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Brigade Enterprises Ltd
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Ladies and gentlemen, good day, and welcome to the Q4 FY '24 Earnings Conference Call of Brigade Enterprises Limited. [Operator Instructions] 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.
So thank you. Good afternoon, ladies and gentlemen. Welcome you all to the Brigade Enterprises Q4 Financial Year '24 earnings call. I'm joined by our Managing Director Ms. Pavitra Shankar; Joint Managing Director; Ms. Nirupa Shankar; our Executive Director, Mr. Roshan Matthew; Mr. Amar Mysore; Mr. Pradyumna Kumar; also by our CFO, Jayant Manmadkar and who is 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 '24, on the back of robust demand, with a strong pipeline of 22 million square feet of ongoing projects, and at around 16 million square feet 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 '23, '24 witnessed sales at an all-time high across all metro cities put together. This context, our overall real estate business has also outperformed previous years with 7.55 million square feet area sold, at a value of over INR 6,000 crores, including land owners area [indiscernible].
Collections from the segment were healthy INR 4,243 crores in financial year '24. The average realization of units sold during the year has gone up to INR 7,970 per square foot, which is a 23% increase over the previous year, or 31% increase on 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 square feet of new residential launches lined up across the cities of Bangalore, Chennai, Hyderabad and Mysore, which will further consolidate our position in FY '24, '25.
As regards leasing segment, first, I'll talk about Office. Our office segment witnessed a strong performance in financial year '24 with net office space absorption of more than 1 million square feet in FY '24, of which 0.2 million square feet was achieved in Q4, with 97.5% occupancy across its leading portfolio, Brigade ranked among the top developers in [Banglore] with 7% market share for '24. Brigade Tech Gardens has been in the spotlight achieving 100% occupancy with market tenant, despite the shrinking SEZ market post [indiscernible] of the regime.
The office demand scenario is expected to be robust for financial year '25, and Brigade is poised to take advantage of this momentum. Demand is being driven by medium and large sales office base requirements, dominated players from automobile, technology, engineering and manufacturing [indiscernible]. As regards to retail, during financial -- during the quarter 4 financial year '24, footfalls across our 3 malls grew by 10%, despite multiplexes across the malls, clocking only 4% growth year-on-year due to limited movie content. [indiscernible] space is strong, especially by F&B players, family entertainment center and fashion lifestyle brands. Across our entire leasing portfolio, we clocked a revenue of INR 937 crores for the financial year '24, 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 4 financial year '24 or hospitality SBU demonstrated consistent growth, witnessing improvements across both ARR and occupancy percentages. Revenue surged by 13%, primarily fueled by an increase of 11% in occupancy and AG OP of about 10% compared to Q4 '23. There was a revenue -- there was revenue year-on-year growth of 15% fueled by ARR growth of 8% 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 have 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 listed sales of 7.55 million square feet for the financial year ended March '24. It also -- it is also the highest ever sales for the quarter with 2.72 million square feet.
To start with the company's update for quarter 4 FY '24, the Real Estate segment clocked a turnover of INR 1,390 crores, an increase of 143% over Q4 FY '23, with an EBITDA of 20%. The leasing segment clocked a turnover of INR 247 crores, an increase of 32% over Q4 FY '23 with an EBITDA of 71%. The hospitality segment clocked a turnover of INR 126 crores, an increase of 13% over Q4 FY '23, with an EBITDA of 36%.
The consolidated turnover -- consolidated revenue for quarter 4 FY '24 stood at INR 1,763 crores, an increase of 102% over Q4 FY '23. Consolidated EBITDA for Q4 FY '24 stood at INR 493 crores, an increase of 113% over Q4 FY '23. EBITDA margin stood at 28%. Consolidated PAT after minority interest for Q4 FY '24 is INR 206 crores. We achieved highest ever collections in Q4 FY '24, amounting to INR 1,838 crores, an increase of 26% over Q4 FY '23.
Net cash flow from operational -- operating activities stood at INR 589 crores, an increase of 35% over Q4 FY '23. Coming to the group's performance for FY 2024, the Real Estate segment clocked at a [ turnover ] INR 3,662 crores, an increase of 51% over FY '23 with an EBITDA of INR 510 crores. The leasing segment clocked a turnover of INR 938 crores, an increase of 25% over FY '23, with an EBITDA of INR 684 crores. The hospitality segment clocked a turnover of INR 464 crores, an increase of 18% over FY '23 with an EBITDA of INR 168 crores.
