Ladies and gentlemen, good day and welcome to the Q2 and FY 25 earnings conference call of Brigade Enterprises Limited. We have with us today the management of Brigade Enterprises Limited. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Pavitra Shankar , Managing Director of Brigade Enterprises Limited. Thank you, and over to you, ma'am.
Thank you. Good afternoon and welcome to the Brigade Enterprises Q2 FY 25 earnings call. I'm Pavitra Shankar , Managing Director, and joined today by our Joint Managing Director, Ms. Nirupa Shankar , Directors, Mr. Roshin Mathew, Mr. Amar Mysore, and Mr. Pradyumna Krishna, our CFO, Jayantt Manmadkar , along with the members of the senior management team. We are pleased to report a strong performance in Q2 FY 25, with continued progress across all key business segments. In Q2 FY 25, our real estate division showed stable performance, with pre-sales of 1.68 million sq ft valued at INR 1,821 crores. Demand in our residential business remains strong, driven by a preference for properties offering larger spaces, enhanced amenities, and premium finishes. Collections during the quarter stood at INR 1,937 crores, underlining the strong execution of our ongoing projects and customer confidence in our offerings.
The market continues to demonstrate a healthy appetite for both newly launched projects, and we are optimistic about the upcoming quarter. During Q2, we launched Brigade Insignia in Bangalore, which, along with Brigade Icon in Chennai, is growing our presence in the luxury real estate segment. In our leasing business, we are with a 98% occupancy for our operating portfolio of 8.7 million sq ft. The leasing momentum remains strong, particularly in the IT, BFSI, and flexi office spaces, and our buildings continue to attract long-term tenants. The demand across retail spaces remains encouraging, with a mix of lifestyle, entertainment, and dining brands continuing to expand in our malls. Retail sales growth was positive despite softer performance in the multiplex segment. In addition, the leasing segment generated INR 292 crores in revenue and INR 209 crores in EBITDA, demonstrating the resilience of the office segment despite macroeconomic challenges.
Rental collections also remained stable, further highlighting the quality of our office assets. Brigade Hotel Ventures Limited, our wholly owned subsidiary, is proposing, subject to receipt of requisite approvals, market conditions, and other considerations, an initial public offering of its equity shares, and has filed a Draft Red Herring Prospectus dated October 30th, 2024, with the Securities and Exchange Board of India and the relevant stock exchanges. Please note this is also why there are some changes in our usual presentation format. We will eventually resume the old format. Looking ahead, we have a robust pipeline for FY 25, with new developments totaling 16 million sq ft, a significant portion of which will be focused on residential projects. We remain confident that our diversified portfolio and strategic initiatives will continue to drive growth, value creation, and long-term success for our stakeholders. With that, I'll now hand over to our CFO, Mr.
Jayantt Manmadkar , who will take you through the detailed financials for the quarter.
Thank you and good afternoon. On behalf of the company, we would like to welcome you to the earnings call for Q2 FY 2025. Our MD already has shared operational highlights. I will be sharing key financial highlights for the quarter. To start with, the consolidated financial performance for Q2 FY 25. The consolidated revenue for Q2 FY 25 stood at INR 1,138 crores versus INR 1,408 crores for the same quarter last financial year. The consolidated EBITDA for quarter two FY 25 stood at INR 358 crores versus INR 366 crores in Q2 FY 24. EBITDA margin for Q2 FY 25 stood at 31%. Consolidated PAT was INR 115 crores as compared to INR 113 crores for the same quarter last financial year. Consolidated PAT after minority interest stood at INR 119 crores compared to INR 134 crores in Q2 FY 24.
The real estate segment clocked a turnover of INR 727 crores with an EBITDA of 15% during the quarter. The leasing segment clocked a turnover of INR 292 crores with an EBITDA of 72% during the quarter. Real estate collections for Q2 FY 25 was INR 1,454 crores versus INR 992 crores in Q2 FY 24, an increase of 47%. Achieved highest-ever quarterly collections of INR 1,937 crores in Q2 FY 25 as against INR 1,439 crores in Q2 FY 24, an increase of 35% on an overall basis. With respect to consolidated performance for H1 FY 2025, the consolidated revenue for H1 FY 25 stood at INR 2,251 crores versus INR 2,093 crores in the same half-year ending last financial year, an increase of 8%. The real estate segment clocked a turnover of INR 1,460 crores with an EBITDA of 14% in H1 FY 25 as against INR 1,434 crores with an EBITDA of 11% in H1 FY 24.
