Ladies and gentlemen, good day and welcome to the Q4 FY 2024 earnings conference call of Brigade Enterprises Limited. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing star and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. M.R. Jaishankar, Executive Chairman. Thank you, and over to you, sir.
Thank you. Good afternoon, ladies and gentlemen. Welcome you all to the Brigade Enterprises Q4 financial year 2024 earnings call. I'm joined by our Managing Director, Ms. Pavitra Shankar, Joint Managing Director, Ms. Nirupa Shankar. Our Executive Directors, Mr. Roshin Mathew, Mr. Amar Mysore, and Mr. Pradyumna Krishnakumar, also by our CFO, Jayant Manmadkar, who's quite new, and also other members of the senior management team. I'm very happy to say that all verticals of the company contributed significantly to our growth in financial year 2024 on the back of robust demand. With a strong pipeline of 22 million sq ft of ongoing projects and at around 16 million sq ft of upcoming projects, we are confident of sustained performance in the coming quarters as well.
We continue to focus on Bangalore, Chennai, and Hyderabad for suitable land parcels that are at par with our quality standards and our customer-first focus. Coming to the real estate, segment, the favorable momentum in the Indian residential market continues, and the last quarter of financial year 2023-24 witnessed sales at an all-time high across all metro cities put together. In this context, our overall real estate business has also outperformed previous years, with 7.55 million sq ft area sold at a value of over INR 6,000 crore, including landowner's area share. Collections from the segment was a healthy INR 4,243 crore in financial year 2024.
The average realization of units sold during the year has gone up to INR 7,970 per sq ft, which is a 23% increase over the previous year, or 31% increase for the same quarter previous year. Customer demand is strong, and there is willingness to pay for larger units, higher specifications, and access to a more premium lifestyle. We have a pipeline of 12.61 million sq ft of new residential launches lined up across the cities of Bangalore, Chennai, Hyderabad, and Mysore, which will further consolidate our position in FY 2024-2025. As regards leasing subsegment, first I'll talk about office. Our office segment witnessed a strong performance in financial year 2024, with net office space absorption of more than 1 million sq ft in FY 2024, of which 0.2 million sq ft was achieved in Q4.
With 97.5% occupancy across its leading portfolio, Brigade ranks among the top developers in Bangalore, with 7% market share for 2024. Brigade Tech Gardens has been in the spotlight, achieving 100% occupancy with multi-tenants despite the shrinking SEZ market post sunset of the regime. The office demand scenario is expected to be robust for financial year 2025, and Brigade is poised to take advantage of this momentum. Demand is being driven by medium- and large-sized office space requirements, dominated by players from automobile, technology, engineering, and manufacturing sectors. As regards to retail, during the quarter four financial year 2024, footfalls across our three malls grew by 10%, despite multiplexes across the malls clocking only 4% growth year-on-year due to limited movie content. Space is strong, especially by F&B players, family entertainment centers, and fashion lifestyle brands.
Across our entire living portfolio, we clocked a revenue of INR 937 crore for the financial year 2024, which is a 25% year-on-year growth. Collections remained stable at 99% during the financial year. Now I'll talk about hospitality. In quarter four, financial year 2024, our hospitality SBU demonstrated consistent growth, witnessing improvement across both ARRs and occupancy percentages. Revenue surged by 13%, primarily fueled by an increase of 11% in occupancy and ADR of about 10% compared to Q4 2023. There was a revenue, there was revenue year-on-year growth of 15%, fueled by ARR growth of eight percent and occupancy growth of 5%. There is promising growth in core revenue streams, particularly in F&B revenues. This brings me to the end of our operational highlights.
CFO, Jayant Manmadkar, will now take you through the financial highlights. Thank you very much.
Thank you, and good afternoon. On behalf of the company, we welcome you to the earnings call for Q4 FY 2024. Chairman has already shared operational highlights. I will be sharing key financial highlights for the quarter and financial year 2024. We are happy to share that Brigade Group has reported its highest ever real estate sales of 7.55 million sq ft for the financial year ended March 2024. It also, it is also the highest ever sales for the quarter with 2.72 million sq ft. To start with, the company's update for quarter four FY 2024, the real estate segment clocked a turnover of INR 1,390 crore, an increase of 143% over Q4 FY 2023, with an EBITDA of 20%.