The consolidated revenue for FY '24 stood at INR 5,064 crores, an increase of 42% over FY '23. Consolidated EBITDA at INR 1,362 crores, an increase of 39% over FY '23. EBITDA margin stood at 27%. Consolidated PAT after minority interest for FY '24 is INR 452 crores, an increase of 55% over FY '23. We achieved highest ever collections for the year amounting to INR 5,915 crores, an increase of 9% over FY '23. Net cash flow from operating activities stood at INR 1,575 crores.
Coming to the debt and liquidity position. We continue to have 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 crores. The cash and cash equivalents were INR 2,073 crores, as on 31st of March '24. Consequently, company's net debt outstanding as of 31st March '24 was INR 2,590 crores, out of which BL share is INR 1,908 crores.
We continue to have zero residential debt driven by 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 '24. I will hand it back to the moderator for questions.
[Operator Instructions] The first question is from the line of Karan Khanna from AMBIT Capital.
Congratulations to the team on ending the year on a strong note. My first question, if I look at Slide #9 of your investor presentation, I see that the presales CAGR over the last 4 years, this has been largely driven by volumes at 15%, while pricing growth has only picked up in FY '24 and stood at around 9% CAGR over the period. Now as we look at next 3 to 4 years of evaluation for your real estate portfolio, and given the robust launch pipeline that you have in FY '25 and FY '26, how should one think about the growth? Will it largely be driven by volumes or because of [indiscernible] potential for pricing growth as well?
Yes, sorry. Yes. So regarding our portfolio, we are primarily looking at it more as the growth in area, is how we look at it in Brigade. So when we plan a CAGR or look for any sort of future growth, we are typically looking at area sold. But however, given the pricing appreciation that we've seen as well, we do expect to see the APR 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. So I'm not sure 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 square feet area sold in FY '24, is it possible to know the breakup from the new launches in FY '24 and sales from the existing inventory?
Yes. So in FY '24, including Q4, 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% to 47%. And by value, it's around 51%, the new launch.
Yes, the number I was trying to get to Pavitra is, let's say you sold 7.5 million square feet of area in FY '24. So what could be the breakup of this? How much of this was contributed from new launches that you did in FY '24? And how much of this was from your existing inventory that stood on the balance sheet as of March '23?
That's what I mentioned. And maybe the other it's the same -- so around 50% of the area sold in the financial year were from new launches. And maybe another way to put that forward is also. We launched around 6 million square feet in the course of the financial year. Of the 6 million square feet that we launched, we've already sold 68% of whatever was launched in the financial year.
Sure. That is helpful. And that clarifies. Second question, if I look at the Brigade Insignia, that's a project that's expected to be launched in the next few months. Can you talk about the interest that you're seeing in terms of the AI 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 success?
Yes. 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 quite a hefty ticket size for Bangalore. It's coming in at around INR 3 crores to INR 4 crores 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 [indiscernible] 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 velocity. We want to make sure we are getting the right pricing for this project. In terms of the overall market, yes, I mean, we are positive about 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 a growth in our portfolio, and also across the competitors as well.
Sure. And if you talk about your annuity and the hotel portfolio -- 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 relatively sluggish -- or rather, I would say, muted rate growth in the fourth quarter, versus industry expectations overall. So what kind of ARR one should pencil in for the industry for FY '25?
Yes. So for the hospitality portfolio, we -- as mentioned in the presentation, we are doing a few new launches, or we are launching a few projects this year. Both -- two of the projects will be with Marriott [indiscernible] by Marriott, one is with Holiday Inn or IG Group. Last year, we had mentioned that we are setting [indiscernible] in Chennai, and that is partnered with the Grand Hyatt. And we will be doing another [indiscernible] in [indiscernible] Hyderabad and that will be an intercontinental hotel brand. So we are [indiscernible] we've tied up with all these companies for those hotels. And in terms of the growth in the we saw a 10% growth in the average realization, and I expect this to continue for the year ahead, because there will be -- 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 occupancies, because they're already trading at around 75%.
