Brigade Enterprises Limited (NSE: BRIGADE) Q2 2025 Earnings Call dated Nov. 14, 2024
Corporate Participants:
Pavitra Shankar — Managing Director
Jayant Bhalchandra Manmadkar — Chief Financial Officer
Pradyumna Krishna Kumar — Executive Director
Nirupa Shankar — Directors
Analysts:
Parikshit D. Kandpal — Analyst
Saksham Mongia — Analyst
Parvez Akhtar Qazi — Analyst
Prem Khurana — Analyst
Abhishek Khanna — Analyst
Biplab Debbarma — Analyst
Presentation:
Operator
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 Enterprise Limited. [Operator Instructions] 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.
Pavitra Shankar — Managing Director
Thank you. Good afternoon, and welcome to the Brigade Enterprises Q2 FY ’25 Earnings Call. I am Pavitra Shankar, Managing Director. I’m joined today by our Joint Managing Director, Ms. Nirupa Shankar; Directors, Mr. Roshin Mathew, Mr. Amar Mysore and Mr. Prasad; our CFO, Jayant 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 presales of 1.68 million square feet valued at INR1,821 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 INR1,937 crores, underlining the strong execution of our ongoing projects and customer confidence in our offering. The market continues to demonstrate a healthy appetite for both newly launched projects, and we are optimistic about the upcoming quarters. 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 98% occupancy for our operating portfolio of 8.7 million square feet. 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 INR292 crores in revenue and INR209 crores in EBITDA, demonstrating the resilience of the Office segments 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 30, 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 square feet, 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. Jayant Manmadkar, who will take you through the detailed financials for the quarter.
Jayant Bhalchandra Manmadkar — Chief Financial Officer
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 INR1,138 crores versus INR1,408 crores for the same quarter last financial year. The consolidated EBITDA for quarter 2 FY ’25 stood at INR358 crores versus INR366 crores in Q2 FY ’24. EBITDA margin for Q2 FY ’25 stood at 31%. Consolidated PAT was INR115 crores as compared to INR113 crores for the same quarter last financial year. Consolidated PAT after minority interest stood at INR119 crores compared to INR134 crores in Q2 FY ’24.
The Real Estate segment clocked a turnover of INR727 crores with an EBITDA of 15% during the quarter. The Leasing segment clocked a turnover of INR292 crores with an EBITDA of 72% during the quarter. Real Estate collections for quarter 2 FY ’25 was INR1,454 crores versus INR992 crores in Q2 FY ’24, an increase of 47%. We achieved highest ever quarterly collections of INR1,937 crores in Q2 FY ’25 as against INR1,439 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 INR2,251 crores versus INR2,093 crores in the same half year ending last financial year, an increase of 8%. The Real Estate segment clocked a turnover of INR1,460 crores with an EBITDA of 14% in H1 FY ’25 as against INR1,434 crores with an EBITDA of 11% in H1 FY ’24. The Leasing segment clocked a turnover of INR554 crores with an EBITDA of 74% in H1 FY ’25 versus turnover of INR444 crores with an EBITDA of 74% in H1 FY ’24. The consolidated EBITDA for H1 FY ’25 stood INR686 crores versus INR572 crores in H1 FY ’24, an increase of 20%. EBITDA margin stood at 30%. Real Estate collections increased by 39% to INR2,643 crores in H1 FY ’25 from INR1,908 crores in H1 FY ’24.
Overall, collections for H1 FY ’25 was at INR3,544 crores versus INR2,683 crores in H1 FY ’24, an increase of 32%. Net cash flow from operations stood at INR1,100 crores in H1 FY ’25 as compared to INR719 crores in H1 FY ’24, an increase of 53%. Coming to the debt position and its breakup. Gross debt of the company stood at INR4,640 crores as on September 30, 2024. The cash and cash equivalents stood at INR3,784 crores as on September 30, 2024, which includes INR1,356 crores out of QIP funds. Consequently, the company’s net debt outstanding as of September 30, 2024, is INR857 crores. Net debt to equity ratio stood at 0.15. With the successful issue of QIP, which was oversubscribed by 10x, continued robust cash flow and available debt lines, the company has strong liquidity provision to meet with its expansion plans.