The leasing segment clocked a turnover of INR 554 crores with an EBITDA of 74% in H1 FY 25 versus a turnover of INR 444 crores with an EBITDA of 74% in H1 FY 24. The consolidated EBITDA for H1 FY 25 stood at INR 686 crores versus INR 572 crores in H1 FY 24, an increase of 20%. EBITDA margin stood at 30%. Real estate collections increased by 39% to INR 2,643 crores in H1 FY 25 from INR 1,908 crores in H1 FY 24. Overall collections for H1 FY 25 was at INR 3,544 crores versus INR 2,683 crores in H1 FY 24, an increase of 32%. Net cash flow from operations stood at INR 1,100 crores in H1 FY 25 as compared to INR 719 crores in H1 FY 24, an increase of 53%. Coming to the debt position and its breakdown, gross debt of the company stood at INR 4,640 crores as of 30 September 2024.
The cash and cash equivalents stood at INR 3,784 crores as of September 30th, 2024, which includes INR 1,356 crores out of QIP funds. Consequently, the company's net debt outstanding as of September 30th, 2024, is INR 857 crores. Net debt equity ratio stood at 0.15. With the successful issue of QIP, which was oversubscribed by 10 times, continued robust cash flow, and available debt lines, the company has a strong liquidity position to meet its expansion plans. I will hand it back to the moderator for questions. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Parikshit from HDFC Securities. Please go ahead.
Hi, Parikshit. Congratulations on a good quarter. My first question is on the approvals in Karnataka. So we have been hearing in other calls also from your peers there have been delays in getting the project approvals. So if you can update us.
Parikshit talking now here. I can't hear you too well. It's not too clear.
Mr.
Is it better now? Hello?
I would request you to please use your handset.
Yeah, I'm using my handset. Is it better now?
Yes, sir.
Yeah, yeah. Please go ahead.
So my question was on the approval process in Karnataka. There have been issues of late. And we have been hearing even from your peers, other peers, that there has been delay in getting approvals. So just wanted to understand your views on where we stand and how has the process improved now for the industry?
No, it's true, Parikshit. There have been some challenges on the approvals front. We ourselves were hoping to launch a little bit more than 2.6 million sq ft in the previous quarter in Q2. However, having said that, we are now in the process of getting the last leg approvals out in Q3, maybe start of Q4. It is sort of getting better now as we speak. But there has been this challenge. And for that matter, I think it's not only restricted to Karnataka, Bangalore. We're seeing these challenges in both Hyderabad as well as in Chennai. While we're getting most of the approvals through, it's just that final leg of getting the plan sanctioned out and the RERA approval out is taking a little longer than usual or anticipated.
Okay. So when I look at your numbers, the demand is very strong, which is like in the pre-sales of INR 1,800 crores, which is much ahead of my estimate. So if you can help us understand how much was the contribution from the new launches? So if you can highlight what were the new launches, what was the sales contribution from new launches, what was the sustaining sales, and what is the pipeline for Q3?
Yeah, yeah. About 30%.
Yeah, yeah. So in Q2, we had just a very small proportion from completed, but about 47%-50% from new launches ongoing. So when we define new launches, it's not just what got launched in this quarter of Q2, but basically in each one. So those projects that we launched, I think we launched about five or six projects. In Q2, we launched Brigade Insignia in Bangalore, which I mentioned earlier in the premium segment, Cobalt Block in Brigade Eldorado, and a smaller project called Nebula in Brigade WTC in Chennai. It's a very small project. But we had seen very good momentum coming from both Cobalt and Insignia as well as a previously launched block in Eldorado called Beryl, also Valencia, the second block of Valencia in Bangalore. And of course, Icon in Chennai is doing well. Although there, we are not really pursuing a volume strategy.
It's more about a super premium project where it depends on realization. So across the board, I have to also say that the performance in the ongoing projects and under construction projects has been strong across the board as well.
Parikshit, on the pipeline for Q3, the launch pipeline for Q3, how much of a million sq ft or in terms of value, if you can help us understand your planning to bring to the market?