Sure. This is helpful. And lastly, on business development, you spent close to INR 2,000 crores in FY '23 and '24 towards land acquisitions. So how should one think about this number in FY '25 and '26?
Pradyumna here. So we have about INR 900 crores of cost to be incurred as far as our land bank, which is already committed. Naturally, 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.
The next question is from the line of Pritesh Sheth from Motilal Oswal.
Congrats on strong numbers. Firstly, if you can provide a split of these launches, 12.6 million square feet between the three markets? And just in case of Bangalore, most of the sales this year came from that 7.5 million square feet. Do you think additional -- there would be decent growth coming in, in Bangalore or it's Chennai and Hyderabad, which would be contributing to this volume over the next couple of years where you ramp up launches in these two markets?
So yes, of the 12.5 million or 12.61 million that we planned for FY '25, 7.5 million square feet 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 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 yes, this is sort of the picture going forward. We do have a couple of new projects coming up in Mysore and so on, but these are very small and don't necessarily add to the scale.
On the question on market contribution. So [Banglore], you do expect equal amount of volume growth that you're expecting in Chennai, Hyderabad growth should be lower there and Chennai, Hyderabad would, obviously, add to the growth.
So overall, 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 90% or more from Bangalore, because it's a kind of inventory that we had. But considering we'll be launching at least 5 million square feet in these other two markets, then I expect the share of Bangalore in terms of to sales to reduce then from a 90% in FY '25.
Sure. And with this launch is ramping up, right? Your volume growth guidance earlier have been around 15%, 20%. Would you still stick to that guidance? Or with this 12.5 million square feet, we could do much higher in terms of over the next couple of years?
Yes. 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. Yes, that said, the base is only getting larger. So they naturally to keep growing at rate is also -- 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 good numbers. If the question of, does it come in the same financial year per se? Or does it go a quarter here or there?
And any slipover do we expect in this 12.6 million square feet like we had last year with Chennai Mount Road? Or you're confident in moving see through all these launches in this year itself?
So yes, so we are confident of it. I don't think we expect any slippage.
We are launching.
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 were lined up in Q3, Q4, et cetera, we are confident of having it launched in the same period.
Sure. And just one last on your commercial launch pipeline. We saw higher number last quarter, but that's come down to 3 million square feet versus 5.5 million square feet last quarter. Just -- those project launch have got pushed out? Or any change of plans in those, just your comment on that.
Yes. 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're going to document commercial launches in our numbers. For residential, it's very clear. 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 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 are finished a little bit this quarter, but they are still in the land bank and this will be following the same timeline per se.
[Operator Instructions] The next question is from the line of Prem Khurana from Anand Rathi Shares and Stock Broker.
Congratulations on good set of numbers. So I mean when I look at presentation, what I observed with the converted a part of our [indiscernible] from rental as to kind [indiscernible] we want to sell a tower PE now. Why would this change be there? Because I mean [indiscernible], when I look at it over the last 2 years the year, we are able to do more than 100 square feet of area. And the outlook again seems to be pretty good for leasing environment, but it seems that the part of [indiscernible]...
You're not too clear. So if you can just to be a little slower, a little louder. Closer to the mic.
Is it better now?
Better slightly.
Yes. So I was asking, I mean, when I look at our twin tower project, there was 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 sell. So why would this be the case? I mean, given the fact that we've been leasing seriously could have over the last 2 years, on an average, we are able to lease out almost 1-odd million square of area. And the outlook, again, seems to be pretty good for leasing, right? Why would you convert -- I mean, does it mean you want to kind of somehow reduce capital intensity to get the money back towards or next [indiscernible] and then use that money going to have some more growth in some of these other verticals?
See, as developers all [indiscernible] of commercial products, we have seen both for leasing and sales 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 retail. So in this case also, all our projects we will see over 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, we reclassified this one tower for sale and another tower for leasing.
Sure. And sir, where are we in terms of, I mean, leasing inquiries for twin tower. Have you [indiscernible] leasing with the clients because I mean it's nearing completion now. So what sort of interest do you have in place?
It is happening. It is slightly less than the desired pace.