I will hand it back to the moderator for questions. Thank you.
Questions and Answers:
Operator
The first question is from the line of Parikshit from HDFC Securities.
Parikshit D. Kandpal
My first question is on the approvals in Karnataka. So we have been hearing in other calls also from your peers, there has been delays in getting the project approvals. So if you can update us.
Pradyumna Krishna Kumar
Parikshit, Pradyumna here. I can’t hear you too well. It’s not too clear.
Parikshit D. Kandpal
Is it better now?
Pradyumna Krishna Kumar
Yes. Yes. Please go ahead.
Parikshit D. Kandpal
So, my question was on the approval process in Karnataka. There has been issues of late. I mean, 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?
Pradyumna Krishna Kumar
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 square feet 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. It’s — 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 plant sanctioned out and the RERA approval out is taking a little longer than usual or anticipated.
Parikshit D. Kandpal
Okay. But so when I look at your numbers, the demand is very strong, which is like in the presales of INR1,800 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 which were — so if you can highlight what were the new launches, what was the sales contribution from new launches, what was sustaining sales? And what is the pipeline for Q3?
Pavitra Shankar
Yes. Yes. So in Q2, we had just a very small proportion from completed, but about 47% to 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 H1.
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 El Dorado, and a smaller project called Nebula in Brigade WTC in Chennai. It’s a very small project. But we have seen very good momentum coming from both Cobalt and in Insignia as well as a previously launched block in El Dorado 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 like 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 already — and under construction projects has been strong across the board as well.
Parikshit D. Kandpal
And Pavitra, on the pipeline for Q3, the launch pipeline for Q3, if you can? How much of million square feet are in terms of value, if you can help us understand your planning to bring to the market.
Pavitra Shankar
So it’s difficult to, again, because of approval timeframes, really for us to tell you exactly what will be launched in Q3. But in Q3, we are 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 the next six weeks or so.
But for sure, here 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. It’s a 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.
Parikshit D. Kandpal
Okay. And just the last question on margins. So if you look at historical and then the sales which you’re recognizing on the resi side right now and booking around 13% margins. But for the sales doing right now, so Q1 and Q2, so what kind of embedded margins do you believe these presales would be carrying on for Q1 or Q2?
Pavitra Shankar
Yes. So definitely, we are seeing in the EBITDA margins today. We are assuming costs also sort of hold up rate. So if we do that, then we should definitely see north of 28%, 29% in terms of EBITDA margin.
Operator
The next question is from the line of Saksham from AMBIT Capital.
Saksham Mongia
I have two questions. First question is finally related to the commercial portfolio strategy. As noted, the commercial portfolio contributed around 6% of presales in the current quarter. With the company planning to add 3 million square feet for the commercial portfolio, what is the strategy moving forward? Will the new space will be leased out? Or will it be sold or a combination in between the two? And I’ll go with the second question also. Can you provide more insights on the company’s plan to expand its residential portfolio in Chennai market? Where do you see the company’s market share in this segment over the next three to five years? These are the two questions from my end.
Nirupa Shankar
Yes, Nirupa here. See, basically, every time we take on a commercial project, it really depends. But overall, we expect project five million square feet 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 for Brigade Twin Towers, one tower, 550,000 square feet is slated for sale. We are also looking at Padmini C block for sale.
Pavitra Shankar
Yes. So your question on residential in Chennai. Yes, as you have seen and over the last couple of years, we’ve been expanding our presence in Chennai across all the 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 square feet of upcoming launches and pipeline for Chennai, we should be have — 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.
Operator
The next follow-up question is from the line of Parikshit from HDFC Securities.
Parikshit D. Kandpal
So Pavitra, again, referring to my other — earlier questions on. If the launch delays continues, 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 presales?
Pavitra Shankar
Well, it’s not H2, it will certainly be in Q1. So it’s — 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 confirms 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 square feet 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.