The leasing segment clocked a turnover of INR 247 crore, an increase of 32% over Q4 FY 2023, with an EBITDA of 71%. The hospitality segment clocked a turnover of INR 126 crore, an increase of 13% over Q4 FY 2023, with an EBITDA of 36%. The consolidated turnover, consolidated revenue for quarter four FY 2024 stood at INR 1,763 crore, an increase of 102% over Q4 FY 2023. Consolidated EBITDA for Q4 FY 2024 stood at INR 493 crore, an increase of 113% over Q4 FY 2023. EBITDA margin stood at 28%. Consolidated PAT after minority interest for Q4 FY 2024 is INR 206 crore.
We achieved highest ever collections in Q4 FY 2024, amounting to INR 1,838 crore, an increase of 26% over Q4 FY 2023. Net cash flow from operating activities stood at INR 589 crore, an increase of 35% over Q4 FY 2023. Coming to the group's performance for FY 2024, the real estate segment clocked a turnover of INR 3,662 crore, an increase of 51% over FY 2023, with an EBITDA of INR 510 crore. The leasing segment clocked a turnover of INR 938 crore, an increase of 25% over FY 2023, with an EBITDA of INR 684 crore. The hospitality segment clocked a turnover of INR 464 crore, an increase of 18% over FY 2023, with an EBITDA of INR 168 crore.
The consolidated revenue for FY 2024 stood at INR 5,064 crore, an increase of 42% over FY 2023. Consolidated EBITDA stood at INR 1,362 crore, an increase of 39% over FY 2023. EBITDA margin stood at 27%. Consolidated PAT after minority interest for FY 2024 is INR 452 crore, an increase of 55% over FY 2023. We achieved highest ever collections for the year amounting to INR 5,915 crore, an increase of 9% over FY 2023. Net cash flow from operating activities stood at INR 1,575 crore. Coming to the debt and liquidity position, we continue to have an adequate liquidity and undrawn credit lines for financial institutions to support growth plan.
Our average cost of debt has been contained at 8.82% per annum . Gross debt of equity stood, gross debt of entity stood at INR 4,663 crore. The cash and cash equivalents were INR 2,073 crore as on March 31, 2024. Consequently, company's net debt outstanding as of March 31, 2024, was INR 2,590 crore, out of which BEL share is INR 1,908 crore. We continue to have zero residential debt given the higher sales and collections. Almost 82% of the debt pertains to the commercial portion, which is backed by rental income. Debt-equity ratio stood at 0.62 as of March 2024. I will hand it back to the moderator for questions.
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 touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. The first question is from the line of Karan Khanna from Ambit Capital. Please go ahead.
Yeah, thanks for the opportunity, and, congratulations to the team on ending the year on a strong note. My first question, if I look at slide number 9 of the investor presentation, I see that the pre-sales CAGR over the last 4 years, this has been largely driven by volumes, at 15%, while the pricing growth has only picked up in FY 2024 and stood at around 9%, CAGR over the period. Now, as we look at next 3-4 years, of evolution for your real estate portfolio, and given the robust launch pipeline that you have in FY 2025 and FY 2026, how should one think about the growth? Will it largely be driven by volumes, or, because of premium portfolio, there's potential for pricing growth as well?
Hi, good afternoon, Karan. Yeah, sorry. Yeah, so regarding our portfolio, we are primarily looking at it more as a growth in area, is how we look at it in Brigade. So when we plan, you know, CAGR or look for any sort of, future growth, we are typically looking at area sold. But but however, given the pricing appreciation that we've seen as well, we do expect to see the the ARR and also the revenues, grow substantially more than what the area projections are. So while we continue to peg our growth based on area, we expect to see, an additional amount come in, in terms of the revenue growth.
I'm not sure if that was clear, but, given the markets that we're in, we still intend to have to launch larger and many more projects in order to keep seeing the area growth.
Sure. Just a follow-up to that, Pavitra. Of the total, 7.5 million sq ft area sold in FY 2024, is it possible to know the breakup, in FY 2024 and, sales from the existing inventory?