There's also a lot of end users that are looking at in that market. While there are RFPs in the market, 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 [indiscernible].
Sure. Okay. And the second question was on growth plans. In [indiscernible] do become fairly large. I mean, as far as Bangalore is concerned, we will be one of the largest player now. And I'm not sure, I mean if we have any more micro markets within Bangalore, be able to explore in terms of wherein I mean we've been. -- we would not have been there, right? It seems a growth, I mean, I think in your initial remarks 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, it wasn't even a year down the line, I mean, would have started looking at beyond Chennai and Hyderabad, because to be able to develop any new market, generally should 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 -- I mean, possible to share any geographies that would be on your radar, even in terms of where 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 2 cities like Kochi and Mysore and to smaller extent in [indiscernible]. But if your question is saying, are we expanding to Mumbai and other NCR for the time being? Not yet and we need to see -- as we have always felt we have not fully tapped the markets in Hyderabad and Chennai, which have got good potential. And within Bangalore, we are tied up a number of new projects on a large office space thing near airport, like that and the industrial part. Some of these things will be announced at the appropriate time. That's how it is. But I think these three cities have great potential. Not that others don't have, they may have bigger potential also, but we would like to focus on these three cities for the time being.
So this is really helpful. And one last on my side on the hospitality side, I think we were planning to open a partner. So where are we in our efforts to be able to kind of get 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 at the right time.
Is it possible to confirm whether we're looking for a strategic partner or a pure play financial parter? I mean, do you want to...
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 [indiscernible].
[Operator Instructions] We have the next question from the line of Parvez Qazi from Nuvama Group.
Congratulations for a great set of numbers. So a couple of questions from my side. First, of our resi projects that we plan to launch in FY '25, 12.6 million square feet, what would be, let's say, the approximate GDV of these projects?
So we are thinking around INR 13,000 crores would 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?
We are pushing to make it happen in first half, so we're working towards that.
Sure. And lastly, for the 3 million square feet commercial projects which are there in the pipeline, so are these all stand-alone projects? Or do these also include some portion that we might want to do in -- as part of a larger development in Neopolis or Mount Road Chennai?
Yes. So 3 million that we've listed out there, Bangalore will be about 54%. We also launched a project in Chennai, [GIFT City] of the 3 million. One project in Kochi, part of our World Trade Center, Annex. So it's another tower to that. And also, we are launching [indiscernible]. Hyderabad was not included in the launch for this quarter. So we've just mentioned 3 million in there. So I would say Bangalore, 54%; Chennai, 28%; 13% [GIFT City]; and 5% Kochi.
[Operator Instructions] The next question is from the line of Pritesh Sheth from Motilal Oswal.
First is on [indiscernible] now that it's 97% leased out in [indiscernible] auction. How do we see our run rate in terms of rental at [indiscernible] rental or EBITDA, whatever you can provide.
Yes. So the rental -- office rentals, FY '24 was about INR 600-odd crores. In FY '25, we're expecting it to increase by about 16% also based on the kind of leases that will start paying rent. So it should hit about INR 700 crores by end of FY '25.
And that would be the full potential of this portfolio, right?
Sorry?
That would be the full potential of this portfolio, right? Or...
[indiscernible] Full potential will [indiscernible] INR 703 crores.
Okay. Got it. And one last on collection breakup between all the segments, if you can provide that.
So total collection for the quarter is INR 1,836 crores in that residential is INR 1,327 crores; commercial sale is INR 33 crores; commercial lease is INR 179 crores; retail INR 59 crores; hospitality INR 170 crores; and EMS is INR 68 crores.
Got it. Just one, sorry, clarification, this full potential INR [750 crores] is our share or total share?
It includes GIC share. Our share would be about INR 500-odd crores of that.
Okay. And then retail rental is over and above this?
Talking about office portfolio, correct?
Yes, I was talking about office portfolio and then there would be retail portfolio rental income over and above this income.
That's right.
The next question is from the line of Biplab Debbarma from Antique Stock Broking.
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 [indiscernible] in realization. Is it like a product like mix is reading towards more premium products, or sale projects seeing a significant jump in selling rate?