Parikshit D. Kandpal
But you see a probability of like all these launches is bunching up in the Q4, Q3 maybe a slight kind of a miss if you are not able to get approvals?
Jayant Bhalchandra Manmadkar
Yes. That’s the way we are looking at it for now.
Parikshit D. Kandpal
Okay. Q3 declined and then.
Pavitra Shankar
It’s not like we have — we are not in the early stage of design approvals on any of these. But, these are 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.
Parikshit D. Kandpal
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 three, the third quarter and then you see a sharp uptake as launches happen in Q4?
Pavitra Shankar
So there’s 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.
Parikshit D. Kandpal
Okay. But as of now, you’re maintaining the 15% to 20% kind of growth over the last year of INR6,000 crores of presales?
Pavitra Shankar
Providing we can launch, yes.
Parikshit D. Kandpal
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 and new sales value added in H1 FY ’25? And from the proceeds from the QIP, how are you looking to deploy it towards new land acquisitions?
Pavitra Shankar
So on the QIP, we basically raised the funds for growth of the organization, focused a lot on the residential sector. In terms of business development, I think every year for the last few years, we’ve been adding about and doing about INR1,000 crores of business development activity.
In the past, I think, six months, we’ve added around five million to six million square feet 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 fund so that we would be ready for more outright and larger projects on the JV basis as well.
Parikshit D. Kandpal
So this fund QIP proceed will also go — part of that will go towards the hospitality or no hospitality will rely in the money, then should, the capex will be funded from the proceeds of the IPO. So how will you allocate this money? Are this largely be resi, and commercial and then hospitality, like it’s on its own gets money from the IPO proceeds?
Pavitra Shankar
Yes. So we raised the funds in BEL for the QIP predominantly for the residential business. Since we have filed the DRHP for hospitality, we won’t be making too many comments on that.
Parikshit D. Kandpal
But, largely this is for resi businesses QIP?
Nirupa Shankar
Not so. As I mentioned earlier, it is for the residential business. So it is not for hospitality.
Operator
The next question is from the line of Parvez Qazi from Nuvama Group.
Parvez Akhtar Qazi
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 square feet. So fair to say this would have a GD of some — GDV of somewhere between INR10,000 crores to INR12,000 crores?
Pavitra Shankar
Yes. Yes.
Parvez Akhtar Qazi
And the three million square feet upcoming commercial projects, these will be largely on the lease model? Or can we look at a sale model going ahead also?
Pavitra Shankar
Currently, these are all for leasing.
Parvez Akhtar Qazi
And these will be largely in Bangalore? Or you will have some portion coming up in the integrated projects in Hyderabad also? Will that also form a part of the three million square feet?
Nirupa Shankar
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 Brigade Square, which is in Trivandrum and Brigade Tech Boulevard, which is in Chennai.
Parvez Akhtar Qazi
Sure. The other is a data question for Jayant, sir. Sir, what were the BTG and the WTC rentals in Q2?
Jayant Bhalchandra Manmadkar
Sorry, could you just repeat that again?
Parvez Akhtar Qazi
What was the rental contribution of BTG and WTC in Q2?
Nirupa Shankar
WTC was about INR50 crores in Q2 FY ’25, and BTG was about INR63 crores in Q2 ’25.
Operator
The next follow-up question is from the line of Parvez Qazi from Nuvama Group.
Parvez Akhtar Qazi
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?
Jayant Bhalchandra Manmadkar
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 are not looking at any other geography at this point in time.
Parvez Akhtar Qazi
Sure. And any update on the Kokapet project? By when can we have some clarity on that?
Jayant Bhalchandra Manmadkar
Yes, the target continues to be Q3 to launch Brigade Neopolis. We will be 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.
Pavitra Shankar
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 we eventually launch the commercial block.
Parvez Akhtar Qazi
Sure. And lastly, what would have been the share of Bangalore in the Q2 presales?
Pavitra Shankar
About 90%.
Operator
The next question is from the line of Prem Khurana from Anand Rathi.