Yeah. So in FY 2024, including Q4, so since predominantly most of our launches came in, in Q4. In Q4, the amount of sales, by contribution from area was around 45% and value, 50%. And similarly, for the financial year as well, it's about that much. Area is around 46%-47%, and by value, it's around 51%.
Sure.
From new launches.
The number... Yeah, the number I was trying to get to, Pavitra, is, let's say you sold 7.5 million sq ft of area in FY 2024. So what could be the breakup of this? How much of this was contributed from new launches that you did in FY 2024? And how much of this was from your existing inventory that showed on the balance sheet as of March 2023?
So that's what I mentioned, so around 50% of the area sold in the financial year was from new launches. And maybe another way to put that forward is also, we launched around 6 million sq ft in the course of the financial year. Of the 6 million sq ft that we launched, we've already sold 68% of whatever was launched in the financial year.
Sure. This is helpful. Yeah.
Okay.
Sure, this is helpful. That, that clarifies. Second question, if I look at, you know, Brigade Insignia, that's a project that's expected to be launched in next few months. Can you talk about the interest that you're seeing in terms of the EOIs so far? And if the project sees a good success, would it pave the way for acceleration in launches in the same vicinity? And, do you have enough land to sort of accommodate potential future projects, triggered by this one's success?
Yeah. So Insignia, so far, I mean, we just got the RERA about a week or so ago. The EOIs are looking quite good. It's, it's quite a hefty ticket size for Bangalore. It's coming in around INR 3 crore-INR 4 crore ticket size. So from that perspective, the market itself is a little smaller for that kind of transaction, but we're still pretty positive. We just had a channel partner meet yesterday, and all indications are pretty good on that front. Also, this project is heavily anticipated since there really isn't any kind of high-quality stock from Hebbal to the airport. So we're quite positive, but we're also just looking at what is the best strategy for this project. I don't think it will be fully driven by the novelty.
We want to make sure we are getting the right pricing for this project as well. In terms of the overall market, yeah, I mean, we're positive about this sector. This part of North Bangalore, it's been a long time coming, but now with all the infrastructure in place, I think this is where predominantly we are seeing the growth in our portfolio and also across the competitors as well.
Sure. And if you talk about your annuity and the hotel portfolio, you know, for the hospitality portfolio in particular, what kind of partnerships are you looking at, given you've spoken about this in the past as well? And in the most immediate quarter, we've seen a relatively sluggish, or rather, I would say, a muted rate growth in the Q4 versus industry expectations overall. So what kind of ARR one should pencil in for the industry for FY 2025?
Yeah. So for the hospitality portfolio, you know, we, as mentioned in the presentation, we are doing a few new launches, or we are launching few projects this year. Both two of the projects will be with Marriott, so Fairfield by Marriott, and one is with Holiday Inn or IHG Group. Last year, we had mentioned that we are setting resort in in Chennai, and that is partnered with the Grand Hyatt. And we will be doing another well in Brigade Metropolis in Hyderabad, and that will be an InterContinental Hotel brand. So we are, we've tied up with all these companies for that, for those hotels. And in terms of the growth in the, we saw a 10% growth in the average realization, and I expect-...
Continue for the year ahead, because occupancy has also improved. So if you look at the RevPAR, from a RevPAR perspective, the growth has been 15% or so. But we are expecting at least 10% growth in the ARR and maybe a slight increase in the occupancy because they're already trading at around 75%.
Sure. Yeah, this is helpful. And lastly, on business development, you spent close to INR 2,000 crore in FY 2023 and 2024, towards land acquisition. So how should one think about this number in FY 2025 and 2026?
Yeah. Hi, Karan, Pradyumna here. So, we have about INR 900 crore of cost to be incurred as far as our land bank, which is already committed. Naturally, you know, we're looking at adding quite a bit in Bangalore, Chennai, and Hyderabad. So across these three cities and maybe a couple of more Tier 2 cities, we should be spending more than what we did last year.
Great. This is helpful, Pradyumna. Thank you, team, and all the best.
Thank you.
Thank you. The next question is from the line of Pritesh Sheth from Motilal Oswal. Please go ahead.
