Brigade enterprises net debt decreases
Gross consolidated debt of Bengaluru headquartered builder Brigade Enterprises Ltd. (BEL) has decreased by Rs 85.3 crore to Rs 2080 crore in the third quarter of current financial year, according to a recent report by HDFC Securities. “The key reason for the sharp decrease was Rs 1,225 mn reduction in residential debt. Hospitality and lease rental debt increased by Rs 287/85mn respectively,” said Parikshit D Kandpal analyst HDFC securities in a recent report. “Additionally, a plan to develop 3mn sq ft of new assets will be capex intensive (Rs 6 billion) and put pressure on the balance sheet,” said Kandpal. According to HDFC securities, BEL’s ongoing projects are expected to deliver Rs 27.5bn in pre-tax cash flows. Sales velocity is key to manage capex outlay, office space has been witnessing strong traction, and the realty market in Bangalore is stabilising post demonitisation.
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