Prem Khurana
Congratulations on very good set of numbers. So my question was with respect to our residential real estate vertical. So what I observed from the data that are given in the presentation is, I mean, we generally used to be around INR6,000, INR6,500 of number in terms of weighted average realization until some time back. And we’ve gradually moved to almost around INR10,000 a square feet sort of number. And even in the launch pipeline, I mean, the way you’re guiding in terms of GDV potential seems that it’s mostly INR10,000, INR12,000 a square feet sort of number.
So is it that — I mean, what part of this — the shift that we’ve seen from INR6,500 to INR10,000 would be, because of the organic price appreciation that we would have experienced in the market? And what — how much of this would be essentially because of the changed of product? And is it, I mean, fair to assume that, I mean, we moved up, I mean, in terms of the product that we offer now compared to and what we used to offer, let’s say, three, four years back?
Pavitra Shankar
Yes. So if you look at the quarterly APR trend over the last couple of years, as you mentioned, it used to be around INR6,000. Even as recently, I’d say, just five quarters ago, it was more like INR7,000. In terms of the like-to-like price change, it moved from about INR7,000 to around INR9,000, INR9,500. So the typical mid-segment or slightly upper mid-segment to sell is around an average of INR9,000, INR9,500. Again, that can change depending on which submarket 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 INR10,000 on an average. So Brigade Icon, where the average ticket — with the average price per square foot is INR10,000 that is going to contribute, some of the Insignia is also north of INR12,000. So that’s all causing the average to increase much of about INR10,000. 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 INR10,000 or so.
Prem Khurana
Sure. And any thoughts on, would you want to kind of go even more premium, I mean, let’s say, even beyond Icon, which is where I mean, you will all still get to have some more movement in the average realization? And generally, I mean, what we get to have from the market essentially people are saying that it’s difficult to be able to find quality contract. 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, part of the growth also needs to come from value, which is where you will be able to kind of optimize construction even if there is, let’s say, some dearth of contractors in the market?
Or I mean, how should we see it? I mean, when you say 15%, 20% sort of growth, is it — would it be a function of more volumes than value or more value than volumes?
Pavitra Shankar
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 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.
Prem Khurana
Sure. And on the Twin Towers, because I mean, you’re almost there. There’s hardly any capex left. I mean, any thoughts on the way the demand is, the inquiries or LOIs. I mean, if you could share your thoughts on have we started engaging with the clients for the area that we intend to kind of lease out?
Nirupa Shankar
Yes. So I think that’s a relatively new market for office. We will — 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 to — 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 square foot, which is good for that market. So what 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, at the right time, might consider even putting Tower A under the sales part of it.
Prem Khurana
Sure. And just one last. Yes, so just one last if I may, please. On the capex side, I think the slides suggests, I mean, we still have around INR700 crores, INR800 crores to grow on capex, the balance amount, which is yet to be kind of spend from our side. And the launch pipeline gives us a number of almost around three million square feet that you intend to launch. I mean, let’s say around INR1,500-odd crores with incremental capex.
And given the fact 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 through in this year itself, which is where suddenly the capex pipeline would go up from INR700 crores to INR2,200 odd crores sort of number. Would you want to phase this out or?
Pavitra Shankar
Yes, the capex is typically phased over three to four years. Whatever as 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.
Prem Khurana
Okay. Sure. So if you get to have a permission, this entire three million square feet could come to the market and you would start construction on the entire three million square feet itself?
Jayant Bhalchandra Manmadkar
Yes, yes, that’s the intent.
Operator
The next question is from the line of Abhishek Khanna from Kotak Securities.
Abhishek Khanna
I wanted to check what is the share of your attributable presales in 2Q? I think you not shared that number in the presentation. So what is that number out of INR1,820 crores?
Jayant Bhalchandra Manmadkar
Sir, can you just repeat that?
Abhishek Khanna
I’m asking what is the share of your attributable presales in 2Q of the INR1,820 crores that you’ve done, what is your attributable share?
Pavitra Shankar
Okay. Sorry, I didn’t fully get your question. But about INR1,800 crores in presales, about 75% to 80% of that would be Brigade share.