Yeah, hi. Thanks for the opportunity, and, you know, congrats on strong numbers. Firstly, if you can provide a split between split of these launches, 12.6 million sq ft, between the three markets. And, you know, just in case of Bangalore, you know, most of the sales this year came from that, you know, 7.5 million sq ft. You know, do you think, you know, additional, there would be additional growth coming in in Bangalore, or, you know, it's, Chennai and Hyderabad, which would be contributing to this, volume over the next, you know, couple of years while you ramp up launches in these two markets?
Hi. So yeah, of the 12.5 million, or 12.61 million, that we've planned for FY 2025, 7.5 million sq ft is in Bangalore, 3 million in Chennai, and 2 million in Hyderabad. So that's what we have planned for the upcoming year. Even in our land bank and over the course of the coming few years, about 57% of that is in Bangalore and 33% in Chennai. So we have been steadily adding to our land bank in Chennai. Hyderabad is also where we're looking aggressively. But in the current land bank, this is sort of where we are seeing the geographical distribution.
So, given the market dynamics in Hyderabad, whatever supply also we are putting into Hyderabad, we generally expect to see that, move pretty quickly as well. Same goes for Bangalore. For Chennai, we are yet to sort of, see, maybe how quickly we can move the, inventory. Again, different projects have different strategies. Maybe we will look for, realization versus velocity, depending on each project. so yeah, this is sort of the picture going forward. We do have a couple of, you know, new projects coming up in Mysore and so on, but these are very small and don't necessarily add to the scale.
Right. And on, you know, on the question on market contribution, so Bangalore, you do expect, you know, equal amount of volume growth that you are expecting in Chennai, Hyderabad, or, you know, growth should be lower there and Chennai, Hyderabad would, you know, obviously add to the growth?
So overall, you know, we still expect Bangalore, if you only took Bangalore by itself, you would still see substantial growth. But since the overall pie is increasing, we would probably see Bangalore as a percentage of the total sales next year, maybe come down. In the past year, it was-
Right.
90% or more from Bangalore, because of the kind of inventory that we had. But considering we'll be launching at least 5 million sq ft in these other 2 markets, then I expect the share of Bangalore in terms of total sales to reduce then from a 90% in FY 2025.
Sure. And with this launch of ramping up, right, your volume growth guidance earlier have been around 15%-20%. Would you still stick to that guidance or, you know, with this 12.5 million sq ft, you know, we could do much higher in terms of growth over the next couple of years?
Yeah, see, I mean, that's always the intent. It's always dependent on approvals. I would say today we have the projects in the land bank to launch. It is about approvals coming in and maybe getting them substantially early on in the year, so that we can make those kind of growth numbers. Yeah, that said, the pace is only getting larger, so then naturally, to keep growing at that rate is also, you know, does become more and more challenging. But we do have the right projects in the right locations, so I'm quite positive that we'll be able to meet those growth numbers. It's a question of, does it come in the same financial year, per se, or does it go a quarter here or there?
Any slippage you expect in this 12.6 million sq ft, like we had last year with Chennai, Mount Road? Or you are confident enough to, you know, see through all these launches in this year itself?
So yeah. So we are confident of it. I don't think we expect any slippage.
No, no, we are launching now, no? Over.
So we don't expect any slippage in terms of launches when compared to what you were referring to last year. So we will launch, say, the Mount Road project in this quarter itself. And the other projects also, which we lined up in Q3, Q4, et cetera, we are confident of having it launched in the same period.
Sure. And just one last on, you know, commercial launch pipeline. You know, we saw higher numbers last quarter, that's just come down to 3 million sq ft versus 5.5 million sq ft last quarter. It just, you know, those project launch have got pushed out or any change of plans, you know, in those, or, you know, just your comment on that.
Yeah. So in terms of how we looked at our launch pipeline, I think we just got a little more clear in terms of how we are going to document commercial launches in our numbers. For residential it's very clear. You know, like as soon as we expect RERA to happen and it hits the market for sales, that's what we deem as launches. For commercial, we are now looking at it as wherever construction will begin. So it's, I think previously the numbers were just sort of including what was there in our land bank, and what had recently been acquired in that land bank. So now we are a lot more clear in terms of when design approvals, et cetera, will happen and when the construction can begin.