So it's difficult to, again, because of approval timeframes, really for us to tell you exactly what we'll be launching Q3. But in Q3, we're looking to launch in Hyderabad, potentially in Chennai in Q4, and a couple of projects in Bangalore as well. So it's a bit uncertain whether we would get these approvals in the next six weeks or so. But for sure, a lot of the projects that we had envisioned for this financial year, we do intend to still have launched. So I think while there are delays on the approval side, we will still see the launches as the question of the time that we would have had to sell. But considering that the market is also still strong, I think we should still be able to perform quite well for the financial year.
Okay. This is the last question on margin. So if you look at historical and the sales, which you are recognizing on the deal side right now, looking around 13% margins. But for the sales doing right now, so Q1 and/or Q2, so what kind of embedded margins do you believe these pre-sales would be carrying on for Q1 or Q2?
Yeah. So definitely seeing in the EBITDA margins today, we are assuming costs also sort of hold up. So if we do that, then we should definitely see north of 28%, 29% in terms of EBITDA margins.
Okay, so I have some more questions and join the queue. Thank you.
Sure.
Thank you. Before we take the next question, a reminder to all the participants, you may press star and one to ask a question. The next question is from the line of Saksham from Ambit Capital. Please go ahead.
Hi. Is my voice audible?
Yes, sir.
Yeah. Hi, good afternoon, everyone. I have two questions. The first question is primarily related to the commercial portfolio strategy. As noted, the commercial portfolio contributed around 6% of pre-sales in the current quarter. With the company planning to add 3 million sq ft for the commercial portfolio, what is the strategy moving forward? Will the new space be leased out, or will it be sold, or a combination between the two? I'll go with the second question also. Can you provide more insights on the company's plan to expand its residential portfolio in the Chennai market? Would you see the company's market share in the segment over the next 3-5 y ears? These are two questions from my end.
Yeah. Nirupa here. See, basically, every time we take on a commercial project, it really depends. But overall, we expect we're doing projects of 5 million sq ft in the commercial segment. And all of that is actually just for leasing. But sometimes, in case there is a very good opportunity, we might consider a sale for that. But currently, we have about 2.5 million under construction, which is currently all slated for leasing. Right now, only the Brigade Twin Towers, one tower, 550,000 sq ft is slated for sale. We are also looking at Padmini C Block for sale. Yeah. So your question on residential in Chennai, yeah, as you have seen, and over the last couple of years, we've been expanding our presence in Chennai across all segments. I wouldn't say it is only residential.
But as of today, I would say our market share is not really among the top few in Chennai. Maybe we are within the top three. But I think considering that we have another 12 million sq ft of upcoming launches and pipeline for Chennai, we will certainly maintain that top three market share and continue to keep building on that. The focus for Chennai is, again, mid-segment, a couple of projects that are premium, similar to Brigade Icon as well. And all of our locations in Chennai are really top-class locations with high demand. So we're very confident of our Chennai growth.
Sure. That is really helpful. Thank you.
Thank you. The next follow-up question is from the line of Parikshit from HDFC Securities. Please go ahead.
Thanks for the follow-up. So Parikshit, again, referring to my other earlier question, so on if the launch delays continue and if you're not able to bring these launches, do you think there's a possibility that H2 may actually see a decline in terms of pre-sales?
If not H2, it will certainly be in Q1. So I would say we are sort of forced to look at this business on a quarterly basis. But I would say from a demand perspective and project profitability standpoint, we don't have any concerns on that front whatsoever. We do expect a substantial portion of our H2 numbers to be coming from the new launches. So certainly, if there is any impact on that, then our H2 numbers will also be impacted. But as I mentioned earlier, we have a substantial amount of ongoing projects. In fact, we have around 4.7 million sq ft of existing inventory before we launch anything in Q3 or Q4. So we will still look at trying to maximize our sales in our existing and ongoing projects.
And in addition, trying to make the best of whatever time we have in the rest of H2 to drive sales from our upcoming launches.
But you see a probability of all these launches bumping and bunching up in the Q4. Q3 may be kind of a miss if you're not able to get approvals.
Yeah. Yeah. That's the way we're looking at it from our perspective.
Okay. So Q3 declines and then.
It's not like we are not in the early stage of design approvals on any of these. This is either just at the very final stages. So it's just a matter of getting the things out in hand. So we are not deliberating in terms of having any comments going back and forth on designs or whatever. It is just literally getting the approvals in hand so we can launch.
Yeah.
