Real estate developer Brigade Enterprises has reported 115% drop in the fourth-quarter profit from a year ago, due to the change in accounting norms to AS-115 and nationwide lockdown impacting the hospitality business and the increase in CSR spend.
Net profit for the January-March quarter of FY20 stood at Rs 11 crore, Bengaluru-based Brigade Enterprises said on Thursday. The company’s turnover for the period was Rs 644 crore, a 17% drop over the same period of the previous fiscal.
“The unprecedented crisis due to Covid-19 pandemic resulting in the nationwide lockdown has had a negative impact on all sectors. However, we expect business to gradually pick up from the 3rd quarter of this financial year,” said M.R. Jaishankar, Chairman and Managing Director, Brigade Enterprises.
For the full year, the company net profit was down 60% to Rs 114 core and revenue slipped by 11% to 2682 crore.
The company achieved its highest ever sales since inception of the company at 4.3 Mn sq ft. in FY20, a 44 % increase over FY19. The sale value also saw 45% jump over FY19 to Rs. 2,377 crores in FY20.
Brigade Enterprises launched 4 real estate projects aggregating to 2.5 Mn. Sft. in Q4 FY20. The Group is currently developing about 21.4 million Sq. ft across residential, office, retail and hotel segments. Further, launches of about 4.5 million Sq. ft. are planned for the financial year 2020-21.
The company’s debt equity ratio stood at 1.17 with a net debt of Rs 3518 crore.