So whether that project eventually goes for lease or sale, it doesn't matter. For commercial, we'll be showing launches as when the construction begins. So that's why those numbers have finessed a little bit this quarter, but they are still in the land bank and they will still be following the same timelines per se.
Sure. Got it. That's helpful. I have a couple of more, but I'll join back with you for the question. Thank you. All the best.
Thank you.
Thank you. Ladies and gentlemen, if you wish to ask a question, you may please press star and one. The next question is from the line of Prem Khurana from Anand Rathi Share and Stock Brokers. Please go ahead.
Yeah. Hi, thank you for taking my questions, and congratulations on good set of numbers. So, when I look at our presentation, what I observed and converted a part of our Twin Towers from rental asset to kind of a thing that we want to sell, Tower B now. And why would the change be there? Because I mean, we've been leasing seriously when I look at over the last two years, every year, we are able to do more than 100 million sq ft of area. And the outlook again seems to be pretty good for leasing environment, but seems as if the part of the tower and-
I'm sorry, you're not too clear, so if you can just, little bit more louder.
Is it better now?
Closer to the mic.
Is it better now?
Yeah, better slightly.
Yeah. So I was asking, I mean, when I look at our Twin Towers project, and they were supposed to be 3 towers, right? We still see A and C as a part of the CapEx pipeline, but then Tower B seems to have been converted as meant for outright sale. So why would this be the case? I mean, given the fact that we've been leasing seriously good over the last 2 years, on an average, we are able to lease out almost 1 odd million sq ft of area. And, the outlook, again, seems to be pretty good for leasing, right? So why would you convert...
I mean, does it mean, I mean, you want to kind of somehow reduce capital intensity, get the money back to a certain extent, and then use that money to then have some more growth in some of these other verticals?
Yeah. See, as developers all along commercial projects, we have seen both for leasing and, you know, sale as real estate thing. Historically, if you see also, we have done maybe 60% of the commercial buildings on sale, and only about 40% is leased. So in this case also, you know, for all our projects, we will see what the demand, where the demand lies. And there is a healthy demand for end users who want to buy. So one tower, we have kept it as for sale, and these things we need to decide before the occupancy certificate is received. There are various other issues connected with GST, et cetera. Based on that, you know, we reclassify this one tower for sale and another tower for leasing.
Sure. And so where are we in terms of, I mean, leasing inquiries for Twin Towers? Have you started engaging with the clients? Because, I mean, it's nearing completion now. So what sort of interest do we have in place?
It is, yeah, it is happening. It is slightly less than the desired pace, put it that way.
There's also a lot of end users-
Yeah
that are looking at in that market.
Yeah.
While there are RFPs in the market, you know, that particular Northwest Bangalore area, there are a lot of end-user driven requests, and that's also another reason why we decided to keep one tower for sale because of the end users.
Sure. Okay. And the second question was on our growth plans in resi. I mean, we've already become fairly large. I mean, as far as Bangalore is concerned, we will be one of the largest there now. And I'm not sure. I mean, if we have any more micro markets within Bangalore we're able to explore in terms of wherein, I mean, we've not been—we would not have been there, right? It seems as well the growth. I mean, and I think in your initial markets, when you said, I mean, the growth, large part of the growth that you envisage now would be because of Chennai and Hyderabad.
So, I mean, given this situation, I mean, is it fair to assume, I mean, a year down the line, I mean, you would have to start looking at, beyond Chennai and Hyderabad as well? Because to be able to develop any new market, generally tends to take you some time to be able to understand, acquire, experience with the first pilot project and then start building, more for future growth. So any, any, I mean, possible to share any any geographies that could be on your radar, I mean, in terms of wherein you would, you would want to go and try and build more in terms of portfolio, which would drive growth beyond Hyderabad and Chennai?
We are still focusing, as mentioned earlier, a large part to Bangalore, Chennai, Hyderabad, and we also have exposure to tier two cities, like Kochi, Mysore, and to smaller extent in Trivandrum and Ahmedabad. But if your question is saying are we expanding to Mumbai and other NCR, for the time being, no, not yet. And we need to see. As we have always felt, you know, we have not fully tapped the markets in Hyderabad and Chennai, which have got good potential. And within Bangalore we are, you know, tied up number of new projects, even a large office space thing near airport, like that, and industrial park. Some of these things will be announced at the appropriate time.