Yes. 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% to 18%. But going forward, also, we are not only envisioning that we can continue to still take up the price for the mid-segment product, 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 great. And ma'am, so what I saw is last -- this year in residential, you launched around 5.36 million square feet of projects. And last was also similar kind of launches, new launches in residential and [indiscernible] of volume...
You are not clear. Please come closer to the mic and speak clearly.
Okay. I'll come back.
[Operator Instructions] The next question is from the line of Biplab Debbarma from Antique Stock Broking.
Is it better now?
Much better.
Okay. Sir, what I was saying that last year and this year, the new launches in Residential is almost similar, 5.26 and 5.46 or something. Where is the total absorption of the total [indiscernible] in terms of volume this year has been significant [indiscernible] ...
Sorry to interrupt, but your line keeps breaking up in between towards the end, sir.
Yes, I think I understood what you're saying, you're saying Biplab, even though the launches are about the same, the sales numbers are much higher...
Yes, ma'am.
A factor of -- yes, it's just that the launches are getting a [indiscernible] much faster. 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 '24, 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 that means you launched that 12 million or so million square feet and see similar kind of growth in realization, the total sales booking growth to be much higher than 20% or 30%. That's what I'm trying to understand, whether we should see similar kind of [indiscernible] or not. That is what I'm trying to understand. So if the launches this year would be much higher, 12 million and you already alluded the realization would see similar kind of growth. That means we would see 30 -- more than 30% or so -- expect 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, we don't expect a 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 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.
[Operator Instructions] Ladies and gentlemen, we do not have any further questions. Sorry, we have one questioner. The next question is from the line of Parvez Qazi from Nuvama Group.
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 '24. So over medium-term perspective, like over the next 3 to 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. So at a company level, I mean, how do we make those decisions?
Yes, Parvez, I think the best answer is we wanted 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 product, and the ability to purchase and the desire and the ability to go for premium product is definitely there in line with GDP growth expected in line with [indiscernible] income. So we want to capitalize on those trends as well. And in these 3 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 product, 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. My second question is, I mean, on a rough cut basis, what would have been the geographical split of presales for us in FY '24, I mean across the three major cities that we operate?
Yes. Residential, it was about 92% [indiscernible] and because our launches from Chennai and Hyderabad are coming into FY '25. So in -- this past year, it was heavily from Bangalore. Most of the inventory launched -- 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?
During the quarter, rental is about INR 55 crores, [indiscernible] INR 47 crores.
Sorry, INR 55 crores is from?
Brigade Tech Garden.
And 47 crore from WTC?
WTC, correct.
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, on the 54th Annual World Trade Center Association Global Business Forum successfully hosted at the World Trade Center, Bangalore. It is the first time the forum [indiscernible] Karnataka and only the second time in India. The World Trade Center Bangalore bagged two awards, [regional] member of Asia Pacific and global member of [indiscernible] event and it was widely participated by 200 plus world trade center representatives from across the globe.
[indiscernible] Hospital inaugurated a brand-new medical facility called the [Ramaya] Hospital at Brigade Orchard at 135-acre touches in [indiscernible]. The hospital will serve not only the members of Brigade Orchard, but also the people in the neighborhood. The hospital will comprise [indiscernible] individual rooms, can also provide primary acute urgent care services that are world-class quality. Brigade Group was recognized in the top 30 [indiscernible] of future ready workplaces in India, 2024 by [indiscernible] India and [indiscernible]. This recognition is based on 6 key assessments, culture and performance, innovation, resilience, nurturing and sustainable drives. We attribute the success to our diverse talented team. It has been elected to CII Karnataka [indiscernible] '24, '25. As an officer, Pavitra will lead the CII Karnataka Environment and Sustainability panels, [anglo-centric] initiatives. Her role will entail driving membership engagement and [indiscernible] and strengthening ecosystems for collaboration and role. Accurate accretion, we received in the last quarter track reality Personality of the Year at the Economic [indiscernible] 2024. [indiscernible] as the CII excellence awards 2023 for our comment to environmental health and safety practices. [indiscernible] Chennai won an award to ESG at the [indiscernible] award 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 a turn to office. It also secured silver in safety and security at the [indiscernible] awards 2024. So that's a wrap for our earnings of 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.