Abhishek Khanna
Sure. Second, on the commercial portfolio, your earnings, of course, have 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 INR2.9 billion of rentals that you got in 2Q, is almost all of that coming in on the 95% of the portfolio?
Nirupa Shankar
So the occupancy that we are referring to is the current operating portfolio. It doesn’t include some of the projects like Twin Towers and Padmini, which is — which have not yet been capitalized.
Abhishek Khanna
So all 95% of this is giving you rentals as of 2Q? Or do you expect this INR2.9 billion to pick up further?
Nirupa Shankar
No, no, that’s right. It’s the same thing. So are you saying, is the full potential achieved? Is that what you’re saying?
Abhishek Khanna
Yes. Have you started getting rentals for all 95% of the occupied area or the rentals are yet to commence for some of them?
Nirupa Shankar
Yes. We are getting rental for all 95% of it.
Abhishek Khanna
Perfect. And the last one. When you’ve referred to delays in getting approvals, is 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?
Jayant Bhalchandra Manmadkar
It’s a combination. Elections has played a part, whether it’s the state elections in some of these states or whether it’s the central election. 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.
Abhishek Khanna
Okay. So it was all largely election-related state or general, which you think is largely behind you.
Jayant Bhalchandra Manmadkar
Yes.
Operator
The next question is from the line of Biplab Debbarma from Antique Stockbroking.
Biplab Debbarma
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 is growing?
Pavitra Shankar
So I would say it’s both. The Chennai market, I think, has long been overlooked. Starting from even pre-COVID, both our projects, World Trade Center Chennai, the Residences at World Trade Center Chennai as well as Brigade Xanadu have really 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.
Biplab Debbarma
Okay. That’s great. And just wondering of the — in terms of demand in Bangalore. So of the projects that 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 ’24 is the same or not?
Pavitra Shankar
Yes. So it is — 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 also. So there also, we’re seeing good traction. Considering it’s only been six to seven months, we’ve sold around 40% to 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.
Biplab Debbarma
And my third and final questions, basically, assuming that approvals are not an issue. Let’s be optimistic. And so if that is the case, there is 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 that 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?
Pavitra Shankar
See, we have around three million square feet of launches for Chennai, so a few quarters. There, that’s about three million square feet, I would say the GDV there would be around INR3,000 crores, assume an approximate pricing of INR10,000 or so, maybe that’s a little more.
For Hyderabad, we have a two million square feet project launching. There, I would expect the GDV to be around INR2,400 crores there. So — here also, we have around, say, two to three — two million to 2.5 million square feet of projects, which, again, I would value at around INR10,000 a square foot 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 name.
Biplab Debbarma
Okay. That’s fine. So three million square feet we expect in second half — Three million square feet in Chennai, we expect in second half of FY ’25? Or this would be over the period of, say, second half of FY ’25 and FY ’26 kind of?
Jayant Bhalchandra Manmadkar
Yes, in the next, say, in a matter of three quarters, may not be necessarily two quarters, or say three quarters, yes.
Operator
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.
Nirupa Shankar
Good evening, everyone. Before we close, I just wanted to make 1 clarification to Abhishek’s question from Kotak Security. I think the hard option that we have has not yet started yielding rental at Brigade Tech Gardens. So that should yield about another INR40 crores to INR50 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 beds St. John’s Medical College Hospital at Brigade Meadows, a unique collaboration between Brigade Foundation, which is Brigade Group’s not for profit trust, St. John’s National Academy for Health Sciences, opened its doors on November 5. This hospital is designed to provide affordable, accessible and quality health care to the other people of South Bangalore — to the people of South Bangalore. Furthermore, we will be starting construction of another operation with St. John’s in our 50-acre township, Brigade El Dorado.
We recently also laid the foundation stone 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 in 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 Center Kochi won Sustainability Award at the Society of Energy Engineers & Managers, SEEM, 2023. We also received two awards at the fourth edition of the Sustainability Summit and Awards 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.
Operator
[Operator Closing Remarks]