You know, that's how it is. I think these three cities have great potential. It's not that the others don't, as they may have bigger potential also, but we would like to focus on these three cities for the time being.
Sure, this is really helpful. And one last from my side. On the hospitality side, I think, I think we were planning to open a partner. So where are we in our efforts to be able to kind of get in a partner?
It is, I would say, work in progress. It is under various discussions. In fact, office, I mean, hospitality portfolio also, we are, we have big plans to increase and, for like even doubling of, the overall key count. So naturally, it requires a lot of additional funding, so we are looking at partners. It is bound to happen in at the right time.
Sure. And it's possible to confirm whether we're looking for a strategic partner or a pure play financial partner? I mean, would you want someone to be-
Those are all various options that we have before us. But as I said, the appropriate decisions will be taken by the board, based on various proposals we receive.
Sure, sir. Thank you. This is really helpful. All the very best, sir. Thank you.
Thank you.
Thank you. Participants, you may press star and one to ask a question. We have the next question from the line of Parvez Qazi from Nuvama Group. Please go ahead.
Hi. Good afternoon, and thanks for taking my question. Congratulations for the great set of numbers. Just a couple of questions from my side. First, of our ready projects that we plan to launch in FY 2025, the 12.6 million sq ft, what would be, let's say, the approximate GDV of these projects?
Hi, Parvez. We are thinking around INR 13,000 crore will be the approximate GDV at the top line.
Sure. And by when do we expect our Neopolis project in Hyderabad to get launched? Will it be in the first half or second half?
So we are pushing to make it happen in first half, so we're working towards that.
Sure. And lastly, for the 3 million sq ft commercial projects which are there in the pipeline, so are these all standalone projects, or do these also include some portion that we might want to do in, as part of our larger development in, Neopolis or Mount Road, Chennai?
Yeah. So INR 3 million that we've listed out there, Bangalore will be about 54%. We've also launched a project in Chennai, 8% of the INR 3 million. One project in Kochi, so part of our World Trade Center annex. So it's another tower to that. And also we are launching GIFT City. Hyderabad is not included in the launch for this quarter. So we've just mentioned INR 3 million in this. So I would say Bangalore, 54%, Chennai, 28%, 13% GIFT City, and 5% Kochi.
Sure. Thanks and all the best for future. I'll come back for more questions.
Thank you. Ladies and gentlemen, you may press star and one if you wish to ask a question. The next question is from the line of Pritesh Sheth from Motilal Oswal. Please go ahead.
Yeah, thanks for the follow-up. First is on commercial. Now that, you know, it's 97% leased out, including the hard option, how do we see our, you know, run rate in terms of rental, you know, at our share, rental or EBITDA, whatever you can provide?
Yeah. So the, you know, the rental, office rentals, FY 2024 was about INR 600 odd crore. In, FY 2025, we're expecting it to increase by about 16% or so, based on the kind of, leases that will start paying rent. So it should hit about INR 700 crore by end of FY 2025.
That would be the full potential of this portfolio, right?
Sorry?
That would be the full potential of this portfolio, right? Or is,
That is INR 700 crore. Full potential-
Okay.
Is at INR 700 crore.
Okay, got it. One last on, you know, collection breakup between on the segments, if you can provide that?
Total collection for the quarter is INR 1,836 crore. In that, residential is INR 1,327 crore. Commercial,
Sale is INR 33 crore, commercial lease is INR 179 crore, retail INR 59 crore, hospitality INR 170 crore, and PMS is INR 68 crore.
Correct. Just one, sorry, clarification. This full potential, INR 750 crore is our share or total share?
It includes GIC share. Our share would be about 500-odd crore of that.
Okay. And then retail rental is over and above this?
You're talking about office portfolio, correct?
Yeah, yeah. I was talking about office portfolio, and then there would be retail portfolio rental income over and above this, this income.
That's right.
Yeah. Okay, perfect. Thanks.
Thank you. The next question is from the line of Biplab Debbarma from Antique Stock Broking. Please go ahead.
Good afternoon, everyone. So my first question is on the realization. We saw a significant jump, almost 23% year-on-year growth in realization. Just wondering, what led to such jump in realization? Is it like, product mix is gearing towards more premium products or, same projects, seeing a significant jump in, selling rate?