So the question is not on demand. The question here is that you're not able to bring the supply. So that's why Q3 could be, if things don't work out, could be a decline. Maybe out of the three, four quarters, worst could be third quarter, and then you see a sharp uptake as launches happen in Q4.
So absolutely no question on demand. I think demand is very strong. Like I said earlier, we need to see the launches come in to get the kind of numbers we would like to achieve for the second half.
Okay. But as of now, you're maintaining the 15%-20% kind of growth over the last year of INR 6,000 crores of pre-sales?
Providing we can launch, yes.
Got it. Just another question on business development. So one is that you had raised this money, and one is that you already were doing. So what was the total business development, new business or new sales value added in H1 FY 25? And from the receipts from the QIP, how are you looking to deploy it towards new land acquisitions?
So on the QIP, we basically raised the fund for growth of the organization, focused a lot on the residential sector. In terms of business development, I think every year for the last two years, we've been adding about and doing about 1,000 crores of business development activity. In the past six months, I think we've added around 5-6 million sq ft of product in terms of the business development activity and continue to see good opportunities both for outright as well as joint development. We did raise the funds so that we would be ready for more outright and larger projects on the JD basis as well.
So this fund, QIP receipt, will also go part of that will go towards the hospitality or no hospitality will the money in the CapEx will be funded from the proceeds of the IPO? So how will you allocate this money? So this largely be residential and commercial and then hospitality on its own gets money from the IPO proceeds?
Yeah. Yeah. So we raised the funds in the BSE for the QIP predominantly for the residential business. Since we filed the DRHP for hospitality, we won't be making too many comments on that.
But largely for residential business is QIP?
Not for, as I mentioned earlier, it is for the residential business. So it is not for hospitality.
Sure. Okay, Parikshit. Thank you.
Thank you. A reminder to all the participants, you may press star and one to ask a question. The next question is from the line of Parvez Qazi from Nuvama Group. Please go ahead.
Hi, good afternoon, and thanks for taking my question. And congratulations for a great performance. So my first question is regarding the upcoming launches. Our share of launches on the resi side over the next year is about 10.5 million sq ft. So fair to say this would have a GDV of somewhere between 10-12 thousand crores?
Yes. Yes.
The 3 million sq ft upcoming commercial projects, these will be largely on the lease model or can we look at a sale model going ahead also?
Currently, these are all for leasing.
These will be largely in Bangalore or you'll have some portion coming up in the integrated project in Hyderabad also? Will that also form a part of this 3 million sq ft?
No. So the commercial part in Hyderabad has not yet been launched. In the ongoing projects that we've mentioned in our deck, everything is in Bangalore except for Square, which is in Trivandrum, and Brigade Tech Boulevard, which is in Chennai.
Just to add to what Nirupa was mentioning, the Hyderabad one, we still haven't considered as part of our future launches.
Sure. There is a data question for Jayantt Sir. So what were the BTG and the WTC rentals in Q2?
Sorry, could you just repeat that again?
What was the rental contribution of BTG and WTC in Q2?
WTC was about INR 50 crores in Q2 FY 25, and BTG was about INR 63 crores in Q2 FY 25.
Sure. Thanks, and all the best.
Thank you. Ladies and gentlemen, you may press star and one to ask a question. A reminder to all the participants, you may press star and one to ask a question. The next follow-up question is from the line of Parvez Qazi from Nuvama Group. Please go ahead.
Yeah. Thanks for the follow-up. So this is with regards to the potential usage of the QIP proceeds. Considering that we already have a substantial pipeline in Chennai, would it be fair to assume that bulk of these QIP proceeds will be used for business development in Bangalore and Hyderabad, or are we open to looking at any new city also?
So it will be for Bangalore, Chennai, and Hyderabad, all three cities. Chennai is also part of the plans for as far as the QIP proceeds go. But having said that, it's only limited to these three cities. We're not looking at any other geography at this point in time.
Sure. And any update on the Kokapet project by when can we have some clarity on that?
Yeah, so the target continues to be Q3 to launch Brigade Neopolis. We are tentatively calling it Brigade Gateway Hyderabad for now because it is a mixed-use development along the lines of Brigade Gateway Bangalore, and like I said, we are targeting to launch it in Q3.
So on that project, we will be launching residential first. So that's also why we have mentioned that the commercial will not be part of our upcoming pipeline. So we plan to launch residential and then eventually launch the commercial block.
