mid segment? 39:32 39 minutes, 32 seconds So in our portfolio we classify midsegment as uh uh 75 lakh to 1.5 CR. 39:39 39 minutes, 39 seconds premium we look at uh as 1.5 cr to 3 cr and above that we call as luxury as the ultra luxury. 39:49 39 minutes, 49 seconds Okay, that's great and all the best to the team. Thank you ma'am. 39:57 39 minutes, 57 seconds Thank you. Next question come from the line of Sam Agraal from Ambit Capital. Please go ahead sir. 40:05 40 minutes, 5 seconds Hi thank you for this opportunity. We have a couple of questions. Uh firstly what were the kind of uh like like price 40:11 40 minutes, 11 seconds hikes uh across your existing projects um an affordability is an issue uh in the market. Are you still comfortably 40:21 40 minutes, 21 seconds able to take price or uh or have there been some slowdown on that? 40:29 40 minutes, 29 seconds Yeah. Um there's no slowdown per se. We look at our based on batching out our inventory. So since the inventory is 40:38 40 minutes, 38 seconds moving well in in in all of the projects, we're just taking the price hikes according to that. So on a like to 40:45 40 minutes, 45 seconds like basis and on an annual basis, it'll be around 5 to 7% is what we're seeing. 40:53 40 minutes, 53 seconds Uh understood. And just one more question on the bank market. uh like almost all of the bigger names are 41:01 41 minutes, 1 second either present in the bank market are trying to expand into the markets which previously were core markets for let's say only three or four players including 41:10 41 minutes, 10 seconds yourself. So could you talk a bit about the competitive landscape there especially given a little bit of uh scare in terms of uh job losses uh uh job losses and everything. 41:24 41 minutes, 24 seconds Yeah. So you know I think panor seems like a favorable market and that's why people are trying to enter here. So despite the conversations about job 41:33 41 minutes, 33 seconds losses and so on we still see there are there is still conversation about job creation in different uh parts of the economy as well. So netnet I think 41:42 41 minutes, 42 seconds Bangalore is still a winner in terms of overall job creation and that's why we continue to see uh a lot of demand in the city. uh you know every quarter the 41:51 41 minutes, 51 seconds the absorption only continues to increase from a residential standpoint. 41:54 41 minutes, 54 seconds Launches continue to happen here. Uh we've been able to see the pricing uh increase substantially doubling pretty much on an average over the last few 42:03 42 minutes, 3 seconds years. So I think uh it is still a very healthy market able to absorb uh more competition from other players as well 42:10 42 minutes, 10 seconds as price increase. So I think in general we're confident of the market going forward and anything on the competitive 42:19 42 minutes, 19 seconds landscape in terms of I mean yeah competitors are 42:25 42 minutes, 25 seconds coming in that really you know impacting our outlook on the market per se. 42:33 42 minutes, 33 seconds Understood. Uh that's also thank you. 42:39 42 minutes, 39 seconds Thank you so much ladies and gentlemen. As there are no further question I now hand the conference over to Miss Pavitra Shankar 42:49 42 minutes, 49 seconds MD. Thank you and over to you ma'am. 42:56 42 minutes, 56 seconds Yeah thank you. Before we wrap up we'd like to share a few key highlights beyond our financial performance this quarter. We continue to contribute 43:05 43 minutes, 5 seconds meaningfully to the community through the Brigade Foundation, our notfor-profit trust. On Gandhi Janti, we inaugurated the freedom fighters 43:12 43 minutes, 12 seconds memorial at Hosaman Circle in Chikmaglur, a landmark tribute to India's freedom struggle and the countless martyrs who laid down their 43:20 43 minutes, 20 seconds lives. We also launched a major tree planting initiative titled from saplings to a sanctuary uh planting one one lakh 43:29 43 minutes, 29 seconds trees for a greener tomorrow. Rooted in that in sorry rooted in brigade group's urban forest philosophy. This drive aims 43:36 43 minutes, 36 seconds to transform landscapes in and around our katv project in Bangalore into thriving ecological reserves. 43:44 43 minutes, 44 seconds The Indian Music Experience Museum uh hosted the Azadi Music Festival, a 10-day festival celebrating the diverse 43:51 43 minutes, 51 seconds sounds, stories, and traditions of Indian music that explore the evolving meaning of freedom in modern India. 43:59 43 minutes, 59 seconds Brigade Reef, our prop tech accelerator, welcomed four new startups into its 18th cohort focused on urban tech. This 44:07 44 minutes, 7 seconds cohort continues our commitment to fostering innovation and shaping the future of urban living. Our facilities management business unit formerly known 44:16 44 minutes, 16 seconds as WTC Trades and Projects Private Limited has been rebranded as Ora FM Services Private Limited. Today, Ora 44:25 44 minutes, 25 seconds oversees integrated facilities management across 20 plus properties spanning 16 million square feet across all our cities of operations. 44:35 44 minutes, 35 seconds A few noteworthy awards and recognition. 44:39 44 minutes, 39 seconds Brigade Group was named in the Forbes India Developers AIS 2025, a distinction reserved for leaders shaping the future of real estate through innovation, 44:48 44 minutes, 48 seconds sustainability, luxury and design excellence. Brigade was also recognized under two categories, India's wealth 44:55 44 minutes, 55 seconds creators and top builders at the construction world architects and and builders awards 2025. 45:02 45 minutes, 2 seconds Brigade was recognized as one of India's best workplaces for women 2025 by the great place to work institute on 10th 45:10 45 minutes, 10 seconds October. Brigade group marked 39 successful years in the real estate sector. It's been a rewarding journey for us filled with milestones and we 45:18 45 minutes, 18 seconds look forward to continuing our legacy of impact and excellence. 45:24 45 minutes, 24 seconds Thank you very much for joining us and uh we will see you next time. 45:30 45 minutes, 30 seconds Thank you so much on behalf of Brick Enterprises Limited. That concludes this conference. Thank you for joining us and you may now disconnect your line.