Yeah. So actually it is more of the latter. It is the same kind of product, where we've seen the market ready to absorb a higher rate. So from the projects that we've been launching over the last couple of years also, we've been able to take up the initial launch rate that we would have maybe underwritten a couple of years ago. So our same mid-segment or upper mid-segment product has allowed us to increase the price in a Brigade portfolio by around 23%. Market may be a little less, maybe 15%-18%.
But going forward also, we are not only envisioning that we can continue to still take up the price for the mid-segment products, but Brigade itself is also launching a few upper mid-segment product, where the average realization will anyway be higher because the product itself is a little different.
Okay, that's good. And then, so what I saw is, last, this year in residential, you launched around 5.26 million sq ft of project, and last year also similar kind of launches, new launches in residential. And in terms of, volume-
Hello? You're not so clear. You're not clear.
Oh. So...
Hello?
Yeah.
I think please come closer to the mic and,
Yeah.
Speak clearly. No, no, please.
Okay, okay. I'll come back. I'll come back. Let me, let me... I'll come back, again.
Thank you. Ladies and gentlemen, if you wish to ask a question, you may please press star and one at this time. The next question is from the line of Biplab Debbarma from Antique Stock Broking. Please go ahead.
Is it better now?
That's much better.
Yeah, better now. Okay, okay, okay. So what I was saying that last year and this year, the new launches in residential is almost similar, INR 5.26 and INR 5.46 or something. Whereas the total absorption or the total sales in terms of volume this year has been significant, almost INR 7.55, last year it was around INR 0.6. That means around 70%-80%.
Sir, sorry to interrupt, but your line keeps breaking up in between-
Oh.
- toward the end, sir.
Yeah, I think I understood what you're saying, Biplab.
Yeah.
You're saying even though the launches are about the same, the sales numbers are much higher.
Yes, ma'am. Yes, ma'am.
I think that's a factor of... Yeah, it's just that the launches are getting absorbed much faster. It's a, it's a sign of the kind of consumer demand that there is for a branded player like us, for our product, for our, kind of pricing and design and all of that. Which is why I had mentioned, I had also mentioned earlier, that whatever we did launch in FY 2024, we've already sold 68% of that inventory. So in other words, even if we've launched a certain amount, we're able to sell whatever we've launched much faster. So therefore, you're seeing a higher absorption, even though in the last couple of years, the launches may have been similar numbers.
So, ma'am, that means you launched that 12 million or something million sq ft and see similar kind of growth in realization. The total sales booking grow to be much higher than 20 or 30%. That's what I'm trying to understand, whether we should see similar kind of absorption or not. That is what I'm trying to understand. So if the launches this year will be much higher, 12 million, and you already alluded the realization would see similar kind of growth. That means we would see more than 30% or so, expect a sales booking growth of more than 30% or so. Is that the kind of number we should be looking at?
We expect 30% growth this year. That's also because the kind of launches we are going to do now, as I mentioned, is also a much higher segment. We don't expect to sell out extremely premium product within a year of launching. So in those situations, we are more the supplier that is anyway slightly lower, so the value tends to be higher, right? So for that, we intend to achieve the highest possible price realization that we can get for that product, since it is a super premium product. And so in the coming year, whatever is the mix that we have, you know, we don't expect 30% growth over what you've seen this year.
Depending on when the launches hit the market, if they are large projects, then we can see a much higher, you know, volume coming into the financial year. If they come towards the end of the financial year, then the numbers will be a little different. So it's really very timing dependent, which is why I can't really give more clarity on maybe what to expect for the financial year.
That's great. That's good. That's all. Thank you, and all the best to you.
Thank you. Participants, you may press star and one if you wish to ask a question. Ladies and gentlemen, we do not have any further questions. Sorry, sir. We have one questioner who has joined the queue. The next question is from the line of Parvez Qazi from Nuvama Group. Please go ahead.