Sure, and lastly, what would have been the share of Bangalore in the Q2 pre-sales?
About 90%.
Sure. Thanks and all the best for future.
Thank you.
Thank you.
The next question is from the line of Prem Khurana from Anand Rathi . Please go ahead.
Yeah. Thank you for taking my question. Congratulations on very good numbers. So my question was with respect to our residential real estate vertical. So what I observed from the data they've given in the presentation is, I mean, we generally used to be around 6,000, 6,500 sort of number in terms of weighted average realization till some time back. And we gradually moved to almost around INR 10,000 per sq ft sort of number. And even in launch pipeline, I mean, the way you're guiding in terms of GDV potential seems that it's mostly INR 10,000-INR 12,000 per sq ft sort of number. So is it that, I mean, what part of this, the shift that we've seen from INR 6,500 - INR 10,000 would be because of the organic price appreciation that you would have experienced in the market?
And how much of this would be essentially because of the change in the product? And is it, I mean, fair to assume that we moved up, I mean, in terms of the product that we offer now compared to what we used to offer, let's say, three, four years back?
Yeah. So if you look at the quarterly APR trend over the last couple of years, as you mentioned, it used to be around INR 6,000. Even as recently, I'd say just five quarters ago, it was more like INR 7,000. In terms of the like-to-like price change, it's moved from about INR 7,000 to around INR 9,000-INR 9,500. So the typical mid-segment or slightly upper mid-segment to sell is around an average of INR 9,950. Again, that can change depending on which sub-market you're looking at. But in terms of the product itself, product change moving into more premium and luxury category projects, I think that is where we are seeing the shift go beyond and upwards of INR 10,000 on an average. So Icon where the average ticket where the average price per sq ft is INR 10,000, that is going to contribute. Some of the Insignia is also north of INR 12,000.
So that's all causing the average to increase much above INR 10,000. And I think it's also a contribution of which are the projects that are selling and which ones get launched. So I think in the next few quarters, we should still see average price realizations above INR 10,000 or so.
Sure. In the near term, would you want to kind of go even more premium? I mean, let's say even beyond Icon, which is where we are, you'll still get to have some more movement in the average realization. And generally, I mean, what we get to have from the market is essentially people are saying that it's difficult to be able to find quality contractors. So is it a conscious decision on our part to kind of balance between volumes and value? You don't intend to take up more volumes. I mean, a part of the growth also needs to come from value, which is where you'll be able to kind of optimize construction, even if there is, let's say, some dearth of contractors in the market. I mean, how should we see it?
I mean, when you say 15%-20% sort of growth, would it be a function of more volumes than value or more value than volumes?
So I would say that, see, we want to play across all segments in the residential space. We'll go where the opportunity is presenting itself. If in future there was affordable housing, we would look at that too if there was opportunity there. But currently, there is a lot of demand in terms of premiumization of consumer demand itself, whether real estate or any sector. So that's why we are capitalizing on this trend. We are open to any kind of opportunities, including higher-priced products than say a Brigade Icon in Chennai. We just need to find the right land parcel and put the right product in that situation. But we do see the maximum amount of demand coming from mid-segment, whether that's just starting to skew towards upper mid-segment, as we're seeing today, then that's the focus that we have.
But I want to reiterate that we are not sort of boxing ourselves into one product or the other. In residential, we're open to opportunities across the space, and I think that's the best approach for us. As we're already looking only at three markets in Bangalore, Chennai, and Hyderabad, we'd like to play across the entire residential spectrum.
Sure. And on the front, because I mean, we're almost there, there's hardly any space left. I mean, any thoughts on the way the demand is, the inquiries or LOIs? I mean, if you would share your thoughts on how we are engaging the clients for the area that we intend to kind of lease out.
Yeah. So I think that's a relatively new market for office. We are one of the first projects there to get OC. The Tower B is one which we have included under the real estate segment because we've kept it for sale. We've seen very good traction from an end-user customer in the local domestic market, and a lot of the people using the space are from our domestic companies wanting to upgrade their office spaces. So we're getting a very healthy rate of about higher than INR 10,000 a sq ft, which is good for that market. So we kept for sale because of the demand for it. And the Tower A, we have kept aside for leasing. So we plan to finish one tower before we move on to the next.
But if the demand for purchase and owned offices continue, we at the right time might consider even putting Tower A under the sale part of it.
