Real estate developer Shriram Properties (SPL) on August 14, 2023, announced its financial results for the first three months of the financial year 2023-24 that ended June 30, 2023 (Q1 FY24). During this quarter, the company achieved sales volumes of 0.78 million square foot (msf) and sales value of Rs 459 crore, marking a YoY increase of 17% and 47% respectively. Plotted development accounted for 21% of sales volume in Q1 FY24 while the DM model accounted for a 12% share.
In Q1 FY24, the real estate firm’s revenue from operations grew 10% YoY to Rs 135 crore, while the total revenue grew by 8% YoY to Rs 157.2 crore. The DM fee income accounted for 12% of the total revenue. The net profit stood at Rs 16.6 crore in Q1 FY24, compared to Rs 10.5 crore in Q1 FY23, reflecting a growth of 59% YoY. The profit before tax (PBT) and joint venture (JV) income stood at Rs 18.3 crore, up 134% YoY. The company’s share of profits from JVs stood at Rs 6.1 crore, reflecting sustained revenue recognition momentum at Shriram Park63 Chennai, a JV with Mitsubishi Corporation of Japan.
SPL’s total operating expenses in Q1 FY24 declined 5% YoY to Rs 103.8 crore, supported by 15% lower cost of revenues and 2% lower employee costs. EBITDA during the quarter increased by 50% YoY. Interest expenses were down 14% YoY at Rs 16 crore as against Rs 18.7 crore in Q1 FY23. In addition, the company has provided for a non-cash finance charge of Rs 5.1 crore and non-recurring interest cost of Rs 6.9 crore associated with the acquisition of a new project in Chennai during May’23. The gross debt stood 12% lower at Rs 488 crore, while net debt stood at Rs 403 crore as at the end of June 2023
During these three months, SPL launched Shriram Esquire, a premium residential project in Koramangala, Bangalore and Shriram Hebbal 1 at Bangalore, both of which recorded 38% sales at launch. With a target to hand over 3,000+ units in FY24, the company has lined up two new launches in Chennai and one new launch in Bangalore during Q2 FY24, and is targeting 3 more new launches during Q3 FY24. In Q1 FY24, Shriram Properties completed three projects- Shriram Blue, Shriram Rainforest and Eden144- with an aggregate development area of 1.36 msf.
Blended average realisation for constructed units increased by 16% YoY to Rs 5,463/sqft in Q1 FY24 from Rs 4,694/sqft in Q1 FY23. In Q1 FY24, mid-market units clocked 1%-6% higher realisation across projects and averaged at Rs 6,525/sqft, affordable units registered 8% YoY growth at Rs 4,711/sqft and plotted unit realisation averaged at Rs 3,045/sqft.
M Murali, CMD, Shriram Properties, said, “These favourable results not only validate our relentless pursuit of excellence but also fortify our resolve to continuously enhance the company’s landscape. Looking ahead, with our launches we remain positive in our commitment to, delivering homes and contributing meaningfully to the growth of the company.”