Hi. Good afternoon. Thanks for the follow-up. So one question for Pavitra. As you rightly said, we are looking at launching some premium, super premium projects this year, which, for which obviously the sales realization might be higher, but the sales velocity, especially at the time of launch, might not be as high as what was the case for us in FY 2024. So over a medium-term perspective, let's say over the next 3-4 years, I mean, how do we decide our strategy in terms of business development? Do we look for more premium projects with higher sales realization, or do we want more safety in terms of better sales at the time of launch itself, which then translates into better working capital for you?
At a company level, I mean, how do we make those decisions?
Yeah, Parvez, I think the best answer is we want to do both. I think it is, we have to look at both what can give us the volume from the portfolio standpoint, but also what can drive the realization. As we've always said, we are focused on Bangalore, Chennai, and Hyderabad. If someone is to compare the realization here with the Mumbai NCR, it's very different. Naturally, we want to grow our revenues as well, so we will still be looking for projects where we can increase the realization in the markets in which we play in.
We also think that overall there is a trend towards customers wanting more premium products, and the ability to purchase and, you know, the desire and the ability to go for premium product is definitely there, in line with GDP growth expected, in line with per capita income. So we want to capitalize on those trends as well. In these three markets, which is our area of focus, we intend to capture both the mid segment as well as the upper mid segment, but not focus only on premium products, because then we won't be able to scale. So I don't know if that has helped, but we definitely need to capture these two parts of the residential market, because that's where we see the growth in both volume and revenue.
Sure. Thanks. My second question is, I mean, on a rough cut basis, what would have been the geographical split of pre-sales for us in FY 2024? I mean, across the three major cities that we operate.
Yeah, in residential, it was about 92% was Bangalore. And, because our launches from Chennai and Hyderabad are coming into FY 2025, so I, in this past year, it was heavily from Bangalore itself. All of the inventory launched was in Bangalore, and most of the sales also came from Bangalore.
Sure. Lastly, a question for Jayant, sir. What would have been the contribution from BTG and WTC on the rental front in Q4?
So, during the quarter, the rental is about INR 55 crore.
Possible to-
Forty-seven crore.
Sorry, INR 55 crore is from?
Residential.
Oh, and 47 from WTC.
From WTC.
Sure. Thanks and all the best to you.
Thank you. We have no further questions, ladies and gentlemen. I would now like to hand the conference over to Ms. Nirupa Shankar, Joint Managing Director, for closing comments. Over to you, ma'am.
Thank you. Before we close, we'd like to just share a few other highlights. The 54th Annual World Trade Centers Association Global Business Forum was successfully hosted at the World Trade Center Bangalore. The first time the forum took place in Karnataka and only the second time in India. The World Trade Center Bangalore bagged two awards, Regional Member of the Year, Asia Pacific, and Global Member of the Year at this event, and it was widely participated by 200+ World Trade Center representatives from across the globe. Fourth is inaugurated a brand new medical facility called the Ramaiah Hospital at Brigade Orchards, a 135-acre township in Devanahalli. The hospital will serve not only the residents of Brigade Orchards, but also the people in the neighborhood.
The hospital will comprise 30 individual rooms and also provide primary, acute, urgent care services that are world-class quality. Brigade Group was recognized in the top 30 list of future-ready workplaces in India 2024 by Fortune India and CIEL HR. This recognition is based on six key assessments: culture and performance, innovation, resilience, nurturing, and sustainable drive. We attribute this success to our diverse and talented team. Pavitra has been elected to CII Karnataka State Council 2024/2025. As an office bearer, Pavitra will lead the CII Karnataka Environment and Sustainability Panel's Bangalore-centric initiatives. Her role will entail driving membership, engagement, advocacy, and strengthening ecosystem for collaboration and growth. Accolades and recognition we received in the last quarter are: Pavitra Shankar won Realty Personality of the Year at the Economic Times Real Estate Awards 2024.
Brigade Komarla Heights won bronze at the CII EHS Excellence Awards 2023 for our commitment to environmental health and safety practices. World Trade Center Chennai won an award for ESG at the iNFHRA Awards 2024. World Trade Center Chennai was also declared a winner in the safety and security category as well. Additionally, the World Trade Center Kochi won an award for return to office. It also secured silver in safety and security at the iNFHRA Awards 2024. So that's a wrap for our earnings for this quarter. Thank you so much for joining, and see you next time.
Thank you. On behalf of Brigade Enterprises Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.