Sure. And just one last, if I may please. On the CapEx side, I think the slides suggest we still have around INR 700-800 crore to go on CapEx, the balance amount, which is yet to be kind of spent from our side. And the launch pipeline gives us a number of almost around 3 million sq ft that we intend to launch. I mean, let's say around INR 1,500-odd crore with incremental CapEx. Given the fact that we still have some more CapEx to go, so fair to assume this three would be spread out. We won't get to have this entire thing come to a decision itself, which is where suddenly the CapEx pipeline would go up from INR 700-INR 800 to INR 2,000-INR 2,100-odd crore sort of number. Would you want to phase this out or?
Yeah. The CapEx are typically phased over 3-4 years.
Okay.
Yeah. Whatever is mentioned, especially in the upcoming launches, that will be phased out over three to four years over the course of the development of the project.
Okay. Sure. So if you get to have the permission, this entire 3 million sq ft could come to the market, and you would start construction on the entire three itself.
Yeah. Yeah. That's the intent.
Sure. Thank you, and all the very best for future.
Thank you.
Thank you.
The next question is from the line of Abhishek Khanna from Kotak Securities. Please go ahead.
I wanted to check what is the share of your attributable pre-sales into Q? I think you not shared that number in the presentation. So what is that number out of INR 1,820 crores?
Sorry, can you just repeat that?
Share of?
I think what is the share of your attributable pre-sales in 2 Q of the INR 1,820 crores that you've done? What is your attributable share?
So we had done okay. Sorry, I didn't fully get your question, but about INR 1,800 crores in pre-sales, about 75%-80% of that would be BHS.
Sure. Second, on the commercial portfolio, your EBITDA has improved significantly in the last three, four quarters. One thing that I wanted to check, when you say 95% is the occupancy, I would assume you're referring to the committed occupancy, right? What would the actual occupancy be like? And when we're speaking of these INR 2.9 billion of rentals that you got in 2Q, is almost all of that coming in on the 95% of the portfolio?
The occupancy that we are referring to is the current operating portfolio. Does it include some of the projects like Twin Towers and Padmini, which have not yet been capitalized?
So all 95% of this is giving you rentals as of 2Q? Or do you expect this INR 2.9 billion to pick up further?
No, no. That's right. It's the same thing.
Good.
So are you saying it's a full potential? Are you saying it's a full potential achievement? That's what you're saying?
Yeah. Have you started getting rentals for all 95% of the occupied area, or the rentals are yet to commence for some of them?
Yes. We are getting rentals for all 95% of it.
Perfect. And the last one, when you referred to delays in getting approvals, was it primarily pertaining to the general elections, or was there something else also that was happening in any of the cities or locations that you're present in?
It's a combination. Elections have played a part, whether it's the state elections in some of these states or whether it's the central elections. There have also been changes in resources, changes in committees, etc., that have taken time to be sort of reinstated. So all of that we are hoping is now past us and that we will see more approvals come through in the course of the next two to three months.
Perfect. So it was all largely election-related, state or general, which you think is largely behind you. Perfect. That's all from my side. Thanks a lot.
Thank you. The next question is from the line of Biplab Debbarma from Antique Stock Broking. Please go ahead.
Good afternoon, everyone.
Sorry to interrupt you, sir. I would request you to please use your handset.
Actually, I'm using my headset.
So we can't hear you.
Hello?
Yes, sir. I would request you to speak a little louder.
Okay. So good afternoon, everyone. Season's greetings to you all. My first question is on the Chennai market. So I'm seeing a lot of traction in Chennai market. Are you gaining market share in Chennai, or is the Chennai market itself growing?
So I would say it's both. The Chennai market, I think, has long been overlooked. Starting from even pre-COVID, both our projects, Brigade World Trade Center Chennai, the Residences at Brigade World Trade Center Chennai, as well as Brigade Xanadu, have already started to do extremely well. And that's also why we started focusing on residential there a little bit more. So market overall has increased absorption, but also Brigade has been able to identify good land parcels, and we expect good absorption of our launches as they come up in the next couple of quarters.
Okay. That's great. And just wondering in terms of demand in Bangalore, so of the projects you launched in Bangalore in first half of FY 25, what percentage has been sold so far? Ballpark number, just trying to understand. For example, 50%, 60% has been sold till date or lesser than that. Just trying to understand whether the demand, if we compare to, say, FY 25, is the same or not.
