May 29, 2024: Shriram Properties Limited (SPL) has recorded high sales volumes of 4.59 million square foot (msf), supported by six project launches that provided new supplies of around 3 msf in FY24, the company announced its audited financial results for the quarter (Q4FY24) and the full year (FY24) ended March 31, 2024.
Sales values registered a new high of Rs 2,362 crore in FY24, up 28% YoY, supported by higher volumes and better realisation. Sales momentum remained strong despite external factors that led to launch deferrals witnessed during Q2 & Q3.
According to the company, FY24 gross collections were at Rs 1,391 crore, up 16% YoY, reflecting strong construction progress and consequent milestone-led customer collections over the quarters. SPL achieved completion in eight ongoing projects with aggregate development area of 3.8 msf, several of them ahead of RERA timelines. Riding on this, SPL handed over 3,000 homes/plots during FY24 (+50% YoY), another new record for the company.
The company’s conscious efforts to move up the price curve over the last two years is paying-off well. Overall portfolio average realisation improved 12% YoY, while average realisation for mid-market units were higher by 20% YoY. The market undercurrent remains positive, and SPL is working towards further improvement in its price curve in its core markets.
Quarterly sales stood at 1.56 msf, an increase by 19% YoY and sales value rose to Rs 708 crore, an increase by 43% YoY in Q4FY24. Gross collections rose by 10% YoY to Rs 336 crore and customer handovers stood tall at 1,396 homes/plots in Q4FY24.
During the last quarter, SPL launched two projects – Shriram Sapphire (a 400-unit residential project with 0.5 msf aggregate saleable area near Electronic City, Bangalore) and Shriram Shubham (a 0.46 msf plotted development opportunity at Chennai). Shriram Sapphire was launched under the codename Ultimate that received exceptional response with nearly 70% of project area sold within first week of launch and around 80% of project area sold within a month.
Total revenues have grown 21% YoY to Rs. 987 crore on the back of successful completion and revenue recognition in certain key projects viz., Shriram Liberty Square (Bangalore), Shriram Park 63 – 1B (Chennai), Shriram Chirping Woods T5 (Bangalore) Shriram Grand One (Kolkata). Revenue recognition with handover of units in certain other projects continued as well.
EBITDA for the full year stood at Rs. 223 crore, compared to Rs 183 cr in FY23, reflecting a growth of 22% YoY. EBITDA margins remained stable at 23% in FY24.
Interest expenses remained flat at Rs 74 crore, despite absorption of interest costs associated with the re-acquisition of JV economic interest in Shriram Park63 from Mitsubishi Corporation during Q3FY24. Overall finance cost however is higher by 11% YoY, due to certain one-time interest costs associated with the acquisition of Shriram 122 West in Q1FY24.
SPL’s cost of debt dropped further to 11.6%, as compared to 11.9% in FY23. It compares favourably with average cost of 13.7% in FY21 and such steep reduction is despite the RBI rate hike impact (approx. 200bps) during this period. The cost of incremental debt is now in the 10.0% to 10.5% range, which is encouraging.
Net debt was at Rs 441 crore and debt-equity declined marginally to 0.35:1, which is amongst lowest in the industry. Net profit improved to Rs 75 crore in FY24, compared to Rs 68 crore in FY23, up 10% YoY.
Consolidated cashflows from operations nearly doubled to Rs 227 crore in FY24. The company has realised free cashflows (FCF) before new project investments of Rs 156 crore in FY24, compared to Rs 116 crore in FY23. Notably, supported by project completions, the company has unlocked free cashflows of around Rs 272 crore in last two years, which has played significant role in augmenting new projects towards sustaining growth momentum in the future.
On a quarterly basis, total revenues have more than doubled to Rs 358 crore while EBTIDA has grown by a 45% YoY to Rs 66 crore in Q4FY24. Net profit for the quarter stood at Rs 20 crore, up 28% YoY in Q4FY24.
Murali M, CMD, Shriram Properties said, “Our record-breaking results are a testament to our commitment to growing the business profitably, year-after-year. We have achieved significant milestones during the year, notwithstanding certain external-led delays in receipt of approvals and OCs. Our teams have worked diligently to overcome challenges and deliver on promises. Supported by our strong market presence and success of strategic initiatives, we are confident of sustaining growth and profitability in the coming years. Our robust launch pipeline, strong execution platform coupled with continued focus on cost management and commitment to delivering quality will support towards this end”.
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