Yeah. So we are not seeing any demand-related issues. We've launched very different types of projects in the first half of the year, especially in Bangalore. We did launch Brigade Insignia, which is a little more premium. So there, we have sold about 30%-35% of the project already since it launched in the first half of the year. The other projects that have launched have all been sort of mid-segment or so. So there also, we've seen good traction. Considering it's only been 6-7 months, we've sold around 40%-50% of the inventory. So we're quite happy with the progress, and we expect demand to continue to be strong even with the upcoming launches.
My third and final questions, basically, assuming that approvals are not an issue. Let's be optimistic. If that is the case, there are no challenges in getting approvals. I'm just trying to understand what would be the four, five key projects there in the pipeline in the second half, like one you mentioned in Hyderabad and Chennai and a couple of projects in Bangalore. Just if you could give us a breakdown of four, five projects, key projects, and their GDV, launch GDV in the second half of FY 25.
See, we are around 3 million sq ft of launches for Chennai, so a few quarters. That's about 3 million sq ft. I would say the GDV there would be around INR 3,000 crores, assuming an approximate pricing of INR 10,000 or so. Maybe that's a little more. For Hyderabad, we have a 2 million sq ft project launching. There I would expect the GDV to be around INR 2,400 crores there. And then here also, we have around, say, 2 million - 2.5 million sq ft of projects, which again, I would value at around INR 10,000 a sq ft for Bangalore as well. So in that sense, these are the approximate numbers that could be coming up, but we don't necessarily want to mention project names.
Okay. That's fine. So 3 million sq ft we expect in second half. 3 million sq ft in Chennai, we expect in second half of FY 25, or this would be over the period of the second half of FY 25 and FY 26 kind of thing?
Yeah. In the next same matter of three quarters. Maybe two quarters. Say three quarters. Yeah.
Okay. Thank you. Season's greetings to you all.
Thank you. Ladies and gentlemen, you may press star and one to ask a question.
[In launch, Morgan].
As there are no further questions from the participants, I would now like to hand the conference over to Ms. Nirupa Shankar , Joint Managing Director, for closing comments.
Good evening, everyone. Before we close, I just wanted to make one clarification to Abhishek's question from Kotak Securities. I think the hard option that we have has not yet started yielding rental at Brigade Tech Gardens. So that should yield about another INR 40-INR 50 crores per annum in terms of the rental. Okay. So in terms of the closing remarks, I'd like to share a couple of other highlights that are non-financial in nature. The 108-bed St. John's Medical College Hospital at Brigade Meadows, a unique collaboration between Brigade Foundation, which is Brigade Group's not-for-profit trust, and St. John's National Academy of Health Sciences, opened its doors on November 5th.
This hospital is designed to provide affordable, accessible, and quality healthcare to the other people of South Bangalore, to the people of South Bangalore. Furthermore, we will be starting construction of a new foundation with St. John's in our 50 acres township, Brigade Eldorado. We recently also laid the foundation stones for a memorial dedicated to the enduring legacy of Mahatma Gandhi in Chikmagalur. The World Trade Center, Chennai, is now a premier accredited member of the World Trade Centers Association, New York, with the highest level of certification from WTCA for a World Trade Center. WTC Bangalore is also a premier accredited member since 2023. Out of 320 World Trade Centers globally, only 17 have attained this premier accredited status so far, and this includes our two World Trade Centers.
Some of the other accolades and awards received over the last few months, Brigade Enterprises Limited has been recognized among India's Top 50 Best Workplaces for Millennials in 2024. Our Chairman, Mr. Jaishankar, was honored with the Lifetime Achievement Award by CNBC Awaaz Real Estate Awards. Additionally, he was also honored with the Real Estate Visionary of the Decade Award by Hurun India and GROHE. Happy to add that Pavitra and I have been recognized by Business Today as the Most Powerful Women in Business 2024. Our projects, Brigade Trade Centre Kochi, won Sustainability Awards at the Society of Energy Engineers and Managers SEEM 2023. We also received two awards at the fourth edition of the Sustainability Summit 2024 for Best Sustainable Initiative of the Year, and Brigade Cornerstone Utopia won Residential Project of the Year at the GRI Awards 2024.
On that note, we would like to conclude this quarter's earnings call. Thank you all for joining and taking time to hear from us today.
On behalf of Brigade Enterprises Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.